the cut in the bank rate

[charlie gracie]

Great news for some home owners, Not good news for us pensioners who saved some money when
we were working to top up the miserly pension in retirement, we have lost out considerably,
what is the government going to do to help people on a fixed income. the answer is simple NOTHING.

[likersw]

Save for your future. Garbage!
I tried, AVC's restricted, just before retirement Married Persons Allowance discontinued, tax allowance down. State Pension is not taxed but lumped together with any private pension it is, don't let them fool you.
I worked normal hours plus overtime and some casual work, a wife working part time in unsociable hours with no financial help to bring up childrren and we saved, what dickheads we were.
Our savings and pension are taxed, we are entitled to no benefits and now our savings will deminish by lower interest rates.
Spend it, our chums on benefit seem to be as well off without the worry.

[David G]

If I was young again I would do things differently,why bother saving or making any plans to be self sufficient in retirement. If you have any savings your money loses value through true inflation,the interest rates aren't worth having on easy access accounts,tie it up in bonds and you're wondering if you are going to ever get it back even though its supposedly covered by the FSA,remember how people panicked over Northern Rock.
Those who have never saved can get top ups to their pensions and grants for all kinds of things,If you've saved,means testing ,buy it yourself
Go into a care home,pay for yourself,unless you don't have any money,and then the State will pay your fees
Then when you die,The State is sniffing around seeing what it can take from your estate.
I ask again what is the point of saving.

 

[itvnews]

I am a Journalist working for ITV news. I am keen to hear from anybody who is concerned about their finances because of falling interest rates.

I can be contacted on - graham.black@itn.co.uk

Thanks

[Elder Rebel]

Yesterdays cut in Bank Rate to 1% is just one more kick in the teeth for us pensioners.  The government seems to think it can kick sand in our faces and always get away with it. 

This does not have to be the case.  While we are generally a law abiding group we do have power in the current financial situation.  It is estimated that pensioners have around  £1.5 trillion (yes Trillion) lodged in banks.  That is real power if we choose to use it. 

If all pensioners went to their bank next week and obtained a cheque for 10% of their savings this would make the banks sit up and take notice.  That would represent the withdrawal of £150 Billion which makes the government rescue plan for banks look like small cheese.  No harm would be done to the banks until we decided to lodge the money elsewhere (eg Irish Banks where the safety limit is sky high) It would cost us little (1% of 10% less tax is just smaller peanuts)  Crossed cheques are also safe to hold for up to 6 months.

With a Sword of Damocles that size hanging over our banks I am sure interest rates would soon be reviewed by our political and banking masters.

Think about it.  We are not powerless.  We could make our government sit up and think about us.

Elder rebel

[sidney]

YES IT SEEMS US PENSIONERS HAVE GOT TO PAY FOR THE BANKS MISDEMEANORS AND THIS AWFUL GOVERNMENTS   MISMANAGEMENT OF THE ECONOMY ESPECIALLY GORDON BROWN.I SAY IF THE BANK OF ENGLAND REDUCES INTEREST RATES LET IT LEND THE MONEY AT THESE LOW RATES AND LEAVE US ALONE.BUT HAVE YOU NOTICED HOW BANKS HAVE JUMPED TO REDUCE INTEREST RATES  BUT LOANS ARE STILL A S MUCH AS SIX TIMES HIGHER SO THEY ARE EARNING MORE OUT OF THE INTEREST RATE CUTS.THE ONLY LOSERS ARE PENSIONERS AND SMALL SAVERS IN GENERAL. IF WE WERE  TO WITHDRAW OUR MONEY FROM THEM IT WOULD CREATE A RUN ON THE BANKS WHAT WOULD THEY DO THEN?.AFTER ALL ITS NOT WORTH SAVING ANYMORE.I AM ALMOST INCLINED TO URGE PENSIONERS TO SPEND THERE MONEY TO CREATE A RUN ON THE BANKS JUST TEACH THEM A LESSON ESPECIALLY THE GOVERNMENT.DO YOU FEEL REALLY MILITANT LIKE ME? WE HAVE BEEN DOWNTRODDEN FOR FAR TO LONG,WE NEED TO SHOW THEM THE FINANCIAL POWER THAT WE HAVE.THATS IT FOR NOW PLEASE TELL ME WHAT YOU THINK Sincerely Sidney.

[Elder Rebel]

Sidney;

Thanks for your message but I would caution against forcing a run on the banks.  Love them or hate them,  we need them.

I think you have missed my main point.  Withdrawing a cheque is not the same as withdrawing cash in that there is no movement of funds from the bank until the cheque is deposited somewhere else.

So if we all withdrew cheques and held them for a few months the Banks and Government would be worrying what we were about to do.  That is the 'Sword of Damocles' I was referring to.  Then if the banks did not take notice we could lodge the cheques outside the country or as you suggest just cash the cheques and spend the money.

Actually the biggest worry for savers is no longer the interest rates but the talk by the Bank of England (and the Government) about 'Quantitative Easing'  This gobbledygook really means  'Printing Money'

If or when they start that, we will be no better than a banana republic and those with savings will really suffer as their savings dwindle in value and spending power.  The day they start doing that will be the day we should all spend our savings on something that will hold its value like diamonds, gold, platinum, barrels of oil or sacks of wheat.

[sidney]

Charlie your are absolutely right in your analysis, but its good that you still have the inclination to voice your opinion,. well done and keep it up.Best regards Sidney.

[John]

We have already seen the affect of a run on a bank, Northern Rock.

What action did this government take? To stuff money into it like idiots.

No doubt taking the shortest of views that shoring up one Bank would
save all.

They fail to look outside the box all the time. Gordon Brown is totally
incapable of engaging with people and is therefore unable to see
the bigger picture.

It is one failure too many for me...

[sidney]

Hi Charlie what do you think of the recent bank rate cut   to 1/2 a% and what good is it doing.Its certainly not helping us pensioners.I for one feel angry about it we have done nothing wrong and yet we are the hardest hit.Brown if he had half a brain could have stepped in as long as 5 years ago and stopped the ridiculous lending by the banks and sucking up to them.Also  his robbing of the pension fund by billions he is no better than the bankers.I suppose next month it will be 0% its a sick joke then the banks will charge us for keeping our money,its enough to make you puke all over them.Regards Sidney.

[ElliotClark]

That's usual thing that happens. The system is quite insecure and you may lose everything in one day. I wrote a post on similar topic here