Interest rate?

quirkydeptless

FrankR wrote: »

Do any of you remember what the interest rates were like before the financial crises of 2008?
How much interest would I have got for £40,000 back then?

I was getting over 7% with Kaupthing Edge. That turned out well :eek:

Zero_Sum

I had a reg saver with halifax paying 12%

Meester_W

In 2007 I got 7% via Birmingham and Midshires BS

Robster88

quirkydeptless wrote: »

I was getting over 7% with Kaupthing Edge. That turned out well :eek:

Same. Those were the days (along as you didn't have any debt).

To answer the OPs question, if they'd had £40,000 in Kaupthing or Birmingham Midshires back in 2008 they'd be getting £2,800 a year in interest (gross).

quirkydeptless

Robster88 wrote: »

To answer the OPs question, if they'd had £40,000 in Kaupthing or Birmingham Midshires back in 2008 they'd be getting £2,800 a year in interest (gross).

And now I'm getting 0.55% with Birmingham Midshires (in an Easy Access for the Direct Debit), so £40,000 would get getting £220


P.S. I don't have £40,000 in there

chucknorris

quirkydeptless wrote: »

And now I'm getting 0.55% with Birmingham Midshires (in an Easy Access for the Direct Debit), so £40,000 would get getting £220


P.S. I don't have £40,000 in there

You should consider investing in equities, the first £2k of dividend income is tax free, followed by a 7.5% tax rate for the basic rate tax band, then 32.5% and 37.5%. So you could get more now with dividend income from equities, than you did with savings accounts back then, and if you invest for a long time, you also have the prospect of capital growth. The ftse 100 (not a recommendation, I'm only citing an index that most are aware of) is currently yielding just over 4%.

LeafGreen

I had a fixed rate ISA with Lloyds at 6.5% when the IR drops kicked in. I remember them giving me the option of being able to exit before the end of the fixed term - I politely declined their kind offer!

talexuser

quirkydeptless wrote: »

And now I'm getting 0.55% with Birmingham Midshires (in an Easy Access for the Direct Debit), so £40,000 would get getting £220

Don't worry, that loss means the bankers can continue with their million pound bonuses, after all it's the most important thing. :rotfl:

System

In the 80's I remember having a Leeds current account paying 10%.

Malthusian

talexuser wrote: »

Don't worry, that loss means the bankers can continue with their million pound bonuses, after all it's the most important thing.

Bankers were getting million pound bonuses when you could get 12% regular savers as well.

But naturally savers didn't care about that while they were getting oodles of interest transferred to them from borrowers.