ummm

Interest rates. Yes I know the economy is a mess,yes I know the housing market is crazy but what about us going older folk??

We dealt with high mortgage rates,we saved a penny here and there and what do we get on our savings???

Re: ummm

I got 9% compounded on a National Savings scheme which ran for 5 years and matured last October. It was a scheme linked to the rise in the Footsie index and came with a guarantee that, at worst, you would get your money back.

Re: ummm

You could argue that you got to work through times when you could get a job that payed a wage. Would you like to be starting out today, just putting an alternative point.

Re: ummm

Low mortgage rates mean while we had to remortgage when the endowments stopped paying out we are actually on target to pay off our mortgage earlier than planned originally, with luck should be paid off in 2 years time. That will help us and possibly put us in a position to save a little, if we keep paying the mortgage payment for another couple of years into a saving account.

Not everyone has been lucky and got savings, I always think be happy you have some.

Re: ummm

I can understand that those that have savings have had to endure low interest returns for a while, its said they will start to go up as soon as September, a sop perhaps for political rather than economic reasons.

But i worry the effect it will have on those struggling with mortgages at the moment.

Re: ummm

I am with you Old Git. Interest rates are absolute crap. I for one worked hard and saved and expect a decent return on my money in my retirement.

Re: ummm

We worked hard too and still do been rather badly treated by life though so haven't had a chance to save. When your incoming wages are low saving is last thing you can do.

Re: ummm

I'm with you too, Old Git. We took early retirement 8 years ago and a that time we were able to get 7% on fixed term savings. By putting this in Mrs G's name, it was effectively tax free too. Now, were more or less paying for the banks to keep our money for us. Our savings interest should at least be equalling inflation.

The only bright note is our FTSE100 linked bonds that mature next year and look set to return about 7% pa tax free.

Re: ummm

We've been through this before but Interest rates are to preserve the value of your money not to increase its value. Low Interest rates mean low inflation (and vice versa). When you had high mortgage rates you had high inflation so you needed more interest just to maintain the value of your money - it was a totally illusionary benefit.

If you want your money to provide you with a return you have to take a risk from investing in shares to venture capital. the greater the risk the greater return. How about you borrow money in the UK at low interest rates and invest it in Australia at their higher interest rates? you would get a much better return than inflation and with someone elses money but the risk is the exchange rate.

You decide but if you have just invested in safe returns like term deposits then you will get inflation plus a tiny bonus. Your choice, be grateful.

BTW I was a self funded retiree and my super is all in cash (ie getting interest) but I am happy with that.

Re: ummm

You know my stance on this one, stop making the housing market the last bastion of control for the economy, then let interest rates roam free.