9% instant access savings accounts

[Ari]

Just seen this classic advert for Leeds Liquid Gold - look at the interest rate!

https://www.youtube.com/watch?v=OfCnXLeopq4

Nineteen eighties I think. Happy days for savers!

[Ari]

10%!

https://www.youtube.com/watch?v=eanlru8HkOI

FFS.

[Gavia]

And 12% mortgages.

[Ari]

Correct, and strict 3.5 times salary leading. Resulting in far far cheaper properties, keeping house prices under control and affordable. No need for Help To Buy, interest only and other nonsense in those days.

10.75% offered to savers with a bit more at the end of that second advert!

[V8 Fettler]

Some lucky beggars will have locked into pension annuities at similar rates at that time.

[Dr Doofenshmirtz]

I wish we could go back to those rates!!

[sidicks]

V8 Fettler said:

Some lucky beggars will have locked into pension annuities at similar rates at that time.

Except inflation was 10%...

[Vizsla]

1980 and 1981 - got a 14% pay rise for two consecutive years, and not especially on merit, most people in the firm got similar rises. As someone points out, inflation was 10 - 11%, but still a win and mortgage was rapidly being eaten away. Happy days!

[MarshPhantom]

Ari said:

Just seen this classic advert for Leeds Liquid Gold - look at the interest rate!

https://www.youtube.com/watch?v=OfCnXLeopq4

Nineteen eighties I think. Happy days for savers!

Great days. I can still remember my Dad's face when told us he thought the house was going to get repossessed.

Not sure why should feel sorry for "savers" with money in the bank, the only people I know with money haven't saved it but either inherited or got a big divorce payment.

[ClaphamGT3]

I have to say that I have never understood why 'savers' feel that they are uniquely entitled to be rewarded for being lazy.

[Jinx]

ClaphamGT3 said:

I have to say that I have never understood why 'savers' feel that they are uniquely entitled to be rewarded for being lazy.

Traditionally "Savers" are actually depositing their money at a bank so the bank is then able to lend this out to borrowers. The bank charges interest some of which is passed back to the "saver".
This of course is no longer the case with QE providing plenty of liquidity to provide finance.

[V8 Fettler]

sidicks said:

V8 Fettler said:

Some lucky beggars will have locked into pension annuities at similar rates at that time.

Except inflation was 10%...

The obvious point being to compare current inflation rates with a fixed annuity rate of - say - 15% as per http://www.telegraph.co.uk/finance/personalfinance...

Locked in.

[crankedup]

ClaphamGT3 said:

I have to say that I have never understood why 'savers' feel that they are uniquely entitled to be rewarded for being lazy.

As opposed to car enthusiasts buying a classic car for £x and selling it on for £xx two years later!!! Nothing unique in wanting to make money and the easier the route the better, or so I'm told.

[MarshPhantom]

crankedup said:

ClaphamGT3 said:

I have to say that I have never understood why 'savers' feel that they are uniquely entitled to be rewarded for being lazy.

As opposed to car enthusiasts buying a classic car for £x and selling it on for £xx two years later!!! Nothing unique in wanting to make money and the easier the route the better, or so I'm told.

No, but unlike putting your money into a classic car high interest rates make the vast majority suffer for the benefit of the lucky few.

[sidicks]

V8 Fettler said:

The obvious point being to compare current inflation rates with a fixed annuity rate of - say - 15% as per http://www.telegraph.co.uk/finance/personalfinance...

Locked in.

Maybe I'm due a whoosh parrot here, but I'm missing your point.

Back in the 1980s, you could lock in your annuity at (say) 15%but your money was being eroded at say 10% per annum. Now you can you in your money at (say) 3.5%, but it is being eroded at 2% per annum.

Yes, the net figure was higher previously, but it's not as massive a gap as the headline figures might suggest.

[anonymous-user]

crankedup said:

ClaphamGT3 said:

I have to say that I have never understood why 'savers' feel that they are uniquely entitled to be rewarded for being lazy.

As opposed to car enthusiasts buying a classic car for £x and selling it on for £xx two years later!!! Nothing unique in wanting to make money and the easier the route the better, or so I'm told.

There is a lot more work involved in investing in classic cars than there is in depositing money in an account. There's also a great deal of unregulated risk.
Ethically one would say that profiteering from classic cars is better than, say, profiteering from house price increases. As much as I love and have owned and restored classic cars we don't need classic cars. We need homes that are affordable and a market that is sustainable.

[Sticks.]

ClaphamGT3 said:

I have to say that I have never understood why 'savers' feel that they are uniquely entitled to be rewarded for being lazy.

Lazy was once called prudent. But then again credit was once called borrowing.

[V8 Fettler]

sidicks said:

V8 Fettler said:

The obvious point being to compare current inflation rates with a fixed annuity rate of - say - 15% as per http://www.telegraph.co.uk/finance/personalfinance...

Locked in.

Maybe I'm due a whoosh parrot here, but I'm missing your point.

Back in the 1980s, you could lock in your annuity at (say) 15%but your money was being eroded at say 10% per annum. Now you can you in your money at (say) 3.5%, but it is being eroded at 2% per annum.

Yes, the net figure was higher previously, but it's not as massive a gap as the headline figures might suggest.

Someone who bought an annuity fixed at 15% would still be receiving income at 15% of their lump sum (assuming they are still alive), compare with historical and current inflation figures:

[Sheepshanks]

ClaphamGT3 said:

I have to say that I have never understood why 'savers' feel that they are uniquely entitled to be rewarded for being lazy.

What alternatives would you be thinking of for 'ordinary' people who mostly have not much surplus cash each month and who are naturally risk averse?

[CaptainSensib1e]

MarshPhantom said:

No, but unlike putting your money into a classic car high interest rates make the vast majority suffer for the benefit of the lucky few.

Not sure if serious?

Most people with large amonts of capital wil invest it in assets that generate a far better return than available on cash.