The Top Easy Access Savings Discussion Area

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. 

OceanSound

n3ophyte said:

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.

How did you work this out?

I used this online tool:

https://www.rl360.com/row/tools/inflation-calculator.htm?Currency=0&AmtSaved=100000.00&YrsToKeep=1&InflRate=9&Calculate=Recalculate

Put 9.0% for the 'Please estimate the expected yearly inflation over this period.' question. Result was:  £91,743.12. I think it should be around £90k if 10.0% was selected but I couldn't select it as 9.0% is the highest we can choose from the drop down menu.i.e. 10.0% isn't even on the list!

jak22

Please please go make a chat or opinion sharing thread - posters here arent necessarily experts in economics so there's no benefit gained by reading these posts despite the repeated attempts at justification. Rate updates are factual information being shared, and sharing actual experiences when opening and operating these accounts have value here and they're not covered in the no chat thread. 

Band7

jak22 said:

Please please go make a chat or opinion sharing thread - posters here arent necessarily experts in economics so there's no benefit gained by reading these posts despite the repeated attempts at justification. Rate updates are factual information being shared, and sharing actual experiences when opening and operating these accounts have value here and they're not covered in the no chat thread. 

Go ahead, ask your questions about opening and operating a given account(s).

flobbalobbalob

Tandem Bank. If someone knows your phone number and email... What prevents them from phoning Tandem to claim the phone is lost and to change the phone number to gain access to your account? Thanks

ForumUser7

flobbalobbalob said:

Tandem Bank. If someone knows your phone number and email... What prevents them from phoning Tandem to claim the phone is lost and to change the phone number to gain access to your account? 

Are there not any kind of security questions? Or a mobile app PIN? I suppose with most providers if there were not, that would be problematic, because you would just need to know name and DOB and address etc.

OceanSound

jak22 said:

Please please go make a chat or opinion sharing thread - posters here arent necessarily experts in economics so there's no benefit gained by reading these posts despite the repeated attempts at justification. Rate updates are factual information being shared, and sharing actual experiences when opening and operating these accounts have value here and they're not covered in the no chat thread. 

This post from a few posts ago is relevant (if you want to establish if talking about inflation on this thread is of value):

https://forums.moneysavingexpert.com/discussion/comment/79981339/#Comment_79981339

The effect of inflation on savings is a perfectly valid topic to discuss in this thread IMO.

I think you will see that a few forumites felt it WAS of value. You may feel that it does not benefit you, however, others may not agree with your opinion.

phillw

flobbalobbalob said:

Tandem Bank. If someone knows your phone number and email... What prevents them from phoning Tandem to claim the phone is lost and to change the phone number to gain access to your account? Thanks

I'd expect as part of the recovery process, you'd get a text message & email from tandem informing you.

In general though, if you lose your phone then you will be able to get another phone and a replacement sim with the same number.

Band7

phillw said:

flobbalobbalob said:

Tandem Bank. If someone knows your phone number and email... What prevents them from phoning Tandem to claim the phone is lost and to change the phone number to gain access to your account? Thanks

I'd expect as part of the recovery process, you'd get a text message & email from tandem informing you.

In general though, if you lose your phone then you will be able to get another phone and a replacement sim with the same number.

Even if a fraudster manages to take all the security hurdles, they could still only transfer money out of Tandem into an account in your name.