The Top Easy Access Savings Discussion Area

Stargunner

OceanSound said:

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%.

The person wouldn’t be spending all of the £20k per annum solely on food, it is their total annual spend of everything including all their bills.

Why does the money have to be in easy access. It could be in fixed ISA’s earning 4% and regular savers earning up to 7%

pecunianonolet

OceanSound said:

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%.

Sparkling water at Lidl went from 0.17 per 2l bottle to 0.37 and that's almost 118% in case somebody cares. 

BooJewels

In my own example, my monthly paid interest (from a mix of EA, ISA and different length fixes) pays out about 8 times more than the increase in my monthly outgoings, so for me - at the moment - interest is significantly more than my own personal cost of living increase.  I would imagine however that there are many more people for whom the opposite is true.  In fact, I pretty much covered the increased costs of food by negotiating a much better renewal on my home insurance and paying it annually instead of monthly.  It will largely come down to just how much savings you have versus how much you can live on and what you spend it on.  I've got decent savings and live quite cheaply.

Stargunner

BooJewels said:

In my own example, my monthly paid interest (from a mix of EA, ISA and different length fixes) pays out about 8 times more than the increase in my monthly outgoings, so for me - at the moment - interest is significantly more than my own personal cost of living increase.  I would imagine however that there are many more people for whom the opposite is true.  In fact, I pretty much covered the increased costs of food by negotiating a much better renewal on my home insurance and paying it annually instead of monthly.  It will largely come down to just how much savings you have versus how much you can live on and what you spend it on.  I've got decent savings and live quite cheaply.

It is the same for me due to having quite a lot of savings and no mortgage. I think people with a mortgage and little or no savings are the ones that the high inflation is really hurting. 

BooJewels

Indeed @Stargunner - any kind of borrowing at the moment is going to be expensive - I luckily don't have anything I owe these days and own my own house, so I'm on the right end of it for a change.  Spent a lot of years where the converse were true too.  A handful of years ago my mortgage payments alone were more than I live off for a month now.

patpalloon

Shawbrook website was down yesterday as they were 'making improvements to their log in process'. Still looks the same to me.

Interest payment they made on 6th still not received - should arrive today.

Meanwhile tandem interest applied today and appeared instantly in my linked account .

n3ophyte

Stargunner said:

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?

Worse off. Their £100k in savings is now only worth £90k and won’t recover.

4justice2

Just had email from Ford Money, gone up to 3.22% annual, 3.17% monthly interest from today 11.4.23.

InvesterJones

Ford have increased their easy access to a slightly less uncompetitive 3.22% AER, still outside the top charts though.

https://www.fordmoney.co.uk/savings-products/flexible-saver

OceanSound

RG2015 said:

OceanSound said:

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%.

Probably fixed or regular, not easy access.

Why would you expect this thread to be limited to easy access accounts?

Because the thread is about easy access savings accounts!

If the forumite wants to refer to other types of savings accounts it would be useful to state them specifically. If he/she/they mean fixed or regular I would've presumed a rate higher than 4.0% is attainable. 

I realise the above isn't beneficial to 'winning'  my case, but then again I've no interest in doing so - only that everyone using the forum wins.

Stargunner said:

OceanSound said:

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%.

The person wouldn’t be spending all of the £20k per annum solely on food, it is their total annual spend of everything including all their bills.

Why does the money have to be in easy access. It could be in fixed ISA’s earning 4% and regular savers earning up to 7%

I take your point about not speeding all of the 20k per annum on food. It would be a subset of that amount. e.g. 7k for which the 16.8% inflation rate would apply. 

Why does the money have to be in easy access. It could be in fixed ISA’s earning 4% and regular savers earning up to 7%

Same response as for the other quoted reply in this post.