Grounds for optimism?

Depends on your point of view.

I gave up on traditional savings vehicles in 2002, moving to pensions and share based forms of investment.
While watching savings rates tank, my own, with quite modest levels of risk, have achieved admirable annual growth/returns.
Currently this is above 16% (average per annum), but I accept that with Brexit this is somewhat unusual;
I'm only trying to achieve anything greater than 7 to 8% p.a. as a personal average yearly trend.

Because I have done this I have significantly increased my wealth during this time.
But I might now be considered as a 'Have', having just retired with a healthy pot behind me.
If that nice Mr. Hammond (my local MP) starts taking from the 'Haves' to compensate the 'Havenots', I will not be pleased.
Especially since I had to work long hours and make sacrifices when I was a 'Havenot' to become a 'Have'.

Since Brexit the whole pattern of normality has been turned upside down.
The FTSE has reached record breaking levels because the pound has dropped as investors believe their money is safer outside the U.K. (odd, since I've made so much from it and am forecasting more to come).
But when you actually look at it, with the pound worth so much less than it was, the FTSE is actually worth 6% less than it would have been reaching the same figures before the referendum.
I think this may provide the U.K. with more protection than other players against the next crash that may be waiting for us all around the corner.

{ 8-]

If interest rates go up what will happen to the those hard working families' mortgages? Such families generally pay far more in mortgage interest than they gain from bank savings interest.

Of course we have to wait to see what the government does in the Autumn statement, which is clearly going to be a change of policy direction to some degree.

However, in terms of the speculation in this piece of journalism spin:
- QE is monetary policy, which the government doesn't directly control
- Inflation is heading up, and we know what that does for real returns if the MPC still has to maintain a loose monetary policy for other reasons
- NS&I higher interest bonds would just be the government giving away money they've raised from the same individuals via tax (similar to giving away money to borrowers to supposedly deal with the issue of high house prices, it really doesn't solve anything and is just smoke and mirrors)
- NS&I's savings bonds last time were fairly modest in amount per person anyway.

I think some proper light at the end of the long tunnel for savers is some way off yet. In the meantime there will be this sort of headline-grabbing stuff which (I concede) should help savers with very modest savings.

whattochoose wrote: »

Also not forgetting that any re-investment of funds might involve a tedious switching of my direct debits once again, dependent on any possible closure of the Santander account.

Not quite sure what you mean by the "tedious" switching of DDs. If you use the current account switch then there is generally zero effort from you required and nothing that could be called tedious.