Am I wrong to keep all my money in a Current Account

TheProdigalSon

Hi all,

For a long time now I haven't bothered with savings accounts because my Bank (RBS) quite simply doesn't make it worthwhile to save, any account I've opened with them has quickly had a rate cut and in some cases they've not even had the decency to notify me of this so it's just as well that I keep a close eye on their current interest rates. I've had accounts fall from anything ranging from 5.5% to 0.10% over the past few years and I'm sure you can see why I'm reluctant to even bother now as every account I've opened has always had the customary RBS rate cut and for that reason I've closed all the savings accounts that I held with them as they're simply not worth my while keeping active. I now find that I'm constantly bombarded with requests to open bonds and so forth, so much so that I now avoid going into my local branch as I don't always have the time or feel in the mood to be pestered with sales talk or to be set up on meetings with financial advisors. I'm very much a saver and always have been, was taught the value of money at an early age and I've always been frugal with it, haven't bought a lifestyle like a lot of my peers and because of this I live like a king on a paupers wage, earn a good salary and this enables me to save a large amount of money each month.

The paradox of my situation is that I now have around £77,500 in my current account but I'm not actually earning any interest on it, do know that I'm silly for doing this but I can't see what other choice I have. Saving accounts seem to be a waste of time, and I don't particularly like the idea of handing over my money to bank "advisors" who might then invest it and line their own pockets with my money as often seems to be the case. I'm still a very young man, not yet in my middle twenties and I just seem to feel at ease knowing that my money is easily accessible and all in one place, don't like the idea of having multiple PIN numbers and multiple accounts as I prefer to keep things simple, isn't there any way I can do what I do, keep saving but earn a good rate of interest on my money? it pains me to know my money is actually shrinking due to inflation but I just don't know what's my best choice.

Thank you for your help

cashbackproblems

Well having a few k in the current account earning no interest is fine for cashflow, but why such a large amount, your missing out on hundreds per year in interest!!

Just have a look online for the best savings account e.g. online with ING or AA and you dont even have to speak to anyone you can open them online, same with an ISA, look at Nationwide who have good rates.

pfpf

thats a hell of a long OP to ask "where best to put my savings"

just a couple off the top of my head.

AA 2.8%
Egg 2.5%

you will have to move the cash in 12months once rate ends.

StevieJ

Over £50k your money is also at risk if your bank goes belly up that is apart from the value destruction caused by inflation.

Kalahary

Your losing around £2000 per year in potential interest payments from a standard savings account.

And soon a Europe will come to your rescue with that amount of money... but don't count on it yet. Thanks to ManAtHome for this info.

https://forums.moneysavingexpert.com/discussion/2694021

masonic

Kalahary wrote: »

Your losing around £2000 per year in potential interest payments from a standard savings account.

It's getting on for £4k the OP is losing in total, thanks to inflation.

Sadly, the AA savings account was mentioned to the OP back in April in this thread, as was the suggestion of taking up some fixed rate savings and getting some financial advice with a view to looking at other forms of investment. Let's hope the money doesn't sit around earning nothing for another 6 months. :eek:

TheProdigalSon

cashbackproblems wrote: »

I think the OP is a troll, no one would be that stupid as to leave so much money earning no interest, especially if u have the intelligence to earn/save tht amount.

I beg your pardon, I am no troll. Thank you to the other people who were kind enough to help.

Mols

Have you looked at the Lloyds TSB Vantage accounts? You can have three with 7K in each earning 4% interest.

That will also least move some of the unprotected funds away from RBS.

nilrem_2

Have you considered putting some of the cash into fixed rate accounts? At least with a fixed rate you don't find your rate being switched to next to nowt after a few months!
You can get around 3.6% if prepared to fix for 2 years and 2.5% for one year fixes inc monthly interest.

nilrem_2

cashbackproblems wrote: »

I think the OP is a troll, no one would be that stupid as to leave so much money earning no interest, especially if u have the intelligence to earn/save tht amount.

I think you would be surprised at the number of people who keep cash in non interest accounts for various reasons, some folks are confused by over complicated savings products or don't understand money, other people lead busy lives and have other things on their minds, whatever the reason I don't think we should be rude to people for asking for advice; after all what is this forum for?

Engeroosi

I could look after it for you/!!!