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Savings Rates Now 4%+ Not 0.5%


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Lock you in keep you longer...it's a price worth paying.

Think about it, if rates won't go lower, where will they go? ;)

Would only fix for 1 year at a time now because rates are heading up IMO.

But I think the 2 year deals on offer in 2008 were a very good bet.

And I think the 1 year fixes available now are also a good bet.

Either way looks like 3.5 - 4.0% is going to be the minimum return for some time

NOT 0.5%

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The old deals from a year back were better, the best you can get on a normal savings account is 3.35%, the best on a bond is 4% (which is pants, or an even more pants 4.3% for 3 year bond!) Yeah its higher than the base rate, but so are mortgages. The spread from base shows the risk/pantsness of the banks atm and 3% rate is really really nasty. Its hardly worth it... especially with money supply at 16%ish

Edited by moosetea
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The old deals from a year back were better, the best you can get on a normal savings account is 3.35%, the best on a bond is 4% (which is pants, or an even more pants 4.3% for 3 year bond!) Yeah its higher than the base rate, but so are mortgages. The spread from base shows the risk/pantsness of the banks atm and 3% rate is really really nasty. Its hardly worth it... especially with money supply at 16%ish

Why is a 3.5% return for a 1 year bond 'not worth it' ?

Bearing in mid that you can make big losses as well as gains on the stock market and property is falling in value.

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Why not?

I got a 6.7% return for a year

and am I getting a 6.7% return for another year

Do you think interest rates will be higher by this time next year?

i think he means that the £ itself devalued by 25%+ against a basket of currencies in that period of time... so you gained 6.7% and lost 25%...

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Hsbc Offer Me This

You can earn up to 0.75% AER (0.75% gross) variable including bonus interest when you don't make a withdrawal. You'll even get a competitive rate of 0.25% AER (0.25% gross) variable excluding bonus interest when you make a withdrawal.

lol

i dont really care, but still, its surprising. Thats their best offer.

Its like saying, give us your money and we'll punch you in the face.

Also, they charge me 2% to put cash into my business account? Does that sound right? Cahrging me to deposit money? Something not right there.

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i think he means that the £ itself devalued by 25%+ against a basket of currencies in that period of time... so you gained 6.7% and lost 25%...

Oh.

Well my house also fell in value but I don't feel any worse off.

And when I get a few thousand pounds in interest I don't think the value of the pound is going to take the shine off.

The main thing that would concern me would be very high inflation accompanied by low interest rates.

But I believe that if inflation starts to rise, interest rates will have to be increased.

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only nominally.

If I'd put it in a current account I'd have got nothing

Surely a 6.7% nominal return is better than a 0.5% nominal return?

And it may only be nominal money to you, but when I spend it, it feels like 'real' money to me

:blink:

Edited by Game_Over
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Why not?

I got a 6.7% return for a year

and am I getting a 6.7% return for another year

Do you think interest rates will be higher by this time next year?

id rather have the 44%

Gold % Annual Change 	USD 	AUD 	CAD 	CNY 	EUR 	INR 	JPY 	CHF 	GBP2001	2.5%	11.3%	8.8%	2.5%	8.1%	5.8%	17.4%	5.0%	5.4%2002	24.7%	13.5%	23.7%	24.8%	5.9%	24.0%	13.0%	3.9%	12.7%2003	19.6%	-10.5%	-2.2%	19.5%	-0.5%	13.5%	7.9%	7.0%	7.9%2004	5.2%	1.4%	-2.0%	5.2%	-2.1%	0.0%	0.9%	-3.0%	-2.0%2005	18.2%	25.6%	14.5%	15.2%	35.1%	22.8%	35.7%	36.2%	31.8%2006	22.8%	14.4%	22.8%	18.8%	10.2%	20.5%	24.0%	13.9%	7.8%2007	31.4%	18.6%	10.4%	23.0%	17.9%	17.5%	24.7%	21.5%	29.2%2008	5.8%	32.5%	32.4%	-1.1%	11.9%	30.4%	-14.9%	0.2%	44.3%Average	16.3%	13.3%	13.6%	13.5%	10.8%	16.8%	13.6%	10.6%	17.1%
Edited by lowrentyieldmakessense(honest!)
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id rather have the 44%
Gold % Annual Change 	USD 	AUD 	CAD 	CNY 	EUR 	INR 	JPY 	CHF 	GBP2001	2.5%	11.3%	8.8%	2.5%	8.1%	5.8%	17.4%	5.0%	5.4%2002	24.7%	13.5%	23.7%	24.8%	5.9%	24.0%	13.0%	3.9%	12.7%2003	19.6%	-10.5%	-2.2%	19.5%	-0.5%	13.5%	7.9%	7.0%	7.9%2004	5.2%	1.4%	-2.0%	5.2%	-2.1%	0.0%	0.9%	-3.0%	-2.0%2005	18.2%	25.6%	14.5%	15.2%	35.1%	22.8%	35.7%	36.2%	31.8%2006	22.8%	14.4%	22.8%	18.8%	10.2%	20.5%	24.0%	13.9%	7.8%2007	31.4%	18.6%	10.4%	23.0%	17.9%	17.5%	24.7%	21.5%	29.2%2008	5.8%	32.5%	32.4%	-1.1%	11.9%	30.4%	-14.9%	0.2%	44.3%Average	16.3%	13.3%	13.6%	13.5%	10.8%	16.8%	13.6%	10.6%	17.1%

My post was in response to many others about low interest rates.

Buying gold is just gambling

Speculating on currency is just gambling.

For every person who makes money, 10 lose their shirts

But of course we only hear from the ones who get lucky

:)

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2008 was a particularly bad year for GDP*.

even though you wouldn't get any 'yield', you'd have been better off stuffing USD/EUR/YEN/Au/Ag under your mattress.

*and 2009 will be much worse.

If we all knew which way currencies were going to go we would all be millionaires.

You might as well say if I'd bet my money on a horse that came in at a 100 to 1 I'd have made more money

Don't see what your point is TBH

Edited by Game_Over
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IRS you predicted hyperinflation by June at the latest and that house cash purchases would require a wheelbarrow .

Still sticking with that ? :P

no, that was Injin. I said before the end of 2009. and I'm sticking with it.

although looking at recent events it looks like he might be right.

given recent developments, I'd now be prepared to say that it will happen before the end of Aug 09 at the very latest.

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