Interest Rates

[SpokeyDokey]

While it's going to be miserable for many with a lot of debt, equally the past 15 years have been utterly miserable for those of us who refused to embrace this irresponsible and unsustainable model; I think it's about time we got a bite of the pie.

I agree. The artificially low interest rates have cost us a huge amount of lost interest over the past almost 14 years.

Apart from working hard and saving hard we have always refrained from excessive spending for the sake of impressing other people or having the latest or greatest whatever. Some of our friends think we are nuts! Doesn't seem to be the done thing with some people.

 

[gbb]

I'll depoliticise this by saying that one Party is calling for the Chancellor to address the Hoc about how he intends to support people with mortgages facing interest rate rises.

Seriously?

If people have not factored in rate rises then how is that a State responsibility.

Furlough has unleashed a swathe of expectations...

Imo mortgage suppliers need to be looking at much longer terms to reduce monthly payments.

Bang on im afraid, it seems like everyone has come to think they should have a leg up or a heping hand when things get tough, rather than live life with some ..caution perhaps?

 

[gbb]

If “it” collapses then we won’t have normality for many years/decades.

A big part of the current issue is that some people have not known anything but cheap borrowing and now, the new reality is very difficult.

People have borrowed beyond their true means as they have been brainwashed by the false narrative of big house / new cars / expensive holidays as they believe this is what success looks like.

A few years of higher interest rates are ahead of us although the BofE today said they expect the peak to be 4.5% base rate.

You could argue we have been here before...and worse. Some will fall by the wayside, unable to meet payments etc but I think people are very resilient and adapt quite quickly, usually by forced neccessity, survival of the fittest you might say.
Its part of lifes financial circle. Those that didn't plan fall off, those with some slack will survive.

Whats different this time is previous rates like these came at a time when the average guy and gal was in a more stable financial state...but we have had decades long squeezes on pay, that may well tip far more people over the edge. What did I read the other day ?...millions of people with less than £100 in saving atm

QE got a mention up above . Why is it, when they first started QE, it occurred to me, they're not really solving the problem. Its akin to being in debt at home...and going out to borrow more to solve the problem. Its a very simple analogy but for Chrissakes, how dumb are these people not to think it won't come back and haunt you at some stage in the future.

 

[Broadside]

And why didn't us Santander current account holders get any notification of this?

I’ve just checked, they only offer that rate when you pay in £200/month for a year, so no good for moving a larger sum in as far as I can tell. They shove you on the Everday Saver account at under 0.5% then….

 

[BoldonLad]

And why didn't us Santander current account holders get any notification of this?

They did, or, at least I did, it was on their website, and, I saw it whilst logging in to use my account.

 

[BoldonLad]

I’ve just checked, they only offer that rate when you pay in £200/month for a year, so no good for moving a larger sum in as far as I can tell. They shove you on the Everday Saver account at under 0.5% then….

There is an Instant Access Savings Account at 1.98% (monthly interest), you can opt for annual interest at a higher rate, also, an eSaver at 1,5%.

Yes, I agree, still to low.

 

[Jenkins]

I’ve just checked, they only offer that rate when you pay in £200/month for a year, so no good for moving a larger sum in as far as I can tell. They shove you on the Everday Saver account at under 0.5% then….

I think that one is the 'Regular Saver' account and has to be funded from your Santander Current account with the £200 per month being the maximum allowed. The account @Tom... linked to and I was commenting about was an instant access eSaver account with something like a maximum £1,000,000 maximum investment at 2.75% interest which now (as noted above) is about 2% for new accounts.

 

[Broadside]

Thanks, I’ve just opened an eSaver one that gives 1.49%, better than nothing and easy to do while I look around for something better.

 

[chris-suffolk]

Thanks, I’ve just opened an eSaver one that gives 1.49%, better than nothing and easy to do while I look around for something better.

Check here, plenty well above 1.49%. In fact, that rate is so far down, it's not on the table

 

[SpokeyDokey]

Another easy site to check on savings or mortgage deals:

https://moneyfacts.co.uk/savings-ac...=dotdigital email&utm_source=moneyfacts.co.uk

5 year FRB's over 5% now and fixed term ISA's closing in on 5 %.

 

[Chislenko]

I went into our local branch of a well known building society yesterday to book an appointment to open a Term Bond with them.

All appointments for the next two weeks are taken, it then works like the doctor's surgery, ring in the morning and see if you can get an appointment for two weeks and a day.

Who knew it would be so hard to give an institution a wad of money 😟

 

[chris-suffolk]

I went into our local branch of a well known building society yesterday to book an appointment to open a Term Bond with them.

All appointments for the next two weeks are taken, it then works like the doctor's surgery, ring in the morning and see if you can get an appointment for two weeks and a day.

Who knew it would be so hard to give an institution a wad of money 😟

Can you not do it online? Pretty much all banks / building societies you can now, especially the ones paying the higher rates.