savings accounts had their day

Mick70

Are savings accounts a waste of time nowadays and stocks/shares ISA accounts more appropriate ?
what are posters thoughts ?  do many still have large amounts in traditional bank savings accounts and are you concerned that their value is just being eroded away slowly ?

mick

Alexland

Mick70 said:

Are savings accounts a waste of time nowadays and stocks/shares ISA accounts more appropriate ?

"appropriate" adjective = suitable or proper in the circumstances.

So it depends on your circumstances as to if savings and/or investing is suitable.

In terms of tax wrappers there's more than just S&S ISAs again depends on circumstances.

Prism

Savings accounts serve pretty much the same purpose they always did. They may not pay much interest at the moment although I still have a couple (fixed) paying 2%+. Savings accounts pay for now and soon. Stocks and shares are for the future.

MaxiRobriguez

At least you've got the London olympic games to look forward to Mick!

snooloui

No I don’t think so. Savings accounts are for savings and investment accounts are for investments. There is no real alternative if you want to keep an emergency fund for example.

csgohan4

snooloui said:

No I don’t think so. Savings accounts are for savings and investment accounts are for investments. There is no real alternative if you want to keep an emergency fund for example.

Premium bonds are a good shout for an alternative to park money, instead of a savings account

snooloui

csgohan4 said:

snooloui said:

No I don’t think so. Savings accounts are for savings and investment accounts are for investments. There is no real alternative if you want to keep an emergency fund for example.

Premium bonds are a good shout for an alternative to park money, instead of a savings account

Fair point but ultimately not much different from a savings account unless you have extraordinary luck.

csgohan4

snooloui said:

csgohan4 said:

snooloui said:

No I don’t think so. Savings accounts are for savings and investment accounts are for investments. There is no real alternative if you want to keep an emergency fund for example.

Premium bonds are a good shout for an alternative to park money, instead of a savings account

Fair point but ultimately not much different from a savings account unless you have extraordinary luck.

Personal preference, if you feel lucky, otherwise alot of savings accounts are less than 50% interest on average winning's of PB

verybigchris

Savings accounts and S&S ISAs are completely different things that serve completely different purposes.
Rates falling from 1.5% to 0.5% is not by itself a valid reason to move cash to volatile/risky investments.

Eco_Miser

Investments are inappropriate for money that you intend to spend in the next five to ten years. I'd rather have a guarantee that the nominal amount won't be lost, even though its value is eroding at maybe 2% pa (less at the moment), than find out the nominal value has halved in a month.

Of course, so long as you can afford to wait for the recovery after such events, well-chosen diversified investments usually bring much better returns, and speculative investments may bring massive returns, though at the risk of massive losses.

grumiofoundation

Mick70 said:

Are savings accounts a waste of time nowadays and stocks/shares ISA accounts more appropriate ?
what are posters thoughts ?  do many still have large amounts in traditional bank savings accounts and are you concerned that their value is just being eroded away slowly ?

mick

Anyone concerned today that their savings is being eroded away should have been concerned a year ago, and the year before that..

As an earlier poster said rates dropping from ~1.5% to 0.5% is not a reason in itself to risk capital.