Marcus Dives Again

[GeoffF100]

Marcus is reducing its interest rate from 0.5% to 0.4% on 1st April.

[richlist]

Where else will you put it ?
Perhaps it will eventually go down to zero........it's still gonna be better than putting it under the mattress.

[Steveam]

... and my Santander 123 account drops to .3% from 12/4/21 so by moving I gain .1% - and this in the context of increasing inflation.

Best wishes, Steve

[Gan020]

I am fed up falling rates. I can do nothing but accept it but oh I want to rant...

The purpose of low rates is to persuade me to spend the money not save it but that's rather puzzling since I can't leave the house to do very much. Even if I did spend it illegally on a haircut I desire very much the money would just leave my bank account and move to someone's else's bank account and the amount of money in the system would remain the same. I guess what actually would happen is it would leave savings in say Marcus and end up paying off an overdraft in a business account with say LLoyds and that might help savings rates but I suspect by not very much.

Further, a lower and lower savings rate gives me lower and lower income and since I live off my investments and savings this makes me less inclined to spend more as I require a bigger pot to provide the same amount of income than I did before.

And I'm fed up with Marcus too. Until about a month ago this was paying 0.5% but not allowing new accounts but you could top it up if an existing account. Then they open the account to new savers and within a month they presumably get so much money they have to drop the rate.

Oh well. The Bank of England are printing money at the rate of £4.5m per week and that runs to the end of December so that's around another £180m of liquidity to pump into the system yet. Why this will be needed once the economy opens up for good is beyond me but I suppose the "experts who run the banks" are going to tell me it's for working capital.

Even more puzzlingly long dated government borrowing rates through gilts are moving up and up. The government is having to pay more and more to borrow yet at the short duration end, it appears the banks are sitting on more and more money and don't want it. Perhaps us savers are stuffing it in instant access accounts as we know if we wait we can get a better rate on a 5 year bond if we wait. Or maybe more likely once the economy reopens it will get spend so fast the BOE is going to be caught out.

[Gersemi]

Marcus is reducing its interest rate from 0.5% to 0.4% on 1st April.

Yes, and still there is no where better to put it! They must be really frustrated that I won't move it, they keep sending emails to remind me that the rate is going down. Still I'm retiring at the end of June, so the low rate makes the prospect of spending some of the money less scarey.

[dspp]

Moderator Message:
Following Alerts, this topic has been split. This is a warning. Do not attempt to persistently hijack other threads with your views on the theology of money or whatever else you may wish to call it. Similarly do not feed the Troll, just hit the Alert button and move on. I don't really care who started it, but it is very annoying to other Fools which his why they correctly hit their Alert buttons. If you wish to debate the matter with each other on a dedicated thread then [edit] the link below is OK, or you can start a new one.

But I say again - DO NOT REPEATEDLY HIJACK OTHER THREADS.

The new topic is at https://www.lemonfool.co.uk/viewtopic.php?f=52&t=28486

(I'm very sorry if I have swept up a few posts that were trying to help the OP)

regards, dspp

[vagrantbrain]

Rates at the Yorkshire Building Society actually went up a month or so ago so i'll be moving my cash out from Marcus when the inevitable next rate cut comes