I've got £100,000 cash savings in my current account | Is Skipton Base-rate Savings the 1# choice?

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  • AmityNeon
    AmityNeon Posts: 897 Forumite
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    boingy said:
    They just want to put it into a savings account at the same bank that has the current account. 
    There's a big difference between that versus keeping £100K in a current account because one likes to see the balance at the ATM.
  • boingy
    boingy Posts: 1,330 Forumite
    First Post Name Dropper
    AmityNeon said:
    boingy said:
    They just want to put it into a savings account at the same bank that has the current account. 
    There's a big difference between that versus keeping £100K in a current account because one likes to see the balance at the ATM.
    It's just two aspects of "got enough money".
  • boingy said:
    This sort of thing is bound to cause a few ripples on this savings forum but it's more common than you think. Anyone earning significantly more than they spend will quickly accumulate extra cash in the account that receives their salary, which will just sit there unless they are proactive and keep moving it into savings or whatever. And, here's the thing. If you are in the happy position of not needing to watch every penny of expenditure it's easy to become less interested in your account balance.

    If you want an example, go back six months and look at the balance in my wife's account. If you want a second example do the same with my friend's wife's account. Neither were approaching 100k but one of them was a third of the way there, the other was well into 5 figures. Both are now sorted and earning 4% or 5% but, get this, the reaction of both was not embarrassment or thanks. It was "Aw, I hate dealing with money things and you just made me deal with money things". And the reason those sums are not earning 5.22% or more is because neither lady is interested in playing the savings game. They just want to put it into a savings account at the same bank that has the current account. 

    So it's just not a big priority for some people, as much as that offends the forum!
    You've accurately described my wife's attitude to savings :D.  She says it hurts her brain to have more than one bank account.  She now has savings in three Santander accounts (7%x2 and 5.20%), Tandem and Chase, but it was very hard work and thankless task to get most of her money to earn interest. 
  • boingy said:
    AmityNeon said:
    boingy said:

    They just want to put it into a savings account at the same bank that has the current account.

    There's a big difference between that versus keeping £100K in a current account because one likes to see the balance at the ATM.

    It's just two aspects of "got enough money".

    Your example was specific to being less interested in one's account balance due to having enough money and disliking dealing with money matters, which is perfectly understandable, but in direct contrast to the experience described here, where gratification is derived specifically from seeing a high balance at the cash point. The scenarios may share degrees of indifference and/or aversion towards managing personal finance resulting in similar inertia, though their underlying motivations and complacency are diametrically opposed.

    I can certainly appreciate the perspective of enjoying regularly seeing a large cash balance of savings whilst income from full time work covers everyday expenses, but notwithstanding being a rate tart, I'm far too risk averse to leave such a large sum in an account that's directly accessible with a debit card at a cash point (especially if I were saving for a mortgage deposit.)

  • Stubod said:
    ...on the plus side...look at all the tax you have saved by not getting any interest......

    I personally don't do self-assessment... ect  ;)


    The stance that I've always taken is quite simply:
    ''The tax-man leaves me alone | So I'll leave the tax-man alone''.


    I do get that some people may have ''moral views'' on this...
    But for me personally, this is just the pathway I've always taken.

    *Especially as given how extremely short-staffed the ''tax-evasion investigation department'' is, the only limited select-few cases they have the actual resources to investigate & pursue are: Cases which have a large enough £££-evaded to make it worthwhile them even looking into (+) That actually get flagged-up onto their radar.

    (They simply don't have the time / budget / nor resources to look into the millions of UK citizens who even are on the self-assessment system :: Let alone unknown individuals who've never even been on the self-assessment system to start with)
  • I was quite shocked to read this, and find it hard to understand how the OP was unaware how all the base rate raises would have associated benefits for savers.

    I was under the impression banks had been told to make customers aware of possible better interest paying accounts. I don't know if this was just advice from the gov't or mandatory, but it might be worth making a complaint to Barclays for falling short in this respect.

    I understand some of the comments here, as it seems an alien concept that this money sat in a current account for so long, but this thread certainly has no amusement value for me.

    Tbh I don't really ever ''interact with my bank''.

    I've got my debit-card, and so when I want to spend money, I just use my card.
    (I can't even remember the last-time I used an ATM / Let alone spoke to a bank via the phone)

    I was always simply under the impression that interest-rates linked to bank accounts were only payable on the first £1,000 - £2,500 balance | Thus would literally be merely a few pence per month.


    And this money has only been in my account for approx 6-months now tbh.
    (It came as the 2nd part of an inheritance payout)

  • Anonymous868
    Anonymous868 Posts: 53 Forumite
    First Anniversary First Post
    edited 8 December 2023 at 9:49PM
    I was quite shocked to read this, and find it hard to understand how the OP was unaware how all the base rate raises would have associated benefits for savers.

    I was under the impression banks had been told to make customers aware of possible better interest paying accounts. I don't know if this was just advice from the gov't or mandatory, but it might be worth making a complaint to Barclays for falling short in this respect.

    I understand some of the comments here, as it seems an alien concept that this money sat in a current account for so long, but this thread certainly has no amusement value for me.
    It was not just that the  OP was unaware of increasing interest rates, but was also labouring under some total misunderstanding about how savings accounts worked. They thought interest was only gained on the first £1000 or £2000. I think some current accounts that pay interest do work like this, so that is probably where the misunderstanding has come from .

    I've (unfortunately) never before in my life had the £££ resources to warrant the luxury of using ''a savings account''.  :)

    For the past 15+ years I just earned my salary (paid into my current account) | Used that to pay my day-to-day living expenses & bills | And the few hundred quid that I had left over at the end of some months, just sat in my bank account, to build-up my bank-balance as much as possible.

    (Thus the only type of ''bank account interest-rate info'' which I ever encountered was the one attached to current accounts)
  • eskbanker
    eskbanker Posts: 30,939 Forumite
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    Anonymous868 said:
    I personally don't do self-assessment... ect  

    The stance that I've always taken is quite simply:
    ''The tax-man leaves me alone | So I'll leave the tax-man alone''.

    I do get that some people may have ''moral views'' on this...
    But for me personally, this is just the pathway I've always taken.
    Some people may also have the view that it's absolute 100% weapons-grade bovine excrement!

    Just in case you were seriously under the impression that there's any correlation between being liable to pay tax and self-assessing, if you earn enough savings interest to generate a tax liability then HMRC will simply adjust your PAYE tax code to recover that - no self-assessment (or any discussion/action) needed!
  • All this comes down to your own personal circumstances. Life experiences.
    Have you always had enough money each week, month etc for bills and anything else you require.
    If so blinkers on and forward you go.
    Then you have my dad, worked hard did deals, sold cars or anything else he could. Arthur Daily.
    Good with money and savings, but would and will only use the big high street banks. 
    Thus missing out on better rates, as he wants a building, branch etc to walk into.
    Now my situation. 
    Sold my house, live with friend who I care for 24/7.
    Earn 4k a year carers allowance, Need to make the most of every penny I have.
    Chase the best rates available.
    I got the best 5 & 7 year fixed rates I could.
    An isa or two for cheap access to emergency fund, low withdrawal penalty.
    Regular savers at 8,7.5,7,7,7 and 6%.
    Easy access accounts to keep the regular savers money in until the day before it due.
    Plus switching bank accounts for bonuses.
    Anything and everything I can to squeeze a few pounds more from my money.
    Be it rates, cashback, insurance, cheapest fuel, free road tax, free dartford crossing, M6 toll road £7 a year, Congestion charge £10 for 3 years etc. Car registered as disabled.
    Every hack possible to squeeze my funds like an orange.
    Needs must.
    But what do I know.
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