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Savings Interest Rates Are Generally Falling, I Think


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From 12 September 2013 NS&I are dropping their rates:

Income Bonds £500+ 1.75% gross / 1.76% AER -->> 1.25% gross / 1.26% AER

Direct Saver £1+ 1.50% gross / AER -->> 1.10% gross / AER

Direct ISA £1+ 2.25% AER -->> 1.75% AER

Bag of shite!

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From 12 September 2013 NS&I are dropping their rates:

Income Bonds £500+ 1.75% gross / 1.76% AER -->> 1.25% gross / 1.26% AER

Direct Saver £1+ 1.50% gross / AER -->> 1.10% gross / AER

Direct ISA £1+ 2.25% AER -->> 1.75% AER

Bag of shite!

I got that email as well. I don't have any savings with NS&I, only Premium Bonds, which historically were considered a mugs game, but now return me more annually than any savings account. That's how bad savings rates are. Majority of my cash is in shares with dividends.

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  • 2 weeks later...

BIS having told govts to stop gazing fondly on CB stimulus, plus a few other factors you might have read about elsewhere on HPC, makes me wonder whether an uptick in IRs for savers is now not so much of a pipe-dream.

Perhaps in a few weeks or a month?

Living in hope...

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http://www.dailymail.co.uk/news/article-2348576/Mark-Carney-Get-ready-mortgage-rate-rise.html?ito=feeds-newsxml

Homeowners in thirties and forties warned of mortgage timebomb: New Bank governor says get ready for higher interest rates

Canadian Mark Carney said businesses should prepare for 'slight or material change' in the level of interest rates

Outgoing governor Sir Mervyn King said increases a long way off

Higher rate a blow to homeowners and firms used to cheap borrowing

By Hugo Duncan Economics Correspondent

PUBLISHED: 23:15 GMT, 25 June 2013 | UPDATED: 09:08 GMT, 26 June 2013

Canadian Mark Carney said businesses should prepare for possibility of a 'slight or material change' in interest rate levels

Britain's record low interest base rate could be on the way out after more than four years at 0.5 per cent, the new governor of the Bank of England warned yesterday.

Read more: http://www.dailymail.co.uk/news/article-2348576/Mark-Carney-Get-ready-mortgage-rate-rise.html#ixzz2XJxLfyYK

Follow us: @MailOnline on Twitter | DailyMail on Facebook

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Perhaps we are getting to hung up on rates. CPI will peak at 3.0% next month year on year (even month on month deflation will bring this about with last years June 12 precipitice deflation dropping out), but from there I believe it will finally get back to 2%. And as a HPC contrarian I tend to agree with the economists that CPI slightly over states the position. Maybe our cash doesn't need to work that hard after all.

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Perhaps we are getting to hung up on rates. CPI will peak at 3.0% next month year on year (even month on month deflation will bring this about with last years June 12 precipitice deflation dropping out), but from there I believe it will finally get back to 2%. And as a HPC contrarian I tend to agree with the economists that CPI slightly over states the position. Maybe our cash doesn't need to work that hard after all.

I agree with Max Keiser who reported a study that the real rate of inflation in the UK now is in the range 5.5%-6% (latest episode of the Keiser Report from Thursday).

Very angry today - I went to open a Nationwide easy saver ISA which I thought would pay 2.25%. Had to do it in person in a branch! FFS! This meant I had to wait all week until today to do it. When I got home I read my email alert from Savings Champion which revealed that Nationwide had slashed all their rates yet again, and the "issue 2" easy saver ISA is only 2% :(. I think I'll get an issue 2 unless I was very lucky and got in under the wire.

Edited by mrtickle
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Very angry today - I went to open a Nationwide easy saver ISA which I thought would pay 2.25%. Had to do it in person in a branch! FFS! This meant I had to wait all week until today to do it. When I got home I read my email alert from Savings Champion which revealed that Nationwide had slashed all their rates yet again, and the "issue 2" easy saver ISA is only 2% :(. I think I'll get an issue 2 unless I was very lucky and got in under the wire.

It's not so much fun being a saver these days, even if you're quite a fan of saving in itself. There's less and less *other* reason to do it, and, if you don't inherently have the tendency, there's no incentive from without.

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See

http://www.itv.com/news/2013-07-04/mark-carney-hints-interest-rate-might-not-rise-for-some-time/

It's a hint that the Bank is minded to tell us next month that it won't raise rates for some time - which would be a promise that cheap borrowing will continue.

This would constitute "guidance," Mr Carney's innovation which worked in Canada at his last job as governor there and which he hopes will help the UK by providing confidence to borrowers that they're not going to get stung with high interest rates.

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  • 418 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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