Protecting savings against inflation
Discussion
sidicks said:
PurpleMoonlight said:
With RPI at 3.9% and savings interest at less than 1% and royally being ripped off in the ISA, I'm losing a lot of value.
What would be the least riskiest way to protect it?
‘Royally ripped off’ - by whom?What would be the least riskiest way to protect it?
If there are better cash ISA offers on the market then it's simple to move.
PurpleMoonlight said:
sidicks said:
‘Royally ripped off’ - by whom?
The ISA provider of course.What do you think they are investing your money in (and what return are they getting on that)?
What are the charges for moving your investment to a different provider?
Welshbeef said:
Is the ISA a stocks and shares ISA OR cash? If it's the latter then are you seriously expecting it to deliver 3%? Didn't you read the rate before you invested in it?
It's always someone else's fault!Welshbeef said:
If there are better cash ISA offers on the market then it's simple to move.
Indeed!PurpleMoonlight said:
It's a cash ISA.
Yes I knew the rate. It's 0.5% pa. It's 0.25% lower than the bog standard and potentially taxable savings account.
I can see no justification for that. Hence being royally ripped off.
I can see why you don't think it is fair. There is more admin associated with ISAs, but I'm not sure that explains the situation. On the other hand I doubt it's massively profitable for them.Yes I knew the rate. It's 0.5% pa. It's 0.25% lower than the bog standard and potentially taxable savings account.
I can see no justification for that. Hence being royally ripped off.
At least you can move it to anyone you like free of charge, but another won't help you with your inflation problem.
Edited by sidicks on Monday 2nd October 13:51
PurpleMoonlight said:
It's a cash ISA.
Yes I knew the rate. It's 0.5% pa. It's 0.25% lower than the bog standard and potentially taxable savings account.
I can see no justification for that. Hence being royally ripped off.
https://top-isa-rates.co.uk/v5?gclid=EAIaIQobChMI5669m_vR1gIVhz4bCh1VoQCDEAAYASAAEgJY0fD_BwEYes I knew the rate. It's 0.5% pa. It's 0.25% lower than the bog standard and potentially taxable savings account.
I can see no justification for that. Hence being royally ripped off.
Depending on your view of tying up the cash for a period of time (years) there are rates with are 4x what you currently have plus a couple which I've not heard of offering 8%.
So you can change today and stop feeling totally ripped off. Best way to tell a bank is to vote with your cash and move it elsewhere.
Hope this helps.
Welshbeef said:
https://top-isa-rates.co.uk/v5?gclid=EAIaIQobChMI5...
Depending on your view of tying up the cash for a period of time (years) there are rates with are 4x what you currently have plus a couple which I've not heard of offering 8%.
So you can change today and stop feeling totally ripped off. Best way to tell a bank is to vote with your cash and move it elsewhere.
Hope this helps.
Obviously rates on longer terms will be higher than instant access ISAs.Depending on your view of tying up the cash for a period of time (years) there are rates with are 4x what you currently have plus a couple which I've not heard of offering 8%.
So you can change today and stop feeling totally ripped off. Best way to tell a bank is to vote with your cash and move it elsewhere.
Hope this helps.
That 8% is a highly risky investment and not comparable to cash isa rates/
PurpleMoonlight said:
Yes. They also grabbed my goolies and not in a nice way.
That sounds like you were lending your money to loan sharks or drug dealers. Can I suggest you keep to the highstreet or grab their balls back and demand far higher returns - I'd expect in those risky areas 100% return in a couple of weeks wouldn't be unheard of
I think the OP's point was that he is getting interest of .5% when inflation is 3.9%. That is a rip-off - any money held by a bank should not be worth less than the initial deposit, in real terms - after all it's not like the bank HAVE to lend it out at a loss is it?
A 'fair' rate of interest inflation plus 1 or 2% is hardly usury.
The economic term for Government policies since 2007, under Labour then Conservative/Liberal Democrat, now Conservative / DUP is a variant of FINANCIAL REPRESSION (look it up) http://lexicon.ft.com/Term?term=financial-repressi...
Only at the present time not only are the Government financing state expenditure with savers funds but have set in chain a series of deliberate policies where savers subsidise (Ex PM's / Chancellors etc ) 'friends in the city'! Which is why the Governor of the BoE is a banker (Goldman Sachs) but there is NO representation for the very people who's money is in the system. But that requires a political solution.
By way of practical advice moneysupermarket.com and the like have best buy tables.
https://www.moneysupermarket.com/savings/results/?...
Not perhaps a 'fair' return but better than 0.5%
A 'fair' rate of interest inflation plus 1 or 2% is hardly usury.
The economic term for Government policies since 2007, under Labour then Conservative/Liberal Democrat, now Conservative / DUP is a variant of FINANCIAL REPRESSION (look it up) http://lexicon.ft.com/Term?term=financial-repressi...
Only at the present time not only are the Government financing state expenditure with savers funds but have set in chain a series of deliberate policies where savers subsidise (Ex PM's / Chancellors etc ) 'friends in the city'! Which is why the Governor of the BoE is a banker (Goldman Sachs) but there is NO representation for the very people who's money is in the system. But that requires a political solution.
By way of practical advice moneysupermarket.com and the like have best buy tables.
https://www.moneysupermarket.com/savings/results/?...
Not perhaps a 'fair' return but better than 0.5%
Gassing Station | Finance | Top of Page | What's New | My Stuff