Sunday, November 30, 2008

Why would anyone want to save – or is that the Plan

Nationwide hits zero on rates

One of the first Building Society to hit zero as a savings rate for some of its accounts, one has to ask why keep your money there at all, is this all part of a cunning government plan - I think not as they really are not smart enough, only a matter of time before Badgers on the road to the IMF just like Healey was!

Posted by rimmer @ 12:15 PM (1169 views)
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5 thoughts on “Why would anyone want to save – or is that the Plan

  • Northern Rock are offering 5.15% instant access on their internet savings account, it is government owned so should be safe. (I’d like to think so anyway, but who knows). If I had money saved somewhere and the interest rate dropped to zero, my cash would soon be elsewhere.

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  • mark wadsworth says:

    Because NW stuck to the good old fashioned building society model, they don’t need to attract that much cash, they didn;t take part in taxpayer funded bail out, assuming they’re sensible and aren’t lending new money, then mortgage repayments are quite sufficient to keep them going for the next ten years without taking a single penny of new deposits.

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  • I think this will be the exception rather than the rule for those reasons mark.

    The problem is that nowadays there are just too many options for savers if their current bank doesn’t deliver the goods in terms of good rates. Nationwide will see a flight of capital from their bank this week, as will others if they lower rates.

    I’ve just moved a large sum from my Halifax accounts to Citibank. If Citibank lower rates, I’ll move it to the Irish banks. And so on …

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  • ineresting view Mark.
    if NW understand the markets and can see big falls they dont need money for the reason you give from savers to lend to borrowers, or want it, because they would not be able to fund the interest payments to savers.

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  • who stole my pension? says:

    This is one to watch. The government has been influencing Nationwide (see http://www.guardian.co.uk/business/2008/oct/13/banking-banks) and where the Government goes there is bound to be a mess to clear up. I will keep watching and keeping below the £50,000 limit.

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