This email was sent to Money Box subscribers on 10 April 2010

 

Dear Listener

 

We are borrowing more than ever. And saving less. Or at least over the last 40 years when Social Trends has surveyed us annually on how we live. In 2009 we saved just 1.7% of our resources – a fraction of the average 7.6% we saved between 1970 and 2008. And we borrowed more. Data on that goes back less far. But the striking figure from the historical survey is that for every £1 we borrowed in 1999 we borrowed £2.25 in 2007. And that was supported by an income that had risen by only 40%. Saving less. Spending more, borrowing more. And way above our income.

 

Last week we did the whole programme on the UK Government’s near £1 trillion debt – where it came from, how it was growing, and what could be done to control it. The huge response from listeners was on the whole very positive. But of course we had many many comments of the ‘Yes but why….’ variety. Yes but why didn’t you talk about raising taxes? Yes but why didn’t you mention Trident? Yes but why did you ignore the cost of being in the EU? Yes but why oh why oh why didn’t you let ME make this programme – I’d have told ’em!

 

So this Saturday we will be looking further at listeners’ ideas about cutting the debt. Warning: it does not produce a happier result.

 

We will probably start, though, with ISAs. Cash ISAs. And what have now been called ‘bait rates’ – fishing for new customers with high rates of interest and then plunging them down to nearly zero a year later without warning. Also confusion marketing caused by having a range of ISAs all with similar names. And annoying rules that announce a top ISA rate but then say you cannot transfer an existing ISA from another bank into it to get that top rate. Now it’s my turn to ask why oh why oh why!

 

Nationwide is making two big changes to its service for some customers. Those with the wrong sort of account who want to withdraw less than £100 from the counter will be told they can’t – they must use a cash machine. But all customers who want to deposit a cheque for more than £1000 will no longer be able to use the deposit machine – they will be told they MUST queue up and see a human. The explanatory leaflet contains words like ‘quicker’ ‘easier’ ‘reduce queues’ ‘fight fraud’. But some customers see it as a reduction in service. Nationwide will respond.

 

We will be talking to an expert about whether China is a good place to invest your money.

 

And we will be looking at the breaking news that £150 million will be refunded to customers who have been encouraged to switch their pension from one provider to another since April 2006.

 

Money Box is at noon on Saturday, 9pm on Sunday, or on the website www.bbc.co.uk/moneybox at any time. There you can also watch videos, follow up items, read web pieces, download transcripts, follow links, and send us stories or ideas you want us to look into. And of course Have Your Say on one of these topics. 

 

Best wishes,

 

Paul

 

PS. Don’t forget the programme preview on Breakfast BBC 1 soon after 0845 on Saturday.

 


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