I had a letter from my bank the other day.
It was telling me that as from June 1st, the interest rate on my savings account was being reduced.
It’s already a pittance, as are all savings rates now, unless you can afford to tie your money up for a year or more (which I can’t), and even then, the rates aren’t much better, plus there are penalties.
Gone are the days when you were encouraged to save for a rainy day or your retirement.
Pension pots have been raided via government loopholes, if not lost altogether when companies went to the wall, and should I not have taken my pension at 50 even though I’d been made redundant in 2001, I would have lost my entitlement when the company was sold on. That, and two small annuities from private pensions (as encouraged by the Government to take out if my work place didn’t have one and which total £150 a year) are my only income, plus the interest received on my ‘pension pot’, the lump sum received at 50 which was to last until I was 60, the state retirement age at the time. That now has to last a further 6 years, if not longer should the government move the goal posts again.
Government schemes for ISAs to help towards a deposit on a house are laughable. They are over a period of 5 years, when house prices will be even more out of reach and the deposit saved so hard for won’t be enough to comply with whatever the latest morrgage application legislation is, even with the ‘generous’ Government incentive.
As if pathetic interest rates weren’t enough, unless your savings are in an ISA or you aren’t a tax payer (like us due to low income), you have to pay tax (20%) on your interest as well. Double whammy for the Government and another kick in the teeth for the saver.
Whilst I’m not surprised that interest rates for savers are still going down, what annoys me most is the amount it’s going down by. I am about to lose a third as my rate reduces from 1.5% to 1%.
Our savings have reduced as well as interest rates, so what is the point of having them? £10 per thousand saved per full year isn’t going to do much, even by our frugal way of living, especially as my food bill is forever increasing, no matter how careful we are when we shop.
Think on this though.
It has been known for years that there is not enough physical money in circulation to cover customer deposits. These days, everything is done by electronic means, just a transferance of 0s between accounts, banks or countries. To me, it isn’t real, and because of that, I feel The Powers That Be have lost track with reality.
I’m sure there are a lot of people like me who are thinking of closing their accounts due to lack of interest, and wanting their money in CASH.
You’re still 10x better than we are here. My interest rate on savings has been 0.01% for over a year now! Yes, they are encouraging us to spend, spend, spend! I’m sure they know you can’t possibly live an independent life when you’re in debt.
General savings accounts have had the same rate of 0.01% here for a few years too. I put my lump into an ISA which had a rate of 6% tax free when I opened it ( i was still working then so it made sense). Even if I could afford to tie it up for a year or so, I could only expect 1.1% tops.
sad, I guess you’ve heard of the negative interest rates they’re coming out with now?
WTF are they thinking?!
I’m prepping for major financial collapse coming due. Not a whole lot I can really do tho, I don’t figure I can close 401ks to buy gold, there’s a minimum 30% penalty to close those accounts before 59 and a half yrs old. Thats another few years for me. I hope the system will last that long, but I really doubt it the way it’s going now.
Likewise. Luckily our money is in easy access accounts, so no penalties for withdrawal would apply. I read today they are extending mortgage terms to 80 years of age. B…….. terrific, another excuse to extend the retirement age for our generation and thus hold back our entitlement to a state pension (if there is still going to be one available of course). sigh. 😦
really sad what they’re doing to us all, worldwide. 😦
I’m trying SO hard to find a way to ‘retire’ now, just get out of the system. I don’t see any way to survive if it continues like this (and of course it will). All it will take is for the people to wake up and say ENOUGH! But I don’t see that happening. 😦
You and me both. Something has to give as its all getting completely out of hand.
I find it curious that savings interest rates are around 1%, and our mortgage rates are around 2-3%…. but credit card companies charging 19-20% in interest on loans. If that isn’t blatant exploitation, then I don’t know what is. It is even more offensive when you consider that the people who are owing money on credit cards etc are often those than can least afford the high interest rates. Greed is going to be “our” downfall at some point in the future.
We could not believe the interest rates of over 1000% (yes, one thousand oercent) on some short term loans or credit cards as advertised on TV when we were house sitting. It doesn’t bear thinking about, and is why we are so adamant about not owing any money.
Money is made off those in debt, who are spiralling further into it if they aren’t careful. Rates will have to rise eventually on mortgages and general borrowing, but the saver won’t see any increase for at least a year after the event. In the meantime, those who can least afford it, and have no other choice in some cases, are indeed being exploited.
My mattress has almost the same saving rates as my bank. 🙂
One reason we are afraid to completely stop working and retire.
Sadly trying to get back into the working market in later life is a bit of a game too.
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