15 where? highest interest saving accounts seems to be 1.5%
or are you talking about stonks?
"Most only have £500 of savings ",says Lloyds boss ,really ?
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or are you talking about stonks?
The financially responsible often underestimate how financially insecure most people are. Sure, they seem to live good lives, but are often in debt up to their eyeballs and only need tiny headwinds for everything to collapse.
That house looks good? Yeah, but they got into a bidding war for it and paid 15% above valuation because they fell in love with it and they have no emergency fund anymore, and are now paying 60% of their income as mortgage. Now imagine interest rates increasing substantially further and they're going to lose the house. That new fancy german car? They're paying £700pm for it and it could even be a lease. All those new designer brand clothes and holidays? Look at their credit card balances, they barely keep up with the interest alone.
That house looks good? Yeah, but they got into a bidding war for it and paid 15% above valuation because they fell in love with it and they have no emergency fund anymore, and are now paying 60% of their income as mortgage. Now imagine interest rates increasing substantially further and they're going to lose the house. That new fancy german car? They're paying £700pm for it and it could even be a lease. All those new designer brand clothes and holidays? Look at their credit card balances, they barely keep up with the interest alone.
Flats have gone down in many places, including London, which are 11% lower than August 2020.
But if you have a job that isn't at risk...
Not sure ,my neice has just picked up a very nice detached for 200k (full on rural Yorkshire)first time buyer needs lots of work but that's what we did twice,tbf they lived with parents for a long time so I guess that's a big financial contribution
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I've just semi retired to two days a week and next week my wife fully retires.
About a month ago we had a bloke round to do our wills and put our home into a Trust for our kids.
I had zero idea about our savings and when he asked my wife didn't want to tell him in front of me because of reasons * and it just so happens I could buy 1000s and 1000s of Gucci belts.
She has been an amazing accountant for us in 42 years of marriage and we've never gone without however I know so many people who live hand to mouth I can believe the £500 figure.
* If I knew we'd got that much my house would be full of more toys than there is already.
About a month ago we had a bloke round to do our wills and put our home into a Trust for our kids.
I had zero idea about our savings and when he asked my wife didn't want to tell him in front of me because of reasons * and it just so happens I could buy 1000s and 1000s of Gucci belts.
She has been an amazing accountant for us in 42 years of marriage and we've never gone without however I know so many people who live hand to mouth I can believe the £500 figure.
* If I knew we'd got that much my house would be full of more toys than there is already.
Probably a good idea you didn't know, smart wife!
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It goes hand in hand with the fact every one of his guitars cost £50Probably a good idea you didn't know, smart wife!
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I can't imagine not knowing my financial situation like that, super scary.
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I still do impulse buys but got most of my silliness out of me by the time I had kids. I'm generally fairly boring and sensible with money now. Though still feel able to spend with a bit of sensible planning and management.
Whilst I am feeling the pressure of costs I'm really lucky that I think we should be able to ride the wave for now. Unless the **** hits the fan but I do have some non pension savings that should cover me for a while.
Whilst I am feeling the pressure of costs I'm really lucky that I think we should be able to ride the wave for now. Unless the **** hits the fan but I do have some non pension savings that should cover me for a while.
I'd be more worried about the 20% that do have more than £500 in a Lloyds account as their interest rates are bad.
But this gives no real insight to the real level of peoples saving as most people with saving won't have it all in one institution.
But this gives no real insight to the real level of peoples saving as most people with saving won't have it all in one institution.
I'm currently living in my own place as a single earner so don't have access to as much excess income as when I shared with my ex partner, but after buying my own house I still have 12 months savings so I could pay the bills if I lost my job. I'm also in the process of turning the some what run down house I bought into a nice place to live so I'm investing a bit into it, but I still put some aside each month. It might become difficult if the bills go up and we don't get a decent pay rise at the end of the year though.
I am in the camp of "one or two months and I'm screwed" so this is not hugely surprising to me that there are plenty more people in the same boat.
Assuming that most people are just wisely investing their cash to improve returns over low interest current accounts is putting rather a lot of faith in the general public imo
Assuming that most people are just wisely investing their cash to improve returns over low interest current accounts is putting rather a lot of faith in the general public imo
I'm assuming the ISA is a wrapper for another product - I was doing that for awhile averaged about 9% but you need to actively manage the money or you'll probably make nothing like 15% in the long run. Couple of years recently it would have been around 14-15% but other years lower. Not making 15% from basic ISA products.
Similar situation myself - for now I can ride the wave but I do begrudge that it is eating a bit into my disposable cash and can see the potential for **** hitting the fan which would make my financial situation precarious - though if it gets that bad I can't imagine there won't be riots.
Not for me, low interest simply means low/zero risk. Not necessarily easy access.
My main savings are returning on average 15% and I can have access to all of it within a couple of days.
There are definitely some people it there that are struggling through no fault of their own, then there are some like a bloke at work that things loans are great who deserve everything they get.
Sure he could afford a £600 a month PCP deal back then, a loan for something else. But he's screwed now.
Me I save up for everything and any debt pay it off as soon as possible. The result is now we could handle pretty much any increases that are likely to happen.
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Some have no savings at all. I have a few grand in ISAs and 2 year savings accounts.
but where/what is it?
Various stocks and shares via Vanguard.
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