Should there be a legal minimum interest rate for fixed rate accounts, for NS&I at least?

strawb_shortcake

Hmm I think you are overthinking it. You have savers and spenders, those that aren't in regular habits of saving may not even be able to explain to you what interest rates mean so would form no part of a decision to save or not.
I continue to save money so that I have a safety net should I need it, interest rates are negligible as my want to save remains. 

My job is fairly secure, but I am looking at a pay freeze for the foreseeable, so for myself I'm not going to spend for the sake of it, I have around £5k earmarked for holidays hopefully next year, money set aside for planned work on the home.
If on the other hand I had some decent pay rises coming my way then I may be more inclined to spend more.

Sea_Shell

Savers are from Mars, spenders are from Venus!!! *  

If they want to spend £500 on a handbag, or golf clubs or whatever, no % of interest rate is likely to persuade them to save that £500 instead!!



(* or the other way round, not inferring any gender here!!)

cricidmuslibale

Sea_Shell said:

Savers are from Mars, spenders are from Venus!!! *  

If they want to spend £500 on a handbag, or golf clubs or whatever, no % of interest rate is likely to persuade them to save that £500 instead!!



(* or the other way round, not inferring any gender here!!)

Purely amongst those I know (family, friends, acquaintances, colleagues) the phrase 'Savers are from Mars, Spenders are from Venus!' actually rings very true! But at least the Savers are willing to help the Spenders save more and vice versa.

jimjames

annabanana82 said:

Hmm I think you are overthinking it. You have savers and spenders, those that aren't in regular habits of saving may not even be able to explain to you what interest rates mean so would form no part of a decision to save or not.

When financial education is at this level I think you're absolutely right that interest rates play no part in these decisions
https://www.dailymail.co.uk/money/investing/article-9015129/Only-one-four-UK-savers-answer-three-money-questions-correctly.html