I was just checking my Premium bond wins :) and noticed that National savings are changing rates of interest that they are paying on all products (from November 23rd)
4 of their main products....1.16% down to 0.01%
0.9% down to 0.1%1.0% down to 0.15%
0.8% down to 0.01%It looks if you want to lend to the Government you will have to do it for no reward.
alan_m snipped-for-privacy@admac.myzen.co.uk> posted
Unfortunately all the other savings banks will follow suit.
What's especially frustrating is that (a) it's only a few months since NS&I started offering high rates to attract savings, and massive of people moved their savings there, which wasn't a particularly easy process; and (b) they have been hopelessly incompetent at managing the flood of new customers, and it'll probably take ages to get our money out again.
Apart from saving the Government money, it may encourage people to invest their savings into more productive areas such as manufacturing, which is presumably what the Government would like. I saw there was talk of negative interest rates again the other day, with the aim of achieving the same result, I believe,
Yes its not just them, its any savings in most places that are reducing. I noted with interest somebody on Bloomburg radio saying the other day, interest rates may need to go negative to cope with the recession. To me that would in effect mean we pay the company to look after our money. Probably time to either turn it into gold or get a decent safe,draw it all out and use it as cash. grin. Lets hope it never comes to that. Any chancellor that proposes this would start a panic. Even as it is its probably better to invest in the mafia than in a building society, or even to gamble or use the stock market. Brian
Interest rates have been very low for quite a while now, such that it really isn't worth keeping money in any sort of basic savings account. Even the best have been/are paying only around 1.5% which IHMO really isn't worth bothering with.
Yes, spend it, stick it under the bed or buy a business of some sort that might pay back better than a savings account.
I think that they've had negative interest rates in Japan for quite a while now.
Wasn't the proposed Labour policy to tax the value of your assets including savings, pension plan and any equity you have in a house?
Or to put it another way, if you want the government to keep your money safe from burglars (rather than inflation) you will have to pay them (negative interest rate).
Martin Lewis was saying the other day that -ve interest rates for big banks was already the case in Germany and was a possibility in UK but he thought it was very unlikely that actual -ve interest rates would come in for retail customers. (effective zero interest rates was already here)
That's okay.
Under Labour my savings, pension plan [1] and house would be almost valueless anyway.
Which means no tax revenue for the Labour Government.
Might be an even shorter Labour government than usual before they run out of money.
Owain
[1] If I had one, which I don't.Chris Green explained :
Informed just last week, my interest on a major account will reduce from 1.05%, down to 0.70%. Another one reduces to 0.25%.
So if you had say 100K in the first account, you would get an income from it of around £700 per year. Better than nothing I suppose.
Is it? If you simply spent it at a rate of (say) £2000 per year it would last 50 years and you'd have twice as much money in your pocket as you do now.
OK, that wouldn't leave the £100k to your children but it may well be that in 50 years time it won't be worth much anyway.
how do I invest my savings in "Manufacturing"?
only the really loony lefties
the more moderate would just target the first
whet have you been getting that
for the past 12 months it's been next to impossible to find more than 1%
Did you also notice that their Premium bonds "rate" is going down next month?
Its currently 1.4% (1 in 24,500 chance of winning). Going down to 1% (1 in 34,500).
Alan
Buy some shares in your favourite manufacturing company and get dividends in lieu of buggerall interest on your bank account? It used to be possible to do that through your bank, and may still be, but failing that, try any of the suggestions here
Yes I did note the drop but at least it's not down to 0.01%
tim... has brought this to us :
Marcus.
Who are just about to cut their interest rate (on 12th October)
But you will get your money back, (minus inflation).
10 year gilts yield 0.2%, index linked gilts and German bunds have been on negative yields for a while.If you want more than a 10-year gilt yield you need to take some risk and that means equities, property, etc
According to a Mori poll in the DT that's what 'people' want Rishi to do. Anyone with more than £500,000 according to the poll is 'rich' and should have a wealth tax applied.
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