The Top Easy Access Savings Discussion Area

2010

He would say that, wouldn`t he?

Band7

I would go to neither the Express nor to Trustpilot for financial information, never mind guidance.

OceanSound

Band7 said:

I would go to neither the Express nor to Trustpilot for financial information, never mind guidance.

Trustpilot is not for guidance. It's a review site. 

You're correct that Express is not a good guide.

Stick to MSE. Even then do your own research!!

ScarletBea

Nick_C said:

Many people would rather have savings losing 6pc of their value each year because of inflation than risk investing their capital.

These same people think they are better off now with interest rates at 3.5% than they were two years ago with interest rates effectively at zero.

Its a funny old world. 

As many people everywhere do, you assume that everyone suffers from the same level of inflation!
Someone without a mortgage and with minimum purchases of the items that went up the most will probably only have an inflation level around 3-4%, tops. So an interest rate of 3.5% now is definitely better.

Band7

ScarletBea said:

Nick_C said:

Many people would rather have savings losing 6pc of their value each year because of inflation than risk investing their capital.

These same people think they are better off now with interest rates at 3.5% than they were two years ago with interest rates effectively at zero.

Its a funny old world. 

As many people everywhere do, you assume that everyone suffers from the same level of inflation!
Someone without a mortgage and with minimum purchases of the items that went up the most will probably only have an inflation level around 3-4%, tops. So an interest rate of 3.5% now is definitely better.

I agree, inflation is personal . I have no mortgage and my main spending is on food, travel and heating. My inflation is way, way above the official CPI. Many items in the supermarkets went up by 20% and more. Peppers, for instance, went up 70%. 

Savings interest pales into insignificance in comparison - but has still been better over the past year than the performance of my investments.

I think very few people can presently preserve or grow their purchasing power in savings or in investments

mebu60

ScarletBea said:

Nick_C said:

Many people would rather have savings losing 6pc of their value each year because of inflation than risk investing their capital.

These same people think they are better off now with interest rates at 3.5% than they were two years ago with interest rates effectively at zero.

Its a funny old world. 

As many people everywhere do, you assume that everyone suffers from the same level of inflation!
Someone without a mortgage and with minimum purchases of the items that went up the most will probably only have an inflation level around 3-4%, tops. So an interest rate of 3.5% now is definitely better.

Unfortunately butter and cheese have rocketed in price. But being on the downward slope I am preferring higher interest rates as I have reduced my investments to about one third of my non-property wealth.

I would also say that I have no issue with discussions going a little off-topic as I find it interesting to see and understand other perspectives. I definitely have no monopoly on being right. 

SAC2334

Band7 said:

MichaelAP said:

SAC2334 said:

I LL stick to Zopa as my two years on Premium bonds was pathetic .I prefer a guaranteed £400 a month rather than £0 which I got for six months in a row .A few low " prizes ' still had me losing .

£400 per month with ZOPA? That means you must have something around £138,000 with ZOPA, which as we know is way past the £85,000 recommendations for protection.

The max interest you could currently get in Zopa for £50k (max PB holding) is just under £148 a month. May be @SAC2334 meant £400 a year?

Sorry, I have Zopa  and Shawbook and a couple of other smaller ones to make up the £400 a month. 

RG2015

Band7 said:

ScarletBea said:

Nick_C said:

Many people would rather have savings losing 6pc of their value each year because of inflation than risk investing their capital.

These same people think they are better off now with interest rates at 3.5% than they were two years ago with interest rates effectively at zero.

Its a funny old world. 

As many people everywhere do, you assume that everyone suffers from the same level of inflation!
Someone without a mortgage and with minimum purchases of the items that went up the most will probably only have an inflation level around 3-4%, tops. So an interest rate of 3.5% now is definitely better.

I agree, inflation is personal . I have no mortgage and my main spending is on food, travel and heating. My inflation is way, way above the official CPI. Many items in the supermarkets went up by 20% and more. Peppers, for instance, went up 70%. 

Savings interest pales into insignificance in comparison - but has still been better over the past year than the performance of my investments.

I think very few people can presently preserve or grow their purchasing power in savings or in investments

From April 2012 to September 2021 CPI inflation did not exceed 3.2%. It is likely that within a year it will be middling single digit.

Over this two to three year period savers will lose out to inflation and new investors will probably also lose value.

If inflation does fall to about 5% in mid 2024 the gap will be much less significant. Hence is is possible that savers will only have suffered three years of big losses. 

My view is that only those not needing access to their funds before about 2030 are likely to have been better off moving from savings to investments.

I-LOV-MONEY

Band7 said:

I agree, inflation is personal . I have no mortgage and my main spending is on food, travel and heating.

That is easily sorted.  Don't eat, don't go out and wear extra clothes !!

Nick_C

ScarletBea said:

Nick_C said:

Many people would rather have savings losing 6pc of their value each year because of inflation than risk investing their capital.

These same people think they are better off now with interest rates at 3.5% than they were two years ago with interest rates effectively at zero.

Its a funny old world. 

As many people everywhere do, you assume that everyone suffers from the same level of inflation!

I assume no such thing.