I’ve just been having a look around and discovered that my First Direct ISA has gone from being one of the best on the market to one of the worst. The interest rate has fallen to below base rate. Birmingham Midshires, by comparison, are offering 4%. First Direct are sending out a very clear message: we don’t want your money. At 1.49% I may as well take the cash out and bury it, leaving the bank more exposed and with less money to lend to borrowers. Perhaps the bank doesn’t need as much working capital as other banks. In which case congratulations to them for being sensible, but I think I’ll move my money to somewhere with a higher return.
With Brownite economists suggesting the confiscation of savings, rates so low and inflation about to pick up what is a saver to do? Perhaps it is time to switch the boiler over to paper fuel…
Put it into your mortgage, make some overpayments if you can, obviously not if you’re saving up for an holiday or similar.
Good idea, Marden.
Buy things that you need while they’re in the sales.
People are in for a shock next month. Many imports are going to rocket by around 25% overnight. I got this from a local shopkeeper.
It makes sense, with “just in time” retailing, why would retailers have more than a few days’ stock at any one time?
When inflation indices start heading north again, the Bank is going to look even more foolish than it already does.
Brace! Brace!
Yes. I’m being piloried by IB because I fixed my mortgage rate. I think I’ll be having the last laugh but knowing my luck …
The small print states (as with all mortgages) that my loan can be foreclosed.
In which case chavdom here I come. Shell suits all round for da famlee.
Well mine won’t go below 5% no matter what and I can’t pay down capital yet, but that is largely because I borrowed such a huge multiple of my income at the time I paid with a bit of inflexibility. I am pretty happy overall, though.
With rates likely to go down this week what I am about to type may well be redundant already. But here goes….
I think if you can lock some money away for 6m or 1yr a fixed account is the way to go at the moment BE.
Nationwide ISA – 3.75% for 1yr.
ICICI Bank have some decent fixed rates too. (They re an Indian Bank, but are fully covered by the FSA 50k guarantee)
“Buy things that you need while they’re in the sales.”
‘Things’ are all very well. But if food and sundries start heading the same way?
‘Brace! Brace’ indeed…
Retail price inflation is a few months away yet BE.
Except on super fast turn items like food and fuel.
Bummer isn’t it.
I’m thinking of selling the house, so ending the mortgage and spending the rest, then renting. Why watch your assets deplete when you can spend them and live where you want?
oh i can’t wait to see the kitchen as it progresses…i am thinking of redoing mine as well…just can’t make up my mind on a few things…and to be honest i just replaced the furnace, central air and water heater last month, so it will probably be this summer before i even get started…
what is a saver to do?
No idea, but I’d like some suggestions, too!
Buy gold bullion with the savings
It might be your best bet