Is First Direct's Bonus Savings really worth it?

YorkshireBoy

Jlawson118 wrote: »

I try my best to save for a rainy day, and if that rainy day comes then I have to use it as such. I'm having car trouble at this moment in time too, so if anything happens with that, then I feel sometimes I may have to dip into my savings.

If nothing happens until next year, then great! But I can't see into the future. It'd be great if I could :rotfl:

I don't think you understood the question, which was why you think it's "good" (and latterly "great") to get 0.9% interest when both RPI and CPI inflation figures are currently above that, and the BOE's target figure is 2%. Can you really not see that, should you not have to spend the money between now and Jan 2018, it will be worth less in purchasing value terms in 12 months time when you do come to spend it?

Jlawson118

YorkshireBoy wrote: »

I don't think you understood the question, which was why you think it's "good" (and latterly "great") to get 0.9% interest when both RPI and CPI inflation figures are currently above that, and the BOE's target figure is 2%. Can you really not see that, should you not have to spend the money between now and Jan 2018, it will be worth less in purchasing value terms in 12 months time when you do come to spend it?

I just got an email telling me they're pretty much dropping the ISA from 0.90% to 0.50% which to me, loses the entire value now in all fairness. Although I never thought it was good, but I've never really had experience with a lot of money to dabble around with interest rates and various accounts, I just knew that when that account was at 1.30%, I'd earn £1.30 per month on the value of £1000. £2.60 on £2000 etc, which within a few months, works out at over £10. Even though I used to withdraw my interest for other things :rotfl:

Though as much as I know that the value of things are worth much less in the future, I do feel regularly saving money will be something to encourage me not to spend stupidly. So even if I save £300 per month with FD, I'll have £3600 in the bank 12 months later, with about £100 on top of that interest, opposed to spending that £300 on things I don't need. It's not even about the interest as such (although obviously it's nice)
I got the Bonus Savings account to encourage me not to withdraw, but I still do.

Although despite saying all of that, I was discussing interest rates I suppose, but throughout the duration of this discussion and my research, I have been considering a regular saver

takman

Jlawson118 wrote: »

I just got an email telling me they're pretty much dropping the ISA from 0.90% to 0.50% which to me, loses the entire value now in all fairness. Although I never thought it was good, but I've never really had experience with a lot of money to dabble around with interest rates and various accounts, I just knew that when that account was at 1.30%, I'd earn £1.30 per month on the value of £1000. £2.60 on £2000 etc, which within a few months, works out at over £10. Even though I used to withdraw my interest for other things :rotfl:

Though as much as I know that the value of things are worth much less in the future, I do feel regularly saving money will be something to encourage me not to spend stupidly. So even if I save £300 per month with FD, I'll have £3600 in the bank 12 months later, with about £100 on top of that interest, opposed to spending that £300 on things I don't need. It's not even about the interest as such (although obviously it's nice)
I got the Bonus Savings account to encourage me not to withdraw, but I still do.

Although despite saying all of that, I was discussing interest rates I suppose, but throughout the duration of this discussion and my research, I have been considering a regular saver

You really need to read up on how interest rates work. If £1000 is in an account paying 1.3% interest you get roughly £1.08 a month in interest and not £1.30!. For £2000 it's roughly £2.17 a month.

bigadaj

takman wrote: »

You really need to read up on how interest rates work. If £1000 is in an account paying 1.3% interest you get roughly £1.08 a month in interest and not £1.30!. For £2000 it's roughly £2.17 a month.

If only there were 10 months in the year, a decimal calendar would make interest calculations so much easier.

Jlawson118

takman wrote: »

You really need to read up on how interest rates work. If £1000 is in an account paying 1.3% interest you get roughly £1.08 a month in interest and not £1.30!. For £2000 it's roughly £2.17 a month.

bigadaj wrote: »

If only there were 10 months in the year, a decimal calendar would make interest calculations so much easier.

In all fairness, I had £2000 in there for a while and used to earn about £2.30/£2.40

No_6

Well you regular posters...it's up to you with this one.
Can't even put a poo poo reply.

6