Protecting savings against inflation

[PurpleMoonlight]

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?

[PurpleMoonlight]

sidicks said:

‘Royally ripped off’ - by whom?

The ISA provider of course.

[PurpleMoonlight]

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.

[PurpleMoonlight]

TooMany2cvs said:

Did they force you at gunpoint to sign up to it?

Yes. They also grabbed my goolies and not in a nice way.

[PurpleMoonlight]

Welshbeef said:

Can I suggest you keep to the high street or grab their balls back and demand far higher returns

I would but they are all women in my branch.

[PurpleMoonlight]

TooMany2cvs said:

It's only a "rip-off" if the OP had no choice but to invest his money there. Clearly, he did - so it's not a rip-off, just a very poor choice on his part.

They are all a rip off.

None pay anywhere close to inflation, hence the thread.

I think I may gamble on Premium Bonds next year. At least there is the potential to get more than 0.5%.

[PurpleMoonlight]

TooMany2cvs said:

Or is it... simples?
https://money.comparethemarket.com/savings-account...

Why are Help to Buy ISA's paying double (or in my case quadruple) the standard ISA rates?

[PurpleMoonlight]

sidicks said:

Loss-making, subsidised products.

Subsidised by other savers no doubt.

[PurpleMoonlight]

TooMany2cvs said:

No, HtB ISAs are subsidised by the taxpayer.

Does the taxpayer pick up the cost of the higher interest rate?

[PurpleMoonlight]

sidicks said:

The interest rate isn’t necessarily higher if you compare like for like.

How does that work?

[PurpleMoonlight]

sidicks said:

Your ISA is instant access? 3-year and 4-year ISAs pay higher amounts?

HTB is a 4-5 year product, I think?

Someone who is prepared to lock money away for a longer period will get a higher rate (recognising expected future rate increases).

Edited by sidicks on Monday 2nd October 16:22

HTB is instant access isn't it?

[PurpleMoonlight]

Badda said:

It was a bold claim, it was a throwaway comment by the OP that's been made too much of.

No, it's true.

I have half a mind to take the money out and scratch an Aston Martin itch I have had for years instead.

[PurpleMoonlight]

sidicks said:

It would be much more accurate to say that short-term investment rates aren't attractive at the moment, so you might as well use the money in a different way.

v8, Vantage, DB9?

I quite like the Rapide actually. They seem very good value second hand.

[PurpleMoonlight]

Well, I've decided to dabble in a stocks and shares ISA.

I will be using the cautious option, that is risk level two of five.