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More bad news for savers.

245

Comments

  • TheTracker
    TheTracker Posts: 1,223 Forumite
    1,000 Posts Combo Breaker
    w1ntermut3 wrote: »
    You can average about 3.8% GROSS on 50k using bank accounts.

    This is a far cry from 3% above inflation unless your maths is very bad or you don't know what inflation is.

    In that case I mustn't understand what inflation is. Care to educate?
  • megaginge
    megaginge Posts: 363 Forumite
    He may be referring to RPI inflation, currently 1.1% ...

    Because CPI is 0.3% at the moment
    Hello There. :beer:
  • TheTracker
    TheTracker Posts: 1,223 Forumite
    1,000 Posts Combo Breaker
    megaginge wrote: »
    He may be referring to RPI inflation, currently 1.1% ...

    Because CPI is 0.3% at the moment

    May be! In which case he is complaining about rounding 2.7% up to 3%.
  • w1ntermut3
    w1ntermut3 Posts: 10 Forumite
    Yes RPI

    On 50k you can make about 2.76 and 2.07% lower/higher. Lower rate taxpayers with over 50 grand in the bank aren't usually the norm?
  • masonic
    masonic Posts: 29,471 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    w1ntermut3 wrote: »
    Yes RPI

    On 50k you can make about 2.76 and 2.07% lower/higher. Lower rate taxpayers with over 50 grand in the bank aren't usually the norm?
    Anyone with £50k in the bank isn't the norm. The average saver has about £1000 in savings.

    Ironically, a higher proportion of the people with over £50k in savings will tend to be non-taxpayers.
  • TheTracker
    TheTracker Posts: 1,223 Forumite
    1,000 Posts Combo Breaker
    w1ntermut3 wrote: »
    Yes RPI

    On 50k you can make about 2.76 and 2.07% lower/higher. Lower rate taxpayers with over 50 grand in the bank aren't usually the norm?

    They aren't. But the less you have, the higher the interest rate. About 4.5% if you cycle money between 3% current accounts and 5-6% Regular Savers.
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    HappyMJ wrote: »
    Open all these.... I get 6% on regular savers fed from an account earning 3%.

    http://www.moneysavingexpert.com/savings/savings-loophole

    But the highest rate in the link you posted is 5% gross and thats only for £4.5k
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    masonic wrote: »
    Ironically, a higher proportion of the people with over £50k in savings will tend to be non-taxpayers.
    Its a sad fact that those who have all their savings in cash (presumably because they can't afford to lose them and think they aren't taking any risk with cash) have lost the most through QE because they have missed the rise in asset prices. Wheras the wealthiest have gained the most through QE.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • masonic
    masonic Posts: 29,471 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 5 March 2016 at 2:42PM
    Glen_Clark wrote: »
    But the highest rate in the link you posted is 5% gross and thats only for £4.5k
    That link doesn't include the regular savers, which are summarised here: http://forums.moneysavingexpert.com/showpost.php?p=6932833&postcount=5
  • xylophone
    xylophone Posts: 45,945 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It is quite possible to be a non- taxpayer with £50,000 in the bank - non earning spouse for example?

    A pensioner could quite easily be a non or low rate tax payer and have £50,000 in the bank - inheritance for example?
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