Non-motoring > Really Rubbish Savings Interest Rates	Miscellaneous
Thread Author: Meldrew	Replies: 76

New Fri 1 Feb 13 13:28   Really Rubbish Savings Interest Rates - Meldrew

The holder of the bulk of my savings had just written to tell me that my 3.3% cash ISA rates will be reduced to 0.5% but I can get it back to 2% by investing £25k+. An on line savings account will be reduced from 3.3% to 0.5% and there is no way of getting it higher than that however much I have in it. WTF? Reply to this message | Report message

New Fri 1 Feb 13 13:30   Really Rubbish Savings Interest Rates - Zero

>> The holder of the bulk of my savings had just written to tell me that >> my 3.3% cash ISA rates will be reduced to 0.5% but I can get it >> back to 2% by investing £25k+. An on line savings account will be reduced from >> 3.3% to 0.5% and there is no way of getting it higher than that however >> much I have in it. WTF? Spanish bank per chance? Whats the problem? move them to another bank. Reply to this message | Report message

New Fri 1 Feb 13 13:49   Really Rubbish Savings Interest Rates - lancara

"... move them to another bank...." Good luck: www.telegraph.co.uk/finance/personalfinance/savings/9831973/Savers-slaughtered-as-rates-slashed-on-100-accounts.html Reply to this message | Report message

New Fri 1 Feb 13 13:51   Really Rubbish Savings Interest Rates - CGNorwich

Best to go to one of the comparison sites to see what is out there. You're not going to get anything like 3.3% on a cash isa now although you should be able to get a little more than 2%. 2% should be available on a savings account. Like most things financial these days you have to do your homework and be prepared to change your bank or you won't get the best deal. Even the best deal won't keep pace with inflation though Reply to this message | Report message

New Fri 1 Feb 13 14:00   Really Rubbish Savings Interest Rates - Lygonos

On one hand the Govt want banks to stockpile more cash, on the otherhand they offer them cheap loans to allow them to lend. Means they don't need to get money from savers so they get the shaft. Reply to this message | Report message

New Fri 1 Feb 13 16:11   Really Rubbish Savings Interest Rates - Meldrew

Indeed I shall! Martyn Lewis has found 2.5% on any sum and instant access. And yes ,it is/was the Spanish lot!" Reply to this message | Report message

New Fri 1 Feb 13 22:55   Really Rubbish Savings Interest Rates - kb

>> Indeed I shall! Martyn Lewis has found 2.5% on any sum and instant access!" >> Wasn't that 2.5% within an ISA though? Given that most would be fully subscribed there ( and the ISA allowances doesn't amount to much anyway)....then his next best was 2.1% :-( Reply to this message | Report message

New Fri 1 Feb 13 14:30   Really Rubbish Savings Interest Rates - Manatee

We have some dosh in the Coventry that has a 2% bonus until July when the return will drop to 1.2% IIRC. I worked out my "retirement" position yesterday and was quite cheered for a while - I can bump along for 5 years until I draw my best pension and start drawing on the SIPP, and can keep my spending more or less level in the meantime using part of our savings and a smaller pension that kicks in this year. My freelance earnings, such as they are, being a bonus. The fly in the ointment is inflation. I have worked all this out on today's terms. My inflation protection on the defined benefits pensions is capped at 5% or less, and of course there is none on the SIPP and most of the savings (the exception being some index linked NSI - wish I could get some more of that). Unfortunately, rampant inflation is a real risk. It will have the effect of transferring wealth from those with savings to those with debts, but it will of course go a long way to reducing public debt - a sort of back door default, which is why the gubberment is mumbling that a growth target for the BoE might be better than an inflation target. If savings rates drop / stay below the inflation rate then equities are an alternative, but that comes with some risk. Given that annuity rates are basically now legalised theft, draw down is the only real option for pension money unless you have £1m+ to play with, so worst case is it could get quite nasty. I'm seriously thinking about getting some debt to buy rental property purely as an inflation hedge - if the debt and the savings get wiped out at the same time I can eventually sell the property to get the value back. Plan, do you think? Last edited by: Manatee on Fri 1 Feb 13 at 14:32 Reply to this message | Report message

New Fri 1 Feb 13 14:38   Really Rubbish Savings Interest Rates - No FM2R

>> I can eventually sell the property to get the value back. Two assumptions there; - That you can sell it - That you will get your money back. And they are time dependent. Reply to this message | Report message

New Fri 1 Feb 13 14:39   Really Rubbish Savings Interest Rates - smokie

So when the massive inflation kicks in and people can't afford the (high) rental prices, doesn't the value of the property bomb? Reply to this message | Report message

New Fri 1 Feb 13 15:06   Really Rubbish Savings Interest Rates - Manatee

>> So when the massive inflation kicks in and people can't afford the (high) rental prices, >> doesn't the value of the property bomb? Not really...when I bought a house in 1977 I owned 10% of it. By 1983 when I sold it I owned 60% of it even though the mortgage was the same size (endowment job). The value of money halved in those 6 years, wages doubled and so did house prices. Savers were slaughtered, and the more recklessly you mortgaged up (not as easy then) the better off you were. Mark has a point - but as long as a house is worth a house, and the rent covers the interest, it works, using savings as deposit. Better not buy any in the path of HS2. Reply to this message | Report message

New Fri 1 Feb 13 15:21   Really Rubbish Savings Interest Rates - Zero

>> So when the massive inflation kicks in and people can't afford the (high) rental prices, >> doesn't the value of the property bomb? People either buy or rent. They have no option, they have to take on one of them, there is no third way. So you rent the property out or you sell it. Either way you are quids in The trick is not to buy at the approaching peak of a boom. Reply to this message | Report message

New Fri 1 Feb 13 15:29   Really Rubbish Savings Interest Rates - No FM2R

>>The trick is not to buy at the approaching peak of a boom. Absolutely; buy when everybody else is trying to sell, and sell when everybody else is trying to buy. Reply to this message | Report message

New Fri 1 Feb 13 16:05   Really Rubbish Savings Interest Rates - Clk Sec

>> Absolutely; buy when everybody else is trying to sell, and sell when everybody else is >> trying to buy. Unfortunately it's not that easy without the aid of a crystal ball, though considerably less nerve-racking than trying to achieve the same with shares. Reply to this message | Report message

New Fri 1 Feb 13 16:10   Really Rubbish Savings Interest Rates - No FM2R

>> it's not that easy without the aid of a crystal ball, That depends; If you are not time-restricted, nor obsessed with hitting the very top or bottom of the market, and are more aiming for the upper and lower thirds, then its not as difficult as you might think. Reply to this message | Report message

New Fri 1 Feb 13 16:20   Really Rubbish Savings Interest Rates - Manatee

>>Unfortunately it's not that easy without the aid of a crystal ball, though considerably less nerve-racking than trying to achieve the same with shares. I've come to the conclusion, like a lot of other people, that staying invested until you need the dosh is better than trying to trade in and out. Human nature being what it is, people pile lemming-like into bull markets because they don't want to miss the easy money. That goes OK for a while until it turns, when they start to twitch. They get really stressed when the investment value gets back to what they paid. Lots will bale when it goes down a bit further, for fear of losing their shirts, thus achieving the opposite of what they intended by buying dear and selling cheap. I have a great book by Tim Hale that quotes some alleged research to the effect that if you give the average American private investor $100 and ten years, he'll turn it into $50 for you. Even when it goes right, it goes wrong. In about 1990 I bought 10,000 shares in Next for 16p each. Within 3 months, they were up to 27p and I sold them for £1000 profit - not a bad return on £1600. Those shares would now be worth £400k, which would have been very helpful! Reply to this message | Report message

New Fri 1 Feb 13 16:29   Really Rubbish Savings Interest Rates - Duncan

£410,900. Reply to this message | Report message

New Fri 1 Feb 13 16:33   Really Rubbish Savings Interest Rates - Manatee

I think I need to lie down. Reply to this message | Report message

New Fri 1 Feb 13 16:36   Really Rubbish Savings Interest Rates - Clk Sec

>> If you are not time-restricted, nor obsessed with hitting the very top or bottom of >> the market, and are more aiming for the upper and lower thirds, then its not >> as difficult as you might think. I agree with that, although I was thinking of Manatee's situation and it seems he's not far off retirement. It would be very frustrating for anyone investing at the top of a housing market, but if you have time on your side and you haven't over stretched the finances, it need not be a disaster. I'm already retired, but with pension schemes as they are now, I would look no further than property investment to provide for old age. Reply to this message | Report message

New Fri 1 Feb 13 16:57   Really Rubbish Savings Interest Rates - Lygonos

>>They have no option, they have to take on one of them, there is no third way. Yes there is: they stay at home. Reply to this message | Report message

New Fri 1 Feb 13 18:39   Really Rubbish Savings Interest Rates - rtj70

We've got some ISAs one of which 'expires' the bonus period later this year.. we get about 4% I think. Another ISA each is a similar percentage and has a few years to run. But where do you put your money that is not risky and has reasonable access? I'd love to know what others on here think. By the end of this year we will also have come to the end of a bonus period with a Post Office (therefore Bank of Ireland) account. We will have a fair bit to put somewhere for a while. And then we'll lose the lot buying a house in Greece :-) Reply to this message | Report message

New Fri 1 Feb 13 18:52   Really Rubbish Savings Interest Rates - No FM2R

>>then we'll lose the lot buying a house in Greece This can be a really smart idea, or a really dumb idea, depending on how you do it; If you were buying a house in England you would not use a solicitor recommended by the vendor. Nor an architect, estate agent, money lender or surveyor. Follow the same due diligence and common sense you would follow in the UK. We all hear about, and laugh about, "auction fever". Don't fall victim to it anymore than you'd get all silly when buying a car. If you buy somewhere that all the expats are fighting for, ask yourself why the locals aren't interested. (something bad, or just too expensive). You are considering a dwelling, not a two week package tour. Stuff which is amusing on holiday is downright annoying if you have to live with it. Finally, the most telling test of all - Sunday afternoon when the weather is crap. If you can be happy there, when the weather is crap, the shops are closed, and all your friends have gone back to England so you're left with locals and your own life, then you're probably doing the right thing. If you are relying on being in season, with visitors, or other gringos, on the weather or anything other than yourselves and your home. then think again. Last edited by: Webmaster on Tue 12 Feb 13 at 12:21 Reply to this message | Report message

New Fri 1 Feb 13 20:05   Really Rubbish Savings Interest Rates - rtj70

We've ruled out some locations on islands we love because during the closed season there'd be little open. Not a place to live. Same goes for mainland areas like Parga. And been keeping an eye on a few webcams and the weather can be poor too ;-) We're going to check out Crete at some point. Worst case is we buy somewhere and lose some money. No intention of borrowing anything to do this as that is destined for problems in my opinion. Reply to this message | Report message

New Fri 1 Feb 13 21:08   Really Rubbish Savings Interest Rates - No FM2R

>>No intention of borrowing anything to do this I mostly agree, but consider this, in the event it turns disastrous...... * a £100k house with £100k of your money invested is hard to lose. * walking away and having a £100k house with a £90k mortgage getting repossessed might be less of a disaster. * walking away from something that costs £5k p.a. to rent might be even more acceptable. (long term, whole season rents in non-gringo areas can be quite economic). IMO there is not a general or overall correct answer. Just make sure that you consider all options and choose the one that works best for you. p.s. (tuition on the best way to suck eggs also available) Last edited by: No FM2R on Fri 1 Feb 13 at 21:09 Reply to this message | Report message

New Fri 1 Feb 13 21:47   Really Rubbish Savings Interest Rates - rtj70

>> walking away from something that costs £5k p.a. to rent might be even more acceptable. >> (long term, whole season rents in non-gringo areas can be quite economic). I have started to mention renting a few times to my wife. It might not be that crazy depending on where and what our ultimate goal is. If it's to live in a particular location long term then buying might make more sense. And buying before prices go up - which might be a while. And we might rent out the UK house (mortgage free) when we're away and ultimately sell it. Should generate about £10-12k pa rental income. Reply to this message | Report message

New Fri 1 Feb 13 21:53   Really Rubbish Savings Interest Rates - No FM2R

My suggestion, for what little relevance it has, would be to make two decisions; First decision might be to rent out your UK house for a year and rent a house abroad and then you could make your second decision towards the end of that first year. This would allow you to check that living abroad suits you, that the place you have chosen suits you, and to make a more informed decision on rent / borrow / buy. Reply to this message | Report message

New Fri 1 Feb 13 22:07   Really Rubbish Savings Interest Rates - Falkirk Bairn

Interest rates around 2% - poor return but your money is OK if you spread it around various banks etc - just in case it folds - as Bradford & Bingley did Property rented out may give you 6-10% - Capital invested / loan could be in negative equity should the bottom fall out of the market - Cyprus / Spain have steep losses up to 75% making some developments ghost towns or the facilities are missing - no value in half built/20% occupied estates. UK Prices held up by Govt low cost finance to banks to give loansbut houses, especially new builds are risky. Stock market - leading stocks giving 4-6% before tax.......capital appreciation or losses are the unknown. What to do? real problem - If you are older maybe helping a son/daughter - you might not get it back but they will get it one day anyway. Reply to this message | Report message

New Fri 1 Feb 13 22:46   Really Rubbish Savings Interest Rates - legacylad

Unsurprisingly I am well aware of falling interest rates for savers. But why save? Who knows what is around the corner. Why save and leave it for the next of kin? If you have done the best you can to teach them how to live a decent life and they know right from wrong, let them make their own way in life. I spend every penny I earn, and use my savings. Five days from now I might be brown bread, five years from now I may no longer be able do participate in holidays with physical exercise, fifteen years from now I may not be able to visit friends overseas entailing long haul flights. Getting lousy interest rates on your hard earned is a bummer. So spend it. Just my two pennies worth. Reply to this message | Report message       1

New Fri 1 Feb 13 22:57   Really Rubbish Savings Interest Rates - rtj70

Whilst saving we obviously want good interest rates - some of our ISAs are 4+%. Not for much longer on two (one each). But my plan would be at some point living somewhere other than the UK... rent out UK home for some income but eventually sell it. To be honest the UK home plus saving will soon be a fair amount (no debt) and we will inherit too... might be enough to live off without a job if not in the UK. Why save legacylad asks? Without a mortgage some of us would be wasting/spending a lot if we didn't. And we have 3 maybe 4 holidays a year (2 being two weeks but then this year I have over 7 weeks plus bank holidays to take). When we have a decent lump sum (by year end) we will have a think. Mark is right to say renting should be considered. One thought is prices will soon go up - I suspect they won't and the Euro vs. Pound is not in our favour either. Back to the original question.... where to put the money to get a decent return with little/no risk. But some fair interest. Reply to this message | Report message

New Fri 1 Feb 13 23:10   Really Rubbish Savings Interest Rates - BobbyG

I know I am old fashioned, and can't really provide any evidence to justify this, but I just have a built in hatred of the idea of making money out of housing. Suppose it maybe comes from only having lived in 3 houses in my life - a house is a family home to me, its not an investment or savings plan. Maybe it comes from the fact that the house just becomes like shares, and the housing market the stock exchange. The market gets manipulated very easily to line people's pockets. A couple of years ago we spent £50k putting an extension on the house - am pretty sure the value did not go up by £50k but its our home, have no intentions of moving, and could very well see me still living here when I die. But as I said, an old fashioned viewpoint.... Reply to this message | Report message       1

New Fri 1 Feb 13 23:16   Really Rubbish Savings Interest Rates - Manatee

I agree Bobby - it's a stupidly distorted market where people aren't spending their own money and think they don't need to worry about paying it back, which is how it has been for much of my time as a house owner. Then of course it causes problems when the bubble deflates even a bit, and the popularity seekers in charge try to get it going again to perpetuate the problem. Reply to this message | Report message

New Fri 1 Feb 13 23:13   Really Rubbish Savings Interest Rates - CGNorwich

"Back to the original question.... where to put the money to get a decent return with little/no risk. But some fair interest." The answer to that is nowhere at the moment or in the foreseeable future. You cannot get more than 3% at the moment and that would be for fixed rate 5 year bond with no withdrawals during the period of the bond. After tax there is no savings account available that will even equal inflation rates. The only way to get a potentially better return is on an investment which includes an element of risk. Reply to this message | Report message

New Fri 1 Feb 13 23:15   Really Rubbish Savings Interest Rates - BobbyG

Premium bonds - potential of better interest, money is safe , but only £30k allowed (presumably per person) Reply to this message | Report message

New Fri 1 Feb 13 23:20   Really Rubbish Savings Interest Rates - CGNorwich

>> Premium bonds - potential of better interest, money is safe , but only £30k allowed >> (presumably per person) Prize money equates to an interest rate of 1.5% = lousy investment. Possibly you might get lucky but so might you if you put some money on a horse. Reply to this message | Report message

New Fri 1 Feb 13 23:30   Really Rubbish Savings Interest Rates - rtj70

>>Premium bonds - potential of better interest, money is safe , but only £30k allowed (presumably per person) Until recently (last year) between us we had about £30k in Premium bonds. We were getting naff all. Even poor interest rates would have been better. I know the Premium bonds are a gamble and it might come good. We have a few savings accounts (includes 4 x ISAs from last 12 months) that are around 4+%. Two of those locked in for another few years but then it's only £5340 invested each. I've been keeping an eye on bond rates on NS&I... will keep looking. Trouble is my other half wants to do something sooner than later so doesn't want to lock money in long term anywhere. I know in late 2009/2010 in an account with instant access I was getting no more than £230/month interest on the house sale money. We couldn't do much else with it as we were cash buyers for a house. So I know we'll get little. Reply to this message | Report message

New Fri 1 Feb 13 23:01   Really Rubbish Savings Interest Rates - Manatee

>>Getting lousy interest rates on your hard earned is a bummer. So spend it. Just my two pennies worth. That's fine if you have guaranteed income you can live on, or you don't mind falling back on the state and living at a reduced level. I agree that the point of saving is to have something to spend, but not necessarily all at once. Reply to this message | Report message       1

New Fri 1 Feb 13 23:28   Really Rubbish Savings Interest Rates - legacylad

I have no guaranteed income, no private pension, only the state pension to look forward to at whatever £££ per week when I reach 65. By then my overall needs will be far less. Doubtless I shall feel the cold more and spend more on heating, but will spend far less on socialising in the pub. No more late night curries, trips to the cinema, away days with friends on the pop. Having paid NI since I was 17 I shall be happy to fall back on the state and drive around in an old Yaris. They won't take my memories of extravagant consumption whilst I had my health and faculties!! Reply to this message | Report message

New Fri 1 Feb 13 23:32   Really Rubbish Savings Interest Rates - rtj70

>> at whatever £££ per week when I reach 65. 67 or older surely. Or are you older than I imagined? >> They won't take my memories of extravagant consumption whilst I had my health and faculties!! I'd rather memories of holidays etc. If I work to retirement (67) then I'll lose out on spending all the assets we have. Obviously leave some to children :-) Last edited by: rtj70 on Fri 1 Feb 13 at 23:33 Reply to this message | Report message

New Fri 1 Feb 13 23:55   Really Rubbish Savings Interest Rates - legacylad

I have no intention of working till 65. Friends of mine, Fire Service and Police, have retired early 50's with pensions. Their annual pensions are worth far more than I have ever earned, but good luck to them.They intend to live in their same properties whilst living off their pensions. As I don't have a pension, I intend to downsize and live off the capital.Or keep the same house and merely 'exist'. I spend a heck of a lot visiting my friends in California..3 times last year, and skiing, and when its gone its gone. My plan is to leave nothing to nobody.Apart from memories of a fairly generous chap who stood his round, and spent it liberally without getting into debt. Reply to this message | Report message

New Sat 2 Feb 13 00:05   Really Rubbish Savings Interest Rates - rtj70

I wasn't having a go Legacylad. Sorry if you though I might have. Yes let us all enjoy life. I could visit the San Francisco area for free apart from flights... not been to my brother's place since 1999! Reply to this message | Report message

New Sat 2 Feb 13 00:13   Really Rubbish Savings Interest Rates - legacylad

Never thought you were having a go...see you at Grumpy's Bar on Vallejo St, or at a Giants game, sitting in the bleachers! Time you went back whilst they are World champs. I'll be the one sitting with a Sierra Nevada in one hand and a margerita in the other!Nothing like an old fool. Reply to this message | Report message

New Sat 2 Feb 13 00:35   Really Rubbish Savings Interest Rates - rtj70

>> Never thought you were having a go. Just checking! You never know how one's opinion comes across. SF is okay but for the cost of two plane tickets I'd rather go to say Greece! :-) Last time I was over in the US I spent over £3000 for flights, accommodation - that was 1999. Brother's wedding so a short stop there. So went on to Hawaii. And due to the distance stopped in New York for a few days on the way back. All on my own..... had met the now Mrs RTJ70 before the trip but (a) all booked in early 1999 and (b) she couldn't come along for numerous commitments/reasons. So I nearly didn't bother stopping in NY coming back. But I did and met up with a couple I'd been on a trip with on Maui when I went to the Statue of Liberty a week later. Small world! Reply to this message | Report message

New Fri 1 Feb 13 23:51   Really Rubbish Savings Interest Rates - Manatee

>> I have no guaranteed income, no private pension, only the state pension to look forward >> to at whatever £££ per week when I reach 65. >> By then my overall needs will be far less. Doubtless I shall feel the cold >> more and spend more on heating, but will spend far less on socialising in the >> pub. No more late night curries, trips to the cinema, away days with friends on >> the pop. Having paid NI since I was 17 I shall be happy to fall >> back on the state and drive around in an old Yaris. >> They won't take my memories of extravagant consumption whilst I had my health and faculties!! I get the principle and I agree - no point scrimping when you have the health to do things. But I don't intend to stop when I'm 65 unless I'm forced to. And I have the boss to provide for ;-) Reply to this message | Report message

New Sat 2 Feb 13 00:28   Really Rubbish Savings Interest Rates - BobbyG

I think our circumstances and "brought-up-ness" dictates how we are. My dad retired at 57, still going strong at 81 and living off £1500 per month income, no mortgage etc obviously. I have paid into company pensions since my 18th birthday and some 25 years later, have never missed a month. I too would hope to retire early (mind you 80 will probably be deemed as early by that time) and enjoy my money. However sister, with same upbringing as me, works in a hospice. She makes sure she has spent every penny every month or at least that it is set aside for a holiday within 3-6 months. Sees too many people dying early and wishing they had done x, y or z. And I have mentioned before about a friend's dad and mum who died within 6 months of each other at ages of 65. Their dream was to go on the Orient Express, never could as couldn't afford it. When will was settled, they had over 40k on savings that were being kept for a rainy day. Also, he died first, and then she died and with that, the pension also died. From the papers the family found, they reckon there was a pension fund of over £100k that Standard Life got to keep....... Reply to this message | Report message

New Sat 2 Feb 13 09:08   Really Rubbish Savings Interest Rates - CGNorwich

Of course it might sound a good idea to blow all your savings and, spend it all on luxuries holidays and not worry about the future but the plain fact of the matter is that at 65 your life expectancy is at least another 20 years. We all might well want a few little extras in life as you get older, like adequate food and heating, and I don't want to be totally dependant on an increasingly impoverished state for my needs. The financial manipulation of the economy that has deprived savers of anything resembling a fair return on their money is going to prove a disaster for many. Reply to this message | Report message

New Sat 2 Feb 13 11:34   Really Rubbish Savings Interest Rates - Mike Hannon

I'm glad it's not just me. I've had grief all this week from the Spanish bank, operating as 'blankety-blank' International. Same thing - instant access account being 'upgraded' and interest reduced by 75 per cent! When I instructed them to close the account they immediately came back with an offer of 1 per cent 'bonus' extra interest for a year. After telling them we wanted out and to just leave an amount in a one-year bond they have spent the week harrassing me over identity and anti-money laundering regulations - the fourth time they have done this in the six year since we believed the publicity that they are the 'best off-shore provider' and gave them our profitable business. I am beginning to believe I'll not live long enough to ever see a fair return on savings again in my lifetime. Maybe, as a loyal customer, Barclays will lend me some money to buy some of their shares - looks like the best deal around... Reply to this message | Report message

New Sat 2 Feb 13 12:50   Really Rubbish Savings Interest Rates - lancara

Interest rates pale into insignificance when your sterling savings or pension payments have depreciated 10% against the euro in the last 3 months Reply to this message | Report message

New Sat 2 Feb 13 13:25   Really Rubbish Savings Interest Rates - CGNorwich

True but so have everyone's savings in the UK as well as receiving sub-inflation interest rates. Last edited by: CGNorwich on Sat 2 Feb 13 at 13:28 Reply to this message | Report message

New Sat 2 Feb 13 13:35   Really Rubbish Savings Interest Rates - Zero

>> >> True but so have everyone's savings in the UK as well as receiving sub-inflation interest >> rates. Mine are not. I am getting inflation +0.5% Reply to this message | Report message

New Sat 2 Feb 13 15:06   Really Rubbish Savings Interest Rates - CGNorwich

>> Mine are not. I am getting inflation +0.5% >> Presumably you have some NSI inflationn linked bonds as do I but unfortunately the investment limit for these was comparatively small and they are of course no longer available and unlikely to be anytime soon. Reply to this message | Report message

New Sat 2 Feb 13 15:41   Really Rubbish Savings Interest Rates - Zero

>> >> >> Mine are not. I am getting inflation +0.5% >> >> >> >> Presumably you have some NSI inflationn linked bonds as do Yup. The max I could at the last issue, everyone poo pooed it then, but now? Reply to this message | Report message

New Sat 2 Feb 13 15:45   Really Rubbish Savings Interest Rates - CGNorwich

"Yup. The max I could at the last issue, everyone poo pooed it then, but now?" I didn't - I seem to remember making a post advising they were again available and you thanking me! Reply to this message | Report message

New Sat 2 Feb 13 15:47   Really Rubbish Savings Interest Rates - Manatee

>> Yup. The max I could at the last issue, everyone poo pooed it then, Not me. Reply to this message | Report message

New Sat 2 Feb 13 15:58   Really Rubbish Savings Interest Rates - Zero

Ok two didn't poo poo then. Reply to this message | Report message

New Sun 3 Feb 13 14:12   Really Rubbish Savings Interest Rates - helicopter

Make that three - I put £10 K in...... Reply to this message | Report message

New Sun 3 Feb 13 22:14   Really Rubbish Savings Interest Rates - rtj70

But where would you put: - £10k - £50k - £100k We might want access in say twelve months... But curious on opinions. We have about £23k in ISAs between us with fairly good interest rates. And a good rate on a PO account with a fair amount. Later this year two of the ISAs (one each) ends the good rate and we also get a lump sum from an investment. We do seriously intend getting somewhere to move it. We might buy it and not move for a bit. But in the meantime where would the experts on here advise where to put money. I suspect the answer is nowhere... Interest rates are low. Reply to this message | Report message

New Sun 3 Feb 13 22:47   Really Rubbish Savings Interest Rates - bathtub tom

>>But where would you put: I'm next in the queue behind rtj. Reply to this message | Report message

New Sat 2 Feb 13 13:36   Really Rubbish Savings Interest Rates - Zero

>> Interest rates pale into insignificance when your sterling savings or pension payments have depreciated 10% >> against the euro in the last 3 months I dont pay for things in Euros tho..... Reply to this message | Report message

New Sat 2 Feb 13 13:47   Really Rubbish Savings Interest Rates - R.P.

But your wholesalers might. Letter from Lloyds yesterday - interest rates chopped by 50% - at least a risky fund I took out in 09 has been paying just over 29% over four years - now may be the time to cash that one in... Reply to this message | Report message

New Sat 2 Feb 13 19:31   Really Rubbish Savings Interest Rates - lancara

"I dont pay for things in Euros tho....." Not directly but most of the things you buy are imported so the strength (or weakness) of the pound has a big factor in the viability of your savings Reply to this message | Report message

New Sat 2 Feb 13 19:33   Really Rubbish Savings Interest Rates - Zero

>> "I dont pay for things in Euros tho....." >> >> Not directly but most of the things you buy are imported so the strength (or >> weakness) of the pound has a big factor in the viability of your savings Not really, low euro/pounds rates have not increased UK inflation markedly since the euro came into being. Reply to this message | Report message

New Sat 2 Feb 13 20:07   Really Rubbish Savings Interest Rates - Dutchie

I'm not sure about government figures regarding inflation but energy cost and food prives have shot up.I wouldn't be surprised if inflation was nearer ten percent. If the pound is losing value against the Euro prices will even go up more.Just what we not need in a recession.We do inport lots of stuff and the cost will go to the consumer. Reply to this message | Report message

New Sun 3 Feb 13 13:58   Really Rubbish Savings Interest Rates - Ambo

Stock market investment involves more risk but is one of the few ways to beat inflation. 6% should be obtainable without too much difficulty. Holdings for income, growth or a mixture of both are available. Bought in an Isa, the returns are of course tax free and the capital is easily recovered if needed. But prices are high just now and a fair amount of investment knowledge is needed. Put a toe in the water by making virtual investments with an online service. I like www.iii.co.uk/ which has useful charting and various other ancillary services. Reply to this message | Report message

New Sun 3 Feb 13 22:49   Really Rubbish Savings Interest Rates - Ted

I had a 3 yr bond finish in November. It had been bringing in about £300 a month gross. I have some other bonds still running and I got a bit sick of pizzling around searching for the best rates, with access, for this sum. I bank with the Halifax so we decided just to stick 70K in their ' Everyday saver ' which pays some interest......not a lot! I can, however, access the money anytime without penalty, pay out online and have a cashcard for machine withdrawal. We don't need a lot of income and, like LL said, our needs will be less in the near future at ages now of 67/65. No caravan, second car, motor bike then, no mortgage now and a huge chunk of equity ( atm ) for the kids to share eventually. It's a no-brainer for us...enjoy our last years with some cash at hand. Unfortunately, SWM has decreed that the hall, stairs and landing must be decorated and a new carpet laid. I'm not getting involved....it's starting on Wednesday....grrrrrr ! Ted Reply to this message | Report message

New Sun 3 Feb 13 23:51   Really Rubbish Savings Interest Rates - Roger.

I don't have to worry about savings rates. Now, there's a relief ;-) The amount we have isn't worth putting in any deposit or savings account - we just keep it in a spare current account, at a different bank to our main one, which we try to use like a credit card facility. That's where our car insurance will come from later this month and I set up a standing order to pay back the premium from our main account. No interest to pay for a drip account! Last edited by: Roger on Sun 3 Feb 13 at 23:54 Reply to this message | Report message

New Mon 4 Feb 13 09:18   Really Rubbish Savings Interest Rates - Crankcase

Like Roger, I don't have to worry about savings rates, as I have none whatsoever. Actually, that's not quite true - any little money I do have to save each month just goes into the offset bit of the mortgage, so whilst I get no interest, I do reduce the mortgage payments, and at present that seems the most efficient to me, especially as I can pull it back out at any time if I need to. Once the mortgage clears it'll be a different game, but as that's years away I'll worry about it if I survive that long. Reply to this message | Report message

New Mon 4 Feb 13 12:48   Really Rubbish Savings Interest Rates - Dutchie

We had a endowment morgage which I was assured by Clerical and Medical would pay for our house.I could see that the payments we where making wouldn't be enough.I rang the company to increase monthly payments.Don't bother was the answer you be fine. We where about 14 thousand short.I payed the morgage off with BP shares I had saved.Men or women in nice suits doing the talk don't trust anybody when it involves money. Reply to this message | Report message       1

New Mon 4 Feb 13 12:57   Really Rubbish Savings Interest Rates - Dog

>>Men or women in nice suits doing the talk don't trust anybody when it involves money<< I'm with the Dutchman. ^_^ Reply to this message | Report message

New Mon 4 Feb 13 13:09   Really Rubbish Savings Interest Rates - Bromptonaut

>> I'm with the Dutchman. >> >> ^_^ >> Me too. The amount of carp talked by Endowment salesmen in the eighties/nineties was unbeleivable. Reply to this message | Report message

New Mon 4 Feb 13 13:17   Really Rubbish Savings Interest Rates - Dog

>>The amount of carp talked by Endowment salesmen in the eighties/nineties was unbeleivable<< Yep - I could easily have fallen for their spiel back in the 80's as I was even more a fool back then! Reply to this message | Report message

New Mon 4 Feb 13 13:22   Really Rubbish Savings Interest Rates - Roger.

I had an Equitable Life guaranteed endowment. Unfortunately it was not a large fund as I had to stop contributing in 1992. Nevertheless, despite heavy pressure for Equitable when their problems surfaced, I refused to swap it for a non-guaranteed policy and in due course it has provided me with a decent pension of about £750 p.a. relative to the small capital value. I'm an Equitable bad bargain! Reply to this message | Report message

New Mon 4 Feb 13 16:15   Really Rubbish Savings Interest Rates - Ambo

I must have joined the market sooner than some of you since I have had good results from Clerical Medical (bond has put on about 150% since 1995, in spite of my milking it of 5% p.a.); Equitable (mine not one of the affected type of investment, although only a tiny amount involved anyway) and even the formerly notorious Standard Life (endowment mortage actually paid out a few thousands extra to me on maturity). Endowment insurance itself is not worthwhile. If cover is needed for loved ones, or family, a large amount can be bought for relatively little via term insurance. Reply to this message | Report message

New Mon 4 Feb 13 16:55   Really Rubbish Savings Interest Rates - CGNorwich

"The amount of carp talked by Endowment salesmen in the eighties/nineties was unbelievable.' And yet I bought my house with an a 25 year endowment mortgage in the early seventies. It paid off the mortgage and gave may me a reasonable cash bonus, exactly what I had been told it should although I did realise there were no guarantees. Obviously there was some miss-selling but you don't often hear about those for whom the product worked quite nicely. Reply to this message | Report message

New Mon 4 Feb 13 17:01   Really Rubbish Savings Interest Rates - commerdriver

The timing was a lot of it, it worked if your 25 years started in the 70s, it even worked if you started in the 90s bacause the amounts were more realistic, in the 80s the predicted gains were, in hindsight, unrealistic hence problems for a lot of people, thankfully only a small one in our case. Reply to this message | Report message

New Mon 4 Feb 13 18:23   Really Rubbish Savings Interest Rates - Zero

>> The timing was a lot of it, it worked if your 25 years started in >> the 70s, it even worked if you started in the 90s bacause the amounts were >> more realistic, in the 80s the predicted gains were, in hindsight, unrealistic hence problems for >> a lot of people, thankfully only a small one in our case. It was a good product at the time, albeit over hyped. Mine, taken out in 1985, matured a few quid short of paying off the mortgage sum. People took them out believing they would get the top estimate, rather than just being happy it did just about what was required. Wouldnt work now of course, its a vehicle for high inflation times. Reply to this message | Report message

New Mon 4 Feb 13 18:32   Really Rubbish Savings Interest Rates - rtj70

It's an endowment that we have maturing later this year - my wife kept it going as a saving vehicle after it was no longer needed for a mortgage. Can't be sure what it will pay out but it won't be a terrible return on investment. The top-end value will have been a good 50% more than we will get I think. In about 98/99 I was put in touch with a financial adviser by my bank because I was looking at saving. I had a good wage and low outgoings (no immediate plans for a mortgage). They were pushing endowments for saving even then. Sounded risky to me and I'm glad I didn't do anything. Especially as only a few years later I had a mortgage. Reply to this message | Report message

New Mon 4 Feb 13 17:03   Really Rubbish Savings Interest Rates - Bromptonaut

>> And yet I bought my house with an a 25 year endowment mortgage in the >> early seventies. It paid off the mortgage and gave may me a reasonable cash bonus, >> exactly what I had been told it should although I did realise there were no >> guarantees. They probably did OK until tax relief on the premiums were withdrawn for new business c1984. The basic rate of tax in the seventies was around 34p/£1 and considerably higher for those over the basic rate limit. Quite a boost to the fund. The bull market up to 1987 and again afterwards meant returns were still good. Only into the nineties and afterwards did they look increasingly poor. Reply to this message | Report message