No-frills savings plans outlined by the UK Treasury

[AtW]

"Plans to create a template for "no-frills" savings products in a bid to simplify the market have been outlined by the UK government.

The Treasury wants a simple brand for an easy access savings account, a longer-term savings account and life insurance.

Providers will use the same terms and conditions, but can compete on price, service and value.

The aim is for products to be simple to compare, encouraging people to save.

However, a similar scheme introduced by the previous government failed to take off."

BBC News - No-frills savings plans outlined by the UK Treasury



Where do those cretins come from? The main problem with savings market is that FOOK ALL interest is paid, thanks to Govt policy to keep interest rates low.

Anybody who worked hard to avoid debt and save money is a sucker, where as those who got onto big debts (especially real estate) are lottery winners.

And that's the Govt policy.

[sasguru]

Anybody who worked hard to avoid debt and save money is a sucker

That's why you're a very poor businessman. You don't understand that debt can be your friend.

[FiveTimes]

I'd rather have some 0% interest free debt and the cash in the offset mortgage account. So like sas said - some debt is good.

I'm sure you have 4 years 0% interest free on your £1k sofa from DFS

[Old Greg]

"Plans to create a template for "no-frills" savings products in a bid to simplify the market have been outlined by the UK government.

The Treasury wants a simple brand for an easy access savings account, a longer-term savings account and life insurance.

Providers will use the same terms and conditions, but can compete on price, service and value.

The aim is for products to be simple to compare, encouraging people to save.

However, a similar scheme introduced by the previous government failed to take off."

BBC News - No-frills savings plans outlined by the UK Treasury



Where do those cretins come from? The main problem with savings market is that FOOK ALL interest is paid, thanks to Govt policy to keep interest rates low.

Anybody who worked hard to avoid debt and save money is a sucker, where as those who got onto big debts (especially real estate) are lottery winners.

And that's the Govt policy.

Just make sure you don't learn the lesson. That's the key thing.

By saving, you are lending, and lending foolishly at that as we can see from the madness of sub-prime. You must therefore be punished or a moral hazard will be created. Personally, I think you should all get haircuts on your saving until the economy is re-balanced.

[The Spartan]

Correct me if I'm wrong but don't you need money in the event that you don't start a new contract immediately or when transition from one contract to the next? therefore I thought is would be important to have some savings

[vetran]

just issue a government savings account linked to Gilt returns. You could call it say "National Savings Gilts' ?

Or limit minimum return for savings account of the Gilt returns.

OK not particularly exciting rate at present (1.5%) but it would provide a minimum saving rate and stop the practice of swapping saving rates to 0.001% after an introductory rate.

[TimberWolf]

Cut out the middle man and send money direct to the BoE.

[AtW]

just issue a government savings account linked to Gilt returns. You could call it say "National Savings Gilts' ?

Govt does not want to pay market level of interest - they just use BoE to buy off unsold items, and after that they have audacity to say they are doing better than Spain etc