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  • FIRST POST
    • MSE Guy
    • By MSE Guy 8th Sep 09, 2:30 PM
    • 1,628Posts
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    MSE Guy
    MSE News: Millions of savers earn sub 1% interest
    • #1
    • 8th Sep 09, 2:30 PM
    MSE News: Millions of savers earn sub 1% interest 8th Sep 09 at 2:30 PM
    This is the discussion thread for the following MSE News Story:

    "Savers can earn over ten times the current Base Rate but huge numbers are still stuck in decrepit accounts paying paltry returns. In some cases, savers are earning no interest whatsoever.

    This highlights the need to ditch your dinosaur account and switch to a top-payer ..."



    Last edited by MSE Guy; 08-09-2009 at 3:07 PM.
Page 1
    • wizk1
    • By wizk1 8th Sep 09, 2:53 PM
    • 905 Posts
    • 613 Thanks
    wizk1
    • #2
    • 8th Sep 09, 2:53 PM
    • #2
    • 8th Sep 09, 2:53 PM
    Now that some banks have dropped their overdraft charges, I reckon savings rates are going to be even less competitive soon. Banks will want to recover their profit shortfall from somewhere.
    • Reaper
    • By Reaper 8th Sep 09, 2:54 PM
    • 6,727 Posts
    • 5,090 Thanks
    Reaper
    • #3
    • 8th Sep 09, 2:54 PM
    • #3
    • 8th Sep 09, 2:54 PM
    Meanwhile, just 3% of accounts pay 3% interest or above.
    Hey I'm in the top 3% - that might be the only time in my life I can say that.
    • purch
    • By purch 8th Sep 09, 3:01 PM
    • 9,291 Posts
    • 24,146 Thanks
    purch
    • #4
    • 8th Sep 09, 3:01 PM
    • #4
    • 8th Sep 09, 3:01 PM
    Sub minus 1%

    You mean minus 1.25 % or worse ??
    'In nature, there are neither rewards nor punishments - there are Consequences.'
    • MSE Guy
    • By MSE Guy 8th Sep 09, 3:11 PM
    • 1,628 Posts
    • 1,255 Thanks
    MSE Guy
    • #5
    • 8th Sep 09, 3:11 PM
    • #5
    • 8th Sep 09, 3:11 PM
    Good spot, purch. That was a hyphen rather than a minus, but to avoid confusion, we've removed it.
    • ScarletBea
    • By ScarletBea 8th Sep 09, 5:38 PM
    • 2,789 Posts
    • 4,167 Thanks
    ScarletBea
    • #6
    • 8th Sep 09, 5:38 PM
    • #6
    • 8th Sep 09, 5:38 PM
    I live with someone who doesn't really care :rolleyes: - but she doesn't have that many savings, although I still think she could get more interest.
    I'm always searching for the best deals, within my assumptions hehe
    Being brave is going after your dreams head on
    • michaels
    • By michaels 8th Sep 09, 10:57 PM
    • 23,118 Posts
    • 105,252 Thanks
    michaels
    • #7
    • 8th Sep 09, 10:57 PM
    • #7
    • 8th Sep 09, 10:57 PM
    Gonnna be very sad when my 6.4% instant access rate runs out in 2 months - still just got a wodge in Newcastle at 5% with 90 days notice. However as the money is only costing me 2.18% even 3.25% will be showing a nice return.
    Cool heads and compromise
  • nicko33
    • #8
    • 9th Sep 09, 8:20 AM
    • #8
    • 9th Sep 09, 8:20 AM
    The headline doesn't appear to have any connection to the story.
    the story is all about an analysis of savings accounts currently on offer, but unless I missed something, I don't see any link to indicate how many people hold which sort of account (or whether they have any money in them)

    e.g. I have the Lloyds TSB Easy Saver 2012 which currently pays BOE Base Rate +0% but I don't have any money in it. It's all somewhere else. In Nov-2011 when it becomes BOE Base Rate +1% I might put some in.
    • wizk1
    • By wizk1 9th Sep 09, 9:28 AM
    • 905 Posts
    • 613 Thanks
    wizk1
    • #9
    • 9th Sep 09, 9:28 AM
    • #9
    • 9th Sep 09, 9:28 AM
    The headline doesn't appear to have any connection to the story.
    the story is all about an analysis of savings accounts currently on offer, but unless I missed something, I don't see any link to indicate how many people hold which sort of account (or whether they have any money in them)

    e.g. I have the Lloyds TSB Easy Saver 2012 which currently pays BOE Base Rate +0% but I don't have any money in it. It's all somewhere else. In Nov-2011 when it becomes BOE Base Rate +1% I might put some in.
    Originally posted by nicko33
    If it means that much to you then, why don't you say something about the topic rather than what the topic isn't about?
    • Reaper
    • By Reaper 9th Sep 09, 10:54 AM
    • 6,727 Posts
    • 5,090 Thanks
    Reaper
    Bit harsh. Nicko is right saying MSE has made an unsupported assertion that millions are earning less than 1%. It might be true or it might not. Counting the number of old accounts without checking the number of savers proves nothing.
    • dwsjarcmcd
    • By dwsjarcmcd 9th Sep 09, 11:11 AM
    • 1,734 Posts
    • 955 Thanks
    dwsjarcmcd
    It would be interesting to see a split between online and branch based accounts. I suspect the majority will be branch based accounts which hurts the elderly and financially unaware harder than those now used to dealing online.

    Who else uses branches any more?
    • wizk1
    • By wizk1 9th Sep 09, 11:14 AM
    • 905 Posts
    • 613 Thanks
    wizk1
    The majority of those accounts will be those which are years and years old. If people have forgotten about money in old savings accounts, the banks know that they aren't bothered about moving it to a one with a better rate, so can get away with paying paltry interest rates. The "if you snooze, you lose" proverb shows it's head here.
    • bubbles0169
    • By bubbles0169 9th Sep 09, 11:20 AM
    • 6,171 Posts
    • 7,022 Thanks
    bubbles0169
    hello im sorry if its a simple question but could you tell me if id be better off moving my 1200 out of my 0.9% AER ISA into a lloyds monthly saver(ive a current account with them)which is 5% AER, I am a basic rate tax payer
    I am not bossy I just have better ideas
    • wizk1
    • By wizk1 9th Sep 09, 11:30 AM
    • 905 Posts
    • 613 Thanks
    wizk1
    It's up to you. If you've used up your tax-free allowance this year, you'll need to be aware that if an ISA better than the monthly saver comes out, you won't be able to re-deposit the money. Similarly, if you haven't used all your allowance, your money would be tied into the 1-year agreement with LTSB anyway. It's the risk everyone takes I'm afraid.
    • KingL
    • By KingL 9th Sep 09, 11:41 AM
    • 1,673 Posts
    • 752 Thanks
    KingL
    hello im sorry if its a simple question but could you tell me if id be better off moving my 1200 out of my 0.9% AER ISA into a lloyds monthly saver(ive a current account with them)which is 5% AER, I am a basic rate tax payer
    Originally posted by bubbles0169
    Clearly you would get more interest in the regular saver, but you also have an option to move the cash ISA into a better paying cash ISA. In the short term you will still probably get more interest from the regular saver, but also consider the longer term advantages of ISAs. If you leave your money inside ISA tax-protection, then you will get tax free interest and tax free interest on that tax free interest in years to come. So, it depends on your time-horizon really.

    Also check the retrictions on the regular saver. They will likely be a max amount you can transfer each month, so you'd probably take 3 months to get your 1200 across. There will also likely be a min amount you have to pay in each month. Can you commit to making a deposit every month ?
    • bubbles0169
    • By bubbles0169 9th Sep 09, 12:12 PM
    • 6,171 Posts
    • 7,022 Thanks
    bubbles0169
    i can miss a few payments if i want http://www.lloydstsb.com/savings/monthly_saver.asp
    I am not bossy I just have better ideas
    • bubbles0169
    • By bubbles0169 9th Sep 09, 12:37 PM
    • 6,171 Posts
    • 7,022 Thanks
    bubbles0169
    i opened the ISA with 3600(some of it was my sisters money)im hoping to get married in the next couple of years and to go back to new york on holiday so i need a couple of years at least to save up
    im on DMP(no interest or charges to pay, if i use my ISA money it wont pay all the debts off, i can afford to keep the DMP going which is for the next couple of years) and now i am doing more hours at work i dont know wether to put the extra money towards the DMP or put it in savings with the high interest
    its all so confusing!
    any opinions please?!
    I am not bossy I just have better ideas
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