what interest rate?

cagneyfan

Hi, no matter how much I try and understand all the information on this site I find it just goes over my head.

What's the minimum interest rate I need, to prevent my money losing value. I pay 20% tax on my savings. Thanks

YorkshireBoy

With inflation at around 4.7/4.8% you need 4.8% x 1.25 = 6% (which, after 20% tax will return 4.8%).

However, your personal inflation figure may differ from the official Government figure depending on your circumstances

Plasticman

Yorkshire boy beat me to it. Depends on what level you think inflation is at. Of course, any rate is better than putting it under your bed and (in real terms) letting it lose value. In practice though, surely all that matters is that you are getting the best rate possible?

[p.s. - nice to bump into you again Yorkie, haven't seen any of your posts for ages. Hope that you are still stoozing to the extreme!!]

cagneyfan

Thanks for your reply. Do you know of any easy access banks that pay the 6% interest rate you say I'll need to prevent my cash losing value?

Nick_C

Have a look at www.fsa.gov.uk/tables

YorkshireBoy

mandy-j0 wrote:

Do you know of any easy access banks that pay the 6% interest rate

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#instant

See also http://www.moneyfacts.co.uk/searches/savings.aspx

Plasticman wrote: »

Hope that you are still stoozing to the extreme!!]

Is there any other way?

cagneyfan

Does anyone know what the interest rate is for ING Direct. It really concerns me that my financial knowledge is disgraceful, it just baffles me. I know I need to protect my savings but I'm totally clueless

cagneyfan

found other threads? I can barely find these ones, let alone understand them. Computers/financial jargon/interest rates etc go way above my head

YorkshireBoy

ING Direct have several accounts, and very often each has a different/special rate which is customer specific.

If you can't see the rate displayed when you log in, your best bet is to ring them and ask.

cagneyfan

so if the rate in 4.75% with ing direct, does that mean my savings are not losing value. If so, I'm just leaving them there as the stress is doing my head in? Thanks all