Virgin reduces rate on esaver account!

nilrem_2

It had to happen, with banks and building society's competing to offer the lowest rate they can get away with Virgin have now reduced the rate to their easy access account to 1.40% (1.12% after tax at 20%)

It is around 4 years since the BOE rate plummeted to 0.50% yet rates paid are still being slashed! Is there no end to this slide?

It's great if a borrower but for savers it just gets worse.

(Stands by the door ready to make a quick exit as all those who are just borrowers rush to condemn me for daring to mention the plight of savers!)

Bantex_2

Nasty savers, they caused all the problems and deserve to be punished.

eskbanker

nilrem wrote: »

It is around 4 years since the BOE rate plummeted to 0.50% yet rates paid are still being slashed! Is there no end to this slide?

Have a look at http://www.economicshelp.org/blog/102/interest-rates/effect-of-interest-rates-on-savers-and-economy/, which emphasises how there are many more factors affecting savings interest rates other than the bank base rate, such as Funding for Lending for one (which meant that banks were less reliant on savers and therefore didn't need to compete for savers' business so aggressively).

nilrem_2

I do understand that as long as the BOE is throwing our money at them they don't want savers cash, but it does not make savers feel any better!

Thanks for the reply.

nilrem_2

Bantex wrote: »

Nasty savers, they caused all the problems and deserve to be punished.

Lol you did make me laugh!

ColdIron

Rats, the last 2 announcements were December and June so I thought I'd dodged it this time around. The first 2 decreases were 0.45% and 0.40% but this one is nearly 0.60%. which makes it the same as the current issue 9. Loyalty to existing savers seems to have evaporated

nbrewitt

I think there's a strong case for a zero tax rate on savings interest once rates drop below about 1.5 - 2%. It still seems crazy that a government that on one hand should be trying to encourage a savings culture particularly amongst the young is quite happy to take a share of pitifully returns on savings accounts.

opinions4u

nbrewitt wrote: »

I think there's a strong case for a zero tax rate on savings interest once rates drop below about 1.5 - 2%. It still seems crazy that a government that on one hand should be trying to encourage a savings culture particularly amongst the young is quite happy to take a share of pitifully returns on savings accounts.

What makes you think the might be remotely interested in encouraging people to save?

Bantex_2

opinions4u wrote: »

What makes you think the might be remotely interested in encouraging people to save?

Thats what confuses me. The are making saving into a pension mandatory, whilst at the same time trying to make saving a worthless activity. Do they want people to save or not?

[Deleted User]

Hi,

Bantex wrote: »

Nasty savers, they caused all the problems and deserve to be punished.

haha, would like to see mortgage interest rates hitting 15% again, sort out the folks mortgaged to the hilt (on low interest), two cars on HP, kids at private nursery.

Give the savers a break, been low interest on savings for too long.

opinions4u

Bantex wrote: »

Thats what confuses me. The are making saving into a pension mandatory

With a woefully inadequate minimum personal contribution. To ensure we carry on spending.

Do they want people to save or not?

Not really. Politicians don't care about 2050. Only the next election.