Mortgage Rate Rises

[ci_newman]

Its the best guaranteed easy savings rate. And probably top. Of the market. Sure it isn't much. But it's over 100 in there, 175 for the switch, over 100 in the Lloyds, 200 from nationwide.
Hitting 500 for the year there. Not much but not to be turned down.

For the record, I completely disagree with RaXor but for your individual circumstance surely you'd get better returns in an ISA? Vanguard and Moneybox S&S ISA are both paying out > 3% and you wouldnt have to drip feed

 

[Uther]

I haven't. I've simply made a point that any interest you will receive from relatively small amounts of money will always be peanuts. It's not my fault you're triggered by this fact.

Not triggered at all, I just think you're trolling a bit.

 

[RaXor77]

Said person rents their home, doesn't own a business.... What improvements to their image are you advising?

I'm not their personal (or financial advisor) for that matter. If people can't evaluate their own circumstances, that isn't my responsibility. I suppose people are lazy these days though and think it's someone else's.

 

[ci_newman]

I'm not their personal (or financial advisor) for that matter. If people can't evaluate their own circumstances, that isn't my responsibility. I suppose people are lazy these days though and think it's someone else's.

You state that it is personal responsibility, but attack what other people choose to do without offering alternatives on how to maximise their returns?

 

[Richie]

I'm not their personal (or financial advisor) for that matter. If people can't evaluate their own circumstances, that isn't my responsibility. I suppose people are lazy these days though and think it's someone else's.

So no actual tangible suggestions or examples then?... Just weak arsed attempts in trying to be contrary that can't even stand up to my crappy low level challenges...

 

[RaXor77]

You state that it is personal responsibility, but attack what other people choose to do without offering alternatives on how to maximise their returns?

I'm not attacking anyone. I've simply made a point that any interest yield on such small amounts of savings will always be insignificant.

 

[dlockers]

I'm not attacking anyone. I've simply made a point that any interest yield on such small amounts of savings will always be insignificant.

Well, durr?

 

[413x]

For the record, I completely disagree with RaXor but for your individual circumstance surely you'd get better returns in an ISA? Vanguard and Moneybox S&S ISA are both paying out > 3% and you wouldnt have to drip feed

The drop feed is because with dump of cash amount into the bond I'm effectively using salary to feed these.

All extra cash goes into S&S ISA.

 

[RaXor77]

So no actual tangible suggestions or examples then?... Just weak arsed attempts in trying to be contrary that can't even stand up to my crappy low level challenges...

I personally think you're taking things well out of context. You're the type of guy who loves to engage in arguments about nothing.

 

[413x]

I'm not attacking anyone. I've simply made a point that any interest yield on such small amounts of savings will always be insignificant.

Regualr savers are useful if that's all you have.
I'm down to no more cash after adding it to the bond.

Besides its 5 minutes work. For 250-300 a year (both Lloyd's and FD) also. Can use it as a cash account.

Usually I'd keep a few k in current account for emergencies. This is effectively that.

Its a good use of flexibile cash.




I'm not sat here with 4k, getting the tissues ready for the excitement of seeing the next 300 land. And the lust of that 150 at the end

 

[Richie]

I personally think you're taking things well out of context. You're the type of guy who loves to engage in arguments about nothing.

Nice try.

You stated that it's not worth investing small amounts of money as the interest you receive is peanuts.

What you appear to fail to understand is that a lot of people don't have large sums of money to invest. In fact, £2000-£3000 may be most or all of their savings.

Why would it not be best for them to put this into an account which still allows easy access should something happen in their life whilst gaining the best return from it?

If you can advise a tangible alternative with a better return rather than just some vague and extremely generic suggestions then I'm all ears.

 

[Curlyriff]

I'm not attacking anyone. I've simply made a point that any interest yield on such small amounts of savings will always be insignificant.

But we are talking about easy access funds which sit there for emergencies and can't be locked away generally for investing otherwise so moving it to a higher interest easy access account is netter than it sitting earning nothing.

 

[bazzabear]

I haven't. I've simply made a point that any interest you will receive from relatively small amounts of money will always be peanuts. It's not my fault you're triggered by this fact.

This is great.

So your big tip for gaining more interest is to have more money in the first place? I don't know how people have managed without your advice.

 

[413x]

If all you can afford is 300 a month that 140 at the end of the year is a free Christmas present for your kid a months free utilities etc. 7 pc is a good return. And these accounts are designed for people with not much.

Its a fairly good account for someone with a little from a salary left over at end of the month.

 

[danlightbulb]

I haven't. I've simply made a point that any interest you will receive from relatively small amounts of money will always be peanuts. It's not my fault you're triggered by this fact.

This is true and why I selected premium bonds over any savings account, at least there is a small chance at winning something big, whereas £100 a year interest is guaranteed but can never be any more.

 

[LabR@t]

Indulge me - where can a person with a small amount of savings if circa £3600 or less get better returns?

Get help with savings if you’re on a low income (Help to Save)

Get help with savings if you're on a low income (Help to Save) - how it works, what you'll get, eligibility, how it affects your benefits and how to apply online.

www.gov.uk

Help to Save is a type of savings account. It allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save over 4 years.

How payments work​

You can save between £1 and £50 each calendar month. You do not have to pay money in every month.


You can pay money into your Help to Save account by debit card, standing order or bank transfer.


You can pay in as many times as you like, but the most you can pay in each calendar month is £50. For example, if you have saved £50 by 8 January you will not be able to pay in again until 1 February.


You can only withdraw money from your Help to Save account to your bank account.

How bonuses work​

You get bonuses at the end of the second and fourth years. They’re based on how much you’ve saved.

What happens after 4 years​

Your Help to Save account will close 4 years after you open it. You will not be able to reopen it or open another Help to Save account. You’ll be able to keep the money from your account.


You can close your account at any time. If you close your account early you’ll miss your next bonus and you will not be able to open another one.

50p for every £1 your save.... (to a point)

 

[Curlyriff]

Get help with savings if you’re on a low income (Help to Save)

Get help with savings if you're on a low income (Help to Save) - how it works, what you'll get, eligibility, how it affects your benefits and how to apply online.

www.gov.uk

Help to Save is a type of savings account. It allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save over 4 years.



50p for every £1 your save.... (to a point)

Indeed is an option but it is limited on whom is entitled to it.

 

[BigT]

Not in a savings account. The money would be better spent improving your home, your business, your image.

Would you be willing to share any insights? Because I'm feeling generously spirited today I'm going to say I think some of the heat in here for your posts is because there are some different assumptions going on here about circumstances. You seem to be financially savvy and you're participating in a discussion forum so I'm going to assume myself that you want to share despite the comment that it isn't your responsibility to evaluate people's circumstances.

I don't know the poster's circumstances of course but that doesn't really matter. If I lay out some assumptions here which I think are fairly typical maybe you could give your opinions on what best to do?

1. You've got £3,600 in cash you've built up over time.
2. You work hard in a regular job and with the CoL crisis you don't have much capability to add to that on a regular basis as your monthly outgoings are pretty much matching what's coming in.
3. You're quite time poor. Maybe have a family or the job means you work long hours. The idea of an investment in some sort of side hustle would need to be weighed up heavily against the increased stress, deterioration in relationships, health or anything else you worry about. A few hours here and there might be OK but you don't want every waking moment not working to be a grind on something else.
4. You have a fairly low appetite for risk. Additionally, this £3,600 is your rainy day money so you feel you want reasonably fast access to most or all of it should something happen. This rules out stuff like pensions (which I'm surprised you didn't mention) which of course gives you a great "return" on your money with the possible tax breaks and employers contributions and it more than likely being invested in the stock market for a good period of time.

In these circumstances the best interest paying easy access savings are what most consider a good option. Yes it doesn't match inflation. Yes its true if you didn't have the assumptions above there are better long term propositions. But with those assumptions (of which I think most of people on here are assuming some of) it's better than doing nothing or leaving it sitting in a current account I think is the point.

That's why the tangible suggestions of premium bonds or help-to-save are constructive to the debate. Other than a first time go at matched betting to rinse the welcome offers off the bookies (and I don't know if they are still so generous these days) I can't think of much myself but would love to hear your views.

 

[adam cool dude]

I haven't. I've simply made a point that any interest you will receive from relatively small amounts of money will always be peanuts. It's not my fault you're triggered by this fact.

Captain obvious award goes to.......

 

[Maccy]

@RaXor77 what's wrong with your other account?