Is this the plan that will finally help savers?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 10 January 2020

⏱️ 64 minutes

🔗️ Recording | iTunes | RSS

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Summary

Savers had a resoundingly duff deal over the decade that just ended, as they paid the price for the borrowing binge that proceeded it.

Understandably, many feel somewhat aggrieved – like a moderate drinker who got the hangover that should have gone to the party animal.

But it’s not just ‘emergency’ low interest rates that turned permanent that delivered the pain, banks and building societies paying little respect to loyal customers and undermining them with rock bottom rates on legacy accounts has also played a major part.

Now, the financial watchdog has a plan to deal with the so-called loyalty penalty. A standard savings rate across all easy access accounts and Isas, with the ability to offer better rates over limited periods, for example, 12 months.

When bonus time was up, that standard rate would act a floor to protect savers against the 0.01 per cent-paying accounts of this world.

Is this a solution to the problem, or just some tinkering that all but mandates bonus accounts and does nothing to tackle saver inertia?

Simon Lambert, Sarah Davidson and Georgie Frost tackle the plan to improve the savings market on this week’s podcast – and discuss whether this is a wise idea for a new decade or a recipe for more of the same.

Also, on this week’s podcast, as a decade ends and one begins, we look at the property market: what happened to house prices in the 2010s and how did it compare to the 2000s, 1990s and 1980s, and also what will happen this year and in years to come?

The team also look ahead to the 11 March Budget and what may crop up for our personal finances, along with the growing population of over-90s and how we look after our nonagenarians properly.

Transcript

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0:00.0	This Is Money's podcast is brought to you in partnership with the financial services compensation scheme.
0:04.9	Check your financial products at FSCP protected at fscs.org.uk forward slash this is money.
0:11.4	Welcome to This Is Money and a happy new year. I'm Georgie Frost and alongside me and editor Simon Lab.
0:16.9	Today is Sarah Davidson Knowledge and Product Editor. And can banks be forced to offer better
0:22.8	savings rates? As the watchdog considers imposing a minimum interest rate, experts worry it could
0:28.8	signal a race to the bottom. Also, what next for the future of house prices? What do you want
0:35.0	to happen to house prices? Well, a market that felt a little bit less like a lottery, I think, is what Simon's after.
0:41.3	But what does he want in the budget?
0:43.3	We'll take a look at the five tax changes to prepare for in the chance as Red Box come March.
0:48.3	Plus, will you live to your 90s?
0:51.3	And can the social care system cope.
0:56.7	Don't forget you set up to date with all the latest breaking money news.
1:00.9	Just go to this ismoney.com.uk or download the app.
1:04.3	But first, Simon, a little bit of an explainer.
1:10.3	You may have noticed, dear listeners, a bit of a bruty bonus coming into your podcast feed.
1:10.8	Simon, you're going to explain what's this all about?
1:13.9	Yes.
1:14.4	So, happy New Year to all of our listeners.
1:17.4	And this interloper that you will have found in your podcast feed this week
1:21.3	is a new special short podcast series called Making the Money Work
1:26.4	that we've recorded in partnership with the
1:28.0	FSCS. Those are the people that protect your savings up to £85,000 and also protect
	...

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