When will it all end I ask ?

[Evans Electric]

Ever since the banking crisis when our trust in those solid institutions was shattered......the interest rates for SAVERS   not borrowers  has been going down & down & down .

I just looked at a savings account online ..........the interest rate is so low , if  and I say IF ,   I had a million £ in there , the interest for the year would be £100  .  :C

Just shifted some to the Building Soc ISA  which is paying  0.6%   which is magnificent compared to the savings.

 

[user 28595]

Nationwide will lend you money at 3.4% and pay you 1.1% or thereabouts. That gives them a margin of 2.3% to run their systems, pay staff etc. Doesn't sound too terrible to me.

cheers, Paul

 

[Murdoch]

The whole world realised a long time ago that high interest rates were bad news so they've tried keeping tho 2% for well over a decade now.

Low returns are here to stay.

Our premium bonds return more!

 

[binky]

if they allowed interest rates to rise, the amount of houses being re-possessed would soar.

Can't quite remeber the background to low interest rates, but I have an inkling in my mind that it was about encouraging spending by making money cheap, thereby hiding a ****e real economy.

 

[Kurt]

The central banks are having kittens about even a 1/ 4 point % rise, this will have no effect on mortgages as the rates are largely below the minimum anyway. The issue appears to be that the western economies are stuck waiting for the first country to move. The US is by rights the leader here, the UK usually follows so i would not be surprised by a 1/4 here or there. I have dabbled with a  mix of investments to get a decent above inflation return but its hard. There appears to be no easy place for money. I have moved from shares to funds recently and have abdicated to the "experts" - at present i am around 3%..... wow... lol

 

[apprentice87]

I have had a few accounts in what was the "National and Provincial" which changed to "Abbey National" which changed to "Santander" since 1988. They pay out interest at the huge rate of 0.1% To add insult to injury, when they were sold, they were going to give everyone £1000. I had nothing as you had to have a certain amount of money in there on a certain date. I did not have quite enough in there even though i had had the accounts for years even then. All bankers are liars and fraudsters, look at he mis-selling of the endowment mortgages, which by the way were GUARANTEED to cover your mortgage. They showed me a load of paperwork showing returns of 5, 10, and 15% and said that they could not say for definite about the 15% but you would CERTAINLY get the 10% and even if everything went tits up you would get the 5%. I would have rathered a "proper" mortgage, but i was only about 25 and did not know much about these things and relied on what they said.. Who could blame me?? It would be like going to a doctor and then trying to tell him what was wrong with you... There WERE endowments that were not guaranteed to cover the mortgage, but these were sold as; "low cost" endowments. The banks just changed the rules and lied when things did not go their way. What was wanted was a "class action" or just everyone refuse to pay, that would have sorted them.

john..

 

[Sharpend]

Well I have 100% investment, I keep all that I earn and pay few. I've never understood why we are so stupid to trust others with our hard earned income? What makes that any different to gambling? 

 

[ProDave]

Interest rates have traditionally been used as a "tool" to control inflarion and the economy. Inflation gets a bit high, raise rates. I always thought it was a very blunt and ineficcient mechanism for that. It relies on borrowers being squeezed so they spend less, but not everyone is a borrower?

If it was a mechanism that really worked, we would have hyperinflation now with rates so low.  Think back to the 80's when rates were 15% what do you think would have happened if at a stroke they dropped to 0.5%?

I can't see them going up much if at all for a long time, which is a shame.

 

[Kurt]

Well I have 100% investment, I keep all that I earn and pay few. I've never understood why we are so stupid to trust others with our hard earned income? What makes that any different to gambling? 

Sounds like my dad.. lol - As i said its very difficult if you look at the options available, they all amount to a certain level of trust, in fact the whole system is a trust system, otherwise the banking system cannot work (as we found out in 2008)

e.g.- Pensions: Fund managers control the investments for the vast majority on money, they too rely on trust that the companies and governments they lend to, to deliver the interest or capital growth.

Shares: If you invest directly yourself, you trust the information supplied by the company to make that investment decision

Bonds: Gov and Corporate: Again you trust they will not wriggle out of their end of the deal (and propose a "haircut" if things get difficult.

Managed Funds: You trust the fund manager, who trusts the Govs and companies they invest in (same as pensions

Savings accounts: You trust the bank does not go bust (the UK gov underwrites a certain amount around £70K from memory) - this is peanuts for large investors.

Premium Bonds: UK gov special, you trust they wont get into difficulty and lock it down stopping you getting your money out.

Cash under mattress: You trust this will not be carrotted away by inflation so you trust the gov to control it...

etc etc

So you see , you have no choice

 

[Sharpend]

Ok so you've now hit nail in head, you are prepared to put your trust in the banking/finance people when only yesterday it's announced that four top execs of an allegedly respectable institution are being charged for fraud!! 

Id sooner have what I have and be happy. I've known too many people loose too much when the fear mongers tongues start wagging. 

 

[Blue Duck]

Who needs money? we will be a third world country when all the merchant bankers decide to jump ship with their hedges and portfolios.

Spunked all my savings on trying to  survive in a low payed job with two kids so I don't care what the rates are, It's better to turn all your money into gold and bury it somewhere, It's kept the Greek economy going....

 

[steptoe]

I've been investing all my money in some Danish company recently, :C

 

[sprocketflup]

I've been investing all my money in some Danish company recently, :C

Liquid investments?

 

[binky]

or Pork?

 

[rapparee]

I've been investing all my money in some Danish company recently, :C

Carlsberg, probably the best investment in the world

 

[Tony S]

I’m looking to invest in companies making earth rods. Sales should rocket next year if the IET get their way.

 

[Blue Duck]

I’m looking to invest in companies making earth rods. Sales should rocket next year if the IET get their way.

Care to elaborate? 

 

[Sharpend]

Read the 18th ed

 

[Evans Electric]

Its not been written yet !!!  :C

You know what you've done now !!!!!!.......Stepps is buying up all the earth rods !

 

[steptoe]

Care to elaborate? 

Its not been written yet !!!  :C

You know what you've done now !!!!!!.......Stepps is buying up all the earth rods !

I've applied to be CEO Deke

So they're all worried, :slap