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

veryintrigued

Well time for a post new tax year update. Am no longer anywhere close to staying above 3%. Currently its 2.64% net

Just to re-cap this figure is across 20-30 accounts (Regular saver, instant, ISA, current accounts, fixed rate etc) on £50k+ (I'll avoid giving exact figure).

Accounts which have ended causing this include a Penrith 4.25% R.S, a Notts 4% Regular saver ISA, Yorkshire Bank 4% C/A, a First Save fixed rate and a Punjab ISA.

Time for some new high paying accounts to be introduced (please!).

plunt

veryintrigued wrote: »

Well time for a post new tax year update. Am no longer anywhere close to staying above 3%. Currently its 2.64% net

Just to re-cap this figure is across 20-30 accounts (Regular saver, instant, ISA, current accounts, fixed rate etc) on £50k+ (I'll avoid giving exact figure).

Accounts which have ended causing this include a Penrith 4.25% R.S, a Notts 4% Regular saver ISA, Yorkshire Bank 4% C/A, a First Save fixed rate and a Punjab ISA.

Time for some new high paying accounts to be introduced (please!).

you factoring in any stoozing leverage? (eg 5k on 0% debt earning x% meaning you overall rate would be far higher...

veryintrigued

plunt wrote: »

you factoring in any stoozing leverage? (eg 5k on 0% debt earning x% meaning you overall rate would be far higher...

I no longer do any stoozing - as that 'debt' word doesnt sit well with me (even when its financially beneficial!).

What I havent factored in their are any rewards e.g. the £5 Halifax rewards. Ive concentrated on pure interest.

Hopefully the proposed tax changes on savings may help a bit!

KGriff

veryintrigued wrote: »

Well time for a post new tax year update. Am no longer anywhere close to staying above 3%. Currently its 2.64% net

Just to re-cap this figure is across 20-30 accounts (Regular saver, instant, ISA, current accounts, fixed rate etc) on £50k+ (I'll avoid giving exact figure).

Accounts which have ended causing this include a Penrith 4.25% R.S, a Notts 4% Regular saver ISA, Yorkshire Bank 4% C/A, a First Save fixed rate and a Punjab ISA.

Time for some new high paying accounts to be introduced (please!).

Yes savings rates are very poor aren't they, but the APR on loans doesn't seem to follow suit ... Well not as much of a drop, by comparison.

Then I guess we should remember that the current inflation rate is zero and predicted to fall to deflation for a short period, so I guess the providers are being quite cautious at the moment.

I don't think the 'close call' general election, with no overall majority being likely, is helping matters. Then there's the European economy and all the woes involving Greece. Then there is Ukraine and the Russians beginning to move nose to nose with Germany... and ...and..
and...

We just need to see the political leaders 'grow up' and the economies to 'grow' with them. I don't rate some leaders and I don't rate the rates... and it could be like this for some time to come I fear.

plunt

veryintrigued wrote: »

I no longer do any stoozing - as that 'debt' word doesnt sit well with me (even when its financially beneficial!).

What I havent factored in their are any rewards e.g. the £5 Halifax rewards. Ive concentrated on pure interest.

Hopefully the proposed tax changes on savings may help a bit!

The way i would calculate it is

1) add up all your non investment accounts (savings/isa's/credit card debts/ overdrafts) so the positives and negatives net each other out.

2) then apply the respective interest rates to each account as an annual amount (for accounts like halifax just add £60 if your not a higher tax payer) and add gross interest on the isas. Divide this amount over the amount in step 1.

This therefore means the higher your actual "cash 'like' " balance in step 1 the lower impact accounts like halifax have on it. Let me know if any of you think we should be calculating it differently as good for us all to have the same methodology! Alternatively the balance in step 1 could be the actual "cash amounts" playing with rather than debts lowering this balance and artificially raising the average earning interest rate...

Eg: when when offset the stoozing pot i have i earn 7.38% after tax. On the other hand calculating it which how much money is "at work" i get to 2.69%....

veryintrigued

plunt wrote: »

The way i would calculate it is

1) add up all your non investment accounts (savings/isa's/credit card debts/ overdrafts) so the positives and negatives net each other out.

2) then apply the respective interest rates to each account as an annual amount (for accounts like halifax just add £60 if your not a higher tax payer) and add gross interest on the isas. Divide this amount over the amount in step 1.

This therefore means the higher your actual "cash 'like' " balance in step 1 the lower impact accounts like halifax have on it. Let me know if any of you think we should be calculating it differently as good for us all to have the same methodology! Alternatively the balance in step 1 could be the actual "cash amounts" playing with rather than debts lowering this balance and artificially raising the average earning interest rate...

Eg: when when offset the stoozing pot i have i earn 7.38% after tax. On the other hand calculating it which how much money is "at work" i get to 2.69%....

Ive added the Halifax at £60 per year and the new figure is 2.70% net a little less miseraly.

TheTracker

veryintrigued wrote: »

Well time for a post new tax year update. Am no longer anywhere close to staying above 3%. Currently its 2.64% net. Just to re-cap this figure is across 20-30 accounts (Regular saver, instant, ISA, current accounts, fixed rate etc) on £50k+ (I'll avoid giving exact figure).

Fair enough.

veryintrigued wrote: »

Ive added the Halifax at £60 per year and the new figure is 2.70% net a little less miseraly.

Now dead simple to calculate a fairly precise figure!

veryintrigued

TheTracker wrote: »

Now dead simple to calculate!

You win the prize - i was wondering how long it would take - even me with my terrible subtraction and division skills I can calculate this!

KGriff

Average Interest rates though, are always going to differ between those who have less money than others.

Those with less money are likely to have a higher rate... Because they can take full advantage of the smaller deposit current accounts, such as TSB, Santander 123... Getting 5% etc.

Once those 'current' cash back accounts and 'high end' savings accounts are filled and you have used up all the annual ISA allowance each year, then the only place to go is towards lower interest accounts.. Or no interest if you have reached the bottom of the pit and opted to put your remaining money in premium bonds.

I'm not including stocks and shares or index trackers here, but clearly someone with just a few hundred pounds of saving, wisely invested, is going to show a far higher interest rate compared to someone who has a few hundred thousands of pounds.

Opportunities are restricted heavily on many saving accounts and ISA's these days. Those with money do lose out heavily to the banks and financial institutions if they are risk adverse. The only way to get decent rates for the 'rich' is to a take a far higher risk approach and invest in the markets.

There is also a 'tipping point' between being a risk-adverse person and a risk-taker and whilst those people have a fair amount of savings, but are not wealthy, on the scale of things, they often find themselves heavily penalised by trying to save responsibly.

Jsscmm

On simple interest I'm at 2.95% before tax as of Saturday. Not great. That includes 2x 6% RS, 2x 4% RS and all the usual suspects for interest CA.

Should get a little better in August as hopefully a third 6% RS and the expiry of a relatively low rate fixed account.

I'm also looking to have slightly less cash in zero accounts... But that is still a work in progress.