9% instant access savings accounts
Discussion
I'm currently earning interest of 8%.
Have to have 2bn in the bank though to get this rate. Luckily that's in Indonesian Rupiah, which pre-Brexit was worth £100k.
Government takes 15% so nett is still over 6%.
When this one is up in Feb next year will switch in to a new one at 9%.
Narrowly missed out on one that was offering 12.5% for the first three months then dropping to 8%.
Government protected savings as well, so reasonably low risk.
Happy days!
Have to have 2bn in the bank though to get this rate. Luckily that's in Indonesian Rupiah, which pre-Brexit was worth £100k.
Government takes 15% so nett is still over 6%.
When this one is up in Feb next year will switch in to a new one at 9%.
Narrowly missed out on one that was offering 12.5% for the first three months then dropping to 8%.
Government protected savings as well, so reasonably low risk.
Happy days!
V8 Fettler said:
Someone who bought an annuity fixed at 15% would still be receiving income at 15% of their lump sum (assuming they are still alive), compare with historical and current inflation figures:
I understand your point, but short term rates at 15% doesn't mean that annuities were priced assuming a flat 15% yield curve assumption. Likewise, inflation being high at that particular time would not be assumed to continue st that level forever.
Edited by sidicks on Thursday 29th September 16:58
MarshPhantom said:
No, but unlike putting your money into a classic car high interest rates make the vast majority suffer for the benefit of the lucky few.
Not sure where you have got that idea from.The biggest gainers from the asset boom that has followed cheap money has been those who own lots of assets already.
Has someone looking to buy a house benefited from rampant house price inflation since 2008 as a result of very low interest rates?.
Has someone purchasing an annuity in retirement?
Has someone on a moderate income saving for retirement?
The age of ultra-low interest rates has been a time of growing wealth disparities and lower opportunities.
JagLover said:
MarshPhantom said:
No, but unlike putting your money into a classic car high interest rates make the vast majority suffer for the benefit of the lucky few.
Not sure where you have got that idea from.The biggest gainers from the asset boom that has followed cheap money has been those who own lots of assets already.
Has someone looking to buy a house benefited from rampant house price inflation since 2008 as a result of very low interest rates?.
Has someone purchasing an annuity in retirement?
Has someone on a moderate income saving for retirement?
The age of ultra-low interest rates has been a time of growing wealth disparities and lower opportunities.
Average UK mortgage - £85000
You, as the yanks say, do the math.
jdw100 said:
I'm currently earning interest of 8%.
Have to have 2bn in the bank though to get this rate. Luckily that's in Indonesian Rupiah, which pre-Brexit was worth £100k.
Government takes 15% so nett is still over 6%.
When this one is up in Feb next year will switch in to a new one at 9%.
Narrowly missed out on one that was offering 12.5% for the first three months then dropping to 8%.
Government protected savings as well, so reasonably low risk.
Happy days!
Not so fast buster.Have to have 2bn in the bank though to get this rate. Luckily that's in Indonesian Rupiah, which pre-Brexit was worth £100k.
Government takes 15% so nett is still over 6%.
When this one is up in Feb next year will switch in to a new one at 9%.
Narrowly missed out on one that was offering 12.5% for the first three months then dropping to 8%.
Government protected savings as well, so reasonably low risk.
Happy days!
The reason you are getting 8% is that you are taking more risk. You could get more than 20% on Venezuelan bank savings accounts. Would you want to? No.
Post Brexit, your £100,000 will be worth more than £100,000. Maybe a good time to send money back to a UK bank to lock in the gain?
sidicks said:
V8 Fettler said:
Someone who bought an annuity fixed at 15% would still be receiving income at 15% of their lump sum (assuming they are still alive), compare with historical and current inflation figures:
I understand your point, but short term rates at 15% doesn't mean that annuities were priced assuming a flat 15% yield curve assumption. Likewise, inflation being high at that particular time would not be assumed to continue st that level forever.
Edited by sidicks on Thursday 29th September 16:58
MarshPhantom said:
Great days. I can still remember my Dad's face when told us he thought the house was going to get repossessed.
Not sure why should feel sorry for "savers" with money in the bank, the only people I know with money haven't saved it but either inherited or got a big divorce payment.
I can recall listening to the Home Service in 1992 as the incompetent badger lifted interest rates to 12% and then 15% in a fortunately forlorn attempt to keep the UK in the ERM.Not sure why should feel sorry for "savers" with money in the bank, the only people I know with money haven't saved it but either inherited or got a big divorce payment.
CaptainSensib1e said:
MarshPhantom said:
No, but unlike putting your money into a classic car high interest rates make the vast majority suffer for the benefit of the lucky few.
Not sure if serious?Most people with large amonts of capital wil invest it in assets that generate a far better return than available on cash.
Sticks. said:
Lazy was once called prudent. But then again credit was once called borrowing.
Well said that man!People need to take more responsibility for their finances, instead of looking round for people to blame. The banking system that gushes credit to those who should probably know better is underpinned by savers, one way or the other.
Ian
MarshPhantom said:
Not sure why should feel sorry for "savers" with money in the bank, the only people I know with money haven't saved it but either inherited or got a big divorce payment.
Presumably somebody has earned the money in order for it to be accumulated then passed to the objects of your quiet derision.Whole world of people out there - nobody in your circle may work and save, but plenty do. Obviously.
Would love to hear your ideas on how we can link returns to the units of effort expended in order to obtain them, by the way.
crankedup said:
CaptainSensib1e said:
MarshPhantom said:
No, but unlike putting your money into a classic car high interest rates make the vast majority suffer for the benefit of the lucky few.
Not sure if serious?Most people with large amonts of capital wil invest it in assets that generate a far better return than available on cash.
iphonedyou said:
MarshPhantom said:
Not sure why should feel sorry for "savers" with money in the bank, the only people I know with money haven't saved it but either inherited or got a big divorce payment.
Presumably somebody has earned the money in order for it to be accumulated then passed to the objects of your quiet derision.Whole world of people out there - nobody in your circle may work and save, but plenty do. Obviously.
Would love to hear your ideas on how we can link returns to the units of effort expended in order to obtain them, by the way.
Zigster said:
sidicks said:
V8 Fettler said:
Some lucky beggars will have locked into pension annuities at similar rates at that time.
Except inflation was 10%...Exactly.
Ayahuasca said:
Sticks. said:
MarshPhantom said:
I'm sure we can all agree that low interest rates benefits the majority of people. If you have money in the bank you're already doing a lot better than some.
If you're of working age.At the risk of repeating myself.
Average UK savings - £10k.
Average UK mortgage - £85k.
Not everyone has a mortgage, believe it or not, not everyone has savings.
I'm off.
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