Question Of The Week: Savings Accounts

Former_MSE_Penelope

Q. With savings rates so low and banks unsafe, isn't it better to keep cash under the mattress'?

Martin's A: No, though a couple of recent newspaper reports bizarrely suggest people are doing just that. One reason commonly quoted is 'interest rates as low as 0.05%'; my answer to that is that doesn't mean savings accounts or wrong, just you've got the wrong one. You can easily earn in excess of 3% (see the Top Savings guide).

Yet, more importantly, consider safety. Most home insurance policies will only cover you up to around £1,000 in cash in the house. Put money in a UK bank account and you've got £50,000 per person per institution guaranteed (see Safe Saving).


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Reaper

Here's why you shouldn't store money under the bed. Or in it.
http://www.mirror.co.uk/news/top-stories/2009/06/11/i-ve-thrown-out-mum-s-mattress-with-1m-in-it-115875-21431411/

Rollinghome

MSE_Penelope wrote: »

Q. With savings rates so low and banks unsafe, isn’t it better to keep cash 'under the bed'?

I all depends Penelope. I find fivers are fine but bagfulls of 50p pieces tend to be far too lumpy for a good night's sleep.

financial_illiterate

Question of the week?! Really??!

1socrates1

very slow week