It is Obvious

Chris Rick has got altogether too much to say

Memories are made of this

Posted by chrisrick13 on August 12, 2014

It is obvious: some of the people forget all the time

Do you remember the time when there was just ITV and BBC for television viewing?  I had to stop watching ITV on Boxing day and for the few weeks after.  Why?  Because, suddenly, all the ads were for package holidays in the Mediterranean.  Perhaps it was OK for the first couple of times.  But soon I knew all the inane words and could watch no more.  I don’t remember when they stopped doing it.  Have you seen a holiday ad on tv recently?

I used to have a similar problem in February/March and even a little into April.  It was PEP or ISA time.  Every ad-break had one or another company urging you to use last year’s allowance with them and commit next year’s to them.  Plenty of inducements but done in a sneaky way: 2% bonus for the first year and then when you aren’t looking we’ll take your interest rate down to next to nothing.

Didn’t see any ads this year and none the year before.  I looked at several offering this year and even old ISAs with the bonus removed were close enough to new ones that a change was not worth it.

Why are the banks not scrambling after our money?  The answer is that due to the low bank rate the banks can get all they want at 0.5% every efficiently in the bond market.  They can then lend it at, in the case of Wonga, at 2,793%.  They don’t need to run around get the odd £10,000 here and there off you and me.

National savings were not much of a deal…except the index linked savings that they very quickly withdrew.  Which tells you all you need to know about inflation and government policy.  Now as everything on offer is so low there is not much differential to the government offering.  It actually looks attractive with the safety added in…until they convert the savings into war bonds.

So thank you Mr Brown, Mr Darling, Mr Osborne, Mr King, Mr Carney.  With inflation at 5% I’m losing money almost faster than I can make it.  Certainly faster than I can save it.

It is obvious: some of the people forget all the time and so do the rest of them.

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