Why are savings rates on the floor?

Glen_Clark

antrobus wrote: »

My recollection is that very left wing governments such as the Soviet Union spent a packet on nuclear missiles.

The Soviet Union isn't really left wing, they have vast gaps between rich and poor. I was thinking of more egalitarian countries like the Netherlands, Sweden, Austria, who spend comparatively little on the military.
The Government sees its first duty is to defend the Government. That is what the military is for. In Britain the Government is so well defended that they would still be intact in their nuclear bunkers even if they had nobody left to govern. At one end of the scale if you are the Queen you have a lot to lose from a change of Government. At the other end of the scale, a guy sleeping in a cardboard box on the street has very little to lose from a change of Government. That is why the wealthy favour high military spending, even when millions of people are relying on charity food banks

nilrem_2

Would be nice if we could return to the subject of the thread heading.:) Gone a little off track.

Glen_Clark

nilrem wrote: »

Would be nice if we could return to the subject of the thread heading.:) Gone a little off track.

Fair comment. I tend to get sidetracked when someone says something I think is wrong

evenasus

I had a 1 year bond @ 3.2% mature last week with Skipton BS.

They offered 2.75% for it to roll over for another year.
I did go for this, as I really couldn't be bothered moving it. I'd moved a couple recently.

Glad I did now. I just checked online and Skipton have now reduced the interest rate for a 1 year bond to 1.90%.

Just how low are rates going to go!

Glen_Clark

evenasus wrote: »

Just how low are rates going to go!

The Government is printing £billions and giving it to the banks at between 0.75% and 2.0%, depending on what they do with it.

nilrem_2

evenasus wrote: »

I had a 1 year bond @ 3.2% mature last week with Skipton BS.

They offered 2.75% for it to roll over for another year.
I did go for this, as I really couldn't be bothered moving it. I'd moved a couple recently.

Glad I did now. I just checked online and Skipton have now reduced the interest rate for a 1 year bond to 1.90%.

Just how low are rates going to go!

You did well, My bond with Nationwide matures on Sunday and the best they offered me was 2.78% for a 3 year term!

I have decided to take it out and put it in my esave account hoping that better rates turn up in a year or so.

innovate

I just rang Nationwide to close a big MySave that had matured and is now on a terrible interest rate. They didn't even ask whether I'd consider leaving the funds with them.

UKSBD

Glen_Clark wrote: »

The Government is printing £billions and giving it to the banks at between 0.75% and 2.0%, depending on what they do with it.

Are there restrictions on what the banks can do with this?

Fair enough if the banks are forced to pass this on as small business loans, but allowing them to just use it to then provide 3.5% mortgages seems crazy.

nilrem_2

innovate wrote: »

I just rang Nationwide to close a big MySave that had matured and is now on a terrible interest rate. They didn't even ask whether I'd consider leaving the funds with them.

Same attitude I received from their branch when I called in to ask about withdrawing my mature bond from them, just disinterest, in the past they would have asked about my plans for the money and offered advice.

nilrem_2

UKSBD wrote: »

Are there restrictions on what the banks can do with this?

Fair enough if the banks are forced to pass this on as small business loans, but allowing them to just use it to then provide 3.5% mortgages seems crazy.

Would not surprise me if they are not just sitting on it, building up their reserves perhaps, does not seem to be much evidence of it going to small businesses.