So How Are We Supposed To Save Money Nowadays?

[OxfordWill]

What am I supposed to do with my money now that I can't even get a savings account with interest to beat inflation?

Buy Thai gold?? That seems to be at a high value already, not that I know what I'm talking about.

What do you do to make your USD or THB work for you in Thailand (open a bar, ho ho, ha ha!).

p.s. no idea why I chose that subheading, it seems irrelevant.

Edited May 3, 2010 by OxfordWill

[ESB7]

You can still get U.K. 5 year fixed bonds paying 5.2%...less 20% tax, but if you aint earning there you got an allowance of almost £6.5k, you got £120k, no tax to pay.

[jackdawson]

not that I know what I'm talking about

i see

[PattayaParent]

You can still get U.K. 5 year fixed bonds paying 5.2%...less 20% tax, but if you aint earning there you got an allowance of almost £6.5k, you got £120k, no tax to pay.

If you're a non resident you can fill in a form so you don't have to pay the tax on the interest. No need to complicate things with trying to get a refund from the taxman.

[OxfordWill]

Any recommendations on who to setup such a bond with?

[rodentwarrior]

Just go to moneysupermarket dot com for a full list!

[chiang mai]

Any recommendations on who to setup such a bond with?

Are you sure you want to tie up funds for 5 years at 5%, that's really saying that bank rates are not going to go much higher than they are now during that time and I think that's a very bad bet. You can still get 2.8% instant offshore with Nationwide, in my mind that's a far better bet.

[ExpatJ]

I recommend the thai stock exchange. I started investing in january and have made 6% return (cash in bank) buying and selling plus got some great dividend payments e.g. AIS paid 9% dividend last week (thailand has some of the highest dividend payments in the world).

I am self taught and did some extensive research to identify solid companies and then i use charts (relative strength index, MACD, stochastics etc) to determine exactly when to buy and sell- the charts give an indication of whether a stock price is heading up or down.

If you want a conservative investment - buy KBANK- should hot 110 or more by end of the year.

Because of the goverment's 'peace' proposal the stock market is rallying hugely today- KBANK is up @7% since this morning, SET up 4%. (My portfolio is up 150,000 baht since 10am today- though i have some bad days on the market as well!)

[PattayaParent]

Any recommendations on who to setup such a bond with?

Are you sure you want to tie up funds for 5 years at 5%, that's really saying that bank rates are not going to go much higher than they are now during that time and I think that's a very bad bet. You can still get 2.8% instant offshore with Nationwide, in my mind that's a far better bet.

When do you think Nationwide will be offering more than 5% instant offshore?

[chiang mai]

Any recommendations on who to setup such a bond with?

Are you sure you want to tie up funds for 5 years at 5%, that's really saying that bank rates are not going to go much higher than they are now during that time and I think that's a very bad bet. You can still get 2.8% instant offshore with Nationwide, in my mind that's a far better bet.

When do you think Nationwide will be offering more than 5% instant offshore?

I've no idea but I'd be pretty certain it will be well within the next five years, let's say they offer 5% in two or three years time, it's not going to be good to be locked in for a further two or three years at 5% wehn rates are climbing.

[PattayaParent]

Any recommendations on who to setup such a bond with?

Are you sure you want to tie up funds for 5 years at 5%, that's really saying that bank rates are not going to go much higher than they are now during that time and I think that's a very bad bet. You can still get 2.8% instant offshore with Nationwide, in my mind that's a far better bet.

When do you think Nationwide will be offering more than 5% instant offshore?

I've no idea but I'd be pretty certain it will be well within the next five years, let's say they offer 5% in two or three years time, it's not going to be good to be locked in for a further two or three years at 5% wehn rates are climbing.

But isn't it good to be locked in to 5% for 2 or 3 years when rates are low?

[chiang mai]

If someone asked whether 5% for five years was good say one or two years ago, with the benefit of hindsight I would have said yes, go for it. But if you're anything like me you've already lived with low rates for the past eighteen months so chances are that the majority of the low rate period is behind us and there's really only the upside left in front of us. The upside on rates from here on out, depending on how you think things will pan out, is potentially anywhere up to 18% (remember the mid/late 1980's). In practice I think that deposit rates could easily reach 7% again within that five years but it's all a gamble of course - you gain 2/3% for two/three years and then loose 2/3% for two/three years (potentially the loss could be much greater), I'm betting that inflation will soon rule and it seems that the Gold market thinks the same thing!

All of that aside, sometimes these decisions are based on personal circumstances and often, needs must. In that case then if 5% for five works, go for it, for me personally, having waited this long I'm prepapred to wait a little longer to maximise my (safe) returns.

Sorry, one more thing, if there's a get out clause within that five years then the picture changes - I've got a one year with HSBC at 3.10% which in practise gives me around 4% because it pays for my banking also. I can get out of that fix by giving up six months interest which I may yet do if I decide to invest at a more attractive return.

Edited May 4, 2010 by chiang mai

[PattayaParent]

I remember the rates at 15% but that was only for a few days as the UK tried to defend the Quid in the ERM and eventually pulled out as it would have destroyed their foreign currency reserves.

If you think 5 years is too long maybe you should look at the 4.10% for 3 years options.

[cmsally]

If someone asked whether 5% for five years was good say one or two years ago, with the benefit of hindsight I would have said yes, go for it. But if you're anything like me you've already lived with low rates for the past eighteen months so chances are that the majority of the low rate period is behind us and there's really only the upside left in front of us. The upside on rates from here on out, depending on how you think things will pan out, is potentially anywhere up to 18% (remember the mid/late 1980's). In practice I think that deposit rates could easily reach 7% again within that five years but it's all a gamble of course - you gain 2/3% for two/three years and then loose 2/3% for two/three years (potentially the loss could be much greater), I'm betting that inflation will soon rule and it seems that the Gold market thinks the same thing!

All of that aside, sometimes these decisions are based on personal circumstances and often, needs must. In that case then if 5% for five works, go for it, for me personally, having waited this long I'm prepapred to wait a little longer to maximise my (safe) returns.

Sorry, one more thing, if there's a get out clause within that five years then the picture changes - I've got a one year with HSBC at 3.10% which in practise gives me around 4% because it pays for my banking also. I can get out of that fix by giving up six months interest which I may yet do if I decide to invest at a more attractive return.

Could you please give a link or a name of the HSBC acct that gives over 3% as so far I haven't seen anything that good from them.

[chiang mai]

If someone asked whether 5% for five years was good say one or two years ago, with the benefit of hindsight I would have said yes, go for it. But if you're anything like me you've already lived with low rates for the past eighteen months so chances are that the majority of the low rate period is behind us and there's really only the upside left in front of us. The upside on rates from here on out, depending on how you think things will pan out, is potentially anywhere up to 18% (remember the mid/late 1980's). In practice I think that deposit rates could easily reach 7% again within that five years but it's all a gamble of course - you gain 2/3% for two/three years and then loose 2/3% for two/three years (potentially the loss could be much greater), I'm betting that inflation will soon rule and it seems that the Gold market thinks the same thing!

All of that aside, sometimes these decisions are based on personal circumstances and often, needs must. In that case then if 5% for five works, go for it, for me personally, having waited this long I'm prepapred to wait a little longer to maximise my (safe) returns.

Sorry, one more thing, if there's a get out clause within that five years then the picture changes - I've got a one year with HSBC at 3.10% which in practise gives me around 4% because it pays for my banking also. I can get out of that fix by giving up six months interest which I may yet do if I decide to invest at a more attractive return.

Could you please give a link or a name of the HSBC acct that gives over 3% as so far I haven't seen anything that good from them.

That deal is now 6 months old and is long gone, it was/is UK based. NWI is 2.60% instant and Allied is 2.80 instant, both OK.

[Naam]

I remember the rates at 15% but that was only for a few days as the UK tried to defend the Quid in the ERM and eventually pulled out as it would have destroyed their foreign currency reserves.

If you think 5 years is too long maybe you should look at the 4.10% for 3 years options.

i remember very well 14% on UK Treasuries and 15-16% for GBP cash and that for a few years. those were the days 30 years ago when the Chancellor of the Exchequer Geoffrey Howe paid these yields into my account.

[PattayaParent]

I remember the rates at 15% but that was only for a few days as the UK tried to defend the Quid in the ERM and eventually pulled out as it would have destroyed their foreign currency reserves.

If you think 5 years is too long maybe you should look at the 4.10% for 3 years options.

i remember very well 14% on UK Treasuries and 15-16% for GBP cash and that for a few years. those were the days 30 years ago when the Chancellor of the Exchequer Geoffrey Howe paid these yields into my account.

WAY before my time Naam, I was still getting pocket money from my dad then

[chiang mai]

I remember the rates at 15% but that was only for a few days as the UK tried to defend the Quid in the ERM and eventually pulled out as it would have destroyed their foreign currency reserves.

If you think 5 years is too long maybe you should look at the 4.10% for 3 years options.

i remember very well 14% on UK Treasuries and 15-16% for GBP cash and that for a few years. those were the days 30 years ago when the Chancellor of the Exchequer Geoffrey Howe paid these yields into my account.

WAY before my time Naam, I was still getting pocket money from my dad then

And now it's your wife that gives you pocket money, not a lot changes, does it.

[cmsally]

If someone asked whether 5% for five years was good say one or two years ago, with the benefit of hindsight I would have said yes, go for it. But if you're anything like me you've already lived with low rates for the past eighteen months so chances are that the majority of the low rate period is behind us and there's really only the upside left in front of us. The upside on rates from here on out, depending on how you think things will pan out, is potentially anywhere up to 18% (remember the mid/late 1980's). In practice I think that deposit rates could easily reach 7% again within that five years but it's all a gamble of course - you gain 2/3% for two/three years and then loose 2/3% for two/three years (potentially the loss could be much greater), I'm betting that inflation will soon rule and it seems that the Gold market thinks the same thing!

All of that aside, sometimes these decisions are based on personal circumstances and often, needs must. In that case then if 5% for five works, go for it, for me personally, having waited this long I'm prepapred to wait a little longer to maximise my (safe) returns.

Sorry, one more thing, if there's a get out clause within that five years then the picture changes - I've got a one year with HSBC at 3.10% which in practise gives me around 4% because it pays for my banking also. I can get out of that fix by giving up six months interest which I may yet do if I decide to invest at a more attractive return.

Could you please give a link or a name of the HSBC acct that gives over 3% as so far I haven't seen anything that good from them.

That deal is now 6 months old and is long gone, it was/is UK based. NWI is 2.60% instant and Allied is 2.80 instant, both OK.

Ahh Thank you. Thought I'd missed something. Anyone had experience with AngloIrish Bank (IOM) ?

They have 1 yr fixed at 3.4%

[PattayaParent]

Anglo Irish Bank has all deposits guaranteed by the Irish government, but only until September this year if I remember right?

[PattayaParent]

I remember the rates at 15% but that was only for a few days as the UK tried to defend the Quid in the ERM and eventually pulled out as it would have destroyed their foreign currency reserves.

If you think 5 years is too long maybe you should look at the 4.10% for 3 years options.

i remember very well 14% on UK Treasuries and 15-16% for GBP cash and that for a few years. those were the days 30 years ago when the Chancellor of the Exchequer Geoffrey Howe paid these yields into my account.

WAY before my time Naam, I was still getting pocket money from my dad then

And now it's your wife that gives you pocket money, not a lot changes, does it.

All too true I'm afraid

[cmsally]

Seems that is correct:

Credit Insitutions guarantee scheme

After then back to the IOM guarantees which protect first 50k

[phomsanuk]

In todays economy you just have to spend less and/or work more, we had a nice ride.. :}

[chiang mai]

If someone asked whether 5% for five years was good say one or two years ago, with the benefit of hindsight I would have said yes, go for it. But if you're anything like me you've already lived with low rates for the past eighteen months so chances are that the majority of the low rate period is behind us and there's really only the upside left in front of us. The upside on rates from here on out, depending on how you think things will pan out, is potentially anywhere up to 18% (remember the mid/late 1980's). In practice I think that deposit rates could easily reach 7% again within that five years but it's all a gamble of course - you gain 2/3% for two/three years and then loose 2/3% for two/three years (potentially the loss could be much greater), I'm betting that inflation will soon rule and it seems that the Gold market thinks the same thing!

All of that aside, sometimes these decisions are based on personal circumstances and often, needs must. In that case then if 5% for five works, go for it, for me personally, having waited this long I'm prepapred to wait a little longer to maximise my (safe) returns.

Sorry, one more thing, if there's a get out clause within that five years then the picture changes - I've got a one year with HSBC at 3.10% which in practise gives me around 4% because it pays for my banking also. I can get out of that fix by giving up six months interest which I may yet do if I decide to invest at a more attractive return.

Could you please give a link or a name of the HSBC acct that gives over 3% as so far I haven't seen anything that good from them.

That deal is now 6 months old and is long gone, it was/is UK based. NWI is 2.60% instant and Allied is 2.80 instant, both OK.

Ahh Thank you. Thought I'd missed something. Anyone had experience with AngloIrish Bank (IOM) ?

They have 1 yr fixed at 3.4%

I have money with them on an instant basis and under the threshold limit, they perform well from a customer service standpoint and the risk seems acceptable.

[chiang mai]

Any recommendations on who to setup such a bond with?

Are you sure you want to tie up funds for 5 years at 5%, that's really saying that bank rates are not going to go much higher than they are now during that time and I think that's a very bad bet. You can still get 2.8% instant offshore with Nationwide, in my mind that's a far better bet.

When do you think Nationwide will be offering more than 5% instant offshore?

Thought this forecast was worth posting here, I'm not a huge fan of Market Oracle but he often gets it right:

"UK Interest Rates Forecast 2010-11: UK interest Rates to Start Rising From Mid 2010 and Continue into end of 2010 to Target 1.75% / 2%, Continue Higher into Mid 2011 to Target 3%".