Cash savings-nowhere to go ?

C_Mababejive

With the recent emergency cut in the BOE base rate, Banks and BS have been quick to slash savings rates to the bone almost to zero. Meanwhile they are cranking up mortgage rates. Its all about profits of course. This leaves many cash savers with nowhere else to go. 
Many may feel its too early/too risky to push big amounts of money into investments, others may take a contrarian view and think its just the right time.
NS&I say that want to "help" savers so have not cut their rates. How long will that last for? 

As the current situation is slightly unstable, i have moved a lot of money from banks and BS to NS&I, the ultimate guarantee. 

Maybe its time to invest in gilt/bond funds again as it would seem that there will be a lot of debt to be schduled after this pandemic and at least you will get a better return than pure cash?

ratechaser

It's come to something when I'm actually considering getting into Premium Bonds...

Even the hard core of regular savers on this board must be seriously wondering if it's worth the effort any more. When I had time to kill and there were plenty of options at 3%+ I dipped my toe as well, but life's too short right now scratching around to recycle small sums into a myriad sub 2% accounts...  

Zanderman

Agree it's very frustrating if you need access to money.  There are still many accounts offering 1.2 to 1.5% though most of the better rates have a lock in, obviously.

But if you can tolerate 1.45% - which isn't too bad (never thought I'd say that!) the (identical) Saga and Marcus 1 year fixed at 1.45% savers are worth a look as they can be closed prematurely with a loss of 90 days interest, so you don't have to leave the cash there 12 months.  You have to completely close the account though to get it early.  Which sounds draconian, unless you have multiple accounts - which is a possibility if you're a couple - see my comment on the Marcus thread here:  https://forums.moneysavingexpert.com/discussion/comment/77100616/#Comment_77100616 

Flim

..yes tough time for savers, I have spent the last few days opening new accounts, transferring money and closing accounts. I had some money in Coventry which I have now closed along with 4 Santander accounts. I have replaced them with a couple of Lloyd’s accounts, a Marcus 1 yr saver and NSI income account. Already have Premium Bonds which seem like one of the better accounts now! Very much fighting over scraps really and does not seem much point in loads of hassle when it only makes a few 0.1 percent difference. I was drawing down our S&S ISAs but have now put this on hold until (if), things improve and will not be putting any more money into S&S..

Thrugelmir

C_Mababejive said:

With the recent emergency cut in the BOE base rate, Banks and BS have been quick to slash savings rates to the bone almost to zero. Meanwhile they are cranking up mortgage rates. Its all about profits of course.

With the housing market stalled , there's little demand for mortgages. With the majority of mortgages being on repayment terms this means that cash is also being returned. Lenders have to build and maintain reserves against deliquent loans. To do so profit has to be made.