savings accounts had their day

Thrugelmir

At some time there's going to be many people who regret investing in stocks and shares. If they are expecting such investments to behave like a savings account. Volatility can be an extremely unpleasant experience.

eskbanker

Thrugelmir said:

At some time there's going to be many people who regret investing in stocks and shares. If they are expecting such investments to behave like a savings account. Volatility can be an extremely unpleasant experience.

One of those times being last March, judging by all the 'should I sell?' threads on here then, during a far-from-abnormal downturn in markets....

Old_Lifer

I can remember 1975, when  inflation was  26%  and the best building society regular saver paid 10.25%., so effectively money held in building society accounts was loosing its value rapidly.  Thankfully, we are nowhere near that situation now.

Old_Lifer

I wish my computer would learn to spell.

eskbanker

Old_Lifer said:

I can remember 1975, when  inflation was  26%  and the best building society regular saver paid 10.25%., so effectively money held in building society accounts was loosing its value rapidly.  Thankfully, we are nowhere near that situation now.

https://www.swanlowpark.co.uk/savings-interest-annual has a chart allowing a comparison between 'typical' building society savings rates and CPI between 1989 and 2019 and by their measures it's only in the last ten years of those thirty that savings have sometimes (but not always) been below inflation.

Old_Lifer said:

I wish my computer would learn to spell.

Does its operator know how to go back and edit posts if required (cogwheel at the right end of post header bar)?

jimjames

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

How quickly can you get money from premium bonds? I can transfer money from my savings account to current account today

colsten

jimjames 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

How quickly can you get money from premium bonds?

Takes at least 2 working days

Eco_Miser

Old_Lifer said:

I wish my computer would learn to spell.

I find my computer is an excellent speller, but terrible at detecting when the wrong word has been spelt correctly.

enthusiasticsaver

Savings accounts for us hold our emergency fund, a buffer to our pensions so we are not forced to sell investments if the market is erratic and money earmarked for something which will be needed in the next few years. Investments are our security for the future. Yes the savings don't pay much if any interest but it won't be in there long enough for us to worry about that. 

Thrugelmir

eskbanker said:

Thrugelmir said:

At some time there's going to be many people who regret investing in stocks and shares. If they are expecting such investments to behave like a savings account. Volatility can be an extremely unpleasant experience.

One of those times being last March, judging by all the 'should I sell?' threads on here then, during a far-from-abnormal downturn in markets....

The speedy recovery in markets appears to raised complancey that already existed to an even higher plane.