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Post by johnc on Jan 14, 2020 8:19:48 GMT
Don't think so! I save a small amount into an RBS savings A/C each month. It will never amount to a fortune but I thought one day it might go towards my daughter's wedding or her first flat etc etc.
The interest I get on the account is derisory but this morning I got an e-mail from the bank saying they are reducing the interest rate to 0.2%. So that's £20 a year for £10,000! Anyone would think they don't want people to save. I think the old rate was perhaps 0.25% but even so, the interest rate is perhaps 6% or 7% of the rate of inflation. It wasn't too many years ago that interest rates were 60% or 70% of inflation. I think I will put the money into my stocks and shares ISA and try to grow it instead of shrink it.
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Post by ChrisM on Jan 14, 2020 8:29:42 GMT
Indeed .... all the time I was struggling to pay off my mortgage etc with interest rates of around 17% at one point etc and a few percent less if you had any savings (I didn't), then when I finally pay off my mortgage and have a bit of money that could be saved each month - but the interest rates are now next-to-nothing :-(
I took out a few long-term "friendly society" products many years ago (one was over 10 years, the other over 20 years) but what I got back was less than if I'd just saved into a normal building society savings account.
If I could get even 5% or 6% on any savings guaranteed, I'd be pleased ! I have no idea how to play the stock market so am very unwilling to risk buying shares.
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Post by bryan on Jan 14, 2020 8:48:12 GMT
The best I have found is 1.4% Nationwide loyalty ISA.
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Post by Deleted on Jan 14, 2020 9:31:13 GMT
Indeed .... all the time I was struggling to pay off my mortgage etc with interest rates of around 17% at one point etc and a few percent less if you had any savings (I didn't), then when I finally pay off my mortgage and have a bit of money that could be saved each month - but the interest rates are now next-to-nothing :-( I took out a few long-term "friendly society" products many years ago (one was over 10 years, the other over 20 years) but what I got back was less than if I'd just saved into a normal building society savings account. If I could get even 5% or 6% on any savings guaranteed, I'd be pleased ! I have no idea how to play the stock market so am very unwilling to risk buying shares. There is always an upside - your house is worth considerably more as cheap borrowing over the last decade or two has fuelled house pricing as much as any other single factor, I suspect.
Friendly society products are rubbish. They publicise the tax exemption, but fail to make noise about the high charges (because of low premium caps) and compulsory life cover, which has to be paid for. By you.
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Post by cbeaks1 on Jan 14, 2020 9:37:34 GMT
Ford money - Instant access 1.35%
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Post by Deleted on Jan 14, 2020 9:39:29 GMT
Moneyfacts is always worth a look, though other finance comparison sites are available... moneyfacts.co.uk/isa/ |
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Post by Roadrunner on Jan 14, 2020 10:00:05 GMT
Moneyfacts is always worth a look, though other finance comparison sites are available... moneyfacts.co.uk/isa/Even those rates are laughable, but probably the best available at the moment. One of my savings accounts has just announced that they are reducing the interest rate to 0.10 percent. I might as well spend it... |
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Post by Big Blue on Jan 14, 2020 10:24:42 GMT
I might as well spend it.... Yep. That's what it's there for. Saving cash is folly in the modern era as the sole savings vehicle but then it's a minefield of options and risks if you do have a chunk of liquid capital just sitting about. |
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Post by racingteatray on Jan 14, 2020 10:55:58 GMT
Don't think so! I save a small amount into an RBS savings A/C each month. It will never amount to a fortune but I thought one day it might go towards my daughter's wedding or her first flat etc etc. The interest I get on the account is derisory but this morning I got an e-mail from the bank saying they are reducing the interest rate to 0.2%. So that's £20 a year for £10,000! Anyone would think they don't want people to save. I think the old rate was perhaps 0.25% but even so, the interest rate is perhaps 6% or 7% of the rate of inflation. It wasn't too many years ago that interest rates were 60% or 70% of inflation. I think I will put the money into my stocks and shares ISA and try to grow it instead of shrink it. Ah yes, I also bank with RBS (legacy of being a student in Scotland) and received the same email. It annoyed me as well - just the sheer pettiness of it. |
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Post by Tim on Jan 14, 2020 14:48:49 GMT
Santander have cut the rate on the 123 Account from 1.5% to 1% while at the same time making the overdraft rate 40%.
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Post by johnc on Jan 14, 2020 15:11:59 GMT
Santander have cut the rate on the 123 Account from 1.5% to 1% while at the same time making the overdraft rate 40%. That overdraft is near payday lender rates! Just shows they are descendants of Dick.......Dick Turpin that is! |
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Post by Deleted on Jan 14, 2020 15:21:08 GMT
I didn't have a massive amount of savings but when my ISA rate went down to something ridiculous like 0.05% I just closed it and paid a lump of the mortgage off with the money
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Post by Boxer6 on Jan 14, 2020 19:24:03 GMT
Don't think so! I save a small amount into an RBS savings A/C each month. It will never amount to a fortune but I thought one day it might go towards my daughter's wedding or her first flat etc etc. The interest I get on the account is derisory but this morning I got an e-mail from the bank saying they are reducing the interest rate to 0.2%. So that's £20 a year for £10,000! Anyone would think they don't want people to save. I think the old rate was perhaps 0.25% but even so, the interest rate is perhaps 6% or 7% of the rate of inflation. It wasn't too many years ago that interest rates were 60% or 70% of inflation. I think I will put the money into my stocks and shares ISA and try to grow it instead of shrink it. Moneyfacts is always worth a look, though other finance comparison sites are available... moneyfacts.co.uk/isa/Even those rates are laughable, but probably the best available at the moment. One of my savings accounts has just announced that they are reducing the interest rate to 0.10 percent. I might as well spend it... My RBS email re my savings account with them said 0.2% down to 0.1%. Must be different types .. .. .. |
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Post by PG on Jan 18, 2020 11:17:25 GMT
A low base rate for this long period of time is counter-productive. Rates have distorted the whole savings / spending / borrowing balance. Low bank rate has just forced rates on savings down to stupid levels, allowed mortgages on over-priced houses to still be just about affordable (if you have the deposit to hand as saving for one is almost impossible) and has driven cash into assets instead in search of return - pushing up the stock market, houses and any other asset that might increase in value (like classic cars, stamps etc). And this has gone on for so long now and everything is so intertwined and interdependent that attempting to unravel it has become almost impossible without huge further cost to one group or another.
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Post by johnc on Jan 18, 2020 13:31:09 GMT
A low base rate for this long period of time is counter-productive. Rates have distorted the whole savings / spending / borrowing balance. Low bank rate has just forced rates on savings down to stupid levels, allowed mortgages on over-priced houses to still be just about affordable (if you have the deposit to hand as saving for one is almost impossible) and has driven cash into assets instead in search of return - pushing up the stock market, houses and any other asset that might increase in value (like classic cars, stamps etc). And this has gone on for so long now and everything is so intertwined and interdependent that attempting to unravel it has become almost impossible without huge further cost to one group or another. I agree. There will have to be a large correction either in the price of houses/assets or in salaries before we get a sustainable balance again. Brexit might just be the catalyst that gets things moving one way or another. Personally I feel a crash in the value of assets is the more likely option. |
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Post by rodge on Jan 18, 2020 19:33:48 GMT
In the USA, you have to build credit. They don’t care about anything else when you apply for anything. Your credit score rules.
The easiest way is to get a secured credit card.
You put down a wad of cash, pay your bill every month and then build it that way.
I did this and put down $2000 to gat a $2000 limit on a card I could use.
Built my credit and asked for the money back which I was told, would go into a bank account and gain interest.
Over 18 months, my $2000 made $0.29
I’m not even bothered working out how pathetic a rate it is.
However if I don’t pay my bill, I get to pay them 25% apr.
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Post by ChrisM on Jan 18, 2020 19:45:24 GMT
Err, if you have to put down a wad of cash up-front, then it's not really credit is it. You are just "borrowing back" some of your own money that you put down
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Post by rodge on Jan 19, 2020 0:30:39 GMT
Err, if you have to put down a wad of cash up-front, then it's not really credit is it. You are just "borrowing back" some of your own money that you put down Exactly! And now that I’ve good credit, I’m getting inundated with credit card offers. I eventually went with one that gives points with one of the airlines and the. Had to fax information to them from one of the local branches, to prove it was me. I don’t have a fax machine and neither does the company I work for because it’s 2020! |
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Post by Big Blue on Jan 20, 2020 9:56:15 GMT
From Rodge's US experience, cartel behaviour and interest rate nonsense aside, don't ever underestimate just how good our Clearing system is in the UK. I bought a car with a bank transfer that took seconds and cost nothing last week. That said Credit Reference Agencies are the scum of the earth and rightly banned in some countries (e.g. France) as it negates the banks' responsibilities for credit supply to those that should have none/less, is open to abuse, wrong identification and associated identification which should have no bearing on an individual in the eyes of their bank.
But as the thread asks : "Do banks care?" the answer in the UK is certainly "not in the least".
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Post by Bob Sacamano v2.0 on Jan 20, 2020 10:12:49 GMT
Err, if you have to put down a wad of cash up-front, then it's not really credit is it. You are just "borrowing back" some of your own money that you put down Exactly! And now that I’ve good credit, I’m getting inundated with credit card offers. I eventually went with one that gives points with one of the airlines and the. Had to fax information to them from one of the local branches, to prove it was me. I don’t have a fax machine and neither does the company I work for because it’s 2020! I've just removed our fax number of all paperwork and website. I asked the question where was our fax machine and was met with blank looks. I eventually found it in a cupboard behind a stud wall put in during renovations 10 years ago. Thankfully there wasn't a huge pile of mega orders unactioned - just a a few from debt collection agencies offering the services of what appeared to be Ronnie and Reggie Kray's grandsons who were prepared to go and have a word with anyone who owed us money. |
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Post by Tim on Jan 20, 2020 15:05:30 GMT
I got an email from RBS this morning to say the interest rate on overdrafts was going to 39.49%, so cheaper than Santander but  |
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Post by johnc on Jan 20, 2020 15:35:27 GMT
The Government legislated against payday lenders and I think they should legislate against high street banks for this. 40% interest p.a.in anybody's book is extortion and it is more than 50 times the base rate. High street banks should be restricted to overdrafts of say no more than 10 times base rate. Even that is high if rates get up a bit but 40% is madness unless you are a recently discharged bankrupt with no other assets.
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Post by Deleted on Jan 20, 2020 15:39:49 GMT
I remember saying to Mrs 12th that when the Govt. first suggested that the payday lender market would regulate itself that they were talking horseshit.
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Post by Alex on Jan 20, 2020 22:31:15 GMT
A mate from school set himself up as a payday lender a few years back (think it was called Piggybank) and he seemed to be doing pretty well given the fancy car and house in Sandbanks that he managed to acquire. Unfortunately for his employees they went bust just before Christmas. I don't think it's as lucrative a business as it used to be.
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Post by grampa on Jan 21, 2020 14:42:14 GMT
Don't think so! I save a small amount into an RBS savings A/C each month. It will never amount to a fortune but I thought one day it might go towards my daughter's wedding or her first flat etc etc. The interest I get on the account is derisory but this morning I got an e-mail from the bank saying they are reducing the interest rate to 0.2%. So that's £20 a year for £10,000! Anyone would think they don't want people to save. I think the old rate was perhaps 0.25% but even so, the interest rate is perhaps 6% or 7% of the rate of inflation. It wasn't too many years ago that interest rates were 60% or 70% of inflation. I think I will put the money into my stocks and shares ISA and try to grow it instead of shrink it. I had that same letter - given the piss poor performance of savings I keep thinking I'd like to start with a lowly classic car (a modern classic of a value that I wouldn't cry over losing) and see what I can turn it into by carefully judged purchases and trades once a year or so - I wouldn't want to risk any significant amount of money - it would just be for fun (then kick myself for not making a greater investment to start if it did well!) The problem is, even with just one car at a time, if you buy with the intention of selling at a higher value, that technically makes you a dealer - don't know if it still counts if you're only doing a trade once a year. |
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Post by johnc on Jan 21, 2020 15:23:58 GMT
Don't think so! I save a small amount into an RBS savings A/C each month. It will never amount to a fortune but I thought one day it might go towards my daughter's wedding or her first flat etc etc. The interest I get on the account is derisory but this morning I got an e-mail from the bank saying they are reducing the interest rate to 0.2%. So that's £20 a year for £10,000! Anyone would think they don't want people to save. I think the old rate was perhaps 0.25% but even so, the interest rate is perhaps 6% or 7% of the rate of inflation. It wasn't too many years ago that interest rates were 60% or 70% of inflation. I think I will put the money into my stocks and shares ISA and try to grow it instead of shrink it. I had that same letter - given the piss poor performance of savings I keep thinking I'd like to start with a lowly classic car (a modern classic of a value that I wouldn't cry over losing) and see what I can turn it into by carefully judged purchases and trades once a year or so - I wouldn't want to risk any significant amount of money - it would just be for fun (then kick myself for not making a greater investment to start if it did well!) The problem is, even with just one car at a time, if you buy with the intention of selling at a higher value, that technically makes you a dealer - don't know if it still counts if you're only doing a trade once a year. It's all about intention. If you intended to do it up and keep it and then didn't like it and sold it, it's hard to force a different intent on you. Do it several times a year and you're trading. Do it once a year and It could be viewed as a hobby. |
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