Nationwide Future Saver (child account) rate drop

bowlhead99

DiggerUK said:

kuratowski said:

DiggerUK said:

There is no point in finding better paying accounts to move savings to.

Think you're on the wrong site, then.

No, I am on the right site, maybe I'm delivering a message you do not like, but perhaps a message it best not to ignore. 

Holding on to below inflation paying accounts is not saving money. Paying down debts and mortgages would be perhaps a better use of those funds..._ 

Yes, I'm sure the child will be happy to know that his pocket money or birthday gift from granny has been confiscated by mummy to make mortgage overpayments because DiggerUK said there was no point having money in a Virgin child saver account at 1.75% when the last year's CPIH was 1.7%.

DiggerUK

Then you have a choice, Hobsons it seems, leave as is and continue to see the real value reduced, or do something else. I'm just not trying to sugar coat the reality of this situation..._

ratechaser

bowlhead99 said:

DiggerUK said:

kuratowski said:

DiggerUK said:

There is no point in finding better paying accounts to move savings to.

Think you're on the wrong site, then.

No, I am on the right site, maybe I'm delivering a message you do not like, but perhaps a message it best not to ignore. 

Holding on to below inflation paying accounts is not saving money. Paying down debts and mortgages would be perhaps a better use of those funds..._ 

Yes, I'm sure the child will be happy to know that his pocket money or birthday gift from granny has been confiscated by mummy to make mortgage overpayments because DiggerUK said there was no point having money in a Virgin child saver account at 1.75% when the last year's CPIH was 1.7%.

We have no debts/mortgage at all so it's a moot point. But still, children today eh? Forget savings, they should feel lucky to have a roof over their heads... 

DiggerUK

??? When me say that master..._

"DiggerUK said there was no point having money in a Virgin child saver account at 1.75% when the last year's CPIH was 1.7%"  bowlhead99

afis1904

fred246 said:

I have a had a word with my daughter. She doesn't have any debts or a mortgage to pay down. I don't think many children do.

She clearly has too many avocado sandwiches.

bowlhead99

DiggerUK said:

??? When me say that master..._

"DiggerUK said there was no point having money in a Virgin child saver account at 1.75% when the last year's CPIH was 1.7%"  bowlhead99

Apologies for putting words in your mouth.

After people had suggested various accounts paying more than the OP's , at 1.75% or 2.25%, you said "There is no point in finding better paying accounts to move savings to" 

When it was suggested that notion of not bothering to find better accounts was misplaced on a 'money saving expert' site, you seemed happy with your statement that there was no point in finding better paying accounts to move savings to, and said that was a message people wouldn't like but shouldn't ignore.  

You also mentioned that holding accounts paying below inflation is not saving money, and people should pay down debts. 

Presumably their children who don't have debts are OK to still save money, though if the concern is that the balances might not keep pace with inflation, they should probably be allowed to find better paying accounts to move the savings to, like the child saver accounts which currently pay more than the last reported inflation figure. I guess the child could lend it to Bank of Mum and Dad at the rate of Mum and Dad's mortgage, so that Mum and Dad could pay down debt and be neutral on their overall interest bill, with the child being a net winner. As long as Mum and Dad don't mind remortgaging when the child wants to make a withdrawal to buy some toys.

Albermarle

Holding on to below inflation paying accounts is not saving money

I suspect that inflation will not be much of an issue for a while - with oil at half price of before and most likely long/medium term reduction in demand for goods , travel, higher unemployment etc . Would not be beyond the bounds of possibilities to see zero inflation. 

DiggerUK

DiggerUK said:

There is no point in finding better paying accounts to move savings to.
It will be a case of 'one down, all down'..._

I stand by what I said. All interest rates are going to be on the floor in next to no time. Best find something else for these savings.
Mrs.D has a N/W  ISA A/C. Down from 0.95% to 0.2% from May 1. Only used for short term cash........but what bank/bs is putting rates up.
It is just daft to believe anything else will happen..._

fred246

Even with low interest rates my daughter's savings are doing much better than her investments at the moment.

Albermarle

Mrs.D has a N/W  ISA A/C. Down from 0.95% to 0.2% from May 1. Only used for short term cash........but what bank/bs is putting rates up.
It is just daft to believe anything else will happen..._

I am sure no contributor to this forum does not understand that interest rates on savings are under downward pressure.

However you can still gain from moving savings around , especially if it is a fixed rate , as some of these have not moved ( yet)