Blame the Banks or The Government?

eskbanker

Old_Slaphead wrote: »

Net payout on 123 accounts is 2.58% after charges. You don't get 3% of full £20k. That reduces your net figure to 2.43%.

You do get 3% on the full £20K, the interest is payable on the entire balance, not just the bit above the threshold to qualify for 3%.

The charge of £24 per year reduces the interest from £600 to £576, so the interest is actually 2.88%, although the utility cashback offering can more than offset the charges.

If you meant net as in net of tax, that would obviously be lower again (depending on basic or higher rates) but still different from your figures!

Old_Slaphead

eskbanker wrote: »

You do get 3% on the full £20K, the interest is payable on the entire balance, not just the bit above the threshold to qualify for 3%.

That's not how I read it (ie 3% payable on balances above £3000) but if your interpretation is correct then clearly my previous posting #29 is inaccurate and for which I apologise.

theGrinch

atush wrote: »

Stop blaming and take responsibility.

For over borrowing in the good days, for underspending in the bad.

For not being a borrower with the lowest rates ever, my mtg savings have outdone my lower interest income.

for saving in cash, instead of other assets like equties which have done well.

those hardest hit now are those that did the right thing and saved. some of them didnt borrow, many of them are pensioners or even people with modest savings trying to get by.

savings in cash are precautionary balances should be encouraged as part of an overall allocation. Not everyone wants to have all or most in shares.

theGrinch

I don't accept that real interest rates have been negative more often than positive.

In fact, just rewind a year and you could fix at 3.5% or better for 1-year while official inflation was around 2.4% and this has been the case for a significant amount of time.

Its whats been happening in the last 12-months to savings rates that is deplorable.

coastline

theGrinch wrote: »

I don't accept that real interest rates have been negative more often than positive.

In fact, just rewind a year and you could fix at 3.5% or better for 1-year while official inflation was around 2.4% and this has been the case for a significant amount of time.

Its whats been happening in the last 12-months to savings rates that is deplorable.

http://blogs.thisismoney.co.uk/2011/10/inflation-vs-interest-rates-how-the-bank-of-england-stopped-fighting-inflation.html

badger09

Old_Slaphead wrote: »

That's not how I read it (ie 3% payable on balances above £3000) but if your interpretation is correct then clearly my previous posting #29 is inaccurate and for which I apologise.

Definitely 3% on the whole balance (providing that balance is between £3k & £20k)

theGrinch

coastline wrote: »

http://blogs.thisismoney.co.uk/2011/10/inflation-vs-interest-rates-how-the-bank-of-england-stopped-fighting-inflation.html

this supports what I thought. Thank you.

Thrugelmir

Old_Slaphead wrote: »

ie I have a Northern Rock FR account still paying 7% (unfortunately it matures next month !)

Why did NR have to offer 7% though to attract money?

I suspect it was due to the requirement for cash , as were the Icelandic banks, once the wholesale money markets closed shop. So another part of the unsavoury credit boom episode.

Which makes one wonder if the boom years were actually just a mirage. We were never as rich as we believed we were as a nation. Certainly not saving enough for retirement years.

2010

Thrugelmir wrote: »

We were never as rich as we believed we were as a nation. Certainly not saving enough for retirement years.

No incentive whatsoever NOW for saving.

Osbourne has done to the saving`s market what Brown did to pensions.

The whole government`s policy of "mollycoddling" mortgage payers is very short sighted.
It was bad enough subsidising them with cheap interest rates for their repayments but now, even worse, this government, not the banks, are using tax payer`s money to subsidise cheap mortgages.

This is virtually giving the green light for everyone with their sticky fingers in the housing market pie, to start ripping every buyer off once again.
Builders and EA have already started moved prices upwards.
The next bubble has yet again been inflated.
Watch out for the bang further down the line.

ColdIron

2010 wrote: »

Osbourne has done to the saving`s market what Brown did to pensions.

What Osborne is doing doesn't begin compare to the economic vandalism Brown wreaked on the UK. Brown broke the private pension engine permanently, the savings market will recover in time. The BoE is equally complicit with Osborne regarding Funding for Lending and Help to Buy