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What will they think of next?

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What will they think of next?

Post by oftenwrong on Thu Nov 03, 2011 7:40 pm

Banco Santander have launched a new savings "Product" onto the UK market which takes top prize for sheer cheek ("Mucha cara" as they say in Spain)..........

Santander has outlined plans to "turn the savings market on its head", by launching a new savings bond which pays customers' interest up front.

The Upfront Interest Bond, which pays three years interest in advance, claims to be the first savings bond of its kind in the UK.

The bond will see customers receive £1,000 net interest up front for every £12,000 they save.

Customers must deposit at least £10,000 for a three-year term for the bond, which offers a fixed rate of 3.36% gross AER.

Matt Hall, head of savings at Santander said: "We've approached our innovative new savings bond from a completely fresh angle."

Interest is paid into a Santander current account within six weeks of the account opening. Those who open an account before November 20 will receive the interest in time for Christmas, Santander said.

Andrew Hagger of the Moneynet website said: "The option to earn three years' worth of interest up front, even though the rate is less than market leading, will no doubt appeal to those savers who rely on their interest income to help with day-to-day living costs.

"As well as a means of increasing its share of the current account market, with the minimum savings deposit requirement of £10,000 it could bring in a significant amount of new credit balances too."

The term of the bond for those opening an account up to November 20 starts on December 1 and matures on December 1 2014. Interest is not earned before the term starts and no withdrawals can be made during the term.


Pretty neat, huh? All other savings accounts pay COMPOUND INTEREST which means that the saver earns progressively more as time passes. The clever new "product" separates interest from the account at the outset, so that the Bank only ever has to pay a fixed percentage of the original investment.
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Re: What will they think of next?

Post by astra on Fri Nov 11, 2011 8:04 pm

This of NO withdrawals during the term gets to me OW

Do they REALLY think we all have £12,000 under our matresses? (I presume, the £1,000 is ALSO untouchable!) SO, this is out of line for me, iffin I had that cash to play with, but to lock it up so the suits and chysters and hucksters can have playtime is really beyond all! Further, Why should WE be expected as CUSTOMERS to loan the bank money, when they won't give you a groat for a new fridge?
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Re: What will they think of next?

Post by oftenwrong on Fri Nov 11, 2011 10:19 pm

"Why should WE be expected as CUSTOMERS to loan the bank money

That's the point. Anything described as a "Bond" is a simple loan to the Bank. Should the Bank fail your money has gone! Only Deposit accounts are guaranteed by the government (up to £80K).
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Re: What will they think of next?

Post by Ivan on Sat Dec 10, 2011 11:06 pm

What will the Tories think of next?

This rancid government’s Welfare Reform Bill proposes, in cases of child maintenance, to charge the resident parent for chasing the absent one for money: £100 if you're in work, £50 if you're on benefits.

This sum could be paid repeatedly if the non-resident parent stopped paying for any reason, such as changing jobs or changing bank accounts. This happens all the time; the kind of parent who can't make an amicable agreement and has to be chased by the CSA will often cease maintenance, and the whole process has to start all over again.

About 50% of lone parents exist in poverty, and £50 is a lot of money to someone living on benefits.

http://www.guardian.co.uk/theguardian/2011/dec/10/changes-to-child-maintenance?INTCMP=SRCH


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Re: What will they think of next?

Post by oftenwrong on Sun Dec 11, 2011 10:52 am

What will they think of next? Gideon has had another thought - he wants to sell the government's share of Britain's Air Traffic Control Service. The most likely customer would be the Germans. How long would it take them to find a way of diverting traffic away from Heathrow towards Frankfurt?
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Re: What will they think of next?

Post by Ivan on Mon Mar 31, 2014 8:44 pm

This is what Osborne thought of next - making annuity buying optional - and here is a damning indictment of that decision:-
 
Osborne's pensions 'freedom' will be a long-term social disaster
 
Extracts from an article by Will Hutton
 
“Choice and freedom are great virtues, but so are risk-pooling, fairness and the recognition that the whole is more than the sum of its parts. The task of good government is to balance competing values.

Your best choice is to buy an annuity that will offer you more than any interest you could achieve if you invested on your own, both because the funds revert to the insurance company on your death and because it can use funds from those who die earlier to help those who live longer. The insurance company is pooling risks for everyone's advantage. The more retirees it insures, the better rates it can offer everyone because the more risk is being pooled.

It is true the annuity market was overstretched, offering indifferent and often wildly different rates. It was becoming ever more frayed at the edges and needed reform. The response should have been to redesign it and figure out ways it could have offered better rates with smarter investment vehicles, which is, in any case, likely to happen when interest rates rise. What we will have instead is more inequality, an escalating buy-to-let boom, more pensioner poverty, lower annuity-based pensions for those who choose them, less home-ownership and less infrastructure investment. That's quite a haul.”

 
For the whole article (well worth reading, in my opinion):-
http://www.theguardian.com/commentisfree/2014/mar/22/osborne-budget-annuities-decision-disaster
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Re: What will they think of next?

Post by oftenwrong on Mon Mar 31, 2014 10:17 pm

Speak as you find. My "Pension Pot" has already been repaid to me by the Insurance Company, who continue paying me from their own reserves for an Annuity which will continue until I die.

I am suitably grateful, but it's not difficult to see why Tory supporters in The City will be pleased to see Gideon putting an end to such foolishness.
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Shopping

Post by oftenwrong on Tue Jan 03, 2017 7:55 pm

I'm going to take a chance here. The Police pay special attention to "Hate Crime", as indeed they should - there should be no refuge for those who discriminate against people merely because they are of a different ethnic origin, skin colour or religious persuasion. Falling into the category, entirely correctly, is the hate crime of misogyny. Look it up if that's an unfamiliar word - broadly it means men who hate women simply for not being men. (and the converse, presumably).

In order to make an observation upon consumer economics I want to use the word "housewife". I suppose there are euphemisms, but that word has always been an appropriate description for "shopper" up to now. So here goes .... see ya in jail! Do not pass "GO" and do not collect £200 (as if!)

UK Consumer Economics as 2016 rolls over into 2017-and-God'elpus.

In the run-up to Christmas, the British housewife has naturally been concerned with the price of turkeys, etcetera.
For Supermarkets that presented an ideal opportunity to bury bad news. Who can remember what prices they charged before the Holiday once that holiday is over? So, to take just one example - and there are many others - the standard range of Birdseye frozen foods now display a 10% increase.

If your income has increased by a similar amount you can easily absorb that, can't you? If not, vote with your feet.

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Re: What will they think of next?

Post by oftenwrong on Wed Apr 05, 2017 8:17 pm

In "Fleet Street" newspapers, August is The Silly Season, but the financial world wakes up on April the first to the certain knowledge that a new Tax Year begins on April sixth.  You must have just got back from a walking tour of the Gobi desert to be unaware of a snowstorm of advertisements inviting the public to "open an ISA".

Cash Isa's pay less than one percent, at a time when inflation is reducing our spending power at twice that rate, so the big attraction is to put your spare savings into an Equities ISA which plays on the Stock Exchange.  (You may get back less than you paid in.)  That's called an Investment?

The rule of thumb is don't invest in what you don't understand.  Perhaps better to help your kids with their mortgage.
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What goes around comes around

Post by oftenwrong on Wed Apr 12, 2017 11:03 am


Liz Truss accused of ‘cashing in on death’ after officials say no business case for 9000 per cent probate fee hike.
Fees on the legal authority to distribute someone’s estate after they die are set to rise in May

By Steve Hawkes, Deputy Political Editor
11th April 2017

https://www.thesun.co.uk/news/3311020/liz-truss-accused-of-cashing-in-on-death-after-officials-say-no-business-case-for-9000-per-cent-probate-fee-hike/

I remember when a Socialist government about sixty years ago was heavily criticised by fore-runners of "The Sun" newspaper for imposing Death Duties.
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Re: What will they think of next?

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