Ways to Maximise Interest on Savings?

mgdavid

slinga wrote: »

rb10, it's still confusing because many people see the 6% or whatever then see the actual return which isn't given as a %age.

It's designed to confuse.
Not everyone is money savy or reads MSE.

It's not designed to confuse at all, it is the facts.
People confuse themselves by not bothering with the arithmetic. Do you really expect the institutions to molly-coddle and hand-hold people who don't bother to learn and understand? Yes not everyone is 'money savvy' but everyone can ask questions...

innovate

slinga wrote: »

rb10, it's still confusing because many people see the 6% or whatever then see the actual return which isn't given as a %age.

It's designed to confuse.
Not everyone is money savy or reads MSE.

The way interest rates for regular savings accounts are specified is no different to any other savings account. And the same, too, like for current accounts.

The issue is lack of education of the customers, not the presentation of the interest rates.

robtgossard

That’s so true Slinga. This is why one should do a thorough research before enrolling into any savings plan or making an investment. If you have invested in the right place, you won’t need to worry about your money, or else you’d stay bothered and look for ways to get your money out of the mess.

littleclaire

Hi everyone

Thanks for all your posts, they have given me some food for thought and raised some very relevant points. Hopefully others reading this thread will find it as useful as I have.

R164ard and eskbanker - although the research I'm doing at present is for regular savers/current accounts, I should have a healthy lump-sum to start drip-feeding next year. I'm glad you brought that up.

Thanks for the example of drip-feeding, by the way, rb10. As you can probably tell, I'm a bit of a novice to this money saving business and I intend to set up a spreadsheet that will help me work out how to go about that and when.

psychic teabag - yes, I meant save to buy. But that idea is down the toilet now in favour of the regular saver you mention. I don't know how I missed that one, thanks for the tip-off!

Yorkie1 - I wasn't aware that if I open the esaver at the same time as the current account I could bypass the need for any cycling. Thanks for pointing that out

I totally agree with what everyone is saying about it being a lack of education on the part of the customer. Many of the banks/BS advertise both gross and net interest so all you have to work out is the rate after accounting for inflation. They should include the basics of economics in the national curriculum. I knew very little about saving when I started this thread but having done a LOT of research, I now know how I can make my money work for me. I will add that that is in no small part down to the advice on this forum.

BF thinks I'm being incredibly anal but I want to make every penny count... Just don't ask how long I have been procrastinating over how to invest the money sitting in my S&S ISA!

Claire

darentriskit

hi everyone I too like this lady have spent the last two days reading this site and you guys are really knowledgeable and helpful - I wonder if anyone can please help me with my question
i'm 57 with 10k ( poss 17k) to make work over the next 8 years till my state retirement age - house is paid no debts and managing ( just ) on small pension
unlikely to work again ( ill health ) BUT and heres the rub i'm so averse to risking this money its almost making me ill - cos neither can I stand looking at it squandering in my measely 1% e-saver natwest account
I reckon only to risk 10 of it as the rest will be my rainy day fund and I,ve seen that santander 123 give 3% , and Skipton ( just ) 5 year bond @ 3.5%
I do not have an ISA and am wondering would a mix of cash and stocks n share ISA be a suitable low risk - if so which can anyone recommend - I simply cannot put any of the capital at risk so it must be secure -

I suppose I need to ask myself am I wiling to let this be "tied up" and not accessible ( ie 3% saving account 5 year) OR have the hassle of moving my whole banking over from natwest to santander - am I just being lazy? pathetic - or are there other products out there which may better suit my risk averse nature - any advice would be gratefully received - thaks so much

very kind regards

ColdIron

If you are so risk averse that it almost makes you ill I would stay away from stocks and shares

You don't need to move the whole of your banking from NatWest to Santander, just open the 123 as an extra savings/bill paying account

If you are not a tax payer an ISA may not benefit you much, have you submitted an R85 to get your interest tax free?

Archi_Bald

darentriskit, you just need to ask the same question once on MSE.