Savers urge rate rise

ILW

There is an argument that encouraging a decent level of savings does lead to a more stable economy in the longer term. Whether a stable economy is better than boom and bust is debatable.

DervProf

RenovationMan wrote: »

Low rates are great. I'm currently paying less mortgage for a 5 bed farmhouse with an attached 1 bed apartment than I paid in rent for a 1 bed apartment when I first started work.

Really ?

We can hardly call you RevelationMan, can we ?

Anyway, base rate has been held. See you next month.

DervProf

Radiantsoul wrote: »

I am not sure that anyone sensible is claiming that. Interest rates are the cost of money and so lower interest rates will tend to bring forwards consumption and investment. They also lower a countries exchange rate and so will reduce a countries real income, whilst reducing the cost of a countries exports.

A lot of consumption and investment was made a few years ago. Look where that got us.

Really2

Newsflash.

Savers find out that saving means saving not investing.
Rates pre-crash were based on ever riskier activities by banks with their money.
Now that's stopped so have the great rates!!!!

If you want to hoard for a rainy day, deposit etc, save.

If you want to make money (but possibly lose it), invest.

DervProf

Really2 wrote: »

Newsflash.

Savers find out that saving means saving not investing.
Rates pre-crash were based on ever riskier activities by banks with their money.
Now that's stopped so have the great rates!!!!

If you want to hoard for a rainy day, deposit etc, save.

If you want to make money (but possibly lose it), invest.

If you have earned money that you don't need to spend right now, you'll struggle to find a way of maintaining it's value until you do (unless you take some risk with it).

wotsthat

DervProf wrote: »

Anyway, base rate has been held. See you next month.

Why wait until next month? I have a sneaking suspicion that there will be multiple threads on BoE rates between now and the next meeting.

abaxas

Isnt the issue not that we need savers or borrowers, but we need the two in balance.

If the savers dont get a return, they dont save, so you cant lend.
If the borrowers cant borrow, the savers cant get a return.

It's a purely symbiotic relationship.

Graham_Devon

Really2 wrote: »

Newsflash.

Savers find out that saving means saving not investing.
Rates pre-crash were based on ever riskier activities by banks with their money.
Now that's stopped so have the great rates!!!!

If you want to hoard for a rainy day, deposit etc, save.

If you want to make money (but possibly lose it), invest.

I bet the tune you are singing today will be vastly different when you are in your pension years.

F'k em though. They had their chance. It's all about us now.

PasturesNew

I do object to having bailed out wealthier people than me, so they can enjoy cheap mortgages and buy expensive houses cheaply, when it's removed my income. Savers don't get top up benefits, like LHA top ups, or anything... you have to dip into your savings.

So if you were saving for a house/anything - and then lost your job - you're penalised on a fictitious rate that you're not getting. e.g. savings income = £50, but they say it's £5000. (I am not entirely clear how they do it, or the rates and I have no links)

Keeping savings rates low caused a lot of people to bundle into the BTL market, as they believed a house would give them a bigger return than savings too.

ess0two

PasturesNew wrote: »

I do object to having bailed out wealthier people than me, so they can enjoy cheap mortgages and buy expensive houses cheaply, when it's removed my income. Savers don't get top up benefits, like LHA top ups, or anything... you have to dip into your savings.

So if you were saving for a house/anything - and then lost your job - you're penalised on a fictitious rate that you're not getting. e.g. savings income = £50, but they say it's £5000. (I am not entirely clear how they do it, or the rates and I have no links)

Keeping savings rates low caused a lot of people to bundle into the BTL market, as they believed a house would give them a bigger return than savings too.

Surely you've benefitted,you bailed out at the top of the market.