Interest rate idea

[fazersharp]

  So how to help savers who are getting next to no interest ?, you cant hike up the interest but what about if the chancellor says something like--- ok if the interest rate was 5% you would be getting £50 on your £1000, but you are only getting  1% now = £5 so would it work if he then gave a the difference back by way of lowering the tax for the year by £45. Would that work do you think.

[Punkstig]

There would have to be a limit, otherwise this would be another case of extending the rich - poor gap.

[fazersharp]

Yep will have to have checks in place like if you have more than 15k in the bank then you dont get it, also it would be up to each person to claim it by way of self assesment tax at the end of the year.
I put this out there because im sure that the chancellor is going to do somthing for savers, but on the other hand the country dosent need people to save it needs them to spend.

[richfzs]

Except the people who are really being hurt (as opposed to not benefitting) by the low interest rates, are those retired folk, who saved through their lifetime, and are now reliant on their savings for their income. As a result of the low rates, they're forced to live off their capital (which will likely be more than 15k,at least to start with), so even when rates do back up, they won't have the income. Nightmare for them.

[lew600fazer]

Except the people who are really being hurt (as opposed to not benefitting) by the low interest rates, are those retired folk, who saved through their lifetime, and are now reliant on their savings for their income. As a result of the low rates, they're forced to live off their capital (which will likely be more than 15k,at least to start with), so even when rates do back up, they won't have the income. Nightmare for them.

Rob a bank , they have been doing it to us for years , then when you say sorry you will get a bankers bonus, so really you are not committing a crime in the long run are you???

[goldfazer]

So following on, when rates go up, should the Gov. then reduce tax by loads for mortgage payers? Can't have it both ways!

[fazersharp]

So following on, when rates go up, should the Gov. then reduce tax by loads for mortgage payers? Can't have it both ways!

That is EXACTLY what they used to do !!!! and it was called mortgage interest rate tax releif

[midden]

Well I suppose He's atleast helped the long term savers  :\  oh and the bingo players :rolleyes

[Andy FZS]

MIRAS oh I remember it briefly. I well no more mortgage these days so more to spend on other bills....

[goldfazer]

That is EXACTLY what they used to do !!!! and it was called mortgage interest rate tax releif

Not really - it was fixed not variable and stopped in about 1991!!