p2pfan
Member of DD Central
Full-Time Investor
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Post by p2pfan on May 11, 2020 12:46:02 GMT
Interesting discussion re: inflation.
Important factors to consider:
- the published 1.5% CPI inflation rate needs to be taken with a pinch of salt. The actual rate will be closer to 1.7%.
- Inflation will probably go up
- With the astronomical amount of money printing the government is indulging in, the value of our money will decline
- The pound has historically and will continue to gradually but surely decline in value against other currencies (US dollar, Euro)
- Depending on which tax brackets you sit in, one often has to pay significant tax on one's returns
Therefore one needs to be making at least 1.8% p.a. currently and higher than that going forward to just keep the spending power of their savings where it is today.
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r00lish67
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Post by r00lish67 on May 11, 2020 12:54:25 GMT
Interesting discussion re: inflation. Important factors to consider: - the published 1.5% CPI inflation rate needs to be taken with a pinch of salt. The actual rate will be closer to 1.7%. - Inflation will probably go up - With the astronomical amount of money printing the government is indulging in, the value of our money will decline - The pound has historically and will continue to gradually but surely decline in value against other currencies (US dollar, Euro) - Depending on which tax brackets you sit in, one often has to pay significant tax on one's returns Therefore one needs to be making at least 1.8% p.a. currently and higher than that going forward to just keep the spending power of their savings where it is today. The majority of these factors are just your opinion, and actually are contrary to the guidance that the Bank of England MPC released in its latest report."CPI inflation declined to 1.5% in March and is likely to fall below 1% in the next few months, in large part reflecting
developments in energy prices".
Of course you may end up being right, who knows. Where do you get a number as precise as 1.7% from anyway?
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Post by dan1 on May 11, 2020 13:11:58 GMT
Interesting discussion re: inflation. Important factors to consider: - the published 1.5% CPI inflation rate needs to be taken with a pinch of salt. The actual rate will be closer to 1.7%. - Inflation will probably go up - With the astronomical amount of money printing the government is indulging in, the value of our money will decline - The pound has historically and will continue to gradually but surely decline in value against other currencies (US dollar, Euro) - Depending on which tax brackets you sit in, one often has to pay significant tax on one's returns Therefore one needs to be making at least 1.8% p.a. currently and higher than that going forward to just keep the spending power of their savings where it is today. Wrt the bold bit above, what are the alternatives? Let companies go to the wall and massively increase taxation to compensate? Like it or not, QE is perhaps the only sensible option at this juncture. It'll cost the govt a comparative pittance to borrow another £100bn.... £250million odd in interest per year looking at current 10 year gilt yields. 2019 saw the UK govt spend £821billion, that £250million is 0.03% of that!
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Post by df on May 11, 2020 14:27:32 GMT
I have some FSCS accounts that earn over 2% but they are either to mature soon or not available to new customers. I’m not aware of any 2%+ offers that are currently on the market. There are are a couple of regular savers @2%, but in reality you get less than that from drip feeding accounts. Sorry, bugbear of mine, not true. You get the full 2% on a gradually increasing balance. How can one expect to get a full 2% of the final balance when the only month you had the final balance was the last one? Why is it not true? If I drip-feed from 1.5% instant access to 2% regular saver I earn about 1.8% in one year, which is less than 2% - is this not right?
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r00lish67
Member of DD Central
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Post by r00lish67 on May 11, 2020 14:54:57 GMT
Sorry, bugbear of mine, not true. You get the full 2% on a gradually increasing balance. How can one expect to get a full 2% of the final balance when the only month you had the final balance was the last one? Why is it not true? If I drip-feed from 1.5% instant access to 2% regular saver I earn about 1.8% in one year, which is less than 2% - is this not right? Ahhhh, ok. I misread your post, sorry. I'm overly used to seeing "why didn't I get 2% interest on my 2% regular saver" type comments, set off my reflex there 
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beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
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Post by beagle on May 11, 2020 19:42:52 GMT
Zenith bank 1.53% for one year fixed plus up to £100 bonus if opened via Raisin Is that fully covered by the fscs, looks like a nigerian bank!!! should I steer well clear of it perhaps ... lol  that reaction
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smee
Member of DD Central
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Post by smee on May 12, 2020 6:15:23 GMT
For more reassurance re. Raisin and Zenith. I have just opened my first account. It took 4 days for the money to be put into my account (over bank holiday weekend) but it had been backdated to the day of the Raisin deposit, so no loss of interest. I now await my £100 bonus. Everything has gone smoothly so I am pleased with the 1.53%.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on May 12, 2020 9:15:29 GMT
For more reassurance re. Raisin and Zenith. I have just opened my first account. It took 4 days for the money to be put into my account (over bank holiday weekend) but it had been backdated to the day of the Raisin deposit, so no loss of interest. I now await my £100 bonus. Everything has gone smoothly so I am pleased with the 1.53%. I do like the sound of Raisin..................but only for a currant account 
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Post by gravitykillz on May 13, 2020 11:47:16 GMT
Instant access account gone down again!
1.05% now!
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beh
Member of DD Central
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Post by beh on May 13, 2020 12:37:09 GMT
Instant access account gone down again! 1.05% now! Annoying, was only 3 weeks ago they lowered it previously.
For Raisin the common criticism is that it's usually a few days after the maturity date that your money is available to reinvest. Having just renewed/extended one "product" which you'd imagine would be a simpler process the maturity date was the 8th May and the new account was only opened today (13th).
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macq
Member of DD Central
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Post by macq on May 13, 2020 13:41:18 GMT
For more reassurance re. Raisin and Zenith. I have just opened my first account. It took 4 days for the money to be put into my account (over bank holiday weekend) but it had been backdated to the day of the Raisin deposit, so no loss of interest. I now await my £100 bonus. Everything has gone smoothly so I am pleased with the 1.53%. I do like the sound of Raisin..................but only for a currant account That might be what i'm looking for as i just got a job picking fruit & veg - and have just had a raisin celery
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on May 13, 2020 13:48:02 GMT
I do like the sound of Raisin..................but only for a currant account That might be what i'm looking for as i just got a job picking fruit & veg - and have just had a raisin celery Wow.......that's a turnip for the books
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on May 14, 2020 8:46:24 GMT
For more reassurance re. Raisin and Zenith. I have just opened my first account. It took 4 days for the money to be put into my account (over bank holiday weekend) but it had been backdated to the day of the Raisin deposit, so no loss of interest. I now await my £100 bonus. Everything has gone smoothly so I am pleased with the 1.53%. I do like the sound of Raisin..................but only for a currant account This is not a fruitful use of this forum.
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on May 14, 2020 9:58:33 GMT
I do like the sound of Raisin..................but only for a currant account This is not a fruitful use of this forum. I've never been so insultanerd in my life.
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iRobot
Member of DD Central
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Post by iRobot on May 14, 2020 10:17:35 GMT
This is not a fruitful use of this forum. I've never been so insultanerd in my life. You'll get juiced to it ...
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that reaction
