Share

Disregard of interest rate impact deplored

accreditation

Cape Town - While hikes in the interest rate are tough on consumers having to deal with the increasing cost of living, many of those dependent on interest from investments are pleased with the hikes.   

Economist Mike Schüssler predicted the prime interest rate could be closer to 10% by the end of the year and peak close to 11% sometime in 2015.

Among those who are happy about getting more interest on their investments is Fin24 user John Smith, who says he is tired of living in near-poverty the past ten years because of low interest rates.

He had saved responsibly all his life and lived within his means just to see his quality of living deteriorate due to low interest rates.

But not everyone shares his joy. Responding to Smith, Fin24 user Johan Niemann wrote: "Congratulations on surviving many years in near poverty whilst saving prodigiously.
 
"However, I must protest at your blatant disregard of the broader impact that increased interest rates will have on us other plebs, who are not yet at the point where we can say 'bring it on' with a smile."

Niemann and his wife have recently purchased their first home after searching for about a year. They also ended up having to fix a number of unforeseen things relating to the property.

"Although we are not living - and have never lived - a life of luxury, we've had to dip into savings - hard-earned, I assure you - to cover associated costs," said Niemann.

"I am relatively secure in my profession and my wife runs her own business, the nature of which brings a seasonal boost in income that is saved to help during weaker times."

The couple acutely feel the impact of any increase in the interest rate in their current vulnerable financial state.

"I lose a good amount of sleep worrying about the next Monetary Policy Committee meeting and, although we are still saving extra - and I do mean extra in the true sense of the word - for retirement, a hike does not help us out," explained Niemann.

"Once again, I wish to sincerely congratulate the John Smiths on the success of their savings plans. However, I have also to point towards the absolute gleeful self righteousness with which you are refering to others, who have not yet had the opportunity to do what you have done."

Niemann would like those who have managed to save enough and welcome interest rate hikes to look back on their long years of suffering, not with bitterness, but rather to consider "the struggle that us plebs have ahead of us, the few of us who may actually have a plan to make it in tougher broad economic conditions that I suspect you have faced".

But user Anil Naran backed Smith, saying "higher interest for people who saved for their future old age is a reward, not for those who spend and now rely on state grants".

- Fin24

Consider yourself a savings hero? Or just have something on your mind? Add your voice to our Savings Issue:

* Write a guest post
* Share a personal story
* Ask the experts

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.99
-0.3%
Rand - Pound
24.14
-0.1%
Rand - Euro
20.64
-0.2%
Rand - Aus dollar
12.39
+0.3%
Rand - Yen
0.13
+0.5%
Platinum
913.65
-1.1%
Palladium
1,016.50
-4.6%
Gold
2,158.56
-0.1%
Silver
24.98
-0.2%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders