Stop starving loyal savers
loyal savers have been starved for too long. Rates have languished for a decade, and now it seems we’re being punished for our financial prudence.
The latest rate cuts from NS&I, which are detailed on pages 39, 40 and 45, are yet another blow to millions of sensible savers who have entrusted their nest eggs to the nation’s savings haven.
So, today, we are launching our new Stop Short-Changing Savers campaign, calling for a fair reward for saving. as part of this, we want to hear how you have been hit by rip-off rates, conned by teaser accounts, or forced to hunt for a half-decent reward. Write to
moneymail@dailymail.co.uk or Money Mail, Northcliffe House, 2 Derry Street, london W8 5TT.
Savers are now being denied even a miserly income. It is high time they were rewarded — after all, it is their money being lent out to fuel the economy.
But instead, they could be in for yet more misery. other banks and building societies might follow NS&I’s lead and cut their rates again. Indeed, NS&I could go further, too, and take the axe to its variable rates.
The state’s savings arm needs to set an example, but its hands are tied by the Treasury’s stubbornly low fundraising target; NS&I cannot offer top rates because it would attract too much cash.
The Treasury needs to boost its fundraising target and give NS&I some flexibility. If it doesn’t, banks will continue to slash their meagre offerings, with no reason to make their rates enticing.
There’s no real consistent commitment to reward savers. Instead, interest rates are used only as a trigger to attract money when it is needed. When the cash flow is no longer required, the tap is turned off.
The arrival of new banks has fuelled competition in the past, but we have seen none come in since Marcus by Goldman Sachs launched with a top-paying account nearly a year ago.
We are fast running out of attractive options for our cash; the dire story of Neil Woodford’s fund has made many nervous about investing. Most of us will keep our money with NS&I because there, it is all backed up by the Treasury, whereas with ordinary banks only £85,000 is guaranteed. Before the financial crisis, this was not a major concern, but these days we know banks do go bust. So millions of savers will stick with NS&I’s stingy rates, too afraid to move their neglected nest eggs.
Finance wish list
NEW chancellor Sajid Javid will today unveil his Government’s first spending review.
Money Mail would of course love to see savers given some salvation, but a solution to the social care crisis is also high up on our wish list. as we have recently told in these pages, ordinary families are consistently facing financial ruin — simply to provide their elderly loved ones with dignified care.
as of last night, 300,000 people had signed the Mail’s petition to ensure no one has to sell their home to pay for dementia care.
and while the doctors’ pension crisis choking the NHS should be addressed, we urge the Government not to forget about the practice nurses who have been denied full pensions for so long.
2.9p too much
EVER since the scheme was announced earlier this year, there has been a question mark hanging over how banks will finance their compensation of fraud victims.
Money Mail has always suspected this burden would eventually shift on to customers — only Nationwide and lloyds would promise us their customers would not have to pay.
So it comes as no surprise that the industry has proposed a 2.9p fee on ‘faster payments’ transactions above £30 to cover the cost.
Why should customers pay for crimes the banks have allowed to happen? and surely the money used for compensation would be better spent on the systems that detect and prevent fraud in the first place?
Unless they are stopped in their tracks, criminals will keep on stealing from us.