Just for fun - whats your average interest rate across savings?

Gaffy

I totally agree with what's been said, it's crazy that current accounts are now viewed as savings accounts.

IGetMoney

My weighted average for my savings accounts is 3.46% Net at the exact moment in time, that's on around £31K.

Come September/October though...... not looking forward to seeing what it is. Going to be moving some of my money in S&S ISA, just can't face seeing the rate dropping and not doing something about it.

Time to build for the future!

arsenalboy

I take my calculations a stage further.

For me, calculating my average interest rate on my current savings/rates is only a snapshot in time and I find it blinkered.

I like to try and predict what I am going to get over the next 12 months and I do this on a sliding scale.

My underlying assumption is that all reinvestment of maturing funds, for the foreseeable future will only attract 3%. I live in the Southwest and all the good regular saver rates are branch based with none in the southwest.

So, if I have a bond at 4% maturing in 6 months, I will take 4% for 6 months and 3% for the remaining 6 months, giving me a rate of 3.5% on that "lump" of money for the next 12 months.

I am trying to forecast my average rate for the next 12 months rather than a historical snapshot.

My figure is currently, on that basis, 4.18%.

rb10

arsenalboy wrote: »

I take my calculations a stage further.

For me, calculating my average interest rate on my current savings/rates is only a snapshot in time and I find it blinkered.

I like to try and predict what I am going to get over the next 12 months and I do this on a sliding scale.

My underlying assumption is that all reinvestment of maturing funds, for the foreseeable future will only attract 3%. I live in the Southwest and all the good regular saver rates are branch based with none in the southwest.

So, if I have a bond at 4% maturing in 6 months, I will take 4% for 6 months and 3% for the remaining 6 months, giving me a rate of 3.5% on that "lump" of money for the next 12 months.

I am trying to forecast my average rate for the next 12 months rather than a historical snapshot.

My figure is currently, on that basis, 4.18%.

How do you account for new savings? Or do you assume a static balance over the 12 months?

gallygirl

Currently 5.22% gross, 4.82% net (most is in ISA). Looking forward to perfect storm in a few months of ISA rate dropping and 1 FD 8% and 2 NWide 6%'s ending :eek:. Don't think I can bear to calculate new rate, may just lump a load into mortgage (2.5%).

arsenalboy

rb10 wrote: »

How do you account for new savings? Or do you assume a static balance over the 12 months?

I am a retired chartered accountant who worked in Industry and took early retirement 6 years ago. This sort of stuff was my living!

But to answer your question, when I made my decision to retire I did a lifetime cash flow. That has proved accurate apart from declining interest rates. My life is ruled by a series of spread sheets which I update each month!!.
I pretty much know where my finances will be over the next couple of years and keep that information rolling.

edinburgher

The mighty sum of 3%/2.4% after tax.

But that's savings, I don't expect to make much money from them these days. Investments are a bit healthier

Archi_Bald

MoneySaverLog wrote: »

Borrowing the banks money, at a low or zero percent interest rate and saving it elsewhere at a higher rate.

Ah I see, thanks. I always thought that was called stoozing, but now I know it's snoozing.

Chjaka

Averaging 3.51% gross and 2.97% after tax so just about keeping my money above the rate of inflation... for the moment.

Between me and my partner we've maxing out our two 6% First Direct Regular Savers, our full allocation of 5% flexdirect accounts and 4% TSB vantage accounts however the overall rate is dragged down by the fact that the remainder is heavily weighted in 3% Isa's, BOS vantage accounts and a couple of 123 accounts. God help me if they ever pull the plug on those.

veryintrigued

Just revisiting this - my average on 28 accounts is now down at 3.38% after tax.

Its only going in one direction!!