Biggest drop in savings for 40years

seven-day-weekend

chewmylegoff wrote: »

The article suggests that it was either "spent" or moved to current accounts, but of course it may well have been transfered from cash savings into investments given the terrible rates available on cash deposits. Alternatively people may just have shifted money from maturing long term deposits into current accounts waiting for improvement in savings rates as they don't want to lock in for long periods at pathetically low rates (I expect interest rates on savings are also at (at least) a 40 year low).

The figures do not therefore necessarily demonstrate that people are spending all their money and not investing for the future.

We had £10k in a one-year bond. When it matured, we withdrew it, so we will probably appear on that list.

We will need the money in 2014 at relatively short notice, so we did not want to lock it away. Instead we took a gamble and put it into Premium Bonds. For the length of time it will be there, it's worth gambling on the jackpot.

So no, we didn't spend it, but neither do I think it will appear in any savings list.

Loughton_Monkey

michaels wrote: »

I'm sure you are aware but you and Mrs Monkey can both have two 1-2-3 accounts each.

I am indeed.

However, Mrs LM does already have a current account but not with Santander. Without standing orders (I pay the bills) and without credit cards (she uses additional cards on mine) and without income (apart from her state pension) she would be refused.

Sad, I know, but one has to take the rough with the smooth. To have built up her credit rating, I would have had to have given her money over the years. That's not how it works here.....

Kennyboy66

Generali wrote: »

Apple pie in the sky hopes there I think Clifford_Pope old boy.

Actually, looking on wikipedia, you'd hope Ms Altmann would know better quite frankly. Money put into current accounts can be spent but can also be used to be shares and other assets. It's unusual to be able to buy into a mutual fund from a savings account directly.

Ros Altmann is an odd one. Some of her recent statements are bizarre.

17/9/2013 - Annuity brokers should be banned.

These offer no advice, basic comparison service. Not ideal for everyone but perfect for plenty.

If people don't understand what single life annuity means, then let them get some advice.

28/11/2013 - Pension management fees should not be capped too low (Legal & General who are admittedly in a strong position and self interested said cap should be 0.5%).

Her argument was that too low a cap would not allow pension companies to develop "innovative strategies".

The eye watering charges that UK pension providers have charged historically has not led to innovative strategies - its just gouged money out of pension pots.

She has been consistent in her opposition to low interest rates and QE for 4 years. She rightly argues it has damaged savers (but never refers to the government guarantee on bank savings that bailed them out) but also consistently claimed it would lead to a huge inflation risk and damage consumer confidence.

She also suggested a re-introduction of the 10% tax rate in the face of the largest budget deficit in peacetime history.

nicko33

Kennyboy66 wrote: »

She also suggested a re-introduction of the 10% tax rate in the face of the largest budget deficit in peacetime history.

But then so did a lot of people. And wouldn't that have been cheaper than raising personal allowances to 10k ?

coastline

Money saved in cash ISA's has fallen in 2013..

http://www.yourmoney.com/your-money/news/2267825/takeup-of-isas-falls-for-first-time-ever

Investment in stocks and share ISA's is also down...in some cases only half the amount.

http://www.trustnet.com/News/423044/fund-sales-plummet-in-20122013-isa-season/

http://www.everyinvestor.co.uk/news/2013/05/03/1-1bn-invested-through-isas-last-year-1981/

Theres a fair chance this £23bn will be spent on everyday items...half the population aren't getting a pay rise..
Yesterday our Energy minister suggested consumers will save an extra £50 a year on their bills...without a mention of the other £200 increase..

Loughton_Monkey

Generali wrote: »

6.2% is a great return over 7 weeks.

Safe though...? I have my doubts.

As I hope you know, I wish you nothing but joy and gin. Returns like that, as a retiree, would make me twitchy. Feel free to PM me with the name of the fund. I'd be happy to kick the tyres.

Two funds, actually.

City Financial UK Equity A Acc [7.6%]
Henderson European Absolute Return A Acc [4.8%]

I don't know the strategies, but probably the 'pairing' system, which usually almost eliminates the equity risk.

michaels

coastline wrote: »

Yesterday our Energy minister suggested consumers will save an extra £50 a year on their bills...without a mention of the other £200 increase..

The figures I have seen quoted are that average enrgy bills are about 1300 with a 9% increase due. The £50 saving will reduce this 9% to about 5%. Even the full 9% only equates to £117. do you do maths in a different way to make this £200?

Conrad

I do see people using savings for B2L now prices are rising fast.

Thrugelmir

Perhaps some people are beginning to pay down debt from savings. A few years back fixed rate ISA's were offering 4% - 5%. These savings are now maturing. However mortgage rates now exceed savings rates.

Reduction in savings also ties into the fact that 18% of Britons (8.8 million people) consider themselves to have serious debt problems. There is a squeeze on disposable income. Well has been for some years. Which was masked by the fact that credit was easily available.

Consumer debt is an issue that needs addressing for the UK to maintain sustainable growth.

Thrugelmir

Conrad wrote: »

I do see people using savings for B2L now prices are rising fast.

BTL brigade are still backing that one trick pony called leveraging. Reckon that they'll come a cropper at some point. As cycles only last so long.