Shocked at annual interest on savings

Thrugelmir

Birdynumnum wrote: »

Well I wasn't looking for sympathy just advice but some of it seems rather scathing as if it's an offence not to be financially astute.

Doesn't require any financial astuteness. Just a little effort. Make a diary note to remind yourself.

Birdynumnum

Thanks Snakey, crash course completed, I think it illustrates how Joe average thinks. I'm not financially astute, have never had significant savings and made an assumption that proved naive and grossly incorrect, I think many other ordinary non financially aware people would react the same way.

At least I know I'm wasting my time chasing compensation and frankly people pay a lot more money to learn this lesson.

Thanks to those who have heeded MSE's request to be polite to the newbie, to those who have not well it's feeding time for the trolls so you won't be reading this.

Minrich

My money is never in the same place two years running , perhaps if they offered a decent rate all the time they might corner the market ? The most recent victim was Britannia , lost my £50k through poor rates and service too , said i would tell others , i had been a customer of theirs for 44 years ! If only there was something really good to invest in ! I also think the £85k per institution protection should be increased too .

YorkshireBoy

Minrich wrote: »

I also think the £85k per institution protection should be increased too .

Are you prepared to pay for this (in the form of lower interest rates)?

Even if you are, the vast majority of people in this country have less than £10K of savings (as is often posted on here), so I'd imagine they wouldn't be too happy if their interest rates were cut so the levies could be increased.

Nick_C

Minrich wrote: »

My money is never in the same place two years running , perhaps if they offered a decent rate all the time they might corner the market ?

... If only there was something really good to invest in !

If they offered "decent" rates all the time, they would go out of business. When the banks can borrow money on the markets for half a percent, why should they pay any more than that to savers?

Santander currently pay me 3% for lending them money, but are happy to lend me money for 2.5%. That is simply unsustainable.

Anyone paying high rates is just buying business and hoping that, like the OP on here, some of those customers will stay through inertia when the rate drop.

And there are plenty of good things to invest in. But saving and investing are not the same thing.

Archi_Bald

Birdynumnum wrote: »

Thanks to those who have heeded MSE's request to be polite to the newbie, to those who have not well it's feeding time for the trolls so you won't be reading this.

The truth isn't always what we like to hear as sometimes it is uncomfortable. What would you rather like to hear, some fluffy-duffy niceties or the truth? I know what I would prefer.

You have been given some really good pointers in several posts. Hope you will be able to benefit from those.

ManAtHome

Minrich wrote: »

I also think the £85k per institution protection should be increased too .

NS&I guarantee up to £2 million at 1.1% pa, only £1 million for 1.26% though...

Altarf

colsten wrote: »

The situation the OP finds themselves in has absolutely nothing whatsoever to do with bank adverts and morals. The terms and interest rate information for all savings accounts are easy to read, and easy to find on the internet.

Of course it has everything to do with morals.

It is one thing offering a small incentive to attract new customers. It is entirely another matter luring people in, and then paying effectively zero interest.

But you don't have to worry, because you, like the others who see know wrong, are "smart" enough to know about this profitable business practice.

Birdynumnum

Altarf - bang on my friend you have accurately and succinctly stated my case.

Those outside of the fold do not know, you can argue all you like about the availability of this information but if it is not not or more accurately has not previously been relevant to the individual concerned then it has no value.

I was not born with this knowledge, it has not been imparted to me, how then in the absence of relevance may I possess it ( and being frank when a middle aged recently divorced man comes into over £100K common sense goes out the window )

Thankfully I have retained enough money to buy a house cash, it is a humble property requiring work but I have invested my remaining money in an asset which is mine, and boy have I have both had a lot of fun and learned some valuable life lessons in the interim - have the trolls finished feeding yet?

jem16

Birdynumnum wrote: »

I was not born with this knowledge, it has not been imparted to me, how then in the absence of relevance may I possess it ( and being frank when a middle aged recently divorced man comes into over £100K common sense goes out the window )

You found your way on here to post so I would assume that you would also be capable of reading many other threads on here and articles with "best buy" savings accounts?

The main point is that no-one is born with this knowledge but with a bit of research and generally reading any relevant T&C (where it actually was imparted to you), it is easy enough to gain the necessary knowledge.

No-one is going to do it for you and you do have to put in a bit of effort yourself and take responsibility.