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The rot spreads
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Ironically over the last few days I have been thinking that during 2013 sterling may well depreciate though not necessarily for your reasons. With the Bank of England turning a blind eye to inflation, inflation will also be a more major feature this year. Having just received notifications of saving rate reductions by both Nottingham and Coventry, I was wondering whether now would be a good time to put some money in Euros and Dollars. Does anyone know of any good interest paying savings accounts in these currencies?
Forget Euros and Dollars, go for the Yen, as Japan must be coming to an end after 10+ years of pain.
F40 -
Yes, just received my notice from the Coventry. I think 3% max is likely to be the best for several years.Coventry 3.25 reducing to 2.75 in February.
My rule of thumb is, if I can get a 50% better return on my income investment trusts (sort of added risk premium), I will seriously look to switch more cash savings to equities.
With the Coventry's new rate of 2.75%, the uplift would give 4.1%. My existing trusts are currently yielding more - Edinburgh 4.3%, City of London 4.4% and Murray 4.7%.
In April the S&S isa will be getting another cash transfer.0 -
Does anyone know of any good interest paying savings accounts in these currencies?
Broadly speaking, higher interest rates in a territory is usually coupled with higher inflation. So, you'll get back more Dollars, Euro, or Pobble Beads but they will be worth less in terms of buying power.
I can't see why someone would be prepared to take on the currency risk yet not to take on the risk of corporate bonds, asset backed securities, infrastructure, property, etc.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I notice US & UK bond yields (interest rates) are on the rise again.
The question is
1) are we going to get another round of money printing to knock bond yields down again
2) when will we reach the stage where the money printing triggers hyperinflation“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
Glen_Clark wrote: »I notice US & UK bond yields (interest rates) are on the rise again.
They went up a lot, they came down a bit, who knows where next! Probably gently up with the lows getting decreasingly less low.
http://www.bloomberg.com/quote/GUKG15:IND
BTW, I watch those as they are the basis for annuities and GAD limits.
A little more but it all depends on what happens regards growth.The question is
1) are we going to get another round of money printing to knock bond yields down again
I know the BoE will be hesitant to use interest rates to curb inflation but they can easily start unwinding QE to reduce M4.2) when will we reach the stage where the money printing triggers hyperinflationI am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
easily?gadgetmind wrote: »the BoE ..... can easily start unwinding QE to reduce M4.
Not as easy to sell bonds as it was to buy them I guess.
Unless they are prepared for some big losses :eek:“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
They sell bonds all the time but it's true that they'll have to do it in an orderly manner, than the BoE's balance sheet is unlikely to shrink to pre-crisis times in a hurry, and it may be that base rates need to be used alongside asset sales.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
(not for new customers)
Nottingham eSaver Plus Issue 3, was 1.0 + 2.2% = 3.2% until June 30th, now to be 0.2 + 2.2% = 2.4% from March 8th
Nottingham eSaver Plus Issue 4, was 1.0 + 2.1% = 3.1% until Sept 30th, now to be 0.3 + 2.1% = 2.4% from March 8th
Until now, while new customer rates have dropped like a stone and clean rates for existing accounts have slipped a bit, introductory offers in SVR + fixed bonus format have generally been safe for the duration of the bonus period.
Is this the first time we've seen the SVR component of an introductory bonus deal reduced during the bonus period? Probably not the last.
I wouldn't mind so much, but I've let other accounts pass me by on the basis that they didn't beat the Nottingham. New rule for forward-planning rate tarts - open everything going.
The old 0.1 + 2.7% on the Halifax Online Saver starts to look pretty good now.
Yes it gave me a bit of shock too.There was I being smug that i wouldn't need to worry about poor rates and move any money till September.That'll teach me!!0 -
typistretired wrote: »Can't see Santander reducing their esaver 5 rate as the base rate is only 0.50 rest is bonus, unless the bank rate is reduced.
Yes, Santander's crafty 0.5% plus 2.7% bonus for a year has rather backfired on them this year :rotfl:“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0
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