It's safer than your suggested alternative of keeping it at home.
TSB - Interest Rates on Plus Account now at 0%
- Thread starter Liquid_Entity
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It's safer than your suggested alternative of keeping it at home.
Soldato
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Often there are incentives to take out/use finance. These days very few loans or credit items have early payback penalties, the interest rates are very low. The cheapest loans are 2.8%. You can beat that on the instant access Ratesetter investment 3%, or 3.5% for the 30 day notice one. There is also the stock market which traditionally beats savings accounts too.
Of course at this very moment there is a bit of turmoil, once things settle down, it is possible to be better off borrowing. Not that I'm advocating it.
Soldato
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If you have a mortgage and are secure in you job, overpay the mortgage.
It will be a long-term benefit.
It will be a long-term benefit.
But that's exactly my point, people don't think about that. I realise it's safer, but you have old people sewing money into curtains etc and this is just going to aggravate that.
Caporegime
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Agreed, im.overpaying my £400 pm mortgage by £200 a month currently.
Old people sewing money into curtains will continue do that. Old people who keep their money in the bank will continue to do that.
Interest rates going from next to nothing to nothing won't change anything.
I’d do this rather than overpaying the mortgage personally.
You mean it could be +60%. It could also be -60%.
Some people want to have a guaranteed amount. Have 30k in an account for a house and are saving you are going to risk it in s&s?
I mean over the last 5 years it has delivered +60%
If I'm saving for anymore than 2 years, yes I would stick it in a S&S ISA in a low-risk fund.
So a low risk fund you mean 80/20 bond/shares and its generating 60% APR. lol
I mean the Vanguard LifeStrategy 80/20 has delivered a +60% on your investment over 5 years. I'm not talking APR, obviously.
"Past performance is not a reliable indicator of future results"
In general, over the long term it's going to go up. Makes more sense to me anyway, over a 0% bank 'savings' account.
Over the long term markets have always gone up. That's why I recommended tracker funds, not individual stocks.
Use a S&S ISA or don't, the decision is obviously up to the individual. But the fact is that it's a damn sight better for the money to be there (again, over the long term) than in a savings account.
Soldato
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This is the type of option answer you are given in the Oxford TSA, and its completely incorrect. There is no correlation between the two ideas.
HSBC looks the most interesting right now so I'll probably try them. It's a shame because the local TSB branch service was very good, but current accounts aren't profitable unless you're paying fees so it's no wonder that so many banks are cutting back.
Agreed. Fortunately I'm in that situation.
Absolutely! I'm about to pay mine off, three years early. A big change from my massive overspending and ballooning debt days (I still spend more than I should, but not more than I can afford). Next step is to start putting more into the S&S ISA.
Left a few months ago and moved back to HSBC.
Savings in general just seems dire at the moment; currently have a good chunk in a LISA but other than that I have money sitting in my main account, doing nothing with no place worth putting it in. Marcus, N&SI etc, all dropping rates.
Savings in general just seems dire at the moment; currently have a good chunk in a LISA but other than that I have money sitting in my main account, doing nothing with no place worth putting it in. Marcus, N&SI etc, all dropping rates.