Losings Accounts

Daniel_Davis

I currently have a Cash ISA with Santander (with barely anything in it). They recently sent me a letter to inform me that the Interest Rate has been changed to 0.1%. The current monthly Retail Price Index is 1.5%. If these rates stay the same for a year then the money in the account loses 1.4% of its value. Surely all accounts with interest rates lower than inflation should be called Losing Accounts rather than Savings Accounts.

Zanderman

You're confusing 'savings' with 'earning interest on money'.  Not the same thing.
Savings are money you save.  Money you're not spending.
Savings may or may not earn interest - but it's not a requirement!  
The important thing is that savings are money that you're not spending.
You're saving it for the future.

(and btw, if you don't like Santander's 0.1% interest rate on your savings move them - there are plenty of better offers out there)

Daniel_Davis

... Yet if I leave it in the current account it gets 2.5% interest. And grows.

badger09

Daniel_Davis said:

... Yet if I leave it in the current account it gets 2.5% interest. And grows.

Which current account is paying 2.5%?

colsten

badger09 said:

Daniel_Davis said:

... Yet if I leave it in the current account it gets 2.5% interest. And grows.

Which current account is paying 2.5%?

And which one ever paid 2.5%?

Zanderman

Daniel_Davis said:

... Yet if I leave it in the current account it gets 2.5% interest. And grows.

Are you sure about that?

ffacoffipawb

colsten said:

badger09 said:

Daniel_Davis said:

... Yet if I leave it in the current account it gets 2.5% interest. And grows.

Which current account is paying 2.5%?

And which one ever paid 2.5%?

Quite a few historically, eg Santander 123 paid 3% for a few years and Club Lloyds was originally 4%.

I remember the firstdirect current account paying 9% when I opened my account in 1990 whilst at the same time the Chelsea Classic Current Account was paying an amazing 12.25%. Sadly the RPI was in double figures at the time.

Stubod

....happy days....

Zanderman

ffacoffipawb said:

colsten said:

badger09 said:

Daniel_Davis said:

... Yet if I leave it in the current account it gets 2.5% interest. And grows.

Which current account is paying 2.5%?

And which one ever paid 2.5%?

Quite a few historically, eg Santander 123 paid 3% for a few years and Club Lloyds was originally 4%.

I remember the firstdirect current account paying 9% when I opened my account in 1990 whilst at the same time the Chelsea Classic Current Account was paying an amazing 12.25%. Sadly the RPI was in double figures at the time.

None actually paying 2.5% though...