Savings Week

clairec666

The main point of savings week is to encourage people to save, and YBS have released a nice little account which is great for people who have a little extra money to put away each month.

I haven't seen Savings Week publicised anywhere, which is a shame. As I said previously, I think a lot of people would benefit from some help in understanding interest, tax, inflation, and so forth. I really believe that needs to start in school, and it's hard to reach people after they've left the education system.

Section62

TheWoodler said:

I *am* surprised at the response and sorry to see experienced posters making jokes at Savings Week’s expense. 

It’s really left a sour taste in my mouth with the expectation that top rates would be on offer, rather than savvy MSErs being behind the concept of financial education.

 ...

People are different.  Some people learn better by doing than being lectured at.

If the banks and building societies limit themselves to providing 'education' in the form of telling people they should save more then part of their audience won't be learning.  Providing accounts with decent - or better still eye-catching - interest rates should be seen as part of the 'education' process.  I.e. not "do this because we are telling you to" but rather "do this because you will be better off".

Cynicism is one of the barriers to people becoming more financially aware.  Banks telling people they should save more is not as effective as it could be if they content themselves with offering dire interest rates which simply feeds the cynicism that banks (and some building societies) are only in it for themselves.

Judge by actions, not words.

subjecttocontract

Well I take a different view to 'TheWoodler'. I am surprised that there are people who think Savings Week is a success by providing education and financial awareness to those that need it.....It has not. Savings Week has been a total failure in that respect with little to no advertising or marketing. I've seen nothing anywhere except on this forum and it would seem that many financial institutions have chosen to ignore it completely, which is exactly what I will do going forward. Unlike others, I do however respect your right to hold your views ......I just don't agree with them.

Digital_Payback

TheWoodler said:

The way some people have sneered at eg YBS’ 6% £50 saver - others can only dream of putting £50 away per month. It might be riches to some. Think on. 

Well put, and I wholeheartedly agree with you. 

Savings Week may be of an educational benefit to some folk, a little, but many who would love to save find they really can’t do so due to a lack of surplus funds. 

Those who have the money to save generally already know how to make the best of it in savings or investments. For them, no education in Savings Week is needed. 

But I don’t think we can really expect financial institutions to help us make money. That’s what they want to do for themselves, while paying as little as they can to depositors. That’s their business. 

Deposited money in, paying as low an interest rate as possible, loaned money out at a very much higher interest rate. That’s the business of banking. 

Section62

Digital_Payback said:

TheWoodler said:

The way some people have sneered at eg YBS’ 6% £50 saver - others can only dream of putting £50 away per month. It might be riches to some. Think on. 

Well put, and I wholeheartedly agree with you. 

Savings Week may be of an educational benefit to some folk, a little, but many who would love to save find they really can’t do so due to a lack of surplus funds. 

...

So really that would be for "debt management week" or "budgeting week" then?

Justified criticsm of the YBS offering is about the interest rate - there are plenty of accounts around paying more than 6%.  If someone can only manage to save a few pounds a month they would still be better off with one of the options paying a higher rate of interest.  Selling a 6%/£50 account as something special for savings week is exactly what I was getting at about cynicism.

masonic

Digital_Payback said:

TheWoodler said:

The way some people have sneered at eg YBS’ 6% £50 saver - others can only dream of putting £50 away per month. It might be riches to some. Think on. 

Well put, and I wholeheartedly agree with you. 

Savings Week may be of an educational benefit to some folk, a little, but many who would love to save find they really can’t do so due to a lack of surplus funds. 

Those who have the money to save generally already know how to make the best of it in savings or investments. For them, no education in Savings Week is needed. 

But I don’t think we can really expect financial institutions to help us make money. That’s what they want to do for themselves, while paying as little as they can to depositors. That’s their business. 

Deposited money in, paying as low an interest rate as possible, loaned money out at a very much higher interest rate. That’s the business of banking. 

It's clear from countless threads started here that there are those with money to save, or those who have come into some money, that really don't know how to make the best of it. It's a very common scenario for people to come into some money later in life and need to make it last. Or those whose life circumstances improve, leaving them in unfamiliar territory. Being custodian of a larger sum of money shouldn't make one unworthy of help (and by that I don't mean they should feel entitled to some juicy savings product being launched on a particular week of the year).

I do agree with you that financial institutions, including some in the list of Savings Week supporters, engage in practices designed to pay as little as they can to their depositors, but I'd be hesitant to tar all with the same brush, as I think some are better at doing right by their customers.

If someone has up to £50 per month to save, then the YBS product has a rate that isn't derisory, but it can be beaten elsewhere, so actually it is a product best suited to those who are already making full use of all those better products and still have more they can save.