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  • FIRST POST
    • Alex_W
    • By Alex_W 11th Apr 17, 1:15 PM
    • 6Posts
    • 1Thanks
    Alex_W
    Best place for savings
    • #1
    • 11th Apr 17, 1:15 PM
    Best place for savings 11th Apr 17 at 1:15 PM
    Is it me, or is saving at the moment more complicated than ever. I have a sum I want to save and somehow I've ended up with 4 current accounts and 3 regular savers since...

    - best interest seems to come from a current account, which is normally limited on max amount that can earn it

    - obviously you can't put lump sums into regular savers to get the good interest so you have to drip it in

    - there's always a quirk like you need a minimum, maximum, direct debits, lock it away, have an attached current accounts etc.

    Then after 12 months the rates that enticed you there are gone and you have to look all over again.

    I just want to put the money together in an account with reasonable interest, and from what I can see, unless I complicate things with multiple current/reg saves, juggling direct debits and don't want to lock it away - the best bet right now is probably a cash ISA at around 1.05% vs 5% with all the hassle.

    Anyone else in the same place here?
Page 1
    • ColdIron
    • By ColdIron 11th Apr 17, 1:23 PM
    • 3,162 Posts
    • 3,598 Thanks
    ColdIron
    • #2
    • 11th Apr 17, 1:23 PM
    • #2
    • 11th Apr 17, 1:23 PM
    Everyone I think, but I don't mind as once it's set up it runs itself like clockwork
    • Eco Miser
    • By Eco Miser 11th Apr 17, 1:52 PM
    • 2,843 Posts
    • 2,636 Thanks
    Eco Miser
    • #3
    • 11th Apr 17, 1:52 PM
    • #3
    • 11th Apr 17, 1:52 PM
    Is it me, or is saving at the moment more complicated than ever.
    Originally posted by Alex_W
    It doesn't seem more complicated than it's been for the past several years.

    Rates don't always drop after a year. Unfortunately several dropped recently after a long stable period.

    The best interest rates have always (as far back as I can remember) been on limited amounts/ regular savers.
    Eco Miser
    Saving money for well over half a century
    • bigadaj
    • By bigadaj 11th Apr 17, 6:42 PM
    • 9,162 Posts
    • 5,856 Thanks
    bigadaj
    • #4
    • 11th Apr 17, 6:42 PM
    • #4
    • 11th Apr 17, 6:42 PM
    You need to be well into double figures of accounts before asking if it's too complicated on these boards.
    • TheShape
    • By TheShape 11th Apr 17, 8:12 PM
    • 912 Posts
    • 660 Thanks
    TheShape
    • #5
    • 11th Apr 17, 8:12 PM
    • #5
    • 11th Apr 17, 8:12 PM
    - obviously you can't put lump sums into regular savers to get the good interest so you have to drip it in
    Originally posted by Alex_W
    Once you have enough accounts you can drip-feed 'lump-sum type' amounts. I've got far fewer regular savers than some but my regular savings deposits totalled £2900 last month.
    • jimjames
    • By jimjames 11th Apr 17, 8:40 PM
    • 11,838 Posts
    • 10,213 Thanks
    jimjames
    • #6
    • 11th Apr 17, 8:40 PM
    • #6
    • 11th Apr 17, 8:40 PM
    Really depends what you need the money for and when you want to use it. If you want to make the most of it and have sufficient emergency funds in the main current accounts then investing some would certainly take the hassle away if that's an issue for you.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • picks
    • By picks 11th Apr 17, 10:50 PM
    • 173 Posts
    • 61 Thanks
    picks
    • #7
    • 11th Apr 17, 10:50 PM
    • #7
    • 11th Apr 17, 10:50 PM
    The best interest rates have always (as far back as I can remember) been on limited amounts/ regular savers.
    Originally posted by Eco Miser
    You must be quite young then. Prior to the 2007-2008 financial meltdown I recall getting interest rates of 6%+ on normal (not "limited" or "regular") savings accounts. In those days we didn't have to indulge in all these gimmicks of setting up fake current accounts / direct debits / moving money around between accounts and all today's pantomimes and similar nonsense to get a reasonable rate of interest on our savings.
    • YorkshireBoy
    • By YorkshireBoy 11th Apr 17, 10:54 PM
    • 29,146 Posts
    • 16,949 Thanks
    YorkshireBoy
    • #8
    • 11th Apr 17, 10:54 PM
    • #8
    • 11th Apr 17, 10:54 PM
    You must be quite young then. Prior to the 2007-2008 financial meltdown I recall getting interest rates of 6%+ on normal (not "limited" or "regular") savings accounts.
    Originally posted by picks
    Indeed. I had a NatWest cash ISA paying 7.xx% (that accepted transfers in!) in the immediate lead up to the crash and their subsequent bale out?
    • soulsaver
    • By soulsaver 12th Apr 17, 1:05 AM
    • 1,258 Posts
    • 412 Thanks
    soulsaver
    • #9
    • 12th Apr 17, 1:05 AM
    • #9
    • 12th Apr 17, 1:05 AM
    Blow-by-blow...
    Interest rate history on my e-saver - Yorkie BS:

    31/03/2017 0.50 General rate change decrease
    23/11/2016 0.60 General rate change decrease
    02/09/2016 0.75 General rate change decrease
    02/08/2016 1.00 General rate change decrease
    14/07/2014 1.24 General rate change decrease
    16/09/2013 1.49 General rate change decrease
    04/03/2013 1.64 General rate change decrease
    29/03/2009 2.08 General rate change decrease
    22/02/2009 2.72 General rate change decrease
    01/02/2009 3.20 General rate change decrease
    28/12/2008 3.69 General rate change decrease
    30/11/2008 4.41 General rate change decrease
    02/11/2008 5.37 General rate change decrease
    27/04/2008 5.56 General rate change decrease
    02/03/2008 5.60 General rate change decrease
    30/12/2007 5.84 General rate change decrease
    23/09/2007 6.03 General rate change increase
    There are 24 bottles of beer in a crate. There are 24 hours in a day. Coincidence? I think not....
    • Sea Shell
    • By Sea Shell 12th Apr 17, 6:45 AM
    • 325 Posts
    • 252 Thanks
    Sea Shell
    You need to be well into double figures of accounts before asking if it's too complicated on these boards.
    Originally posted by bigadaj
    Yeah, tell me about it!!!
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • bowlhead99
    • By bowlhead99 12th Apr 17, 6:48 AM
    • 6,416 Posts
    • 11,360 Thanks
    bowlhead99
    The best interest rates have always (as far back as I can remember) been on limited amounts/ regular savers.
    Originally posted by Eco Miser
    You must be quite young then. Prior to the 2007-2008 financial meltdown I recall getting interest rates of 6%+ on normal (not "limited" or "regular") savings accounts. In those days we didn't have to indulge in all these gimmicks of setting up fake current accounts / direct debits / moving money around between accounts and all today's pantomimes and similar nonsense to get a reasonable rate of interest on our savings.
    Originally posted by picks
    Yes of course you're right that back before the financial crisis you could get 6% on 'normal' accounts as Soulsaver's YBS account history shows. But in July 2007 the UK bank base rate had just ticked up from 5.5% to 5.75%. So, no wonder that prior to that uptick you could get 6% on a top e-saver from HSBC or Sainsbury when base rate was only a half percent under that. Many people wouldn't even bother shopping around for the extra half percent because it was only an extra tenth on their bank interest.

    Whereas now the top instant access accounts (in an account without a low per-month or total limit or jump-through-hoops requirement) are more like 0.75% which is still a half a percent better than base rate.

    Eco is still completely right that the best rates are and were paid on limited amounts of money per month or on accounts with caps. That's the only way the banks can afford to pay you a super-premium rate over what the market is paying. For example, at the start of July 2007 when base rate was 5.5% and top e-saver was 6%ish, if you were an Abbey current account customer you could get 10% on their £250pm regular saver and if you were an Alliance & Leicester premier account customer you could get 12% on theirs. (http://www.telegraph.co.uk/finance/personalfinance/savings/2811417/Savings-acccounts-dont-be-tricked-by-the-vanishing-act.html).

    Similarly I'm sure we all remember cash ISAs paying more than normal savings accounts because the banks knew you could only put £3k into them each year so it was a relatively low-cost giveaway for them to be able to advertise a high rate.

    If you go back to the late 80s / early 90s you could have got 15% without shopping around too hard because bank base rate reached 14.875% for a year. Of course, you don't remember shopping around on the internet for the top rates on limited amounts of money because you didn't have the internet then. You got what you were given. But those who did more window-shopping for rates would still generally find the top rates were paid on accounts with some restrictions such as a notice period or account maximum.
    Last edited by bowlhead99; 12-04-2017 at 6:51 AM. Reason: added link
    • Eco Miser
    • By Eco Miser 12th Apr 17, 9:35 AM
    • 2,843 Posts
    • 2,636 Thanks
    Eco Miser
    You must be quite young then.
    Originally posted by picks
    Read my sig.
    Prior to the 2007-2008 financial meltdown I recall getting interest rates of 6%+ on normal (not "limited" or "regular") savings accounts.
    Originally posted by picks
    That would be when I was getting 10% on a regular saver.

    Rates were higher then, but the best rates were still offered on restricted amounts.
    Eco Miser
    Saving money for well over half a century
    • picks
    • By picks 14th Apr 17, 7:47 PM
    • 173 Posts
    • 61 Thanks
    picks
    “You must be quite young then."
    Originally posted by picks

    Read my sig.
    Originally posted by Eco Miser
    Sigs are repositories for all manner of spurious information. For example, I used to have one which read:
    My uncle Winston used to tell me:
    "The best argument against democracy is a five-minute conversation with the average voter."
    • Eco Miser
    • By Eco Miser 15th Apr 17, 1:02 AM
    • 2,843 Posts
    • 2,636 Thanks
    Eco Miser
    Mine happens to be quite straightforward and accurate, but if you don't believe it, there's no point in arguing with you, as you could disbelieve everything else I write as well.
    Eco Miser
    Saving money for well over half a century
    • The Enforcer
    • By The Enforcer 16th Apr 17, 11:29 PM
    • 342 Posts
    • 108 Thanks
    The Enforcer
    I have chosen the complicated route - in our household there are presently:

    - 14 current accounts (a further 2 are being processed)
    - 6 regular savers
    - 3 savings accounts
    - 1 peer-to-peer lending account
    - 4 credit cards (3 for stoozing, 1 for occasional cashback offers/spending abroad)
    I came, I saw, I saved.
    Campaign for the Abolition of Political Parties - find us on Facebook
    • Frogletina
    • By Frogletina 16th Apr 17, 11:59 PM
    • 2,847 Posts
    • 10,278 Thanks
    Frogletina
    I have chosen the complicated route - in our household there are presently:

    - 14 current accounts (a further 2 are being processed)
    - 6 regular savers
    - 3 savings accounts
    - 1 peer-to-peer lending account
    - 4 credit cards (3 for stoozing, 1 for occasional cashback offers/spending abroad)
    Originally posted by The Enforcer
    Call that complicated

    I have in my sole name

    17 current accounts
    17 regular savers
    6 savings accounts
    2 cash isas
    2 credit cards

    None of this is new money, just the same money going round in circles.

    frogletina
    Not Rachmaninov
    But Nyman
    The heart asks for pleasure first

    SPC 8 #441 £1567.31 SPC 9 #441 £1014.64
    • The Enforcer
    • By The Enforcer 18th Apr 17, 9:57 PM
    • 342 Posts
    • 108 Thanks
    The Enforcer
    Call that complicated
    Originally posted by Frogletina
    There would be more, but, alas, not enough money to put in them.
    I came, I saw, I saved.
    Campaign for the Abolition of Political Parties - find us on Facebook
    • Frogletina
    • By Frogletina 19th Apr 17, 12:02 AM
    • 2,847 Posts
    • 10,278 Thanks
    Frogletina
    There would be more, but, alas, not enough money to put in them.
    Originally posted by The Enforcer
    I'm definitely at my limit. Having said that, I have 0.03 in one of my accounts, and some have only a little more, but I'd rather not cancel them as they could provide useful in the future.

    A couple of times I dropped the amount going into my regular 2% savers, and was thinking of not renewing them, but once Santander dropped to 1.5% it was worth keeping them and reducing my Santander balance.

    frogletina
    Not Rachmaninov
    But Nyman
    The heart asks for pleasure first

    SPC 8 #441 £1567.31 SPC 9 #441 £1014.64
    • AlanP
    • By AlanP 19th Apr 17, 9:14 AM
    • 774 Posts
    • 531 Thanks
    AlanP
    But back in the "Good Old Days" you wouldn't have got a savings rate of over 15-25 times Bank Base Rate on any amount of money like you can today would you?
    • The Enforcer
    • By The Enforcer 19th Apr 17, 11:48 PM
    • 342 Posts
    • 108 Thanks
    The Enforcer
    I'm definitely at my limit. Having said that, I have 0.03 in one of my accounts, and some have only a little more, but I'd rather not cancel them as they could provide useful in the future.

    A couple of times I dropped the amount going into my regular 2% savers, and was thinking of not renewing them, but once Santander dropped to 1.5% it was worth keeping them and reducing my Santander balance.

    frogletina
    Originally posted by Frogletina
    Some of my current accounts are similarly dormant. I was contemplating switching the Nationwide ones to M&S so I could continue to benefit from the M&S Regular Savers, but had I done so then I would not have been eligible for the Nationwide Regular Savers, so now instead it's the M&S current accounts that are dormant apart from the odd occasion when a purchase is made from an M&S store in which case their cash card is used to earn M&S points.

    The drop in the Santander 123 interest rate is the driving force behind my latest round of account opening to find new 5% interest homes for the money that's been sitting in there. The regular savers largely start at different times of the year and whenever one matures the money goes into 123. If they were all running from the same start date they would eventually clean out the 123. I need to leave a float in there to cover the bill payments, so it's likely that when I move on to opening more 3% interest accounts, it may not be possible to completely fill them all year round.
    I came, I saw, I saved.
    Campaign for the Abolition of Political Parties - find us on Facebook
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