Savings ... chasing the piddly rates.....

ratechaser

It's almost like the only reason the markets are climbing is because people think they have nowhere else to put their money right now...

DireEmblem

To me, emergency funds or short term savings need to be kept in easy access accounts.  Unfortunately I believe the interest rates have not kept up with inflation, which means that even once you have saved up an 'emergency fund', you would need to top it up periodically, as its not working productively to you.

The solution could be 5 months funds in an easy access cash account, and a months worth in a cheap global tracker fund, but not without its risks.

My emergency fund is now down to 1%.

Reg_Smeeton

My strategy is to hold my emergency fund and short term savings in regular saver accounts with staggered maturity dates, as many as I can afford to max out. I’m currently averaging a bit over 2.5% so it is still possible to comfortably beat inflation, with the only effort required being to open a new account every few months, I don’t think that’s too onerous considering most can be done online these days, some are as simple as “one click”...

That said there’s nothing wrong with looking at alternative strategies. I’ll make more from cashback this year than savings interest (I’m by no means a great spender but there’s been some cracking offers lately). Matched betting is a bit more work, but I’m more than  happy to average a £100 monthly return on a £500 bankroll for the effort involved.

Newly_retired

You will find on renewal that your regular savers are no longer paying 2.5% or anywhere like it. 

Reg_Smeeton

Newly_retired said:

You will find on renewal that your regular savers are no longer paying 2.5% or anywhere like it. 

I'm fully aware that rates are dropping across the board but there are still a number of 2.75% fixed regular savers available. For how much longer is anyones guess, but in my view it's still not all doom and gloom for cash savers yet...

talexuser

Quite a turnaround from just a couple of years ago when I had a dozen or more bank accounts, all with good rates. Now the 2 TSBs will be dumped early next year when the Monthly Saver ends, the single remaining Santander lite is just about worth it for the cashback, the Halifax and Coventry regular savers end early next year, Nationwide no longer worth it just to churn minimum deposits with no monthly anymore.The Halifax current will be worth it for 5k as a running fund, and the rest in Marcus hardly worth moving for an extra couple of pounds a year since they seem to hover around top of the table while others reduce. And we have the tax rises to cope with the deficit to come!

JustAnotherSaver

I'm off work soon and will be using some of the time to run through the accounts I manage and put the shutters on the post office accounts triggering direct debits for starters. Things will get streamlined right down which should make my life easier. I'm not spending a load of time scratting around for 10p.

Black_Cat2

JustAnotherSaver said:

I'm off work soon and will be using some of the time to run through the accounts I manage and put the shutters on the post office accounts triggering direct debits for starters. Things will get streamlined right down which should make my life easier. I'm not spending a load of time scratting around for 10p.

I remember when 10p got you 20 half pence sweets, oh the good old days!  White mice, fruit salads, licorice string.  Oh I miss the 1/2p coin 😸

mjv1986

Surely setting up a DD into a Regular saver at say 2.75% is not a lot of effort to be honest. OK, not for the people with loads of Money, but you're going to get £40-50 interest a year.

But yes premiums bonds is good for a "gamble" without losing any capital. Their rates are still fairly low now as well.

JustAnotherSaver

Black_Cat2 said:

JustAnotherSaver said:

I'm off work soon and will be using some of the time to run through the accounts I manage and put the shutters on the post office accounts triggering direct debits for starters. Things will get streamlined right down which should make my life easier. I'm not spending a load of time scratting around for 10p.

I remember when 10p got you 20 half pence sweets, oh the good old days!  White mice, fruit salads, licorice string.  Oh I miss the 1/2p coin 😸

And when Curly Wurly's were longer than your little finger