M&S, HSBC and First Direct cutting interest on regular savings accounts to 5%

adindas

Mr_K wrote: »

Cutting the interest rate from 6% to 5%, only make s a £15 a year difference on max. subscriptions to HSBC - goes to show what a waste of time Regular Savers are. Peanuts in the end.

Look to drip feed into the stock market if you want returns long term.

I was intending to Dripfeed to VLS 80% equity. But I read form other people opion, with the current value of £ is plunging and the economic cycle we are currently in we are in the wrong cycle to invest to make the best possible gain from investing in fund or shares.

Do you have any onion what funds to look at ??

Mr_K

VLS 80% equity isn't a bad all rounder and if you drip feed it in hopefully you'll iron out market fluctuations. No guarantees with Investments but history shows they nearly always beat savings in the long term. This assumes you already have cash saving, don't make investments your only saving !

As well as a small return Reg. Savers are so inflexible, ie you can't withdraw. Banks love them as they can dazzle mugs with high interest rates and retain custom/their money.

Pincher

Another interest rate drop, but correctable. Had a letter recently, reminding me that I have not paid into my HSBC Loyalty ISA.

HSBC Loyalty ISA

Loyalty Rates:
0.9% AER (0.9% tax free) for HSBC Premier customers
0.8% AER (0.8% tax free) for HSBC Advance customers
0.7% AER (0.7% tax free) for other HSBC current account holders

Upon the expiry of your Loyalty rate period, you will earn a standard rate of 0.50% AER until you make a further payment
Interest rates variable and paid monthly

Paid the whole £15,240 into the S&S ISA for 2016-17, already.

Now have to artificially transfer some cash into the Loyalty ISA, before the rate drops down to 0.5%

Next year, have to remember to pay into the Loyalty ISA, then transfer out to the S&S ISA.

adindas

Mr_K wrote: »

VLS 80% equity isn't a bad all rounder and if you drip feed it in hopefully you'll iron out market fluctuations. No guarantees with Investments but history shows they nearly always beat savings in the long term. This assumes you already have cash saving, don't make investments your only saving !

As well as a small return Reg. Savers are so inflexible, ie you can't withdraw. Banks love them as they can dazzle mugs with high interest rates and retain custom/their money.

It has been a lot of discussions on the saving and investment board. People argue that we are in the wrong cycle for throwing money into S&S. The value of £ with regard to the major currencies make it worse.

Property price is starting to plunge, is it not better for people for buy to let rather then throwing their money into S&S when you now you are in the wrong side of economic cycle. ... ???

P2P is also another alternative for risk taker. With the return could be around 12%, it might be worthy to take a risk ??

AlwaysLearnin

adindas wrote: »

Do you have any onion what funds to look at ??

That question has a number of layers to it....

planteria

it does...

Mr_K wrote: »

Cutting the interest rate from 6% to 5%, only make s a £15 a year difference on max. subscriptions to HSBC - goes to show what a waste of time Regular Savers are. Peanuts in the end.
Look to drip feed into the stock market if you want returns long term.

i think you make a good point Mr K. monthly payments into Investments (i use TESPs and RSPs with Friendly Societies - aswell as Pension and ISA investments) rather than Savings are far more beneficial in the long term. but regular savings with HSBC, M&S and Nationwide let me build little pots up that can be used to move into ISAs or clear down 0% credit card debt - if it's not to be BTd to another card account.

HornetSaver

Pincher wrote: »

Was there a three year 6% Bond from Nationwide? Was Luke SkyWalker real? Did Jesus make good wine, or cheap Spanish plonk?

Probably in 2007, who wasn't?

No.

He was given it by his daddy.

Eco_Miser

Mr_K wrote: »

Cutting the interest rate from 6% to 5%, only make s a £15 a year difference on max. subscriptions to HSBC - goes to show what a waste of time Regular Savers are. Peanuts in the end.

It doesn't - you're only talking about the 1 percentage point drop, not the still 5% being paid

Mr_K wrote: »

Look to drip feed into the stock market if you want returns long term.

I've got the stock market, but I need a home for the cash float, and 5% beats 1%.

Browntoa

Just set up an m&s one , they still gave me 6% rather than the advertised 5%

joe134

Browntoa wrote: »

Just set up an m&s one , they still gave me 6% rather than the advertised 5%

My m/s Rs has 3 months to run, and still getting my £10 per month gift bonus.
When bonus runs out, can I stop the monthly payment, and still subscribe to r/s?
If not, might as well switch it, only opened it for bonus and r/s.
my hsbc has the same length of time to maturity, but that's my main hub a/c anyway..