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Banks Slash Interest Rates

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http://www.telegraph.co.uk/money/main.jhtm...5/ixperson.html

Money surgery: lenders want to wash their hands of savers

By Liz Dolan

(Filed: 05/07/2006)

I do not know what savers have done to upset fate, but it must have been dreadful, going by the treatment they have received over the past seven months.
When ING Direct slashed its savings rate by 0.5 percentage points to 4.5 per cent last December, it opened the floodgates to reductions pretty well across the market. By the first week of April, 32 institutions had reduced rates on at least some of their accounts, and, when Sainsbury's Bank announced cuts of up to 0.45 percentage points on June 19, the total had risen to 44.
...../
But the accolade for the worst treatment to be inflicted on savers goes to Lombard Direct, which last month slashed interest on all accounts from between 3.46 per cent and 4.16 per cent to just 0.5 per cent. That's right: 0.5 per cent. The banking code states that savers must be alerted to reductions of more than 0.5 percentage points within a month. So, naturally, Lombard waited virtually a whole month before telling them.
Lombard says it does not want to deal with savers any more.
It wants to concentrate on borrowers - a sentiment, I suspect, that sums up the attitude of the whole industry.

Gordon's "Miracle Economy" was not built on savers but borrowers and spenders. The fabulous "wealth" created by HPI would not have been possible unless Gordon's policies of low IR, unregulated lending, and HPI-enldess MEW had been pursued. Financial prudence as defined by the need to save went out the window. The banks are just reflecting the miraculous by eliminating savers alltogether to form the new paradigm of perpetual debt. The Panorma program summed it all up so nicely.

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International bankers are trying to take over the world. Seriously.

They want every human being perpetually endebted and enslaved,

this is just another step towards achieving that goal.

:ph34r:

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http://www.telegraph.co.uk/money/main.jhtm...5/ixperson.html

Money surgery: lenders want to wash their hands of savers

By Liz Dolan

(Filed: 05/07/2006)

I do not know what savers have done to upset fate, but it must have been dreadful, going by the treatment they have received over the past seven months.
When ING Direct slashed its savings rate by 0.5 percentage points to 4.5 per cent last December, it opened the floodgates to reductions pretty well across the market. By the first week of April, 32 institutions had reduced rates on at least some of their accounts, and, when Sainsbury's Bank announced cuts of up to 0.45 percentage points on June 19, the total had risen to 44.
...../
But the accolade for the worst treatment to be inflicted on savers goes to Lombard Direct, which last month slashed interest on all accounts from between 3.46 per cent and 4.16 per cent to just 0.5 per cent. That's right: 0.5 per cent. The banking code states that savers must be alerted to reductions of more than 0.5 percentage points within a month. So, naturally, Lombard waited virtually a whole month before telling them.
Lombard says it does not want to deal with savers any more.
It wants to concentrate on borrowers - a sentiment, I suspect, that sums up the attitude of the whole industry.

Gordon's "Miracle Economy" was not built on savers but borrowers and spenders. The fabulous "wealth" created by HPI would not have been possible unless Gordon's policies of low IR, unregulated lending, and HPI-enldess MEW had been pursued. Financial prudence as defined by the need to save went out the window. The banks are just reflecting the miraculous by eliminating savers alltogether to form the new paradigm of perpetual debt. The Panorma program summed it all up so nicely.

This rather flies in the face of predictions of tightening money supply. Where do these lenders get their money from to lend again? Perhaps the BOJ?

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This rather flies in the face of predictions of tightening money supply. Where do these lenders get their money from to lend again? Perhaps the BOJ?

Thin air. Whether it was the high street banks via fractional reserve lending, or the BOJ created it,

it was created out of thin air and lent into existence.

Fraud isn't a strong enough word.

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Pity the poor STR. Bank cutting back on interest, they better be hoping for a crash otherwise they are well and truly screwed.

Oh little Englander! have you not travelled? this is not the only country to live in.

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Funny things, banks.

If you'd been watching their savings rates for the last few months you'd be convinced that interest rates were about to plummet. But if you'd been watching their five year fixed mortgage deals for the last few months you'd be convinced that interest rates were about to soar. I guess they're having their cake and eating it.

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http://www.rufflerbank.co.uk/savings/interest_rates.php

Could stash your cash here :blink:

Would any one have any experiences of this institution, looks fine ;)

Nope but they are regulated by the FSA. Their account is none-internet based though, not really a problem

though as I doubt you will find a better rate anytime soon.

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Pity the poor STR. Bank cutting back on interest, they better be hoping for a crash otherwise they are well and truly screwed.

Sod off!

What about the poor FTB trying to save for a deposit!? :angry:

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Guest mattsta1964

International bankers are trying to take over the world. Seriously.

They want every human being perpetually endebted and enslaved,

this is just another step towards achieving that goal.

:ph34r:

Spot on Mr Money reform man!

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Would any one have any experiences of this institution, looks fine ;)

I made an enquiry this morning and within an hour was phoned by a very polite acount manager, who is sending me all the details and their business card (with their direct line number) on.

The minimum deposit for a savings account (except ISA) is five grand.

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I made an enquiry this morning and within an hour was phoned by a very polite acount manager, who is sending me all the details and their business card (with their direct line number) on.

The minimum deposit for a savings account (except ISA) is five grand.

JJJ had an email from them yesterday about them not having internet based accounts.

I'm quite tempted to throw some money into them actually. Let us know if you find any more info out.

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I made an enquiry this morning and within an hour was phoned by a very polite acount manager, who is sending me all the details and their business card (with their direct line number) on.

The minimum deposit for a savings account (except ISA) is five grand.

JJJ

Thanks for the post :rolleyes:

Keep us all up to date, this could be worth looking at, as the rates are pretty attractive to all of us STR's B)

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As I did my STM from the US I decided to keep the proceeds of our sale in US $ until the pound tanks. Right now I am getting 5.04% on a US money market account. Its a good situation as the US do not tax it if you are a resident (I am still a US permanent resident as I am planning to be here in the UK for a limited time if my upcoming assignment works out) living abroad (you get a living overseas exemption for the the first $80k earned from US sources) and the UK only tax it on a remitted basis and as we don't need the money and are keeping it as a house fund its nice earner!

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Guest Charlie The Tramp

From Money Morning

bp060706.gif

The Bank of England met again this week to decide UK interest rates. But while Mervyn King and his team hesitate in the face of rising inflation and slower consumer spending, savers might wonder what happened to earning a return on their money.

This chart shows how the real interest rate - the gap between base rates and CPI inflation - has steadily shrunk over the last two decades. Unless the trend in real interest rates turns up soon, it points to barely 2% by this time next year - and that's before tax!

post-335-1152289732.gif

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Perhaps someone should set up a Feck theBanks Web forum?

Great idea! That would really FECK the Banks. Nothing like a forum for making things happen.

Paddy radio DJ is running a competition on his show. You have to make up a word that isn't in the dictionary and use it in a sentence that makes sense to win a trip to Bali.

Mick rings in:

'Hello Mick, what new word have ye got for us?'

'Goan, G-O-A-N'

'Righto Mick, let's just check if it's in the dictionary ... great! It's not! Now Mick, for the trip to Bali can you use that word in a sentence that makes sense?

'Goan feck yourself!'

The DJ cuts him off immediately and takes a few more calls but no-one wins. Then Vince comes on the line.

'Hello Vince, what new word have ye got for us?'

'Smee, S-M-E-E'

'Great Vince, let's just check if it's in the dictionary ... fantastic! It's not! Now Vince, for the trip to Bali can you use that word in a sentence that makes sense?'

'It's smee again, goan feck off.'

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Oh little Englander! have you not travelled? this is not the only country to live in.

Yes I have travelled and lived overseas. Well done for reaching beyong these shores.

;)

And banks aren't the only place to put your cash either

Ahhh, wait someone's getting it...

Sod off!

What about the poor FTB trying to save for a deposit!?

There you go, got it in one. Sorry to say, you're being screwed! The banks are devaluing your money at an alarming rate of knots cash is rarely a good long-term option. You better start thinking of plan B.

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Is it because savings interest rates are so low, it is not worth saving cash, rather spend it or invest elsewhere.

or

So few are saving cash, instead spending it or investing elsewhere, it's no longer worthwhile offering attractive interest rates.

Possibly 'savings' will be a thing of the past & any unfortunate episodes faced in life will be funded by the most attractive borrowing rates instead.

Way society is going, put nothing aside assuming the best, if it goes wrong, fund accordingly at the best rates.

Nothing wrong with this, I guess, it's just different to what it used to be.

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Well, I got the info pack this (Saturday) morning. They're certainly efficient.

The interest rates look good, but the notice required to withdraw ranges up to twelve months. I'm going to have to think about it.

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  • 301 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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