Why are SAVERS PENALISED?

Its political. There are ten times as many people who are reckless and greedy than sensible ones like yourself so naturally politicians who want reelection pander to their needs.

I agree with you, but still can't accept a view/system which punishes me. The banks and politicans want us to always be in debt, only difference is they want it manageable.

Anytime there is a crisis caused due to profligacy, responsible people like me will always lose. There is no changing this bitter fact.

?

pay off mortgage.  don't punt 40% of your savings on BP.

unless you consider a mortgage to be a debt

sorry mate but yes, that is a debt... and your repayments on it are probably saving you more money that that what your missing out on in with your savings, with todays low interst rates.

We are punished because we have money.

Flying V

You are not being punished. In the longun the value of your pension, the value of your home, and shares etc will be higher BECAUSE interest rates are what they are.

Why be so concerned about losing a couple of % on your savings when the implications of stock market and house values crashing are so much greater.

House prices are up over 10% since rates were slashed, stock market (pensions etc) are also up 50% .. Why moan about a couple of % . Your money is safe and you have no debt. Just make teh most of being in a good financial position!!

A bit of advice.. You could invest your money in the stock market or in property. This is a bull market after all!

savers are punished because govt world wide are moving to a form of socialist democracy.They want as many people as possible to struggle and therefore depend on the govt for their existance.The more you comply the more you are punished.

money safe? lol.

gatespeed is right - u are a mug fedhater. you are massively in debt (like most of us) and low interest rates are making u better off not worse

Low interest rates are unsustainable, when will that get into your heads!!

thats another matter entirely u clown

Fedhater - to repeat what you have already been told, your best investment is to pay off your mortgage debt (leaving some short term/available cash for emergencies.

I agree with Fedhater. 

And to the man who said most are massively in debt, that is completely untrue.  There are more savers than borrowers in this country. This prudent majority are disgracefully being punished for the sins of the profligate few.

Fedhater/Munchman - it's not in the country's interest to have people saving at the moment. Saving sucks demand out of the economy, and the govt has at the same time decided to also suck demand by taxing more and spending less. Their hope is that the slack will be taken up by the private sector (i.e. you) so you've got to spend mate.

If you still have a mortgage, then pay it off - that's a no-brainer.

fedhaters original gripe was that low interest rates were making him worse off. this is wrong as he has a mortgage. end of

There's a disconnect between the topic title "Why are savers penalized?" and the statement in the lead post "I have a mortgage". In this case it sounds like you ARE NOT being penalized. 

The general statement however "savers are being penalized" (ie, those without debts -including a mortgage- but rather just money in a savings account) is correct. In that case, savers ARE being penalized.

mmg - sometimes i wonder how the western coutries lost the balance of wealth in todays world and then i read posts like that...

Tell me mate... exactly why do we need more spending in our industrially weak service sector economies?? or is it that you just want the music to last for that little bit longer?

^^^^^^^

simple really, because without exponential growth in credit/money supply, the fiat monetary system collapses

End of story!

i don't feel i'm being penalised cos i have no mortgage and have a fair amount of savings, not when i look around and see many of my friends struggling with debt who'd love to be in my position, i just think i'm very fortunate.

Fotunate and sensible!!

I am sure your friends are changing their lifestyles and trying to pay off their debt. Do you think it right that you are not getting rewarded for being sensible?

Trying to get my connection between the last 2 posts.

struggling with dept = getting rewarded for being sensible.


I think you need a holiday Chisel,have you booked anything yet?

I've booked a week in Portland to have a closer look at the
Ocean Views development.

Trying to get *the* connection

JML

I am unsure why you are struggling!! If you read gresty post which I was responding to , you would know what the connection was!!

And Yes, I do need a holiday, but not likely to go anywhere too exciting this year  !! Maybe Weston Super mare!

I'd have thought everyday was a holiday in Bognor!?

For anyone interested i came across a very good savings account with santander. 5% gross variable with no fixed term limitations. Its called first home savers account and is not widely marketed. When i opened the account yesterday i was told i was the first person to do so in my branch.

Requirements are you must be under 35 and not have been a homeowners previously. You cant deposit £5,000 on opening the account and up to £300 each month thereafter.

The only other stipulation is that when you close the account you have a 5 minute chat with santanders mortgage advisor but this is only a technicality. Basically you can just say no thanks to any mortgage advise.

Dotchinite got it right in the first reply.