We all love banks and bankers don't we? Well, they certainly don't love us savers. If companies like Wellesley can do bonds worth 7 to 8 percent then why are major banks like Barclays offering a paltry one and a half percent to people with substantial savings to invest.
The banks believe they can rip people off because ISA's don't get taxed, so people feel better about them and because banks offer a government backed guarantee, and certainly that security means something in this day and age. However it does not account for the obscene difference.
My own generation paid absurdly high interest rates on our mortgages, which often rose hundreds of pounds per month in very short order. It went on for many years too. Yet now getting a good return on savings with any degree of security is become laughable.
Not that I don't have huge sympathy for young people today running up large debts for their education, that nice Mr Blair's education, education, education reform. Idiot, but that's another subject. Aside from Wellesley, Hargreaves Lansdown might be worth a look, I certainly am, looking anyway!
There is a way that the suppliers of products and services can enhance their cash flow, their profit and their customer and brand loyalty at the same time as helping we who save in preference to borrow. The idea is explained in detail in a chapter of my book 'Of Land, Sea And Sky'.
Perhaps, like Van Gogh it will all catch on after I've gone!
Of land, Sea And Sky
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