MSE News: Cheque clearing to be cut to 'next working day'

aj23_2

bigadaj wrote: »

So learn, it's costing you a huge amount.

If you have any sort of DC pension you are also involved in those markets so another reason to become curious.

It's not costing me because I'm not losing my money. I still have access to my money, I just choose not to access it. The balance only increases.

I have what works for me at the moment. I don't have lump sums to put away, that's why I use Regular Savers that I have easy access to in case I need to.

I do have a pension that I started 2 years ago and it's yielded a 10% growth but I still don't really understand about all of different equity trackers and 40:60 splits etc. By my retirement age it will be in 7 digits if everything goes to plan lol

But we are really getting away from the 'cheques clearing in one day' topic thread now.

takman

aj23 wrote: »

The problem is this doesn't feel like a good discussion/debate anymore. I'm not going to trawl through all of this, and I've only skimmed the bottom paragraph. When I say apply online, I mean I filled out an application form online.

If you fill out an application form online then you are still sending all your personal information across to the same systems that you seem to think are insecure when it comes to online banking.

aj23 wrote: »

I received Passbooks for both the regular saver accounts which I send with a cheque once a month. Very different to an 'online account' which is accessible online only.

I don't know of any account which is accessible online only as you say. Even if you used the online services of all the banks that offer them you can still use all the other services as you do now.

aj23 wrote: »

What started out as a topic thread about cheques clearing within one working day has kinda turned into a bit of a cheque user witch hunt (and now to interest rates), that's how it has come across with the whole 'wasting time,' 'spend time more enjoyably' comments which weren't necessary at all and I feel like you're still doing it by saying I'm not maximising what I have, when in fact I'd say I'm getting more than you are by the sounds of it.

Those 5% Regular Savers you speak of, you need to have a Current Account with those provider. Those Current Accounts generally don't give that greater incentives. And the 5% Regular Savers are £200-£300 a month for 12 months only, paying up to £100, then after 12 months you have to start over again as they are 12 months only. It never really accrues a lot. The 2% Regular Saver I have is £250 a month, but the term is unlimited (up to £750k, but I won't live that long to reach that level! And the only one on the market which is an unlimited term) so that accrues year after year after year. The 2.3% Regular Saver is paid out on an operating balance (excl. interest) up to £6,000. Once £6,000 is reached, as long as I stop making deposits, I will still get the pay out every year as it doesn't mature into a maturity account. So in that one alone, I can deposit at least double the 5% First Direct one for example, and still get the interest year after year, whereas those 5% ones convert to an easy access paying 0.5% or something.

Your not thinking very long term with your 2% and 2.3% regular savers. You may think they are decent rates now but now that the base rate is heading in the upwards direction in a few years time those rates will be common place in standard savings accounts. If you keep those accounts indefinitely then as bigadaj your savings will be growing below inflation and you will be loosing money long term.

Personally i have a good amount of money in High interest current accounts and Regular Savers. But i have a limit on this and above this goes into my long term equity investments which provide a much higher rate of growth than any bank account.

aj23 wrote: »

Likewise the 4% Help to Buy ISA has no max. balance, so I can keep depositing year after year. This account will would have netted me £1,500 alone in 3 years time, more than you getting £99 a year with First Direct Regular Saver opening one a year for 5 years. That's about £550 over five years (it's 5% now, not 6%, which you will only get presently until the term ends), which is £950 less than me depositing less per month and at a lower rate as it always accrues.

Yes the help to buy ISA from Halifax is a good product for someone who doesn't own a house and wants to get the 25% bonus. But the 4% rate isn't fixed for life and it will be closed when you buy a house with the money.

aj23 wrote: »

Trust me, I know how they all work. I've spent long enough looking at this website. I'm not limited as I've just highlighted, as I'm actually getting more than you are because mine aren't fixed for 12 months where I have to keep starting over, mine are 24 months to unlimited terms, so your assumptions are wrong.

I have the best paying Current Accounts and Regular Savers for the long term, which returns more interest than those short term ones you are referring to. I don't need to bank online to get these rates.

I agree that you have a good combination of products compared to most people which pay a fairly decent rate of interest. But as stated above it's certainly not a good long term plan.

As bigadaj says you really need to learn alot more if you think a regular saver with a 2.3% interest rate is a long term investment plan.

Just look back over the last 40 years and see how much inflation was and the BOE base rate has changed over the years.

aj23 wrote: »

And yes, I use cheques to deposit to each of them every month as that suits me dandy and I have a record of it in a Passbook! If that makes me old-fashioned, despite being a young persons, then that is absolutely fine by me. Sometimes the old ways are the best ways. :beer:

aj23_2

takman wrote: »

If you fill out an application form online then you are still sending all your personal information across to the same systems that you seem to think are insecure when it comes to online banking.



I don't know of any account which is accessible online only as you say. Even if you used the online services of all the banks that offer them you can still use all the other services as you do now.



Your not thinking very long term with your 2% and 2.3% regular savers. You may think they are decent rates now but now that the base rate is heading in the upwards direction in a few years time those rates will be common place in standard savings accounts. If you keep those accounts indefinitely then as bigadaj your savings will be growing below inflation and you will be loosing money long term.

Personally i have a good amount of money in High interest current accounts and Regular Savers. But i have a limit on this and above this goes into my long term equity investments which provide a much higher rate of growth than any bank account.



Yes the help to buy ISA from Halifax is a good product for someone who doesn't own a house and wants to get the 25% bonus. But the 4% rate isn't fixed for life and it will be closed when you buy a house with the money.



I agree that you have a good combination of products compared to most people which pay a fairly decent rate of interest. But as stated above it's certainly not a good long term plan.

As bigadaj says you really need to learn alot more if you think a regular saver with a 2.3% interest rate is a long term investment plan.

Just look back over the last 40 years and see how much inflation was and the BOE base rate has changed over the years.

But they aren't online accounts. I don't manage them online. Lots of providers do 'Online only' accounts. Virgin Money has many of them. You open it online, and you manage it online. But this is moving away from the original threads.

I am thinking long term. I don't see how you're saying I'm not? They are variable rates, the majority of regular savers, and return me more than say your First Direct RS for example which you have to keep re-opening every year because they are 12 month fixed terms. My 2% variable rate, with no fixed term, would net me £3,200 over 10 years. If the rate goes up even to 3%, which it can, that would be £5k. If you continue to open a First Direct RS, which ends after 12 months each time, every year for 10 years, you'd only get £99 a year, which is £990 over 10 years. That's £2,200 less than what I will get even if my rate doesn't go up.

Going for the higher rate short term regular savers don't return nearly as much as the lower to mid rate long term regular savers as I've just shown. The high rate my look good, but they are fixed rates and fixed terms. Mine are variable rates and open terms. I think you're missing the point about accrual basis here, regardless of inflation, as I am earning more interest because I'm able to hold higher amounts of money, whereas yours will never get beyond £3,000 in a year before you have to re-open again and start from £0 and repeat the process. I don't have to 'waste time' re-opening, I can just let it roll and accrue. Higher balances earn higher interest, so I disagree that I've picked the wrong regular savers. Plus, you can only have yours for as long as you have a CA with FD. If you switch, you can't have that account anymore. I'm not tied to that situation.

Mines not with Halifax, and they have since lowered their rate. Mine was 4% with Santander when I opened it, and I'm still getting it. If you don't have your own home, this is probably the best savings account on the market, but it's a previous issue now and people can't get it today. I won't be getting a house for several, several years, so this HTB ISA will just keep rolling. The only cap is what the government gives you.

I'm not using my accounts as investments, although I have dabbled slightly in stocks. I'm just making my money earn what it can instead of it sitting in one account where it's potential can't be maximised. We are really moving away from cheques clearing the next day, but I've said repeatedly that what I do and how I do it works for me and my circumstances, and I'd say it was definitely better than what the majority of people do or even able to do. I've managed to increase my savings 10 fold in 2 years by doing this, so I must be doing something right.

takman

aj23 wrote: »

But they aren't online accounts. I don't manage them online. Lots of providers do 'Online only' accounts. Virgin Money has many of them. You open it online, and you manage it online. But this is moving away from the original threads.

I am thinking long term. I don't see how you're saying I'm not? They are variable rates, the majority of regular savers, and return me more than say your First Direct RS for example which you have to keep re-opening every year because they are 12 month fixed terms. My 2% variable rate, with no fixed term, would net me £3,200 over 10 years. If the rate goes up even to 3%, which it can, that would be £5k. If you continue to open a First Direct RS, which ends after 12 months each time, every year for 10 years, you'd only get £99 a year, which is £990 over 10 years. That's £2,200 less than what I will get even if my rate doesn't go up.

But what your missing is what i do with my money at the end of the year. I keep some a good amount of money in high interest current account and put as much as i can save each month into regular savers paying 5%+. Then at the end of the year when they mature i transfer this into my long term equity investments. So your money is going to be kept in regular savers paying 2% interest and earn you £3200 interest over 10 years paying in £250 a month. But my equity investments which are can easily increase by 8%+ a year will return £15,320 profit over 10 years.

aj23 wrote: »

Going for the higher rate short term regular savers don't return nearly as much as the lower to mid rate long term regular savers as I've just shown. The high rate my look good, but they are fixed rates and fixed terms. Mine are variable rates and open terms. I think you're missing the point about accrual basis here, regardless of inflation, as I am earning more interest because I'm able to hold higher amounts of money, whereas yours will never get beyond £3,000 in a year before you have to re-open again and start from £0 and repeat the process. I don't have to 'waste time' re-opening, I can just let it roll and accrue. Higher balances earn higher interest, so I disagree that I've picked the wrong regular savers. Plus, you can only have yours for as long as you have a CA with FD. If you switch, you can't have that account anymore. I'm not tied to that situation.

I'm not going to switch my account, i have accounts with almost every major bank so no need to switch any.

aj23 wrote: »

Mines not with Halifax, and they have since lowered their rate. Mine was 4% with Santander when I opened it, and I'm still getting it. If you don't have your own home, this is probably the best savings account on the market, but it's a previous issue now and people can't get it today. I won't be getting a house for several, several years, so this HTB ISA will just keep rolling. The only cap is what the government gives you.

I'm not using my accounts as investments, although I have dabbled slightly in stocks. I'm just making my money earn what it can instead of it sitting in one account where it's potential can't be maximised. We are really moving away from cheques clearing the next day, but I've said repeatedly that what I do and how I do it works for me and my circumstances, and I'd say it was definitely better than what the majority of people do or even able to do. I've managed to increase my savings 10 fold in 2 years by doing this, so I must be doing something right.

Yes you are doing better than most people but you should definitely start looking at investment funds if you want to invest for the long term. When the bank base rate is increased further that 2% regular saver won't be looking that good when standard savings accounts are paying that amount, you can already get 1.3% now. So when standard accounts do pay more than 2% you might as well just withdraw the money and pay it into one of them because the regular saver won't have any benefit anymore.

aj23_2

takman wrote: »

But what your missing is what i do with my money at the end of the year. I keep some a good amount of money in high interest current account and put as much as i can save each month into regular savers paying 5%+. Then at the end of the year when they mature i transfer this into my long term equity investments. So your money is going to be kept in regular savers paying 2% interest and earn you £3200 interest over 10 years paying in £250 a month. But my equity investments which are can easily increase by 8%+ a year will return £15,320 profit over 10 years.



I'm not going to switch my account, i have accounts with almost every major bank so no need to switch any.



Yes you are doing better than most people but you should definitely start looking at investment funds if you want to invest for the long term. When the bank base rate is increased further that 2% regular saver won't be looking that good when standard savings accounts are paying that amount, you can already get 1.3% now. So when standard accounts do pay more than 2% you might as well just withdraw the money and pay it into one of them because the regular saver won't have any benefit anymore.

I save 66% of my wage including into a pension. I've invested money and bought shares in Lloyds as it seem like a good call now it's turning a profit in private ownership, but it will take ages for me to break even on it when it pays pennies per share at the moment, and I mostly understand how it works but it's tricky playing stock markets if you're not fully aware of the ins and out and only know the basics. I don't keep enough to invest in other long term investment funds to make it worthwhile. I as such have access to all of my accounts whenever, it's not tied up.

Presumably if the base rate gets to 2%, which I reckon could be a long way off, issues of accounts both closed and presently on offer would increase providing they are variable rate which mine are. Previous issues were 4%, 5%, and 6% so there wouldn't be any reason for them not to get to that point again in the case of base rate increases.

I'm happy with how things are working for me at the moment, I don't really have to do anything, I can't lose it and it's safe which is what I want at the moment while I'm building it up so that I am in a position to do more with it later. In the future when I have more on tap to invest I'll explore it more. But to me it's only worth doing if you have a substantial amount as that will yield more. Doing a few hundred pounds here and there won't really do anything for me as it won't go very far with most stock prices.

We're really off topic so if you want to message me feel free.

bigadaj

aj23 wrote: »

I save 66% of my wage including into a pension. I've invested money and bought shares in Lloyds as it seem like a good call now it's turning a profit in private ownership, but it will take ages for me to break even on it when it pays pennies per share at the moment, and I mostly understand how it works but it's tricky playing stock markets if you're not fully aware of the ins and out and only know the basics. I don't keep enough to invest in other long term investment funds to make it worthwhile. I as such have access to all of my accounts whenever, it's not tied up.

Presumably if the base rate gets to 2%, which I reckon could be a long way off, issues of accounts both closed and presently on offer would increase providing they are variable rate which mine are. Previous issues were 4%, 5%, and 6% so there wouldn't be any reason for them not to get to that point again in the case of base rate increases.

I'm happy with how things are working for me at the moment, I don't really have to do anything, I can't lose it and it's safe which is what I want at the moment while I'm building it up so that I am in a position to do more with it later. In the future when I have more on tap to invest I'll explore it more. But to me it's only worth doing if you have a substantial amount as that will yield more. Doing a few hundred pounds here and there won't really do anything for me as it won't go very far with most stock prices.

We're really off topic so if you want to message me feel free.

It has gone off topic but you refuse to acknowledge what most people would consider basic financial planning.

The differentials on regular savers and some current accounts are actually far higher than they have been historically, they a fundamentally loss leaders for the banks with the idea they will sell higher profit products. When base rates increase these rates are far less likely to, this of course ignites the fact that you are still losing money on most of these accounts in real terms because your returns are below inflation.

The key to accumulating wealth is regular saving and investing and diversification, taking a punt in individual shares isn't investing.

Have a read through the monevator website and you will be far better informed and almost certainly better off, you will understand what your pension is invested in and be able to determine whether the asset allocation there might better suit your needs and risk tolerance.

aj23_2

bigadaj wrote: »

It has gone off topic but you refuse to acknowledge what most people would consider basic financial planning.

The differentials on regular savers and some current accounts are actually far higher than they have been historically, they a fundamentally loss leaders for the banks with the idea they will sell higher profit products. When base rates increase these rates are far less likely to, this of course ignites the fact that you are still losing money on most of these accounts in real terms because your returns are below inflation.

The key to accumulating wealth is regular saving and investing and diversification, taking a punt in individual shares isn't investing.

Have a read through the monevator website and you will be far better informed and almost certainly better off, you will understand what your pension is invested in and be able to determine whether the asset allocation there might better suit your needs and risk tolerance.

I am doing what most people would call basic financial planning. Actually, more than basic. If paying to a pension, using savings account and a HTB ISA isn't planning then I don't know what your idea of it is. What you and others refuse to acknowledge is that you use what your situation enables you to use without compromising day to day living and unforeseen expenditure.

They aren't losing or costing me money because the alternative would be for it to be a basic bank account which pays 0%. Regularly saving is financial planning, no? I'm still saving my own money, I'm just making it pay interest instead of it sitting somewhere where it doesn't get any. I have three accounts above inflation, and two slightly under. But as I said, those two would be earning 0% if I didn't use regular savers. Not including my pension which is returning 3x above inflation. I'm better for using these accounts, don't you see that?

Of course shares is investing. What else is it? That's like saying buying a house isn't investing. It's probably the biggest investment a normal person will make in their life. They don't have access to the money though, it's tied up in the bricks and mortar you live in.

I am accumulating by regularly saving, so I don't see which point you are trying to make, as you seem to be making two that contradict each other.