Advice for savers?
Discussion
Ok, the economy is in turmoil. Any dregs of faith in the Government is lost and there is talk of deflation and massive inflation.
What should those of us who have squirreled away a few quid do? Interest rates are at zero for all practical purposes, and given the economic turmoil locking money away in fixed bonds seems potentially foolish. So what shall we do? What are you doing?
At the moment my money is doing sod all, but I'm reluctant to do anything with it which reduces the liquidity by much. I assume others are in a similar boat. How do we protect our hard earned from being devalued?
Gold/silver?
Mixed 'basket' of currencies (how would you practically do this)?
National savings?
Loan sharking?
Or am I fretting over nothing and should just leave it in the bank, earning 1.5%?
What should those of us who have squirreled away a few quid do? Interest rates are at zero for all practical purposes, and given the economic turmoil locking money away in fixed bonds seems potentially foolish. So what shall we do? What are you doing?
At the moment my money is doing sod all, but I'm reluctant to do anything with it which reduces the liquidity by much. I assume others are in a similar boat. How do we protect our hard earned from being devalued?
Gold/silver?
Mixed 'basket' of currencies (how would you practically do this)?
National savings?
Loan sharking?
Or am I fretting over nothing and should just leave it in the bank, earning 1.5%?
Jasandjules said:
Bonds? Gilts? Guaranteed return.
That means locking it away though doesn't it? Would it be possible to buy a mixed basket of different bonds (ie a % US, UK, Chinese - whatever)? Are they easily tradable?Gold appeals, but its a double gamble - £/$ and gold price. Also there is the problem of storage (I do have a Bullionvault account though...).
Is there a bank account which lets you hold cash in various currencies? That might be a solution.
We're thinking of buying a flat and renting it out, at least we'd see some money every month rather than the pathetic amount we get in interest.
Plus it's a good time to buy really.
Only thing giving us a few doubts is that we'd need to be in there for the long term, plus once we sell we'll owe Capital Gains tax.
It's a tricky one.
Plus it's a good time to buy really.
Only thing giving us a few doubts is that we'd need to be in there for the long term, plus once we sell we'll owe Capital Gains tax.
It's a tricky one.
Catz said:
We're thinking of buying a flat and renting it out, at least we'd see some money every month rather than the pathetic amount we get in interest.
Plus it's a good time to buy really.
Only thing giving us a few doubts is that we'd need to be in there for the long term, plus once we sell we'll owe Capital Gains tax.
It's a tricky one.
Great idea, but the problem for me is that in a worse case scenario you use all of your cash (I would be), then house prices drop further, which I believe they will, and to put the poo cherry on top I lose my job.Plus it's a good time to buy really.
Only thing giving us a few doubts is that we'd need to be in there for the long term, plus once we sell we'll owe Capital Gains tax.
It's a tricky one.
I'm a cynic by nature though.
Dupont666 said:
I like the way that the interest is at 0% for money saved, but the credit cards have just gone up to 20% or there abouts...
Since all the overdraft charges are being argued / refunded, banks can't make any money on credit balances, ppi is now on the verge of becoming illegal, how else did people expect the banks to earn a living?i think at the moment cash is probably safer with people ramping whatever is best for them...if there is massive inflation then what about property taxes...stamp duty, utilities and council tax etc won't they all have to rise in line with the inflation thereby effecting the property market...
Maxf said:
Catz said:
We're thinking of buying a flat and renting it out, at least we'd see some money every month rather than the pathetic amount we get in interest.
Plus it's a good time to buy really.
Only thing giving us a few doubts is that we'd need to be in there for the long term, plus once we sell we'll owe Capital Gains tax.
It's a tricky one.
Great idea, but the problem for me is that in a worse case scenario you use all of your cash (I would be), then house prices drop further, which I believe they will, and to put the poo cherry on top I lose my job.Plus it's a good time to buy really.
Only thing giving us a few doubts is that we'd need to be in there for the long term, plus once we sell we'll owe Capital Gains tax.
It's a tricky one.
I'm a cynic by nature though.
mcflurry said:
Dupont666 said:
I like the way that the interest is at 0% for money saved, but the credit cards have just gone up to 20% or there abouts...
Since all the overdraft charges are being argued / refunded, banks can't make any money on credit balances, ppi is now on the verge of becoming illegal, how else did people expect the banks to earn a living?Lets face it, you currently get jack sh!t in the banks, property is just a gamble like anything else. Unless you go for a punt on some short-term share dealing ( remember the costs though)there are only a very small area of asset classes that are actually returning a good profit at the moment. How about some investment funds that are currently returning approx. 20% growth p.a tax paid! These returns are available in one of the most secure investment ares too!Further details availavble on request...................
Go fixed for 6 months and max your ISA.
Why 6 months? CPI is on the rise and interest rates too low. I personally have a wedge at 7% until end of May and I am prepared to bet that interests rates will be rising soon, so I will probably stick it somewhere @ 3% (or better if I can get it) for just 6 months. BOE have nowhere else to turn but to raise rates if CPI countinues to rise. Now that we have seen QE the inflation cat is well and truly out of the bag.
Property and the markets are way too turbulent right now for me. Brown wants you to spend it. Sod that! Get yourself as strong as possible.
Why 6 months? CPI is on the rise and interest rates too low. I personally have a wedge at 7% until end of May and I am prepared to bet that interests rates will be rising soon, so I will probably stick it somewhere @ 3% (or better if I can get it) for just 6 months. BOE have nowhere else to turn but to raise rates if CPI countinues to rise. Now that we have seen QE the inflation cat is well and truly out of the bag.
Property and the markets are way too turbulent right now for me. Brown wants you to spend it. Sod that! Get yourself as strong as possible.
Maxf said:
Any other gems from the daytime crowd?
There was an article in the FT a week or so agohttp://www.ft.com/cms/s/2/d463dbcc-0ff8-11de-a8ae-...
Apparently you can get >4%, but you obviously want to be aware of credit risk of bank (and guarantee if they go bust)
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