Minimum interest, maximum Inflation

Why do savers not take all cash out and let the banks lend money they no longer have

I must admit I am a pensioner, with cash in the bank, my savings produce 0.05% then along
with inflation of 3.8% means I am losing 3.3% per year.
Money I have to live on

If I/We stuff it all under the mattress we would just be losing 3.8% or 0.05% more a year

I believe it is a conspiracy, on war babies, maximum born 1946 to 1950, we were all in full employment paying into the Government coffers
Now it is cash in time we are screwed for our reward
Good planning by the Government
After five more years Yeah the Gov have managed to recover now we are all dead

I bet in September when the pensions are set on the current inflation it is back down to 0.05% that month only to be 4% in October

Jack McH

 

When interest rates are this low its worth stuffing it in Ernie. Ernie will pay out the same interest as the banks (on average) but you might get nothing (which is approximately what you are getting anyway ...) and there is a slim chance that you might get more.

 

I still say that people of my generation will never get a state pension even though we have paid into it for all these years.They are going to just keep moving the goalposts so we will never draw it and we will eventually die with nothing to show for allt hose years of hard graft

I envy all my older friends that benefited from the high interst rates on their savings in the 80's {£15 for every £100 they saved}so are now able to have a new car every three years and meals out a few times a week and friends I worked with that were able to buy their council houses at vastly discounted prices and then sold them years later for a nice big profit while we struggled to pay our high mortgage repayments

I can't see the point either of putting anything away as it costs us more in fuel to trek all the way into town and back again than what we shall get in interest

As they were saying on the telly yesterday there is so much money floating around due to QE that the banks don't need our money hence the reason for the very low interest rates which are not going to rise any time soon.The problem I think is because the youngsters in their 30's/40's have so much debt hanging around their necks for the big houses they all own and the expensive cars they all drive and the fabulous holidays in the sun they have every year that there would be mega problems and people losing their homes again if the interest rates on the mortgages went up to a decent level

It will be intresting to see how it is all going to pan out over the next 10/15 years time and see how we all cope with it