0.05 % AER is this really pump?

[pimping]

asked bank for my savings rates and they gave me 0.05 % across the board but i don't know if this is yearly or daily or what and it sounds rather pump. currently switching from alliance and leicester to first direct due to a mortgage. starting to wonder about the mortgage too as the interest rate is threatening to spiral. not signed anything yet thank god.

[shakotan]

Pump?

[DavesFlaps]

I does sound a bit pump, yes.

Then I wouldn't really know what to compare it with, as my missus does all the financy stuff. I just spend it.

[pimping]

just been reading up on it and i know we are in turbulent times but i don't want my savings eroded by inflation etc. pump means bad by the way!

[pugwash4x4]

pimping said:

pump means bad by the way!

is it related to gimp?

[pimping]

no i'd say pump is more like gash than gimp.

[Stevenj214]

pimping said:

no i'd say pump is more like gash than gimp.

No, it's definitely more like gimp.

[5pen]

What rate will you be paying on the FD mortgage? Is it too late to get an offset mortgage with FD? Depends on the rates of course (non-offset v offset v savings), but saving interest on your mortgage is likely to be better value than earning interest on your savings.

[Mx_Stu]

pimping said:

starting to wonder about the mortgage too as the interest rate is threatening to spiral.

Base rate?

[ringram]

Lots of talk of deflation and double dips so Id discount the spector of inflation in the short term.
Longer term though maybe.

Hence why bond yields are dropping to historical lows. Almost as low as the old consol's from 1790. Yields on shares now exceed bonds, which has been seen in the past as an equity buy signal.

Anyway, all good fun. Where to find yield!? Thats the question. The NSANDI RPI+1% were good, now axed.
You can get more than that on fixed term bond, like 3.6% or so. But after inflation, zip there as well.

Basically the skill seems to be to to retain capital these days than worry about growing it.
Me, Im watching Gen4 Viper Coupe prices. A bit of deflation there wouldn't go amiss.

[pimping]

so is 0.05 % really bad then?

[ringram]

Better than -50% in the sharemarket!

[pimping]

yeah seems -50% is not so good.

[northandy]

pimping said:

asked bank for my savings rates and they gave me 0.05 % across the board but i don't know if this is yearly or daily or what and it sounds rather pump. currently switching from alliance and leicester to first direct due to a mortgage. starting to wonder about the mortgage too as the interest rate is threatening to spiral. not signed anything yet thank god.

Sounds like those are your banks standard rates, pretty rubbish but not that far off the norm at the moment.

I have just switched my ISA to first direct, fixed 2.65% until oct 2011. When I look around virgin were offering 0.05% standard rate.

I reckon we are 12 months away from the BOE touching the base rate.

[-Pete-]

0.05% is approximately... nothing. Most banks pay you nothing for borrowing your money in a normal account. If you have any spare money, put it into a cash ISA.

Pump is what you need when your tyres are flat.

[pimping]

so yes it is pump.