View Full Version : Savers in dire trouble

5th Feb 2009, 13:06
Did I hear right just now? BBC News quoted someone as saying "Savers will be decimated by the news" (of the interest rate cut).

Seems a bit harsh to me...

green granite
5th Feb 2009, 13:15
Oh I don't know, it's only one finger. :)

5th Feb 2009, 13:30
One suspects its the banks that will suffer. As interest rates decline, folks like me will withdraw our savings and put them to work elsewhere. We certainly won't rush out and spend them to get the economy working. Creating credit is the banks' job - under the baleful gaze of a prudent and watchful central bank backed up by an efficient regulator.

Its easy to see how Gormless Gordon and his feckwit central bankers got us into this mess. :rolleyes:

5th Feb 2009, 13:36
This had got to be one of the most criminally irresponsible moves since... oh, their last most criminally irresponsible move.

Talk about upsetting the delicate balance of supply and demand. The B of E has ensured that supply of funds will dry up just as demand for funds (possibly) starts to rise. Who on earth is going to entrust their hard-earned savings to the UK's wunch of bankers for a paltry 1% p.a.???

High Demand with Low Supply? Real price of money in the economy WILL rise.


5th Feb 2009, 13:40
Speak for yourself. I have a C&G tracker with no collar on it. This keeps up, they'll be paying me to live in my house.

The problem is getting credit to flow & the problem with that is that a bunch of the previous suppliers of credit have fled. No more Viking, paddy or murcan banks doling it out like confetti.

5th Feb 2009, 13:47
...the previous suppliers of credit have fled.With their ill gotten gains from the world's greatest ever pyramid scheme. One notes that Obama is a bit cross about US banks using taxpayers money to pay themselves big bonuses. One also notes that RBS is planning to do the same, but Gormless Gordon remains silent on the matter. He would, naturally, since he is complicit with them and they are the ones with the hand up his backside, pulling the strings. :hmm:

Flap 5
5th Feb 2009, 14:08
The interest rate drop to 1% was predicted. The money markets had factored it in. In fact the pound has risen against the dollar after the news. Maybe the markets were worried the interest rate cut could be even more.

The losers:

1. Savers
2. People with mortgages which have 'collars'.
3. People with fixed rate mortgages.
4. Businesses renewing loans finding their fees increased and interest not decreased by banks suddenly getting an attack of prudence after screwing the economy, and still trying to screw it with their bonuses.
5. The country when the tax income for the government reduces because of businesses going under caused by point 4.
6. Increased benefit payouts caused by businesses going under.
7. People with credit cards finding that rates having actually increased.
8. The banks (the economy) when people stop depositing their money because of poor returns on saving accounts.
9. Etc. etc.

The winner;

1. Parapunter.

Anything I have missed?

5th Feb 2009, 14:16

I'm looking around for somewhere else to put my savings. I don't feel like leaving it in the UK banks so that they can all pay themselves bonuses at my expense.

At the moment I am being hammered by crap interest rates that don't even come close to matching inflation.

Anyone want a loan at reasonable rates? ;)

5th Feb 2009, 14:18
The winner;

1. Parapunter.

Anything I have missed?

withdrawing money to buy goods then reselling such goods on E-bay etc.

example: buy a cow and sell the milk products using the internet to reach a hungry consumer.

The risk is guessing where demand will still exist

consider the basics in a depressed economy


Then consider what you can produce at competitive costs


Flap 5
5th Feb 2009, 14:23
Ah! The entrepeneur at work. Don't you love 'em? Then there is burglary, scamming, phishing, etc.. Ah! I see you may have already covered at least one of them ...

green granite
5th Feb 2009, 14:29
Premium bonds come to mind,

Roger Sofarover
5th Feb 2009, 14:40
Well there are still the little hidden gems out there if you look for them. I am returning 2.5-3% per month at the moment (and have been for 14 months). It is all down to what lomapaseo hints at. When it all goes t*ts up financially on a global scale, what is it that people still fundamentally need or indeed need help with. In perfectly legit and legal enterprises, there are a lot of people out there making a lot of money right now.

5th Feb 2009, 14:42
I've just heard on the radio that RBS bosses are possibly going to reward themselves with six figure bonuses!!


5th Feb 2009, 14:44
Premium bonds come to mind

Why? The prize fund is adjusted to track interest rates.

Roger Sofarover
5th Feb 2009, 15:36

Everybody but everybody in the UK should pull all their money dealings out of RBS.

Flap 5
5th Feb 2009, 16:33
Premium bonds come to mind,

Interest rate used to calculate premium bond prizes now at just 1.8%:

National Savings & Investments - Current interest rates (http://www.nsandi.com/interest-rates/index.jsp)

5th Feb 2009, 16:45
I really object to this thread being named
Savers In Dire Trouble.
I'm a saver, and I couldn't give a monkeys
fart how much interest rates are at any set
moment in time!
The average saver will still be ripped off by
the "money people" anyhow. It's just a matter
of HOW much you're ripped off.
And there's sod all that you can do about it!
Leave the DOSH in the Bank, and hope for
the BEST.
'Tis all you can do at present. :ok:

Burnt Fishtrousers
5th Feb 2009, 17:10
I agree with Roger, take out your savings from RBS and see them bleed to death...thing is Gordon will only give them more of our money in return.

Lance Murdoch
5th Feb 2009, 17:40
Talking of alternative places to invest money has anyone dealt with the community lending scheme Zopa - where members who invest help members who borrow (http://www.zopa.com)
Are the returns as good as some people say and if so what is the catch?

5th Feb 2009, 17:45
Decided to get out of savings and go back to chancing my luck with equities.

Turns out I no longer have a sharedealing account and will have to apply for a new one under different rules. Thanks, HSBC!

5th Feb 2009, 17:48
The catch with Zopa is you have to be prepared to leavve your money in for at least five years and it's not covered by the FSCS, so if you get done you stay done. OTOH the loans are spread amongst dozens of borrowers, they say, so your risk is minimised. Apparently.

5th Feb 2009, 17:49
Ah, LM. You just beat me to it !

I have had a look at ZOPA but have so far not persuaded Mrs SI that it is better than a paltry 1.6% p.a. or whatever derisory sum we get now on savings. In fact, I fear it is so low right now I cannot even be bothered to check.

We have all been legally mugged and I fully anticipate that the banks are waiting in the wings for a second helping ...


5th Feb 2009, 17:51
Whilst your money that you invest in Zopa is waiting to be
assigned to a particular borrower it is held by RBS.

5th Feb 2009, 18:01
Some guy from the Building Societies Association was basically saying on Radio 4 that if Building Society interest rates drop too far, there won't be enough cash in Societies to fund new mortgages. If enough people start a run on Building Societies, the interest rates will go up.

5th Feb 2009, 18:17
I'm thinking of sticking a lump into a pension. Their fund prices are low at the moment.

5th Feb 2009, 18:19
I really object to this thread being named
Savers In Dire Trouble.
Such a shame that the only person who got the point was green granite.

I thought Jet Blast was a place of shining wits...

Loose rivets
5th Feb 2009, 18:37
The economy's so bad, that I'm trying to get the pilot retirement age put up to 80.

BAMRA wake up
5th Feb 2009, 18:58
A friend, after being invited, somewhat reluctantly invested in a wind farm project. It seemed risky but once it was up and running, without any financial hitches, he's earned around an 8% return annually.

What else? Gold? Land?

5th Feb 2009, 19:37

I don't have any savings with RBS, thankfully. I just strongly object to these greasy cretins using the money I, as a tax payer, provided to bail them out of the dire mess they created to 'reward' themselves with huge bonuses. There is no justification for it whatsoever, especially as there are enough honest people who have lost their homes, jobs etc recently due to greed of banks like RBS. It turns my stomach :yuk: :*

I don't actually have enough in the way of savings myself for any interest rate to make any significant difference to my savings :{

5th Feb 2009, 20:02
Opportunity 1
It is time to get back into buy to let folks. Find that reposession or auction bargain and even if the market goes down another 10% (which is unlikely) you will still be on a winner if you can sit on the property for a few years. A cheap 120K property in our area will return you 500-550 per month after management fees, not a bad return in todays market.
Opportunity 2
Don't laugh but allotments! There is a huge demand for allotments near built up areas as everyone turns to 'grow your own'. So if you have a spare field......
Opportuniy 3
Abandon ship, put your money anywhere the rates are highest and safe no matter where in the World that is.

There are more savers apparantly than borrowers ( in numbers of people that is) so with interest rates coming down doesn't that mean a greater number of people will be putting LESS back in to the economy?

Flap 5
5th Feb 2009, 21:46
Such a shame that the only person who got the point was green granite.

I thought Jet Blast was a place of shining wits...

No it's more like a place of whining ....

But then you probably expected that.

5th Feb 2009, 21:47
...and in this thread, it's all coming from you.:rolleyes:

5th Feb 2009, 21:51
Such a shame that the only person who got the point was green granite.

Oh dear avidflyer. Is the clue in the decimated?

Flap 5
6th Feb 2009, 07:51
Parapunter. I don't even know you but I am beginning to dislike you already. What ever motivates you to be so unpleasant? :=

Or maybe it's a case of not engaging brain before typing. :hmm:

6th Feb 2009, 07:58
Eh? Flap my friend, if you wish to dish it out like a prat, you really must be willing to take it at as well. Your contributions to this thread in particular and this forum in general are unpleasant.

That you dislike me makes not a jot of difference to my sentiment, but seems to prompt a response from yours. Have a good day xx

No it's more like a place of whining ....

But then you probably expected that.

The winner;

1. Parapunter.

Anything I have missed?

Ah! The entrepeneur at work. Don't you love 'em?

Flap 5
6th Feb 2009, 11:02
Oh dear. The point about an anonymous forum is that we can concentrate on the issues and not personalities. The posts you quote are intended to be amusing. If you don't have a sense of humour ... :sad:

Everyone else - please resume the thread.

6th Feb 2009, 11:16
:zzz: zzzzzzzzzzzzzzzz