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Interest Rates Any Good News For Savers?
19 Answers
With the interest rates rising really high with the announcement from the Bank Of England, I know it's going to be a tough couple of years for Britain. Is there any good news for example for savers. I have a few savings accounts with pathetic rates of interest I sometimes wonder why I bother ! Do you think that there will be any chance that building societies will increase interest rates?
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Best Answer
No best answer has yet been selected by gordiescotland1. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Theres plenty at around 1.75% and some at 2.75% for one year fix's, and these will increase by maybe 0.25% or a bit more...but unless you got £20000+ saved its hardly going to be noticable ... but what you will see is that when prices are going up by 9% a year you money is losing alot whathever savings account you choosed
geordie a have look see here. I think they been updated today.
https:/ /www.ra isin.co .uk/sav ings-ac counts/
The martin lewis site is good too.... but not sure if its been updated today https:/ /www.mo neysavi ngexper t.com/s avings/ savings -accoun ts-best -intere st/yet after the base rise
https:/
The martin lewis site is good too.... but not sure if its been updated today https:/
//ah, I'm remembering the good old days of 20% pay rises, talk about a feelgood factor!//
Well yes and no. The problem is we were allways trying to catch up... prices went up week by week but we had to wait until after a year of inflation before we could ask for and hopefully get a whopping pay rise.
Well yes and no. The problem is we were allways trying to catch up... prices went up week by week but we had to wait until after a year of inflation before we could ask for and hopefully get a whopping pay rise.
my martin lewis link is here
https:/ /www.mo neysavi ngexper t.com/s avings/ savings -accoun ts-best -intere st/
https:/
My schoolboy economics tells me this is the wrong strategy.
Raising interest rates is a good tool when "normal" inflation (i.e. too much money chasing too few goods) is evident. It takes money from consumers, tempering demand, and easing price increases.
This is not normal inflation. It has been principally caused by high energy costs (both domestic and industry) and high fuel costs (with a bit of supply chain probems thrown in) . These feed through to prices for all consumer goods. The problem is, people have not got "too much money" as they have when traditional inflation is evident. The sharp rises in fuel and (particularly) energy costs has left many people struggling. All that will happen now is what money they have got will go on increased fuel and energy costs, their discretionary spending will have to reduce as a result and recession will be the end product. Raising interest rates, in these circumstances, will do nothing to quell inflation as energy and fuel consumption is not something that individuals and industries can readily reduce. The answer to the problem lays way back in the past when successive governments began contracting out the nation's energy supplies when they had perfectly good sources at home. It won't be cured by increasing interest rates by half a point.
Raising interest rates is a good tool when "normal" inflation (i.e. too much money chasing too few goods) is evident. It takes money from consumers, tempering demand, and easing price increases.
This is not normal inflation. It has been principally caused by high energy costs (both domestic and industry) and high fuel costs (with a bit of supply chain probems thrown in) . These feed through to prices for all consumer goods. The problem is, people have not got "too much money" as they have when traditional inflation is evident. The sharp rises in fuel and (particularly) energy costs has left many people struggling. All that will happen now is what money they have got will go on increased fuel and energy costs, their discretionary spending will have to reduce as a result and recession will be the end product. Raising interest rates, in these circumstances, will do nothing to quell inflation as energy and fuel consumption is not something that individuals and industries can readily reduce. The answer to the problem lays way back in the past when successive governments began contracting out the nation's energy supplies when they had perfectly good sources at home. It won't be cured by increasing interest rates by half a point.
Not everyones in the same boat though newjudge...lots of people are struggling and will alot more in the winter but there are people with lots of spare cash- some resetraunts are packed, the roads are crammed, people are going on holidays abroad, car prices and house prices are shooting up but the demand is still there... so its these people who now may have to think twice about whether to keep splashing there cash or save some money now interest rates are higher or weather to pospone the idea of taking on a big morgage.
I dont know whats best but I dont think its as simple as saying the 'expert's are all wrong.
I dont know whats best but I dont think its as simple as saying the 'expert's are all wrong.
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