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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Depression/Recession/Coronavirus - will my savings be worthless?

34 replies

yulertula · 18/03/2020 22:46

Recently sold my flat (made a good amount of money on it), now renting as haven't been able to find a new place I like yet, plus thought being chain free would help with next purchase (live in the south east)...

Am now worried that Coronavirus situation will mean all my money sitting in my savings account is not a good thing? And will rapidly lose its value 😬

AIBU?

OP posts:
sunfloweryy · 18/03/2020 22:49

Is it sitting as cash or stocks and shares? Cash you should be fine surely?

Original poster
yulertula · 18/03/2020 22:59

It's cash. I guess I'm worried about inflation. But I don't know if that's a legitimate concern or me just getting myself into a tizz. I should probably google it to get a sense of how it works!

OP posts:
Pugdoglife · 18/03/2020 23:00

I don't want to be rude, but I think you have a lot less to be worried about right now than some people.

GetyourFaLaLasRight · 18/03/2020 23:05

Can you spread the money between different banking groups so you have the fscs compensation protection (maximum £85k per person)?

GrannySlippersAreAStepTooFar · 18/03/2020 23:14

YABU worrying about this when people are losing their actual lives.

bemoreeverything · 18/03/2020 23:18

Oh dear. So the interest rate and inflation will affect you. Meanwhile there are people who will lose their homes, their jobs, even their lives.

Just take the hit, it's a very minor inconvenience to be faced with.

Original poster
yulertula · 18/03/2020 23:21

I think A LOT of people are worrying about their personal finances at this time. As well as the health of the their family and friends - it is possible to be worried about more than one thing at the same time!

FFS some Mumsnetters are so rigid about what you're allowed to be worried about and what you're not.

What I want to know is if inflation is a legitimate concern - if so it's something we should all be worried about.

OP posts:
Original poster
yulertula · 18/03/2020 23:27

@bemoreeverything right so two decades of hardwork and savings and I 'just take the hit'. Oh that won't affect my children? Or my ability to care for my parents? Or put food on the table? Or to even get back on the property ladder? No, you're wight nothing to worry about there 🙄

OP posts:
Didiusfalco · 18/03/2020 23:27

I know what you mean op. It’s possible to be worried about multiple things at the same time. I think that in cash you will be fine. Shares are a problem of course.

AhoyMrBeaver · 18/03/2020 23:27

What interest rate are you getting on it now? You're probably not beating inflation as it is if it's in a high street institution.

Don't fret about it, unless the Bank of England starts printing money to hand out and we find ourselves facing hyperinflation. Oh...

ErrolTheDragon · 18/03/2020 23:29

I heard mention of quantitative easing on the news tonight, so I'd guess inflation is possible.

On the other hand, I wouldn't be surprised if house prices fall so selling your flat when you did may have been at a peak. It's impossible to tell at the moment, so there's probably not much point worrying about it. I can do bugger all about the value of my pension and savings having had a significant percentage wiped off them, unlikely to recover before I want to retire - there's zero point getting bent out of shape by it.

Likefootball · 18/03/2020 23:34

Probably a good time to buy shares- they can only go up!

Original poster
yulertula · 18/03/2020 23:45

It is just in a high street bank. Thanks for the suggestion @GetyourFaLaLasRight I'll look into that.

OP posts:
BigChocFrenzy · 18/03/2020 23:55

"Probably a good time to buy shares- they can only go up!"

They could go down a lot more
Not a time for beginners to gamble - you could lose a lot of your capital

Forecast the other day was that GDP would fall by about 15%

  • multiples of what happened after the 2008 financial crisis

Keep it in savings accounts - and at different banking groups if you have more than 85K

BigChocFrenzy · 19/03/2020 00:00

Yep, I also expect house prices to fall, probably sharply

jimmyjammy001 · 19/03/2020 00:14

You can have upto 85k in each bank account which is protected by government, for recent house sales they will cover upto half a million I think it is for a few months, cash is king at the moment, you are likely to pick up a bargain in the coming months from the recession that will take place.

Pollaidh · 19/03/2020 00:18

If it's in cash accounts, then it's probably best place at the moment, even with inflation. We've lost about 25% of our non-house assets this week because the stock market has crashed.

CandyLeBonBon · 19/03/2020 00:37

Op. Surely you must realise that your quandary, whilst important to you, is a luxury many cannot even conceive of right now so I understand why people are questioning the timing of your post. There are many online resources you could seek out to answer your question without asking on here and then turning on people who, understandably, are questioning your empathy.

Investments are long term. Sit tight and wait for it all to blow over. You'll be fine.

Santaclauswhosthat · 19/03/2020 00:45

Yeah cash is fine as long as it's split in £85k chunks. For people saying don't you have other things to worry about, I'm sure you do. I mean I'm worried about my elderly parents continuing to incessantly go to fucking garden centres and cafes, I'm also worried that the funding for my job is looking precarious. However on top of that I have a space in my head for my pension which has dropped like a fucking stone and which I see every sodding time I log into my bastard banking app. Surely we're all capable of holding such multiple thoughts or am I special?

mctagmcbag · 19/03/2020 00:48

no, you will probably be quid in as property prices rebase, but depends on government support for the housing market

Averyyounggrandmaofsix · 19/03/2020 03:04

I agree with those who think property prices will drop so you should probably break even at least.

ErrolTheDragon · 19/03/2020 06:56

There are many online resources you could seek out to answer your question without asking on here

MN is an 'online resource' for many - though maybe AIBU isn't the best choice of board for some of the questions being asked at the moment.

Findawaytobehappy · 19/03/2020 07:03

FFS some Mumsnetters are so rigid about what you're allowed to be worried about and what you're not

This.
You are allowed to be worried about your own situation whilst simultaneously having sympathy for others as well, you know?

Ukholidaysaregreat · 19/03/2020 07:14

Some harsh responses here OP. The best thing is to split your cash pot into different institutions with less than 85k in each account for the government protection scheme.

Original poster
yulertula · 19/03/2020 08:06

Thanks for the kinder more practical responses all!

I didn't know about the FSC Scheme, that's super helpful will look into it.

I work in an industry that's been affected by the virus quite severely (whose hasn't I guess) but worried about imminent redundancy, and want to protect what is basically my only asset/potential source of income. Also expecting DC2 this summer 🙈 amongst many other things it is stressing me out, so thanks again.

@Santaclauswhosthat oh no! Gardening may not be too bad if they're a good distance from others? And help with their mental health? My parents are the same and still working!!! Won't listen to me (or all the advice) about staying at home!!! 🤦‍♀️

OP posts:
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