Interest rates going up soon...
Discussion
Zoon said:
If they have the required funding for the massive BTL deposits required nowadays.
The trick for that was to work hard at school/uni, get a good job and stash some money whilst others were peeing it up against a wall.There are other decent investments- I merely mentioned the one I have most experience of. The fact remains that 5% returns are available but won't just fall into someone's lap.
barryrs said:
Round my way you can still buy a fairly modern 2 bedroom flat for £95k that will rent for £550 per month equating to a 6.95% yield with a initial £20k cash investment.
Get away with your facts and figures- this is about how 'real' people are being shafted for not getting that amount for just sticking it in the bank.Rovinghawk said:
The trick for that was to work hard at school/uni, get a good job and stash some money whilst others were peeing it up against a wall.
There are other decent investments- I merely mentioned the one I have most experience of. The fact remains that 5% returns are available but won't just fall into someone's lap.
All of which I did and set my own company up and own a number of properties.There are other decent investments- I merely mentioned the one I have most experience of. The fact remains that 5% returns are available but won't just fall into someone's lap.
But to say anyone can do it clearly isn't the case, if they aren't bright enough, can't go back to uni and haven't stashed money.
5% is easily achievable without property though.
Zoon said:
But to say anyone can do it clearly isn't the case, if they aren't bright enough, can't go back to uni and haven't stashed money.
Not BTL, perhaps, but there are other options.Zoon said:
5% is easily achievable without property though.
Exactly. Everyone has to find what works for them.I was on a course once; at 'any questions' somebody asked what percentage would pass the course. The answer was "all those who REALLY want to." Words to live by.
Ari said:
I'm going to make a wild stab in the dark that these were not recent investments?
I think I'll pass on the property market right now...
I think you've just confirmed what he was referring to.I think I'll pass on the property market right now...
You are concerned about the risks associated with the property market and so are passing up on the option he described. Which is fair enough, but doesn't change what he noted (ie that you have to be less risk averse than sticking it in the Bradford and Bingley).
Equally you may not have the downpayment to enter that game, which does dink his "anyone can" argument to a point
As another example, I believe Funding Circle can give returns in excess of 5% (after taxes). Again, you have to accept a greater degree of risk. But it's there. And this time the entry requirements aren't so high.
There are other avenues I'm sure, each with their own pros and cons. This is where the other part of RovingHawk's comment comes in - working a bit harder for it. This doesn't (just) mean logging onto your preferred social media site and asking for tips
Ari said:
ClaphamGT3 said:
If you want to get a 5% return on your capital, you can perfectly easily get it; you just have to be less lazy and less risk averse than sticking it in the building society
Yay, the mythical 'perfectly easy' Pistonheads 5% return on capital has appeared yet again! 
No one's ever able to describe where to achieve this 'perfectly easy' 5%, but that never seems to stop it being bandied about in Internet arguments.
te that is spouted on here daily. And as for his story about paying a teenager £100 to (not) look after a hamster! 
This comment "profoundly irritated" me:
ClaphamGT3 said:
What profoundly irritates me about arguments like this is the implication that savers should be rewarded without taking risk.
What is wrong with expecting some semblance of a return from a bank that is making money from your money?Edited by tannhauser on Monday 6th November 16:20
tannhauser said:
What is wrong with expecting some semblance of a return from a bank that is making money from your money?
With banks getting net interest margins of circa 3% why should savers by offered much or a return?Edited by tannhauser on Monday 6th November 16:20
ETA
If not already covered Nationwide offer 5% for the first 12 months on a Flexdirect account on balances of up to £2500
Edited by barryrs on Monday 6th November 16:45
tannhauser said:
Ari said:
ClaphamGT3 said:
If you want to get a 5% return on your capital, you can perfectly easily get it; you just have to be less lazy and less risk averse than sticking it in the building society
Yay, the mythical 'perfectly easy' Pistonheads 5% return on capital has appeared yet again! No one's ever able to describe where to achieve this 'perfectly easy' 5%, but that never seems to stop it being bandied about in Internet arguments.
te that is spouted on here daily. And as for his story about paying a teenager £100 to (not) look after a hamster! This comment "profoundly irritated" me:
ClaphamGT3 said:
What profoundly irritates me about arguments like this is the implication that savers should be rewarded without taking risk.
What is wrong with expecting some semblance of a return from a bank that is making money from your money?Edited by tannhauser on Monday 6th November 16:20
Ari said:
Rovinghawk said:
There are many other ways to make a return on investment. The fact remains that if one wishes to make a decent return on savings it is possible but requires a little work & a little risk.
You can't expect to get decent returns for no work & no risk.
Cool, do go on? (Other than going back in time and buying property). You can't expect to get decent returns for no work & no risk.
tannhauser said:
This completely. Typical of the usual, detached-from-this-world ste that is spouted on here daily. And as for his story about paying a teenager £100 to (not) look after a hamster!
This comment "profoundly irritated" me:
Out of interest, what moves have you made to see how you could better invest your money?te that is spouted on here daily. And as for his story about paying a teenager £100 to (not) look after a hamster! This comment "profoundly irritated" me:
ClaphamGT3 said:
What profoundly irritates me about arguments like this is the implication that savers should be rewarded without taking risk.
What is wrong with expecting some semblance of a return from a bank that is making money from your money?There is nothing wrong with wanting a return from banks. That is not what was being said. Just don't expect large %ages unless you take some risk.
barryrs said:
tannhauser said:
What is wrong with expecting some semblance of a return from a bank that is making money from your money?
With banks getting net interest margins of circa 3% why should savers by offered much or a return?Edited by tannhauser on Monday 6th November 16:20
ETA
If not already covered Nationwide offer 5% for the first 12 months on a Flexdirect account on balances of up to £2500
Edited by barryrs on Monday 6th November 16:45
5% is fantastic, but on 2.5k - wow, that's generous!
s2art said:
Ari said:
Rovinghawk said:
There are many other ways to make a return on investment. The fact remains that if one wishes to make a decent return on savings it is possible but requires a little work & a little risk.
You can't expect to get decent returns for no work & no risk.
Cool, do go on? (Other than going back in time and buying property). You can't expect to get decent returns for no work & no risk.
tannhauser said:
3% is infinitely more that the 0% typically on offer!
5% is fantastic, but on 2.5k - wow, that's generous!
The post office are offering around 1.5% IIRC for doing nothing!5% is fantastic, but on 2.5k - wow, that's generous!
Considering the average amount held in savings by UK families is just over £3k id say its pretty fair.
Murph7355 said:
tannhauser said:
This completely. Typical of the usual, detached-from-this-world ste that is spouted on here daily. And as for his story about paying a teenager £100 to (not) look after a hamster!
This comment "profoundly irritated" me:
Out of interest, what moves have you made to see how you could better invest your money?te that is spouted on here daily. And as for his story about paying a teenager £100 to (not) look after a hamster! This comment "profoundly irritated" me:
ClaphamGT3 said:
What profoundly irritates me about arguments like this is the implication that savers should be rewarded without taking risk.
What is wrong with expecting some semblance of a return from a bank that is making money from your money?There is nothing wrong with wanting a return from banks. That is not what was being said. Just don't expect large %ages unless you take some risk.
FYI I fanny about with a number of bank accounts, moving money around, paying it in etc. Make maybe 1-2% on average on interest and monthly rewards etc.
Regular savers are a bit of a con - the headline 2% probably works out at 1% (still better than nowt) by the time you take into account payments in made over the year, interest only added at the end etc.
Whatever happened to a pretty standard bank account that paid a reasonably decent rate of interest? Actually to be fair, Nationwide do if you've been with them a while - 0.6% on unlimited balance I think. Zero fannying around.
Edited by tannhauser on Monday 6th November 16:55
barryrs said:
tannhauser said:
3% is infinitely more that the 0% typically on offer!
5% is fantastic, but on 2.5k - wow, that's generous!
The post office are offering around 1.5% IIRC for doing nothing!5% is fantastic, but on 2.5k - wow, that's generous!
Considering the average amount held in savings by UK families is just over £3k id say its pretty fair.
What's the average of 3k savings got to do with anything?!
tannhauser said:
I had (have) a PO account, but as it's now a year old and only an introductory rate (was about 1% a year back), it is now back to zero. Not sure if I can open a new one with the headline rate, but I've opened a similar AA account.
What's the average of 3k savings got to do with anything?!
Simply highlighting that the problems of lazy savers might be an issue for the few rather than the many.What's the average of 3k savings got to do with anything?!
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