how much interest do you earn per year? (percent)

jimjames

Sam_J12 wrote: »

I'm getting 5.0% net on £10,700 currently (Flexdirect, TSB Classic, Club Lloyds, Halifax Reward, Halifax HTB)

Same here, although mine is just above 5% as all my savings are at 5% plus £5 per month for Halifax Reward. I keep very little cash as most of my money is in S&S ISAs and investments.

BE95

Just popping in here, my net inerest is 4%, TSB (5% gross) and Halifax HtB Isa (4%)

Although to my knowledge the tax free savings next year is only in savings accounts isnt it?

So it wont affect the majority of us who hold sums in high interest current accounts?

LplateSaver

It's about 17k at 4.47%.

I didn't include the Halifax reward in that.

LplateSaver

Sam_J12 wrote: »

I'm getting 5.0% net on £10,700 currently (Flexdirect, TSB Classic, Club Lloyds, Halifax Reward, Halifax HTB)

We have the same accounts, deposit as well?

I have the club lloyds MSaver and the nationwide MS but haven't bothered with the 6% ones because last time I checked they didn't allow withdrawals.

DragonQ

savings_my_hobby wrote: »

The way I calculate is by adding together all the interest I should earn off each account in a year i.e Tsb £78.2 + Nw £97.75 + halifax reward £60 = £235.95

divided by the balance across the accounts

Tsb £2000 + nw £2500 + halifax reward £1 = £4501

= 5.24%

for reg savers there is martins reg saver calculator i.e tsb reg saver £250p/m @ 5% = approx. £80.64

just add in figures and get an approximate returns estimate and work that in. there is also a drip feeding calculator.
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

right at the bottom of page

That doesn't work because the amount of money in the drip-feed accounts varies each month. The regular savers will net a pre-determined amount over a year but the others won't.

savings_my_hobby

it would if you could replenish the drip feed accounts with your current/future savings on the same day as S.O therefore keeping your current account interest forecast stable. Unless you have so many regular saver or unable to currently save enough to meet the demands.

colsten

BE95 wrote: »

Although to my knowledge the tax free savings next year is only in savings accounts isnt it?

The law does not distinguish between types of accounts. It requires all the banks and building societies to pay all interest gross.

BE95

colsten wrote: »

The law does not distinguish between types of accounts. It requires all the banks and building societies to pay all interest gross.

Sounds good to me, i haven't really looked into it that much due to not having the savings do really make use of it haha!

ChesterDog

Across the whole lot of savings and investments, I am just shy of 6% for the year to date.

Not a very good year (the first quarter was good), but not too shabby either.

I have quite a high proportion in cash (at around 30%, ignoring house and cars), compared to most people with sizeable investments.

bowlhead99

savings_my_hobby wrote: »

What i'm hoping for is some of the stock markets investors or p2p lenders come on here and compare their returns with the us too. Mainly so when I have maxed out all my options with safe returns on current accounts I will have a realistic range of what to returns to expect if I then decide to explore that area, Of course I realise this may depend on my attitude to risk and other factors too.

I have a whole variety of stock market investments too, but as you were asking for an interest rate and talking about bank and building society savings rates, I completely excluded anything that doesn't simply pay a risk free interest rate.

There is no point you asking what percentage interest you earn in the context of your own savings accounts and the forthcoming interest income tax exemptions, and then start mixing it up with someone who gets 18.5% total return from his equity and bond portfolio one year and then negative 12% another year. It's nothing like an apples to apples comparison because the people making large returns from investments (and losing in other years) are only doing that by taking risks which you don't have with cash.

Cash deposits in a saving or current account are for saving money for another day and accepting the rate is probably not going to be any better than inflation over the long term, but by shopping around for rates you hope to still be able to buy tomorrow more or less what you can buy with the money today, by saving it for tomorrow instead of spending it today.

By contrast, investments are for growing your total wealth so that afford more things tomorrow than you can buy today (e.g., a comfortable lifestyle in retirement, further education or expensive wedding for the kids, etc), by investing it for tomorrow instead of spending it today.

In both cases the total pot gets larger over time because you keep putting more into it, each year, so you can afford something nice at the end - but only one of them is really 'growing' in real terms.

The two things should not be confused because when you invest in the hope of growing your wealth, you give up your nice safe cash and turn it into something else (a share of a company, a loan to a borrower, ownership of part of a shopping centre or other commerical property). That asset generates returns of some kind (company profits, interest income, rental income) and has a value to you and to other people in the market at a point in time.

With investments your plan is to make a much greater return than leaving the cash dormant in a bank vault, and you expect that the fact that your asset values are always exposed to commercial activity at current prices (company profits, borrowing costs, rents) will easily cover the effect of price inflation which would have ravaged the real value of any cash that was left dormant.

BUT you may find that whatever you turned the cash into as part of your investment strategy is not as valuable next year or the year after or the year after that, as it is today, and you have to wait for an economic cycle or two (a decade or more) until it is worth turning the assets back into cash. If you need to turn the assets back into cash early, you may not get anything like what you were hoping for - because the things driving the value of the assets (like the profitability of a company or the solvency of a peer-to-peer borrower) can change drastically over time.

So it is way too much apples-to-oranges comparison to bring investment returns into a conversation about bank interest. Long term average through a few economic cycles from today's prices? Inflation plus two to five or six percent per year, compounded, depending on which end of the risk spectrum you are at.