Gransnet forums


The reality of 'savings'

(44 Posts)
Gmajen Wed 21-Nov-12 10:37:22

Strange how our minds only focus occasionally on what is actually happening to our savings. Today I received a statement from my excellent bank (First Direct) concerning a savings account in which I keep £1000. This is held on behalf of a few neighbours and is for unexpected expenses on the joint areas of responsibility. I had no call on it in the last year and so the statement listed the interest received every month for the whole year. The total came to 48p - 4p per month on a thousand pounds!!

Anne58 Wed 21-Nov-12 10:48:03

Good grief, that's awful!

isthisallthereis Wed 21-Nov-12 10:51:47

Interesting topic. Banks are generally I reckon not a very good deal at all (for their customers that is). I bank with the Co-op who I like for all sorts of reasons. But they pay nothing on money I have in my account (and which they have the use of for the duration). My OH banks with Santander who pay a small but useful rate of interest on the contents all all accounts, even yr current account.

It's tough. No bank seems to be perfect, it's very hard to choose. Plus they're all busy moving the goalposts all the time which deliberately makes it much harder. I've noticed that Marks and Spencer have starting offering Personal Banking. Has anyone here tried them?

I have my house and contents insurance with M&S and they've been pretty good so far, ie paid up promptly and fairly when my old laptop got damaged.

Greatnan Wed 21-Nov-12 10:56:56

I do better in France - I keep about €5000 in my travel/emergency account and it has earned me nearly €90 this year so far. You have to pay for a debit card in France - about €86 p.a., but as it reimbursed me for a replacement tyre on a rental car and gives me good travel insurance, it is well worth it.
I also have to pay €5.30 a month to maintain my account, but this includes making monthly direct debits for me. All the charges are clearly spelt out when you open an account. I think 'free' banking in the UK is a con.

isthisallthereis Wed 21-Nov-12 11:02:03

I agree Greatnan the sooner we see the back of "free" banking in the UK the better, I reckon. It's profoundly opaque.

grannyactivist Wed 21-Nov-12 11:09:06

After paying for several years post-school education for our two sons and making sizeable contributions to the weddings of our son and daughter this year we have no 'savings'!! On the other hand, we have no debts either. smile

absentgrana Wed 21-Nov-12 11:21:49

It is almost impossible to find a scheme at any bank whereby your savings won't lose value because interest rates do not keep up with inflation. Some schemes pay only 0.01%.

isthisallthereis Wed 21-Nov-12 11:22:57

You sound pretty chilled as de yout' might say, grannyactivist. Fine proud screen name too btw smile

harrigran Wed 21-Nov-12 11:27:59

The interest rates are so poor, I actually make more on my premium bonds than I do on investments. The best place for my money is index linked certificates, sadly not available at present but I can carry on with the ones that I have had for years.

Greatnan Wed 21-Nov-12 11:28:19

I have no savings either, apart from my travel fund, but I have a guaranteed income from three UK government pensions, no mortgage and no debts, so I don't worry about my future. I have worked for nearly forty years in some very well-paid jobs so I should have a good 'pot' - but I used most of my earnings to get my daughters on the property ladder, as many parents do these days. (Not that it earned me any gratitude from one daughter,but that is not why we do it.)
I am not completely au fait with the situation regarding paying for care in the UK , but I gather there is an element of means testing which can penalise savers.

grannyactivist Wed 21-Nov-12 11:35:33

Dickens put my own view regarding money very well isthis:
“‘My other piece of advice, Copperfield,’ said Mr. Micawber, ‘you know. Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.”
(David Copperfield)

jO5 Wed 21-Nov-12 12:02:38

You can get 3.30% on Principality Building Society. Easy access.

jO5 Wed 21-Nov-12 12:03:53

Inflation 2.7 at the moment. (I think)

jO5 Wed 21-Nov-12 12:08:16

No! Got that wrong! 2.30pc ! So not so good. Sorry.

jO5 Wed 21-Nov-12 12:11:39

Intelligent Finance pay 2.49

Tesco 2.4

Seems there is no easy acces account available now that keeps on top of inflation!

isthisallthereis Wed 21-Nov-12 13:46:46

Can anyone tell me where I should put my hard-earned?? j05 suggests Principality Building Society:

Yes, some seem to stay ahead of inflation, though I find the page of info very very confusing. In what way is easy access (yielding 2.45% tax-free) different/better/worse than instant access (yielding a stupid 0.10%)

And if you're happy to give 30 days notice of withdrawal, the interest offered seems to go up to 2.6%

Do these people go out of their way to make banking hard to understand? No wonder bankers are now loathed every bit as much as much as estate agents and journalists! angry

tanith Wed 21-Nov-12 13:55:53

I'm sure they complicate things so that most people just give up trying to work it out and leave their monies in a poor paying acc simply because its the easy thing to do... shame on them..(the bankers I mean). I do manage to get round to moving my ISA around to get a good rate

Grannyknot Wed 21-Nov-12 15:00:11

I phoned my bank this week to check on whether I was getting the best deal for my savings, have to psych myself up to it once a year or so because of the press 1, press 2, hold for an customer adviser - and the poor man who answered my query then had to listen to my diatribe about 'if-this-account-that-I-was-advised-is-the-best-in-the-whole-banking-world-but-now-no-longer-is, why are you allowing my money to languish in an account that pays next to nothing and why do I have to be proactive and chase you when you are supposed to be looking after my savings and I'm a damn good customer? PLUS why is there such a confusing array of savings accounts, e-savings accounts, and don't even get me started on ISA accounts? Banks are u.s.e.l.e.s.s. - there is no service.

Ella46 Wed 21-Nov-12 15:07:53

I've just had to decide where some of my savings are going next,( for a pittance) with Santander.
As the rates are so poor, I decided on one just for 12 months in case I need to access the money.
But, I cannot access it during the 12 months at all!
It's MY money for goodness sake!

jO5 Wed 21-Nov-12 15:13:58

isthis The one paying 2.30pc at Principality is an e-saver ie online only. The other one can only be managed by post or in a branch. Quite often online accounts give better interest than branch ones. I don't know why. confused

(I know which I'd go for though) [smile)

I like Principality. They are secure and give the full FSA protection. Always easy to talk to on phone if you need to.

Elegran Wed 21-Nov-12 15:43:19

The Bank of Scotland has an Access Saver which gives 1.5%, plus a 1% 12 month stating bonus - makes 2.5% the first year. After 12 months it goes back to 1.5% - but by then you could have found a better deal elsewhere (unless you forget to move it)

Unlimited withdrawals with no notice and no loss of interest.

Greatnan Wed 21-Nov-12 15:47:17

Santander won't let me have any interest-bearing account because I am non resident. I have my smallest pension paid into my UK account so I can transfer money for gifts to my grandchildren but I think I will just pay the small currency exchange rate and send it from my French account.

isthisallthereis Wed 21-Nov-12 15:52:07

tanith - exactly!

Grannyknot Wed 21-Nov-12 16:04:34

tanith and elegran that's what makes me so mad this month's "wonderful special offer" is next year's "dud" and I'm also sure they do that on purpose. angry

Elegran Wed 21-Nov-12 16:39:30

They hope that you will just leave your money in place.

You need to be continually checking to see whether you can do better!