Sunday, Nov 16, 2008
Products are being repriced after the 1.5 per cent cut, but banks are still eager to get their hands
Independent: Savers told to act fast as rates descend from the heights
The 7 per cent interest rate is long gone, but it's still not too late to get a good deal. "The message is that the banks still want your cash, and the longer they get to hold on to it, the better for them. This means that despite the turmoil of the past week or so, fixed-rate deals that tie their customers in for a specific period (usually a year) remain competitive,". "But if you want the very best rates, you have to move now as repricing is still going on." But memories of the collapse of the Icelandic banks are still sharp among UK consumers. No wonder many savers are cautious about where they put their money; not only do they want a good rate of return but they also need to feel sure their cash will be safe. "Don't put your eggs in one basket," even if you are below the £50,000.
12 Comments
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1. mytimeisnigh said...
Title should read, get their hands on our cash.
2. stillthinking said...
No need to mention that sterling is losing value at 15% a year with the possibility of a run on the pound. Go savers !
3. paul said...
I went in and told my bank yesterday that there's no way I'd put any more money in their savings products while I'm losing cash with them. I also asked about the stability of their bank.
Working in retail banking must really stink right now.
4. titaniccaptain said...
Im getting a bit worried about my savings at the moment................at the midlands meet I hope we can have decent discourse on wealth preservation........i.e. and adult conversation on the potential of gold/agricultural land..........even if neither go up in value maybe they will hold wealth for a given period.........
5. mrmickey said...
A friend of mine wanted to deposit a large sum of money with a well known bank and was asked to provide five years of accounts, he quiet forcefully reminded the bank that they were the ones who will need to produce 5 years of accounts.
6. Mytimeisnigh said...
It is hard to know what to do for the best. I want to have the option of having access to my savings this time next year or there abouts, in case, the falls in house prices have reached 40 percent or more. Interest from my savings covers more than half of my rent so having cash savings benefits my current circumstances. I would worry about holding my savings in a foreign bank, especially since the Icelandic Bank collapsed, even though I know that savers are having their money returned. The pound is losing value but I only saved my pounds to buy a house in england and house prices are crashing. Gold seems to go up and down too, but if there's a run on the pound it will be regretful not to hold savings in gold. Other major currencies seem to be unstable too, plus I do not feel confident enough to start changing my hard earned pounds in to unfamiliar currencies. Any advice will be gratefully received.
7. goweresque said...
Could this reduction in savings rates have a positive effect on stock markets? As the rate you can get on savings dwindles to virtually zero, will people with savings not start to look for stock that are good yields? Possibly oil stocks, water/utilities? They should be pretty safe for the dividends as are defensive stocks. And if people pile into them, you could get capital appreciation too.
8. paul said...
I asked for an extension to my credit card facility from a modest £500 to £1000.
They refused, so I replied that the majority of my savings are with them (HBOS), and that if they didn't consider my investments safe, I didn't consider them safe.
They, of course, didn't reply but I'm still moving my money out of them.
9. Fjcruiser said...
7. goweresque said...
Could this reduction in savings rates have a positive effect on stock markets? As the rate you can get on savings dwindles to virtually zero, will people with savings not start to look for stock that are good yields? Possibly oil stocks, water/utilities? They should be pretty safe for the dividends as are defensive stocks. And if people pile into them, you could get capital appreciation too.
People are becoming so worried they will be grateful to keep cash in a bank account even if it does not pay any interest.The equity premium is rising fast and at present, stock valuations are still far too high IMHO, even for defensive stock.Dividends being based on future earnings would be cut when profits dwindle.
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