Rate cut, what to do with savings

tradetime

Do you think it will be possible to buy a house in London for 90K in the future?

Anything's possible, never say never, and all that. But even with my bearish view that seems a tad optimistic.

Until then I will just be content with the 5% odd savings account, even though its about the same as inflation.

May I ask whee you're picking up 5% savings interest? Thanks

gozomark

inflation in the next two years will be about 0-1%, not 5%. 4% real return is very good

Animal_Jones

Hi,first time on this forum,been looking on how to invest £30k. With interest rates falling all the time,Premium Bonds seem to be a good idea?Used the Premium Bonds Calculator,I have a 99% chance of £200!( if I leave it in for a year) which is much better than the 5% or less interest being quoted at the moment.

Hungerdunger

Animal_Jones wrote: »

Hi,first time on this forum,been looking on how to invest £30k. With interest rates falling all the time,Premium Bonds seem to be a good idea?Used the Premium Bonds Calculator,I have a 99% chance of £200!( if I leave it in for a year) which is much better than the 5% or less interest being quoted at the moment.

I think you've done your sums wrong.

Even at 3% a basic rate tax payer would receive £720 net interest on £30k.

I think you'll find that the general opinion of people here is that Premium Bonds are all very well if you have some spare cash and are prepared to take a gamble, but are not suitable for serious savings. Remember that after a year, if you didn't win anything and inflation was running at, say, 3%, the buying power of your money would have reduced by nearly £1,000 pounds.

ed123_2

...I think Westbromwich BS have an account paying 0%....seems a good bet...