Where best place for my savings?

danlightbulb

Hi.

Ive been reading the savings articles but am rather frustrated at the need to split my money up, or fulfil current account pay in requirements to get decent rates, on fairly low values.

I have 20k i want to maintain easy access to. I did the current account switching dance a couple of years ago so probably wont have access to the regular savers deals any more, but they are crap anyway.

Id rather just have my cash in one place earning a few percent. Is this possible?

Thanks.

JimmyTheWig

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Looks like you can get 1.5%.

eskbanker

danlightbulb wrote: »

I have 20k i want to maintain easy access to.

[...]

Id rather just have my cash in one place earning a few percent. Is this possible?

No.

As above you can put it in one easy-access place and earn 1.5%.

Or you can put it in one fixed-term less accessible place and earn 2+%.

Or you can put it in multiple places (current accounts and regular savers) and earn a few percent.

Or you can put it in Premium Bonds and hope you get lucky - average (median) return is circa 1.25% but higher (or lower) figures are possible.

danlightbulb

Its all a bit crap isnt it. Those accounts arent even keeping pace with inflation.

What would i have to do to keep pace with inflation?

BakingC

Accept some form of risk e.g. Stocks / Shares / P2P but then you risk making a loss.

MEM62

danlightbulb wrote: »

Id rather just have my cash in one place earning a few percent. Is this possible?

Errrrr...... Not really.

Anything approaching a decent return requires investing rather than saving.

Alexland

danlightbulb wrote: »

Its all a bit crap isnt it. Those accounts arent even keeping pace with inflation.

Life is better when you take considered risks.



Alex.

MEM62

danlightbulb wrote: »

Its all a bit crap isnt it. Those accounts arent even keeping pace with inflation.

What would i have to do to keep pace with inflation?

Two things to consider return is related to risk and there are no risk free options.

Savings may look less risky but, as you already know, suffer inflation risk. ie The value of your money does not keep pace with inflation. Investing carries different risks but still carries a risk. You need to decide what kind of risk you can live with place your money accordingly.

Bravepants

You can squeeze a bit more out interest wise by setting up a savings ladder, this depends on how much you will want to spend over time.


You could split your cash into 5 chunks of £4k, then you put £4k in easy access, say Marcus at 1.5%, then take the next 4 chunks of £4k and put the first chunk into a 1 year fixed, second into a 2 year fixed, 3rd into a 3 year etc. So you will have access to £4k per year; well you WILL have access, just you will not receive the interest.


That's about as easy access you can get but still get better than 1.5%, without taking risk with index funds.

jimjames

Bravepants wrote: »

That's about as easy access you can get but still get better than 1.5%, without taking risk with index funds.

There are ways to get 4-5% that are risk free - mix regular savers with high interest current accounts but some effort required

TheShape

danlightbulb wrote: »

I did the current account switching dance a couple of years ago so probably wont have access to the regular savers deals any more, but they are crap anyway.

Why wouldn't you now be able to access the regular saver deals?

I wouldn't describe the 5% regular savers as crap.