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Ash4781

Inflation Hits 5.3Pc ? No Savings Account Pays Any Return

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http://www.telegraph.co.uk/finance/personalfinance/savings/7736772/Inflation-hits-5.3pc-no-savings-account-pays-any-return.html

Britain's millions of savers will find the value of their investments wiped out by the increase in the cost of living, financial experts said. Not a single one of the 1,660 savings accounts on the market being offered by banks or building societies, including the most generous Individual Savings Accounts, offers a real rate of return of more than 5.3 per cent. This is the first time that no account has been able to match the rising cost of living, according to the personal finance website Moneynet.

Not surprising. Those searching for a real return have to move their capital away from the banks and building societies. More props needed to the sector.

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Better get spending your money in the economy then.

Spend it all, spend it all,.

Then when it has all gone get yourself on benefits and sit back and let the other mug taxpayers pay for the inflation.

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NS&I certificates it is, then !!! :)

That is my conclusion. Two issues for me, the wife and two kids. Just need to pick up the paperwork from the Post Office.

I wish I had never put money in the kids child trust funds, the available rates are just theft and now cant get the money out.

VMR.

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That is my conclusion. Two issues for me, the wife and two kids. Just need to pick up the paperwork from the Post Office.

I wish I had never put money in the kids child trust funds, the available rates are just theft and now cant get the money out.

VMR.

Paperwork ? You can do them online - takes 2 minutes.

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Paperwork ? You can do them online - takes 2 minutes.

Not for the kids though. I think that has to be done via dead trees. May as well do them all that way and I get the T&Cs's printed out for me.

VMR.

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I take it you're all talking about the index-linked certificates? You know this is the CHANGE in RPI + 1% - so you wont be getting RPI now + 1%.....

Edited by guitarman001

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That is my conclusion. Two issues for me, the wife and two kids. Just need to pick up the paperwork from the Post Office.

I wish I had never put money in the kids child trust funds, the available rates are just theft and now cant get the money out.

VMR.

You and your wife can also double up by buying for each other as trustees.

If you have a substantial sum available, you might also consider index-linked Gilts (as in the BoE pension fund), bought in the market through a reputable low cost broker.

Unlike the index-linked NS&I Certificates, I-L Gilts are traded, and the market price can be volatile. The income (paid gross and itself index-linked) is taxable (unless the Gilt is in an ISA), though any capital gain is not.

As alternatives to currently available 3-year and 5-year NS&I Certs, there are I-L Gilts maturing in 2013 and 2016 respectively.

The above is not advice, just information.

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I take it you're all talking about the index-linked certificates? You know this is the CHANGE in RPI + 1% - so you wont be getting RPI now + 1%.....

No it isn't.

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What's the point, it's still sterling when you get it back. 5.3%? The pound's lost that in a week.

A real return on sterling cash wont happen.Better off buying a load of chinese goods,holding them then flogging them.Unless the pound stops falling savings will be wiped out.

The only way to balance the countries books is to steal through inflation everyones savings.If you want a simple hedge buy the big pharma shares.The divis should keep ace with inflation.

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A real return on sterling cash wont happen.Better off buying a load of chinese goods,holding them then flogging them.Unless the pound stops falling savings will be wiped out.

The only way to balance the countries books is to steal through inflation everyones savings.If you want a simple hedge buy the big pharma shares.The divis should keep ace with inflation.

Thing is, even you you do manage to inflation-proof value of your hard earned deposit, the other guy with a steadily eroding mortgage at five times that amount is still taking you to to cleaners. You can't possibly compete.

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Thing is, even you you do manage to inflation-proof value of your hard earned deposit, the other guy with a steadily eroding mortgage at five times that amount is still taking you to to cleaners. You can't possibly compete.

I gave up on the idea that I'll ever be able to own a house a good few years ago. :angry:

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NS&I certificates it is, then !!! :)

I have an question about these that I can't seem to find on the NS&I website, so maybe someone here can help me. If I buy, say £7.5K if issue 20 now, is it still ok for me to buy the other half of the allowance (15K per issue) at a different date - or is it a bulk buy deal only?

Hope that makes sense...

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I gave up on the idea that I'll ever be able to own a house a good few years ago. :angry:

I've still remained hopeful until this week but I'm now making the difficult transition into hopelessness. Realising that my entire working life has been wasted.

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I have an question about these that I can't seem to find on the NS&I website, so maybe someone here can help me. If I buy, say £7.5K if issue 20 now, is it still ok for me to buy the other half of the allowance (15K per issue) at a different date - or is it a bulk buy deal only?

Hope that makes sense...

You can buy in batches.

I've had trouble in the past with NS&I's money-laundering checks (my Royal Mail address is slightly different from my electoral roll address, annoyingly, and they refused my money because of this!), so this year I did a test purchase of £1k of the certificates. This went through ok, so I then bought another, bigger batch a couple of weeks later.

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Thing is, even you you do manage to inflation-proof value of your hard earned deposit, the other guy with a steadily eroding mortgage at five times that amount is still taking you to to cleaners. You can't possibly compete.

Itr is only being eroded if wages are increasing at the rate of inflation too. If wages were to remain static for ten years, the person with teh mortgage would still find it hard to pay it off in ten years time. In fact he would find it much harder as living costs would have increased, leaving less to pay for a mortgage.

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You can buy in batches.

I've had trouble in the past with NS&I's money-laundering checks (my Royal Mail address is slightly different from my electoral roll address, annoyingly, and they refused my money because of this!), so this year I did a test purchase of £1k of the certificates. This went through ok, so I then bought another, bigger batch a couple of weeks later.

Thanks :).

Just thought of something else, does the index linking apply monthly/ annually/ full term? The reason I ask is that if I were to need the savings before the end of the term (say some point after the first year), I see that the amount of fixed interest on top of index linking is lower - but would the index linking apply to the month in which they were cashed in, or perhaps the amount at which RPI was exactly 1 year after purchase?

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So a newspaper is finally figuring out that every saver in the country is going to have his or her savings eroded in the coming months and years.

Do they have any suggestions as to what the Govt should do?

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So a newspaper is finally figuring out that every saver in the country is going to have his or her savings eroded in the coming months and years.

Do they have any suggestions as to what the Govt should do?

Peddle more lies about deflation and turn on the printers to warp speed thirty trillion an hour should do it.

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Itr is only being eroded if wages are increasing at the rate of inflation too. If wages were to remain static for ten years, the person with teh mortgage would still find it hard to pay it off in ten years time. In fact he would find it much harder as living costs would have increased, leaving less to pay for a mortgage.

True, but there's no way on earth wages are going to stay static with inflation like this.

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True, but there's no way on earth wages are going to stay static with inflation like this.

Really?

I got 1% this year.

2.5% last year

about 2.25% the year before.

Pretty much the same all the way back to 2001 (bar one year when I stamped my feet a bit = 13%).

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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