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Insurmountable Inherited Debt Putting Off New Savers

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Kid's aren't saving:

http://www.bbc.co.uk/news/business-14256919

Consumer group Which? says some of the interest rates offered on children's savings accounts are discouraging parents from investing in their futures.

Plus everyone is living hand to mouth so have no money to save. And there's no point in saving as the currency is being trashed. And they aren't gonna save up enough on their paper round to pay their share of the debt so why bother?

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Guest spp

Yep - I've put money into a cash ISA for my daughter with the Nationwide. Pays less than 1% I think.

Pointless. Insulting.

Leaving it there until she's 18 and I'm going to transfer it to an equity ISA and will tell Nationwide to go f*ck themselves stealing from children to f*cking subsidise those 'good risk' BTL investors. T*ssers.

1%!??

I've not even bothered looking at the banksters fiat savings rates for over 2 years now...but that is nuts!

Everyone needs to realise fiat currency is nothing more than a medium of exchange, especially when the system is being abused so badly.

The idiots are not just causing inflation by printing currency, they are borrowing it at interest!! :angry:

Edited by spp

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Yep - I've put money into a cash ISA for my daughter with the Nationwide. Pays less than 1% I think.

Pointless. Insulting.

Leaving it there until she's 18 and I'm going to transfer it to an equity ISA and will tell Nationwide to go f*ck themselves stealing from children to f*cking subsidise those 'good risk' BTL investors. T*ssers.

I've put my moderate wodge into equity ISA. I don't normally like taking risks but a reasonable chance of getting about 10% or maybe not is better, for me, than 2% or 3%.

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Yep - I've put money into a cash ISA for my daughter with the Nationwide. Pays less than 1% I think.

Pointless. Insulting.

Leaving it there until she's 18 and I'm going to transfer it to an equity ISA and will tell Nationwide to go f*ck themselves stealing from children to f*cking subsidise those 'good risk' BTL investors. T*ssers.

Surly you can get a better rate than that... Find the best rate and move it each year!

Vote with your feet.

Edited by Hawk

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Yep - I've put money into a cash ISA for my daughter with the Nationwide. Pays less than 1% I think.

Pointless. Insulting.

Leaving it there until she's 18 and I'm going to transfer it to an equity ISA and will tell Nationwide to go f*ck themselves stealing from children to f*cking subsidise those 'good risk' BTL investors. T*ssers.

Thought their ISA was 2.5% granted it's still doo doo, just looked,

A great introductory fixed rate of 2.75% AER tax-free until 31 January 2013 for balances over £1,000 which reverts to a variable rate of 1.00% AER tax-free.

I'm off down the Nationwide, not :-)

Edited by Ungeared

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Just thought I'd better check the rates.

The large number of ISA products implies to me they're playing the old past issues game where they get people in and then quietly run the rates into the ground. Basically my duaghter is 18 in 7 months so I'll just leave it there for the mo'. Not happy though.

http://www.nationwide.co.uk/savings/cash_isa/cash-isa.htm

Crazy times.

But I suspect 99% of the population think this is normal/ok. :blink:

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Yep - I've put money into a cash ISA for my daughter with the Nationwide. Pays less than 1% I think.

Pointless. Insulting.

Leaving it there until she's 18 and I'm going to transfer it to an equity ISA and will tell Nationwide to go f*ck themselves stealing from children to f*cking subsidise those 'good risk' BTL investors. T*ssers.

Nationwide don't think it is pointless......it is getting to the stage where savings are not worth saving for, working hard for someone else to benefit from... ;)

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this is such a nonsense thread - previous generations did quite OK with cash savings and very well with property, at the same time those who invested in other things often did quite badly

THERE IS NO LAW TO SAY THAT THESE WILL BE THE FUTURE BEST PLACES TO STORE WEALTH

some of the previous generations for example put their earned wealth into pension funds and got ass-raped for fees, whereas now stock-and-commodity based savigns products, both pensions AND ISAs, are much more competitive

there are a fair number of oldies and boomers who have nothing because they took the wrong path

you do not have a divine right to say 'I wish to save risk free in the way I deem necessary and society will pay me an income'

do some research into asset classes most likely to perform over the coming 20 years, in short

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do some research into asset classes most likely to perform over the coming 20 years, in short

Ok....oil fields, gold mines, water companies, sustainable energy, ethical businesses, third world countries...all well and good but some people do not want to take high risks for potential high profits that involve large fees and costs lining others pockets....all they want is to have the confidence that the pound they earn today still buys the same tomorrow...the government does not want that to happen, they are not interested in people saving all they want is for them to work, spend and borrow then possibly default......that is the new way of living in the 21st century. ;)

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Ok....oil fields, gold mines, water companies, sustainable energy, ethical businesses, third world countries...all well and good but some people do not want to take high risks for potential high profits that involve large fees and costs lining others pockets....all they want is to have the confidence that the pound they earn today still buys the same tomorrow...the government does not want that to happen, they are not interested in people saving all they want is for them to work, spend and borrow then possibly default......that is the new way of living in the 21st century. ;)

True...but only while the correction is being prevented via govt. manipulation.

But, the markets will win in the end, then we should have a level playing field again.

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True...but only while the correction is being prevented via govt. manipulation.

But, the markets will win in the end, then we should have a level playing field again.

They are doing a very good job manipulating the markets, who are they trying to pacify, the majority of the people in this country that are trying to earn a honest living and who genuinely care about their families, their country and their futures.....or the powerful corporations that have them eating out of their hands. :unsure:

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They are doing a very good job manipulating the markets, who are they trying to pacify, the majority of the people in this country that are trying to earn a honest living and who genuinely care about their families, their country and their futures.....or the powerful corporations that have them eating out of their hands. :unsure:

I think we all know the answer to this one.......:angry:

They're a bunch of lying manipulative barstewards.

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I think we all know the answer to this one.......:angry:

They're a bunch of lying manipulative barstewards.

Not all of them are bad.....but personal agendas, together with pressure from those that should know better can easily see them say and do things they don't necessarily agree with. :huh:

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1. Can you name me the years since 1970 when the average rate on savings was ever greater than the inflation rate?

I can tell you it was far fewer than you would expect. Mainly because banks and building societies were choosing to use cheaper wholesale funds instead or because the Building Societies cartel as it was oprior to 1985 or so deemed who should pay and it was typically savers. See Building Societies Act 1986 and see what it freed them up to do.

2. In order to use her ISA allowance between the ages of 16 and 18 it has to go into a cash ISA. Then at 18 you can transfer the lot into an equity isa. So there's not too much choice with what to do. I could chase around for a percent or so but it really ain't worth it. I have reconciled myself to that fact.

that's interesting

you pay tax on equity dividend income anyway in an equity ISA AFAIK so the only tax you get stung for OUTSIDE an equity ISA is capital gains (I have a nagging doubt I have missed somethign major out but let's assume I have not)

it seems very unlikely that between 16 and 18 someone could qualify to pay capital gains tax on their equity fund investments, so there mayu be no practical difference between that and being outside an ISA, except of course if they have a large amount then they won't be able to bung it back in an equity ISA easily when they hit 18 - but would need to be over 10k I think, and if they have more than this they are very lucky kids!

3. Nobody has a 'divine right' to anything. However, I can make a perfectly valid comment about a mutual building society raping children's savings to fund btl gits who they have publicly stated they are trying to target because they are 'lower risk' than ordinary borrowers like first time buyers. Basically building societies should not be allowed to do any commercial lending imo.

a fair point on its own, building socs just are not very savvy organisations

at the same time I am not sure it would end up giving you better interest rates on kiddie accounts

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I've saved my son's child benefit for him. In a mix of accounts but earning over 3% the largest chunk matures after his 4th birthday next year, will total over 4 grand by then. I now feel like I would be an idiot to have made the sacrifice to save this for him, then leave it in cash till he's 18. Especially as I'm likely to lose child ben in 2013 which will reduce the chance of saving much for him and any siblings, wife is preggers with number 2.

Hence one of the reasons behind my how to start investing thread in the general investment forum (shameless plug).

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You are perfectly right. I was doing some equity investing for her, but in order not to lose the isa allowance I decided to open cash isas.

Basically it is my own experience that I am putting into practice for her if I can. I spent many years paying down debt and then, only then, to start investing. It was on the basis that by paying down debt, you are achieving a guaranteed return by reducing your debt interest burden (rates were higher).

When I look back, it was the wrong thing to do. What you need to do if you are lucky enough to be able is to utilise each year's isa allowance and the earlier the better...as they are cgt and income tax free for life. (?)

10k per year is a shedload for most of us, and besides pensions vehicles confer similar benefits, in some ways better benefits (ie shelter your savings from benefits-means testing if you have periods of unemployment).

ISAs are NOT income tax free on shares - you pay 10% tax on dividends just like in pensions

I wish I had not bothered paying down student loans etc myself additionnally, shoulda bought a house instead; when I get a mortgage (which will be many years yet) I intend to have it interest only and declare my pension as the repayment vehicle, leveraging on the best rate I can get

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Let's face it, these low rates for kids' accounts are pretty shocking. End of! What a shame on my wee sister - no point in even opening up an account for her. A complete shame on the true innocents.

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yes Mr Camerosbourn it would be travesty if we left the problem to our future generation so lets give them nothing but debt. debt and more debt that will teach them.

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