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TheCountOfNowhere

Are Saving Rates Collapsing?

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Just got this

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Are they that desperate to keep their housing bubble going they are now offering sub-1% savings accounts ?

Are the banks desperate ?

Are we about to see another collapse ?

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Just got this

Are they that desperate to keep their housing bubble going they are now offering sub-1% savings accounts ?

Are the banks desperate ?

Are we about to see another collapse ?

When banks are desperate, don't they offer high interest rates to try get funds in not low? (Think Iceland etc) With Funding for Lending quietly being extended for another 2 years what do they need savers for? They are a liability in a NIRP world.

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Just got a letter off Birmingham Mid-shires informing that our 5% Isas are due to mature and do I want to invest in a great 2 year deal 1.45% .

Computer says NO

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The antidote is to try and save more, and spend less....if some prices are flat or falling buy that, can then create own rising interest rate from no or low interest rate.....

NB: Repaying debt is saving.;)

Edited by winkie

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When banks are desperate, don't they offer high interest rates to try get funds in not low? (Think Iceland etc) With Funding for Lending quietly being extended for another 2 years what do they need savers for? They are a liability in a NIRP world.

Traditionally yes but they have unlimited pots of cash now....I guess they just want people to spend now.....my wager would be on housing.

I feel the more they force rates down, back by the state, the more desperate they are becoming.

Edited by TheCountOfNowhere

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Me them of the rates ?

I thought the sub 2% rates were a slap in the face but this !!!!

Jesus wept.

Go and buy an overpriced house - haven't you got the hint yet?

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Traditionally yes but they have unlimited pots of cash now....I guess they just want people to spend now.....my wager would be on housing.

I feel the more they force rates down, back by the state, the more desperate they are becoming.

It's desperate for savers.

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Just got a letter off Birmingham Mid-shires informing that our 5% Isas are due to mature and do I want to invest in a great 2 year deal 1.45% .

Computer says NO

I tweeted that to them.

That's totally sick !!!

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It's desperate for savers.

It's desperate for debtors....do you see what they are trying to get them to pay just for a basic shelter.

The savers can just f**k off and leave.

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It's desperate for savers.

No it is not.....when the price is right, they can see that regular and responsible savers will then be able if they want to borrow more for less cost.....

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The antidote is to try and save more, and spend less....

As I understand it, this is what most people are doing. Hence the interest in NIRP and banning cash.

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As I understand it, this is what most people are doing. Hence the interest in NIRP and banning cash.

When people feel confident and certain about their future financial security they will tend to borrow and spend....;)

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The antidote is to try and save more, and spend less....if some prices are flat or falling buy that, can then create own rising interest rate from no or low interest rate.....

NB: Repaying debt is saving.;)

Over paying on the mortgage gives a far better return than saving.

In term of saving you need to be savy many banks have good fixed regular savings accounts but you have to put the effort in and you can only put in 250 a month.

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There is one that pays 5% saving up to £500 per month......but with all these things you have to jump through hoops and over hurdles... check T&C carefully, make diary notes, do your calculations carefully...... Full time job.;)

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The banks' business model with regard to savings is to entice new customers with high(ish) rates, reduce them after a while and hope that you don't switch. Energy retailers are exactly the same. If you want the best rates available, you have to keep switching. If you do that, banks will make a loss on you over time, but cream it in on those who don't switch.

Price differentiation aside, on a macro level, market rates have fallen in the last few months, largely as a result of stock market turmoil and central banks whispering soothing words such as 'lower for longer'. The current UK government 10 year bond rate (traded - so this is yield determined by the money market) is 1.43%. It was over 2% just a few months ago. My view is that a crack-up boom, probably a very short one, is bound to follow this last hit of the cheap debt crack (unless there's Brexit).

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