Absolutely disgusted with interest rates - is this right?

RobTang

Widelats wrote: »

Yes its news to me, i honestly could not believe what i was reading, i remembered having a post office account with £5 in it and i got interest of 75p when i was young within a month i think, and was just shocked at this pathetic, insulting interest rate rate of today.

Then i read their charges and could not believe it, a whole lot of cash they charge on small amounts of money.

No savings account has every paid that much interest if your looking at over 100% apr your are looking at the wrong sort of businesses.


Banks don't really like instant access savings because cant really do anything with it.
They are mainly getting you lock your money for a longer time so they actually do something with it or for people that just want to segregate their money

grumbler

JuicyJesus wrote: »

If you got 75p interest on a fiver over the course of a month, that would mean you were getting a rate of 180%. That's assuming that was gross; net you would be getting a rate of 225%.

435% and 544% actually .

Deru

1% at Metrobank if you're in London (can get to a branch) and keep the balance at £100+

5% with Nationwide with the FlexDirect for the first Year.

6% if you do Regular Saver with First Direct. You'd need to keep paying in for the year though. 6% first month for the whole £100 then you could drop it to £25 a month standing order....£125 second month, £150 next, etc. I did £300 a month last year.

£100 in Premium Bonds? That or 100 lottery tickets!


Edit: Just remembered Lotto now costs £2... 100 Health Lottery or maybe Thunderball then...

As mentioned, need to save more than a 100 quid really.

JuicyJesus

Deru wrote: »

£100 in Premium Bonds? That or 100 lottery tickets!

50 lottery tickets these days, they're £2 a pop now

JuicyJesus

grumbler wrote: »

435% and 544% actually .

£0.75 * 12 = £9/£5 = 180% shurely?

Either way - no bloody way.

Deru

JuicyJesus wrote: »

50 lottery tickets these days, they're £2 a pop now

Yeah! Cheers. I remembered after I hit Submit. Edited.

Let's go with Health Lottery and other games...

grumbler

(1+0.75/5)^12-1=4.35=435%


And greyhoudns (any sportsbetting actually) are much better than any lottery in terms of the EV.

robatwork

Don't get me wrong here as most saving account rates are derisory, but tell us what amount do you think is reasonable to get after a year with £100 invested?

JuicyJesus

grumbler wrote: »

(1+0.75/5)^12-1=4.35=435%

Ahhh, you were getting the EAR, I was using simple interest. That explains it

Which just goes to show how utterly out of whack the OP's idea of a decent return on an instant access account is, and why this:

robatwork wrote:

Don't get me wrong here as most saving account rates are derisory, but tell us what amount do you think is reasonable to get after a year with £100 invested?

is a very pertinent question for the OP, especially considering the account under discussion is one with absolutely no restrictions on deposits or withdrawals at all, which for most savings products means it would pay a pittance.

eskbanker

Widelats wrote: »

Yes its news to me, i honestly could not believe what i was reading, i remembered having a post office account with £5 in it and i got interest of 75p when i was young within a month i think, and was just shocked at this pathetic, insulting interest rate rate of today.

Then i read their charges and could not believe it, a whole lot of cash they charge on small amounts of money.

It must be said that, for someone who's been on this board for nearly five years, racking up over 3,200 posts along the way, it's equally shocking that a regular contributor to a money-saving forum should be so oblivious to what's happening in the economy! Anyway, better late than never to find out, I'm sure there are many millions out there retaining accounts with negligible interest rates and helping prop up the profitability of the banks via their inertia and/or lack of interest (no pun intended)....