Blame the Banks or The Government?

theGrinch

Anyone else utterly frustrated of where to save without inflation (aka negative real interest rates) murdering your capital or without betting on the stock market?

Its not like you can get 3% here without locking your money away. Typically you are looking 2.3% (fixed) and 1.5% (instant) and thats gross.

Cyprus is silently happening here every day.

Im pointing at the Government with its tricky cheap money for lending.

Ive spent several hours over the last 2-weeks looking and its getting worse.

Any chance of a reprieve with a market topper or are we stuck in a rut?

Rant over, search ongoing.

Reaper

theGrinch wrote: »

Its not like you can get 3% here without locking your money away.

Depending on the amount you can, Santander 123 account for example pays 3% on balances of £3,000 - £20,000
There is a fee but the cashbacks more than cover it. Being a current account access is instant.

ColdIron

The Funding for Lending Scheme is due to run until at least Jan 2015 so I wouldn't hold out much hope for any significant changes for the better for at least 18 months. Sorry and all that

LardyCake

...and other bank a/cs available:
Up to 3 * LLoyds Vantage (3% on bals £3,000 - £5,000)
Up to 3 * BoS Vantage (3% on bals £3,000 - £5,000)
Nationwide FlexDirect (5% on bals up to £2,500)
Halifax Reward (£5 monthly "reward")
There are plenty of threads on here with details of the few hoops you have to jump through to satisfy T&Cs.

talexuser

Osbourne has just announced the next phase of "Help to Buy" or rather "Taxpayer subsidised housing bubble" from the "let the free market run" party.

Premium Bonds have just announced a cut in prizes. £50-100 prizes only a third of what was paid out before.

We are in for these rates for years as far as I am concerned. The Japan "lost decade" seems to be the example our masters deem to be the best available for us :rotfl:

dunstonh

Anyone else utterly frustrated of where to save without inflation (aka negative real interest rates) murdering your capital or without betting on the stock market?

No point being frustrated. In most periods in history, cash has not kept up with inflation.

talexuser

dunstonh wrote: »

In most periods in history, cash has not kept up with inflation.

Fair point. But how often has the relative loss been as high as now?

Say LARGE amounts of instant cash can only get 1.2% after basic tax, but inflation is 2.8%, a ratio of twice or more?

ILW

talexuser wrote: »

Osbourne has just announced the next phase of "Help to Buy" or rather "Taxpayer subsidised housing bubble" from the "let the free market run" party.

Premium Bonds have just announced a cut in prizes. £50-100 prizes only a third of what was paid out before.

We are in for these rates for years as far as I am concerned. The Japan "lost decade" seems to be the example our masters deem to be the best available for us :rotfl:

Japan had the advantage of deflation during it's lost decade. Most of their people saw improving standard of living.

CLAPTON

talexuser wrote: »

Fair point. But how often has the relative loss been as high as now?

Say LARGE amounts of instant cash can only get 1.2% after basic tax, but inflation is 2.8%, a ratio of twice or more?

would you prefer 15% inflation and 10% interest rates as the ratio is only 66%?

opinions4u

If you want to keep up with inflation there has been no extended period in the last half century where a bank / building society deposit account has succeeded in delivering that requirement.

Why would you expect that to change now?

talexuser

CLAPTON wrote: »

would you prefer 15% inflation and 10% interest rates as the ratio is only 66%?

err.. yes?