i have said this since 2008 and still don't see why it won't work...

Thrugelmir

The_White_Horse wrote: »

, how much would they get back from turning interest only into capital repayment?

If banks aren't repaid their capital back. How do depositors receive their money back?

Banks only make a margin........ the difference between savings and lending rates (less obvious deductions).

dori2o

ILW wrote: »

Or alternatively, make a law that savers get at least 10% interest. That would also put money into the economy and at least reward the prudent rather than the !!!!less.

I really really hate that phrase.

We have no debt other than our mortgage.

We spend almost every penny we get every month. What we can save goes on our annual caravan holiday in Blackpool.

If we have emergencies we (me and the wife) eat cereal for tea for a week or so in order to pay for whatever we need (we make the kids proper food).

If we could save we would. I have a pension so in effect I am making a provision for later life.

But we are anything but !!!!less.

Living hand to mouth is not something to be ashamed of, especially in these current times.

Try having a little respect for others.

Also, if you're relying on bank deposits to make significant gains through interest, then you get all you deserve with the intrest rates.

There are still lucrative amounts to be made in investments if you use the right vehicle. But savings accounts have never, and will never, been a source of significant profits from investments.

GeorgeHowell

The government can impose the price of anything if it wants to (and is unconcerned by the political considerations re the next general election). The Soviet Union was run like that, and that was a prosperous, successful, and contented society wasn't it.

ILW

dori2o wrote: »

I really really hate that phrase.

We have no debt other than our mortgage.

We spend almost every penny we get every month. What we can save goes on our annual caravan holiday in Blackpool.

If we have emergencies we (me and the wife) eat cereal for tea for a week or so in order to pay for whatever we need (we make the kids proper food).

If we could save we would. I have a pension so in effect I am making a provision for later life.

But we are anything but !!!!less.

Living hand to mouth is not something to be ashamed of, especially in these current times.

Try having a little respect for others.

Also, if you're relying on bank deposits to make significant gains through interest, then you get all you deserve with the intrest rates.

There are still lucrative amounts to be made in investments if you use the right vehicle. But savings accounts have never, and will never, been a source of significant profits from investments.

It would appear you have taken out the largest mortgage you could have. By buying a smaller house or a cheaper area you would be able to save.

The whole world crisis has been caused by overindebtedness and the OP wishes to reward those that contributed to it.

dori2o

ILW wrote: »

It would appear you have taken out the largest mortgage you could have. By buying a smaller house or a cheaper area you would be able to save.

The whole world crisis has been caused by overindebtedness and the OP wishes to reward those that contributed to it.

I bought a house that was just 3x my annual salary in my previous job. The house was one of the cheapest in the area, a 2 up 2 down terrace. A first time buyer home.

in order to stay in work I took 55% drop in salary when I was made redundant in 2003, and I'm still on 35% less now than I was in 2003.

We live within our means. Other than the mortgage we are not in debt, neither are we overindebted as we ca manage our monthly payments.

If they go up then the sky/broadband/phone will have to go.

But in no way are we !!!!less.

Thrugelmir

dori2o wrote: »

in order to stay in work I took 55% drop in salary when I was made redundant in 2003, and I'm still on 35% less now than I was in 2003.

You are not alone. I earn around 65% of what I did in the late 90's. That's not factoring inflation in either.

Funnily enough. I'm happier now. As work for satisfaction not to line other peoples pockets.

Colin297

TS, this simply wouldn't work on many levels.

Why should banks that weren't bailed out convert their mortgages into significant loss generators? It just isn't viable.

Furthermore, even if this did happen, somehow, would it really help much? Mortgage rates are very low anyway. An extra few %, despite being helpful, isn't going to make any dramatic improvements. Just like the significant cuts in rates we're already seeing.

The economy is slow and the people that are struggling will continue to strugglewith or without a few % cut in mortgage, unfortunately.

So, putting the banks out of business for limited gain, isn't a viable solution.

Colin297

dori2o wrote: »

There are still lucrative amounts to be made in investments if you use the right vehicle. But savings accounts have never, and will never, been a source of significant profits from investments.

Good post and you are right.

I'm intent on continuing to fill (or try to) my cash ISA every year but I understand that savings accounts are a conservative way to make any sort of gain. I wouldn't expect a high yield for having it sit there in a zero risk account so beating inflation is just about fair in all reality.

If you want to make real uplift you need to invest be in in business, property or shares, which requires skill and entrails risk. It's all very fair to be honest.

TruckerT

Thrugelmir wrote: »

You are not alone. I earn around 65% of what I did in the late 90's. That's not factoring inflation in either.

Funnily enough. I'm happier now. As work for satisfaction not to line other peoples pockets.

I get around 80% of what I was getting last year, and I do 2 or 3 days a week voluntary work. I'm !!!!ing miserable.

TruckerT

jgh

TruckerT wrote: »

I get around 80% of what I was getting last year, and I do 2 or 3 days a week voluntary work. I'm !!!!ing miserable.

My income is 6% of what it was two years ago, when I was on half median wage.