ING not so direct

I'm just gearing up to move my money from ING Direct.

When they started out they positioned themselves as a no nonsense bank, without special teaser rates.

Today they just told me their interest rates are down to 0.5% ( but special bonuses for "new customers"). Well five minutes on money super market has identified that Sainsbury's bank is offering 2% above BOE rate, that is where my money is moving and it will keep on the move whilst the banks insist on playing this kick the savers game.

If your bank is messing you around on savings, move your money. Its the only message they understand.

Abolish taxes on savings

I've made the point in comments about savings being taxed ( and its money that's already been taxed ) but debt isn't.

If the government wants lower interest rates, perhaps it would like to stop taking its cut from the savings and lending market ?

Its time to abolish taxes on savings ( not that Labour will - Brown will use the need to send money into the economy to promote his grotesque and wasteful mechanism of client voter control and social engineering tax credits and the fuel rebates. After all he's got an election to buy - with our money ).

h/t To Daily Telegraph leader today on the same subject.

Why the interest rate cut will fail

The panic measure to drop interest rates by 1.5% will spread - well panic.

Those who get some money off the mortgages will save rather than spend - and they wonder how the economic disaster Gordon Brown has created will play out.

The group who were okay, who had savings, are now to lose much of their money as interest rates drop well below inflation. They'll be cutting back too.

Don't expect the consumer market to pick up - the government (for it is really they who are behind the Bank of England move) has shot us in both feet and is now extolling us to dance.

Next up - the general election bribe of tax cuts for votes funded by borrowing ! ( Or so radio 4 was telling me as it had its next fix of Vince Cable this morning - he should ask for a presenters salary ).

Not only are we in deep trouble now - but we now know our future is being destroyed by the self serving, self interested Labour party and its vanity ( or perhaps socialist spite determined to destroy our wealth to enslave us with a socialist state ).

Only the Conservative party or the IMF can sort this mess out.