9% instant access savings accounts

9% instant access savings accounts

Author
Discussion

jdw100

4,073 posts

163 months

Thursday 29th September 2016
quotequote all
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!

anonymous-user

53 months

Thursday 29th September 2016
quotequote all
MarshPhantom said:
...high interest rates make the vast majority suffer for the benefit of the lucky few.
Fewer than half of UK households have a mortgage. Why would the vast majority suffer?

Edited by anonymous-user on Thursday 29th September 16:56

Cotty

39,389 posts

283 months

Thursday 29th September 2016
quotequote all
Dr Doofenshmirtz said:
I wish we could go back to those rates!!
I wish but as someone mentioned the mortgage rates were killer. Mind you as im about to pay mine off im not that worried.

sidicks

25,218 posts

220 months

Thursday 29th September 2016
quotequote all
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

JagLover

42,266 posts

234 months

Thursday 29th September 2016
quotequote all
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.

MarshPhantom

9,658 posts

136 months

Thursday 29th September 2016
quotequote all
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 savings - £10000
Average UK mortgage - £85000

You, as the yanks say, do the math.

anonymous-user

53 months

Thursday 29th September 2016
quotequote all
MarshPhantom said:
Average UK savings - £10000
Average UK mortgage - £85000

You, as the yanks say, do the math.
UK population - 64m
Number of mortgages - 9.2m
Number of households - 27m
Total mortgage debt £1.4tr
Total deposit savings £1.4tr


Ayahuasca

27,427 posts

278 months

Thursday 29th September 2016
quotequote all
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.

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?

V8 Fettler

7,019 posts

131 months

Thursday 29th September 2016
quotequote all
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
Who knows what the basis of the 15% annuity rate was, headline figure to drive sales? Ponzi? But it was available.

V8 Fettler

7,019 posts

131 months

Thursday 29th September 2016
quotequote all
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.

crankedup

25,764 posts

242 months

Thursday 29th September 2016
quotequote all
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.
Of course, classic cars, race horses, fine wines, antiques and even the odd flutter in the stock markets, an endless list for those with the cash and knowledge (Inherent or purchased) for those choices.

Ian Geary

4,464 posts

191 months

Friday 30th September 2016
quotequote all
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

iphonedyou

9,234 posts

156 months

Friday 30th September 2016
quotequote all
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.

MarshPhantom

9,658 posts

136 months

Friday 30th September 2016
quotequote all
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.
Of course, classic cars, race horses, fine wines, antiques and even the odd flutter in the stock markets, an endless list for those with the cash and knowledge (Inherent or purchased) for those choices.
I was merely responding Cranked Up's post about making money from high interest rates being no different to people making money from rising classic car prices.

MarshPhantom

9,658 posts

136 months

Friday 30th September 2016
quotequote all
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.
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.


Sticks.

8,707 posts

250 months

Friday 30th September 2016
quotequote all
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.

Ayahuasca

27,427 posts

278 months

Friday 30th September 2016
quotequote all
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.
More people have net savings than have mortgages.


Zigster

1,636 posts

143 months

Friday 30th September 2016
quotequote all
sidicks said:
V8 Fettler said:
Some lucky beggars will have locked into pension annuities at similar rates at that time.
Except inflation was 10%...
smile

Exactly.

Ayahuasca

27,427 posts

278 months

Friday 30th September 2016
quotequote all
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%...
smile

Exactly.
But annuity rates are generally locked in for life, and inflation is very low. Those annuitants are making out like bandits.

MarshPhantom

9,658 posts

136 months

Friday 30th September 2016
quotequote all
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.
More people have net savings than have mortgages.
banghead

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.