7.0% actually 3.69%?

masonic

They actually tell you the maximum amount of interest you could earn if you make the maximum contribution each month.

If you think regular savers are deceptive, just wait until you see how much things cost after inflation is halved later this year. If you ask 100 people in the street, how many of them will know this means prices will continue rising, just at a slower rate?

TheBanker

I think there is a psychological effect to the high rates. I think they're designed to attract attention - they are obviously loss-leaders for the banks otherwise they wouldn't limit the amount you can deposit.

But they also encourage customers to get into the savings habit. Many years ago I used to help school leavers open their first bank account (when having a bank account as a teenager was less common than now). If they were starting work I'd encourage them to set up a regular saver. I know this helped some of them to build up savings to pay for holidays, studies, or to avoid debt when something went wrong. I also opened bank accounts for healthcare professionals who'd come to the UK from abroad to work for the NHS. Again, a regular saver was a good addition to the current account to help meet unexpected bills. 

I was always much happier selling savings accounts than credit cards (which, at the time came with PPI )

It's a win-win situation - the customer gets a good rate, the bank gets a good customer. Nothing wrong with that. 

Albermarle

masonic said:

They actually tell you the maximum amount of interest you could earn if you make the maximum contribution each month.

If you think regular savers are deceptive, just wait until you see how much things cost after inflation is halved later this year. If you ask 100 people in the street, how many of them will know this means prices will continue rising, just at a slower rate?

About 25 maybe ?

flaneurs_lobster

Albermarle said:

masonic said:

They actually tell you the maximum amount of interest you could earn if you make the maximum contribution each month.

If you think regular savers are deceptive, just wait until you see how much things cost after inflation is halved later this year. If you ask 100 people in the street, how many of them will know this means prices will continue rising, just at a slower rate?

About 25 maybe ?

Exactly 37.8444 recurring.

RG2015

TheBanker said:

I think there is a psychological effect to the high rates. I think they're designed to attract attention - they are obviously loss-leaders for the banks otherwise they wouldn't limit the amount you can deposit.

But they also encourage customers to get into the savings habit. Many years ago I used to help school leavers open their first bank account (when having a bank account as a teenager was less common than now). If they were starting work I'd encourage them to set up a regular saver. I know this helped some of them to build up savings to pay for holidays, studies, or to avoid debt when something went wrong. I also opened bank accounts for healthcare professionals who'd come to the UK from abroad to work for the NHS. Again, a regular saver was a good addition to the current account to help meet unexpected bills. 

I was always much happier selling savings accounts than credit cards (which, at the time came with PPI )

It's a win-win situation - the customer gets a good rate, the bank gets a good customer. Nothing wrong with that. 

You could actually say that the banks should be praised for offering loss leading accounts to entice people into saving when they otherwise may not have done.

Far more of a win-win than a deceptive policy.

TheBanker

RG2015 said:

TheBanker said:

I think there is a psychological effect to the high rates. I think they're designed to attract attention - they are obviously loss-leaders for the banks otherwise they wouldn't limit the amount you can deposit.

But they also encourage customers to get into the savings habit. Many years ago I used to help school leavers open their first bank account (when having a bank account as a teenager was less common than now). If they were starting work I'd encourage them to set up a regular saver. I know this helped some of them to build up savings to pay for holidays, studies, or to avoid debt when something went wrong. I also opened bank accounts for healthcare professionals who'd come to the UK from abroad to work for the NHS. Again, a regular saver was a good addition to the current account to help meet unexpected bills. 

I was always much happier selling savings accounts than credit cards (which, at the time came with PPI )

It's a win-win situation - the customer gets a good rate, the bank gets a good customer. Nothing wrong with that. 

You could actually say that the banks should be praised for offering loss leading accounts to entice people into saving when they otherwise may not have done.

Far more of a win-win than a deceptive policy.

Praise for banks? Not often that happens! On behalf of the banks I graciously accept.

cricidmuslibale

RG2015 said:

TheBanker said:

I think there is a psychological effect to the high rates. I think they're designed to attract attention - they are obviously loss-leaders for the banks otherwise they wouldn't limit the amount you can deposit.

But they also encourage customers to get into the savings habit. Many years ago I used to help school leavers open their first bank account (when having a bank account as a teenager was less common than now). If they were starting work I'd encourage them to set up a regular saver. I know this helped some of them to build up savings to pay for holidays, studies, or to avoid debt when something went wrong. I also opened bank accounts for healthcare professionals who'd come to the UK from abroad to work for the NHS. Again, a regular saver was a good addition to the current account to help meet unexpected bills. 

I was always much happier selling savings accounts than credit cards (which, at the time came with PPI )

It's a win-win situation - the customer gets a good rate, the bank gets a good customer. Nothing wrong with that. 

You could actually say that the banks should be praised for offering loss leading accounts to entice people into saving when they otherwise may not have done.

Far more of a win-win than a deceptive policy.

I agree with this very much!

I think many people who have a significant amount of savings but are not necessarily savvy savers all that often will probably be aware of 1 or 2 Regular Savings accounts, such as those offered by a big well-established bank or building society that they already have their money with. What they may not be aware of though is how many other good Regular Savers are also available for them to potentially utilise at the same time as the familiar 1 or 2 that they do know about and may well be already saving into.

If these sometimes non-savvy savers were to realise that that in total they could currently easily save £1000 and potentially a lot more each month into several Regular Savers paying at least 4% and up to 7% annual interest, then they would soon see how very beneficial indeed multiple Regular Savings accounts can be!

Bigwheels1111

Do people not read the T&C when opening accounts or savings.
It tells you how much you get.
If you don’t understand it don’t take the offer.
Or is it just me.

RG2015

TheBanker said:

RG2015 said:

TheBanker said:

I think there is a psychological effect to the high rates. I think they're designed to attract attention - they are obviously loss-leaders for the banks otherwise they wouldn't limit the amount you can deposit.

But they also encourage customers to get into the savings habit. Many years ago I used to help school leavers open their first bank account (when having a bank account as a teenager was less common than now). If they were starting work I'd encourage them to set up a regular saver. I know this helped some of them to build up savings to pay for holidays, studies, or to avoid debt when something went wrong. I also opened bank accounts for healthcare professionals who'd come to the UK from abroad to work for the NHS. Again, a regular saver was a good addition to the current account to help meet unexpected bills. 

I was always much happier selling savings accounts than credit cards (which, at the time came with PPI )

It's a win-win situation - the customer gets a good rate, the bank gets a good customer. Nothing wrong with that. 

You could actually say that the banks should be praised for offering loss leading accounts to entice people into saving when they otherwise may not have done.

Far more of a win-win than a deceptive policy.

Praise for banks? Not often that happens! On behalf of the banks I graciously accept.

Don’t let it go to your head. Before retiring, I was my company contact for our corporate bankers.

I remember visiting their head office in Bishopsgate once (before 2008). I had many conversations with the bank’s relationship manager.

I remember once commenting on the negative view the public had of bankers. The RM responded that at least they were not as unpopular as estate agents.

RG2015

cricidmuslibale said:

RG2015 said:

TheBanker said:

I think there is a psychological effect to the high rates. I think they're designed to attract attention - they are obviously loss-leaders for the banks otherwise they wouldn't limit the amount you can deposit.

But they also encourage customers to get into the savings habit. Many years ago I used to help school leavers open their first bank account (when having a bank account as a teenager was less common than now). If they were starting work I'd encourage them to set up a regular saver. I know this helped some of them to build up savings to pay for holidays, studies, or to avoid debt when something went wrong. I also opened bank accounts for healthcare professionals who'd come to the UK from abroad to work for the NHS. Again, a regular saver was a good addition to the current account to help meet unexpected bills. 

I was always much happier selling savings accounts than credit cards (which, at the time came with PPI )

It's a win-win situation - the customer gets a good rate, the bank gets a good customer. Nothing wrong with that. 

You could actually say that the banks should be praised for offering loss leading accounts to entice people into saving when they otherwise may not have done.

Far more of a win-win than a deceptive policy.

I agree with this very much!

I think many people who have a significant amount of savings but are not necessarily savvy savers all that often will probably be aware of 1 or 2 Regular Savings accounts, such as those offered by a big well-established bank or building society that they already have their money with. What they may not be aware of though is how many other good Regular Savers are also available for them to potentially utilise at the same time as the familiar 1 or 2 that they do know about and may well be already saving into.

If these sometimes non-savvy savers were to realise that that in total they could currently easily save £1000 and potentially a lot more each month into several Regular Savers paying at least 4% and up to 7% annual interest, then they would soon see how very beneficial indeed multiple Regular Savings accounts can be!

Yes, but dare I say that it is those at the lower end of the financial spectrum that could benefit the most.

A few years ago I was discussing poor savings rates with a bank employee. He claimed that their focus was not on the rate but getting people into the savings habit.

Clearly though this is double edged as it is equally as easy to succumb to possibly inappropriate credit offers.

How many fall into unnecessary debt following an initial interest free credit card offer?