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The rot spreads
Comments
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If government borrowing costs go up, there'll be Greek-style catastrophic austerity and savings rates will be the least of our problems.
If yields go up to 7%-8% or higher, then maybe, but 4%-5% is perfectly reasonable for 15 year gilts.Especially as we won't dare leave any money in the bank.
In this regard, fear exceeds reality in the vast majority of cases.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 -
In reasonable circumstances. But low interest rates are the economy's life support. Switch them off and the result could be fatal.gadgetmind wrote: »If yields go up to 7%-8% or higher, then maybe, but 4%-5% is perfectly reasonable for 15 year gilts."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
I think gilt yields will drift higher even if interest rates are kept low.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 -
Gilt yields determine interest rates. If banks can get 5% on gilts, they'll be climbing over each other to get savers' money, and there'll be no more dirt-cheap mortgages, and they'll find a way to stooze the FLS money. Base rate is pretty irrelevant, except of course the banks will stooze that as well, until the Bank gets fed up.gadgetmind wrote: »I think gilt yields will drift higher even if interest rates are kept low."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
typistretired wrote: »Coventry Building Society Online Saver (2) goes down from monthly interest of 3.11% to 2.72% gross p.a. from 1st February 2013. Not heard if my online saver (3) with them is going to be reduced yet. Anyone heard if Santander is reducing?
Received an email during the night saying my online saver (3) is reducing the same as online saver (2) from 1st February 2013. Will have to move savings into Santander esaver (5) as that is only variable account I have now paying over 3%. Moving Post Office funds too.
Surely Coventry BS and Post Office know there will be a mass exit of funds on 1st February 2013. Meanwhile watching Santander and Natwest rate daily!!!"Look after your pennies and your pounds will look after themselves"0
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