Survey question: are depositors concerned with inflation

Marc

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We are conducting some research into the attitudes of savers in Ireland

It is widely understood that depositors are concerned about risks ranging from Ireland defaulting on it's sovereign debts, the safety of Irish banks and the risk of Ireland leaving the euro or even the euro breaking up.

However these risks are remote compared to the immediate risks posed by inflation.

Survey question:

How concerrned are you about the risks posed by inflation to your deposit accounts, prize bonds or other forms of bank or credit union savings?

Scale
1 very concerned
2 concerned
3 neither concerned nor unconcerned
4 unconcerned
5 very unconcerned

Supplementary question

With inflation in Ireland currently averaging around 3%pa what rate of interest are you currently receiving in real terms (ie once you deduct 3% inflation from your net interest rate) on average for your savings?
 
1. very concerned

I am more worried about inflation eating away at my savings and spending power than the risk of the EU or Irish government stealing my savings.
 
I leave in the UK now, so may not be much use for your survey:) but I am VERY concerned about the risk of inflation.

I am getting just over 3% interest tax-free on most of my sterling savings, but what's taxable gets about 2.4% interest after tax mostly.

Small amount of savings I keep in Ireland gets interest rate below 3%.
 
I remember when a bottle of milk was 6d. A bar of chocolate 6d. A bag of chips one shilling etc. These things stayed at these prices for years. In the 70's prices took off. Mortgage rates were 14%, savings rates 7%. People went on strike to fight for higher pay to match increasing prices. Inflation has always been there and will always be there. If you are on a fixed income then you will have problems otherwise it will be the same old, same old. History repeating itself.
 
I am extremely concerned about price inflation and see high price inflation as 100% inevitable after all the money printing. While cash makes up only a small part of my assets I think that the real interest I am getting is -1.5%
 
Concerned about Irish savings (Post Office Bonds and Savings Certs). Not too concerned about inflation/interest on savings - I think this depends on the amounts saved and as mine are relatively small, the difference is negligible. But for those with larger savings where this would make a difference, I'd certainly look to take savings out of Ireland and move them to safer locations (Germany, France, UK).
 
Very concerned with both the safety of my deposits / Inflation & the possibility of our government dipping into our accounts when they see fit & helping themselves !! :mad:
 
1. very concerned

I am more worried about inflation eating away at my savings and spending power than the risk of the EU or Irish government stealing my savings.

Correct, far more real and current risk.
 
Where do you see inflation? Mortgage rates, Health Insurance, Food, Utilities, Petrol, Insurance?
For me it's Health Insurance, General Insurance and Utilities. I don't have a mortgage, I can walk more often, I can vary my eating habits but I still have to pay car insurance, house insurance.
 
Where do you see inflation? Mortgage rates, Health Insurance, Food, Utilities, Petrol, Insurance?
For me it's Health Insurance, General Insurance and Utilities. I don't have a mortgage, I can walk more often, I can vary my eating habits but I still have to pay car insurance, house insurance.

I just want to highlight one thing. There is a very common misconception that inflation is a rise in prices. I tried to clarify this in a thread last year: http://www.askaboutmoney.com/showthread.php?t=141913
Basically, an increase in the general price level is the result of inflation, monetary inflation to be more specific, not inflation itself.

I don't want to go into details of Austrian Business Cycle Theory, but the crux of it is that monetary inflation results first in producer prices (e.g. raw materials, machinery, etc.) being bid up. This ultimately leads to higher consumer prices, which then cannot be satisfied by increased consumer savings, which then leads to a bust. This is exactly what happened in the late 90s equities boom and then in the housing boom. If you now look at the prices of raw materials you can see exactly what the effect of monetary inflation is. Walmart have already publicly stated that they are expecting their prices to rise significantly during the summer, and I would expect this to be a trend across the board.

Personally my biggest worry is energy followed by food.
 
Concerned

Getting interest of 3.5% gross at best

What can I invest in or where can I put my savings to protect against both inflation and the much discussed danger of a Govt default etc?
To the one who answers this question I will bow...
 
I purchased two paintings about 16 years ago for about £750. I bought them because I liked them. I was looking at the profile of some artists recently and I saw that similar paintings from the same artist were now selling for circa €3500 each. Even allowing for gallery mark ups etc there is a profit there. Admittedly I also purchased art that hasn't increased in profit but I still get enjoyment out of them.

I have my house and furniture. I will get years out of my car. I am concerned about medical costs and energy costs.
 
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