Should we bother trying to save?

[R1Geezer]

Ok savers outnumber borrowers 10 to 1, but they are the ones getting shafted. We seem to be reactive to the numpties that are in debt. The whole of society punishes prudence, if you earn and live within your means you are some sort of social leper. If you arrive at retirement with enough to keep yourself then there is a whole raft of taxes waiting. Yet if you live an entire life skint and pay nowt, come on board have a nice state pension, free everything. I've always been the saving kind but at the mo I'm thinking of pi55ing it up against the wall. Can some of you economic geniuses explain this topsy Turvey world to me? I own everything I own and savings are paying a shilling a week WTF is occurring, where do rich people put their dosh, I'm lost!

[cassa333]

I agree with you R1. For us prudent savers with the only debt is the morgage (and only a quarter of the value of the property to boot) we are in the unenviable position of being a tax cash cow for the stupid and inept.

Although I maust say we had to renew our morgage JUST before the drop and are now in a very expencive fixed rate bo ho.

[rov1200]

I quitre agree, with some banks only paying 0.5% your money is disappearing through a black hole. The government could help savers, especially pensioners, by reducing the tax take. Many pensioners are paying tax on their company pensions so this would help them.

If these savers have no other income a government �2000 trade in on their old car against a new one would not only help the country but be a payment in lieu of low savings rates.

[rov1200]

A simple proven solution. What are we waiting for?

http://news.bbc.co.uk/1/hi/business/7924534.st m

[rov1200]

Steve I think the rich people have deserted the � and put their money into other currencies. We have suffered a 30% devaluation in our currency recently and we are all losers.

[Totterdown]

If someone has �1,000 in an ISA account, 0.5% interest would give them the magnificent return of �5 per YEAR. A few years ago at 6% the interest would have been �60. What is the point of saving now? I've just had a letter from Nationwide (without telling me their paultry interest rates - I had to find that out myself) reminding me to top up my allowance before beginning of April. They must be joking.

[cassa333]

Its no good offering an incentive of �2000 or �10000 on old cars if you haven't got the money to buy a new one an incentive like that is worthless. Why buy a new car? With interest rates so low food and utilities are higher on the agenda than aq new car surely?

What little savings we have we are putting into the morgage. We are only allowed to put �500 in extra a month but it is better than in the savings account.

We had the same letter from Nationwide as well. Actually I think everyone should take their savings out of the banks and building societies for a week and see how well they do without our money!!!

[cassa333]

I would be interested in finding out how many people have fixed rate morgages and how many have variable rate ones.

Someone told me the other day there were more fixed rate than variable. If so the banks and co are raking it in.

[LucyThomas5]

I was prudent enough to pay of my 25 year mortgage after just 12 years and build up considerable (6 figure) savings in the meantime. What do I find now. I find that one of my savings accounts with �6,235.30, paying monthly interest, paid just �3.84 for February.

Now, look at that another way. Let's round that up to �4 a month and that works out to �48 per year. If I borrowed �6235.30 from the bank for a year, do you think I'd only pay �48 in interest. No. I didn't think so.

The clever people in this country are paying the price to save the incompetent and foolhardy.

[WhiteBear]

my ISA has gone down from 5.5% to 1%.... might have gone lower now =(

i might aswell draw the money out and go on a spending spree .

[LucyThomas5]

If it gets any worse, I'll owe the bank money.

[Prudentia]

It is only in the extremely rare possibility that if Brown the pension thief thought that his big fat wad was in danger anything would be done. for god's sake do not hold your breath.