MSE News: Savings rates dive, so what next for your cash?

Credit-Crunched

grey_gym_sock wrote: »

so you're saying that businesses are essentially out to screw us in every way possible, and therefore we shouldn't complain.

well, that doesn't follow at all.

if you'd said: we need to look out sharp to protect our interests, i'd agree.

if you'd said: it's not easy to change how banks operate, i'd agree again. but it's not impossible for anything to ever change.

That is how capitalism works, people make money off people, those people make money from others and so on. Its not about being screwed over, its about understanding that banks do not have any obligation to offer people more than they deem economically viable.

The only driving factor is what their competitors are offering, I don't like the low interest rates, but I understand my role within the system and try to fend for myself in a very tough time.

innovate

Credit-Crunched wrote: »

Sit in your unencumbered property, enjoy it, crack open the holiday brochure and start to spend your hard earned cash!!

Wish it was that easy!

Having no mortgage is obviously a fantastic plus, but it's not the end of managing your money for best returns. Unless you harbour a secret the rest of us would love to know? Tell us, pleeeze.

innovate

Credit-Crunched wrote: »

The only driving factor is what their competitors are offering

Agree with a lot of what you are saying, but I disagree on that one - - - - the driving factor should be what customers buy. Obviously, competition matters a lot, but real competition only exists when there are real customers who make choices.

As long as we, as customers, don't behave like lemmings and leave our money lingering in 0.5% AER accounts (or worse, 0% AER ones), we stand some chance to live through these doldrums. We are at the receiving end of the economy, though. Can't see how our savings, as sizeable as they may be for individuals, can make a blind bit of difference to the economy as long as the BoE will print any amount of money that is needed to keep the overall ship afloat.

Credit-Crunched

innovate wrote: »

Wish it was that easy!

Having no mortgage is obviously a fantastic plus, but it's not the end of managing your money for best returns. Unless you harbour a secret the rest of us would love to know? Tell us, pleeeze.

Now that would be telling, All I need is your sort code and account number and the secrets will be exposed!

p.s before the forum police come around here, I am joking, no peoples bank accounts have been emptied in the writing of this forum!

grey_gym_sock

Credit-Crunched wrote: »

That is how capitalism works, people make money off people, those people make money from others and so on.

capitalism is a constantly changing system. it changes because of market forces, because of public opinion, because of state regulation. plenty of things which were once acceptable parts of the capitalist system are no longer so. some things have improved.

complaining can be the start of making positive changes. or it can be pointless whinging. it varies.

it's facile to just say "that's capitalism" when ppl complain.

Credit-Crunched

innovate wrote: »

Agree with a lot of what you are saying, but I disagree on that one - - - - the driving factor should be what customers buy. Obviously, competition matters a lot, but real competition only exists when there are real customers who make choices.

As long as we, as customers, don't behave like lemmings and leave our money lingering in 0.5% AER accounts (or worse, 0% AER ones), we stand some chance to live through these doldrums. We are at the receiving end of the economy, though. Can't see how our savings, as sizeable as they may be for individuals, can make a blind bit of difference to the economy as long as the BoE will print any amount of money that is needed to keep the overall ship afloat.

I whole wholeheartedly agree, a consumer onslaught against the banks would indeed drive rates up, however this is not going to happen due to the mass apathy that emanates through the British Public and their views to money.

We have all seen the chain e-mails, only buy petrol from one filling station to drive the prices down on the others to compete, outcome, people stick to their heads in sand, bend over and take it mentality.

I agree with what you say, however sadly you, me and others on this board as a very very small cog in a huge machine.

Right, no, reality, yes

Consumerist

Frankly, I think expending too much effort on finding a decent savings rate is, for most of us at the moment, wasted effort.

What practical difference does 0.1% or 0.2% extra interest really make to our financial position unless we have £millions in savings?

We save far more by shopping carefully than ever we do by saving carefully.

chucknorris

Credit-Crunched wrote: »

People want some ways to get the most of their money in this era of low interest rates, well there is one, PAY OFF YOUR MORTGAGE THAT IS ON 1% ABOVE BASE.

Will people do that, no? Much easier to bleat on about how hard done by everyone is?

yawwwwwwwwnnnnnnnnnnn

My mortgage interest payments are an average of 1% over the BOE base rate but it would be very foolish to pay it off when I earn over double that in interest from my savings accounts. Best to wait and earn the extra interest, then pay off the mortgage when the base rate goes back up.

DotMatrix

So glad I put a substantial sum away at the start of 2012 for a two year fix. The grosss interest payable over the period is 4.2%

Pincher

I think there was a cash ISA around April 2012, three year fixed 4.5% from Nationwide.

Have to open IN-BRANCH: They closed down my local branch two years ago. :mad:

Transfer-IN not allowed, even from existing Nationwide ISAs,
so I'm not missing out that much.

It was probably some kind of "Let me lure you into my office for a financial review" traps.