The Top Easy Access Savings Discussion Area

Bridlington1

One of the top easy access accounts currently available is the Chip instant access account at 3.55%. This pays less than the CPI measure of inflation. 

Right, there's your proof, the effect of inflation on savings is related to the top easy access accounts.

Zaul22

You could always lend your money to your mate Steve and ask him for an extra 10% back. Assuming he's reliable that 10% easy access interest rate. Bosh! 

ToastLady

Zaul22 said:

You could always lend your money to your mate Steve and ask him for an extra 10% back. Assuming he's reliable that 10% easy access interest rate. Bosh! 

You got me totally confused here.

Bridlington1

ToastLady said:

Zaul22 said:

You could always lend your money to your mate Steve and ask him for an extra 10% back. Assuming he's reliable that 10% easy access interest rate. Bosh! 

You got me totally confused here.

I think it's in reference to this thread:
https://forums.moneysavingexpert.com/discussion/6437970/my-very-ambitious-way-to-get-60k-in-48-months#latest

BooJewels

I've been thinking about personal inflation myself recently and for me, I'm not experiencing some of the increases that others in different circumstances will be - and for me, many of the things that have noticeably increased in price are things I can simply choose not to buy if the price is unacceptable.  Whereas, if you have a mortgage or other significant borrowing, you'll really be feeling the pinch from things you just can't avoid.  I can remember early in my married life when the mortgage rate rose to something like 14% and we were lucky to even keep our home.  

At the moment, I'm earning significantly more in monthly interest than I'm having to pay out in increases in prices, even allowing for high fuel bills and a 53% increase in the price of Brie - so on balance, I think I'm okay with that.

Nick_C

... but of course your savings are now losing significant value.  Your interest is no different really to drawing on your capital when inflation was near zero. 

Stargunner

Nick_C said:

... but of course your savings are now losing significant value.  Your interest is no different really to drawing on your capital when inflation was near zero. 

How about if someone has £100k in savings and spends around £20k a year. Last year they may of  got around 1% (£1k) interest on their savings. This year their spending has gone up to £22000 due to inflation of 10%, but they are now getting 4% (£4k} on their savings. Are they better or worse off?

RG2015

I'm sure I started a thread a few years back to compare the merits and demerits of saving versus investing.

I would bump it if I thought there was any chance of keeping all of these comments, not to mention the petty bickering, off this thread.

Edit: I have just searched and found that I have actually started five threads on this topic between 2017 and 2022!

Zaul22

Bridlington1 said:

ToastLady said:

Zaul22 said:

You could always lend your money to your mate Steve and ask him for an extra 10% back. Assuming he's reliable that 10% easy access interest rate. Bosh! 

You got me totally confused here.

I think it's in reference to this thread:
https://forums.moneysavingexpert.com/discussion/6437970/my-very-ambitious-way-to-get-60k-in-48-months#latest

No it was just about the people complaining a banking thread had gone off topic on a bank holiday. 

Actually I should have said Dave, there is a documentary on Netflix called 'The bank of Dave'.

OceanSound

Stargunner said:

Nick_C said:

... but of course your savings are now losing significant value.  Your interest is no different really to drawing on your capital when inflation was near zero. 

How about if someone has £100k in savings and spends around £20k a year. Last year they may of  got around 1% (£1k) interest on their savings. This year their spending has gone up to £22000 due to inflation of 10%, but they are now getting 4% (£4k} on their savings. Are they better or worse off?

Isn't the 10% inflation rate the general inflation rate?

The rate to do with food is higher at 16.8%;

'Annual food and non-alcoholic drink Consumer Price Inflation including owner occupiers housing costs (CPIH) was 16.8% in January 2023, ...'

Source: 
https://www.ons.gov.uk/economy/inflationandpriceindices/articles/recenttrendsinukfoodanddrinkproducerandconsumerprices/january2023#:~:text=UK food prices are rising,from December 2022 (16.9%).

If peppers went up 70% and brie 53%, can't imagine food inflation staying at 10%, even if those items aren't everyday items. 

So, in your example, that someone would actually see thiers spending gone up to £23,360 (not £22,000).

Btw, which bank or Fintech pays 4.0% interest for easy access savers? Someone mentioned in a recent previous post that the highest rate is  offered by CHIP. I don't recall the rate mentioned as 4.0%.