What is the actual point in savings account interest?

Anakah6

From what I've seen, you'll get 1% if you're lucky.


For anyone who can afford to maintain £10000 in a savings account, an extra £100 a year is pretty inconsequential, no?

Grumpy_chap

Anakah6 said:

From what I've seen, you'll get 1% if you're lucky.


For anyone who can afford to maintain £10000 in a savings account, an extra £100 a year is pretty inconsequential, no?

Better than not having an extra £100.

Savings rates are always lower than borrowing rates because that margin is how the lenders cover their costs and generate profit.

Stubod

...yes you are right, far better to keep it under the mattress and get nothing..?

GeoffTF

Anakah6 said:

From what I've seen, you'll get 1% if you're lucky.


For anyone who can afford to maintain £10000 in a savings account, an extra £100 a year is pretty inconsequential, no?

It is 2.2% for 5 years currently. That is £22K on every £million. That is more than my mattress pays.

Anakah6

Stubod said:

...yes you are right, far better to keep it under the mattress and get nothing..?

At least the mattress isn't gonna make a dumbass investment decision and go bust. 

[Deleted User]

Hi,

£100 in my wee local pub buys me 33 pints,

or pays a months council tax,

or pays a months electricity/gas.

jimjames

Anakah6 said:

Stubod said:

...yes you are right, far better to keep it under the mattress and get nothing..?

At least the mattress isn't gonna make a dumbass investment decision and go bust. 

At least if the bank gets robbed or goes bust you don't lose your money.

grumiofoundation

Anakah6 said:

From what I've seen, you'll get 1% if you're lucky.


For anyone who can afford to maintain £10000 in a savings account, an extra £100 a year is pretty inconsequential, no?

Well what is the alternative? 

Put it in a savings account paying 0%? Keep it in cash at home?

Anakah6 said:

Stubod said:

...yes you are right, far better to keep it under the mattress and get nothing..?

At least the mattress isn't gonna make a dumbass investment decision and go bust. 

The money in a savings account isn't going to make a "dumbass investment decision" and if it goes bust you will be protected by the FSCS.

[Deleted User]

Tackkers said:

frugalmacdugal said:

Hi,

£100 in my wee local pub buys me 33 pints,

or pays a months council tax,

or pays a months electricity/gas.

Seriously?

Hi,

yup, home alone.

grumiofoundation

Tackkers said:

So am I, mines far more than that even with the 25% reduction, presumably property is cheaper in Scotland?

Because council tax is set by local authority this means across the UK council tax and property price do not have a direct linear relationship.

Thrugelmir

Anakah6 said:

From what I've seen, you'll get 1% if you're lucky.


For anyone who can afford to maintain £10000 in a savings account, an extra £100 a year is pretty inconsequential, no?

It's a £100 more than you would have had if you did nothing at all. With energy costs rising it's a contribution.