VANCOUVER (NEWS1130) – You pinch your pennies and clip your coupons but in the end it won’t make much of a difference. A report in this week’s Maclean’s Magazine says this era of ultra low interest rates favours spenders and not savers.
“Homebuyers and people who want to buy new cars and TVs and live up their lifestyle, they’re all getting the gains and the benefits of low-interest rates but people who are saving are on the losing end of that,” says writer Jason Kirby.
He has spoken with a number of people who are just about ready to give up their piggy banks.
“The risk I think is that it leaves more people feeling like they should just say, ‘What the hey? I’m going to spend my money.’ We talked to people in this story who are feeling exactly like that, who are saying, ‘What’s the point of me saving?'”
He adds a five-year $10,000 GIC bought today will be worth $9,670 in 2016 if current inflation rates hold.