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The Great Savings Massacre Goes On

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http://www.dailymail.co.uk/money/saving/article-2849356/The-great-savings-massacre-goes-2-500-rates-cut-two-years-Lloyds-shuts-47-deals.html

Desperate savers have suffered a fresh blow after Britain’s biggest bank became the latest big name to savage the rates it paid customers, Money Mail can reveal.

Millions of Halifax, Lloyds Bank and Bank of Scotland customers are about to be pulled out of their savings accounts and moved to new ones paying just 0.2 per cent after tax (0.25 per cent before).

In a massive clear-out at the UK’s largest savings institution, it will be cutting 47 variable rate accounts which are no longer on sale and funnel them into at least six new products. In the worst cases, customers will see their interest rate plummet by more than 70 per cent.

It’s the latest bout of so-called simplification by a major High Street bank which will leave long-suffering savers even worse off.

Last week Money Mail revealed the ruinous extent of savings rate cuts as three of the best deals are axed every single day.

So far this year there have been more than 1,022 rate cuts on savings accounts, on top of 1,462 last year.

And the government’s Funding for Lending scheme is being blamed for the cull.

No mention that the savings rates are being cut so people can buy overpriced housing... If you want a return now invest your cash in housing peeps.

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Not worth having a savings account at those rates, the time spent administering your tax return for the interest is more than the interest income is worth.

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We removed out money from our savings accounts back to premium bonds in the hope that we might get lucky.

Better than getting stitched up by the bank why are lending out your money and leveraging it against you.

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Wife works in a high street bank , they don't want you to save they want you to spend ( take out loans etc) is her answer to this article.

It's not wonder so many people with any cash have jumped into BTL when you have saving's rates as they are.

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Savings rates are certainly pushing people into speculation...didn't take long for a small dip in equities to be covered by refugees locked into zero rates.

Guess central banks are determined to see how much hot air they can put into assets.

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Wife works in a high street bank , they don't want you to save they want you to spend ( take out loans etc) is her answer to this article.

It's not wonder so many people with any cash have jumped into BTL when you have saving's rates as they are.

So where tare they getting the cash to lend from?

Creating it from thin air?

Before 2008, where did the banks get cash to lend from?

How long will free money for the banks last?

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Wife works in a high street bank , they don't want you to save they want you to spend ( take out loans etc) is her answer to this article.

It's not wonder so many people with any cash have jumped into BTL when you have saving's rates as they are.

Bank rate has been 0.5% for over five years, but it was only when FLS was introduced in July 2012 that savings rates started to fall significantly below achievable BTL yields.

Yes, they are desperate to drive us out of cash savings and get our money back into the economy. The harder they try, the more they convince me to stay in cash.

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Bank rate has been 0.5% for over five years, but it was only when FLS was introduced in July 2012 that savings rates started to fall significantly below achievable BTL yields.

Yes, they are desperate to drive us out of cash savings and get our money back into the economy. The harder they try, the more they convince me to stay in cash.

Perhaps we are getting greedy...I've started speculating a bit on the Market...recently made 5% on the Ebolageddon bounce in just three weeks.

But the fact is inflation is only 1.3% and savings are comfortably beating that.

The last time I reckoned up I was still getting 2.55% average weighted net on my cash........NS and I certs, fixed rate ISAs and non ISAs getting as much as 3%...even Virgin instant still getting 1.51%.

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Forward warning for the over 65s.... circa 4% tax free will be available from January 2015 in NS and I pensioners bonds...10k for a single person, 20k for a couple. If your fixed rate bond is coming to maturity don't reinvest that portion. I guess the exact details will be known in the autumn statement on the 2nd.

http://www.thisismoney.co.uk/money/saving/article-2589263/NS-I-fixed-rate-bond-pensioners-expected-beat-current-market-deals.html

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Forward warning for the over 65s.... circa 4% tax free will be available from January 2015 in NS and I pensioners bonds...10k for a single person, 20k for a couple. If your fixed rate bond is coming to maturity don't reinvest that portion. I guess the exact details will be known in the autumn statement on the 2nd.

http://www.thisismoney.co.uk/money/saving/article-2589263/NS-I-fixed-rate-bond-pensioners-expected-beat-current-market-deals.html

Why do governments get involved with such petty thing? So now they have to employ a few hundred people to administer it print a load of leaflets to explain it a few thousand column inches in the paper to advertise it.

Every year there is a new stupid scheme free TV license for over 75's winter heat payments. In the end you just make things a bureaucratic mess.

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Haven't some banks started raising rates though? The other thread has a few examples. If all the FLS money is starting to dry up then presumably rates will start to rise again. Presumably it would be possible for there to be a low base rate but higher savings rates offered by banks as it was before FLS, you could get 3 or possibly 4% (at a stretch). I think come April and the new tax year a lot of people will invest in P2P NISA's which offer much better rates, if that goes ahead which looks likely. BTL yields are very low in London.

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