Why are savings rates on the floor?

nilrem_2

MoneySaverLog wrote: »

So HMG are lending the banks cheap money through the taxes I pay so the banks can pay me a carp rate. Just not good enough.

Basically true and they don't give a damn.

Savers are being punished for being savers. They want us to spend, spend, spend!

deutsch

http://www.moneyweek.com/investment-advice/how-to-invest/video-tutorials/george-osbornes-gbp35bn-raid-on-the-bank-of-england-61400

makes sense doesn't it?

jimjames

MoneySaverLog wrote: »

So HMG are lending the banks cheap money through the taxes I pay so the banks can pay me a carp rate. Just not good enough.

Except it's not from tax you pay, it is made up money!

iltisman

Are there no other options to save in stable countries Australia Canada
USA? etc, and show to fingers to the UKs QE.

Glen_Clark

Save our Savers would do better to focus on inflation rather than interest rates. 0% interest and 0% inflation would be better for savers than 10% interest and 10% inflation (because savers would get less than 10% interest after tax) By focusing on savings rates they present a picture of the idle rich who demand an income for doing nothing. So they haven't had much support. If they focused on inflation they would get a lot more support because everyone suffers from inflation. Because of inflation, real incomes have fallen so that millions of people in Britain are going short of food. There is probably more poverty in Britain than there is in Greece or Spain, but the British are more introverted and don't protest as loudly about it.

Glen_Clark

iltisman wrote: »

Are there no other options to save in stable countries Australia Canada
USA? etc, and show to fingers to the UKs QE.

The US Dollar may not be much better than the British pound. Sure you can save in stronger currencies like the Australian Dollar, Swiss Franc etc, but the pound has already crashed in value against them.
Rather than invest in foreign currency, it may be better to invest in foreign assets through buying international shares.

melbury

I too am desperately looking for a decent rate as I have a fixed rate bond maturing in a couple of weeks time. That bond was paying 3.6% for a 1 year fix and they are now offering 2.7% for a 3 year fix:eek:

I just wish I had fixed for longer a couple of years ago, but then I was sure that rates would be on the up:(

grey_gym_sock

exchange rates are very unpredictable. the US dollar has its own problems. the australian dollar has been strong, but is strongly related to commodity prices, i.e. it's likely to fall if they do. the swiss franc has been strong, but they're trying now very hard to prevent it appreciating any further (against the euro). etc ...

it's all very hard to call, and really far too risky if you're just trying to get a few % more interest (and then convert back to pounds to spend your money).

if you're scared about holding too much fiat money, you can always buy real assets, mainly meaning shares or property. in whatever country you like, or (if in doubt) in a good spread of countries and regions. that introduces other risks, though, and is only for the longer term.

for short term money, there's not much you can sensibly do about low rates.

marathon_man_3

melbury wrote: »

I too am desperately looking for a decent rate as I have a fixed rate bond maturing in a couple of weeks time. That bond was paying 3.6% for a 1 year fix and they are now offering 2.7% for a 3 year fix:eek:

I just wish I had fixed for longer a couple of years ago, but then I was sure that rates would be on the up:(

Try Punjab Bank's rates here:
http://www.pnbint.com/fixed-deposits.asp

littlemoney

I am in a similar situation I have a 3 year bond maturing shortly which was paying 5%. I am being offered 2.31% for 1 year or 2.62% for 2 years. The rates are a load of rubbish