Best place for your cash?

[observer]

Seems those that are acting responsibly by saving, are now being ripped off by the banks, as inflation has now overtaken the meagre interest rates being offered by the banks - so where's the best place to put your cash OR should we just carry on with the spend culture?

[asperity]

If anyone is in any doubt as to where they should deposit their cash for safe keeping just let me know and I will give them the number of a safe bank account where I will personally take care of said cash.

[observer]

Would that be in an off shore account Asp; or your personal account?!

[asperity]

That would be telling.

[Evil Sid]

well ISA's seem to be a waste of time. know somebody who had ?10,000 in an ISA for three years and it made ?0.00.

 

had they put it in an ordinary savings account they would have had about ?360.00 at 1.5% interest.

[observer]

problem is, inflation has climbed to over 5%.

[Dizzy]

I got whopping ?40 interest on one of my building society savings account in November. Just checked and the year before I got ?385 and the year before that I got ?630 on the same amount

 

Our Isas are now doing something like 10p a month. Company BMM account (where you put your excess cash to get interest) now gets about 1p a month whereas it used to be about ?40

 

Time to SPEND rather than SAVE... maybe buying and then selling on ebay offers a better 'return' might try it out

[asperity]

My offer is still open Dizzy. Think about it, you know it makes sense

[Dizzy]

It's yours Asp but I am only trusting you cos you are a warr ww forum poster.... when shall I drop it all off

[asperity]

As soon as possible, I have a flight to Argentina to organise

[Peter T]

Credit Unions. Non-profit making, run by volunteers under FSA rules.

Last 3 years,Fairfield, Howley and Latchford Credit Union have paid 5%, 5%, and 2.5%. The latter was down to the banks and Brown.

[observer]

So where do they bank their money? and if they can pay 5% interest, what are they charging on loans?

[Peter T]

1% per month, with interest added monthly. Pay more off loan, reduce time and pay less interest.

[observer]

Sorry Pierre, I'm struggling with the maths - they pay out 5% interest on savings - so where do they stash the cash, and at what return? They charge 1% interest on loans, so there's a 4% deficit somewhere?

[Eagle]

There are probably be five times the number of borrowers than savers.

[Peter T]

obs,

Apart from a working balance, the money is in a high interest account which gets topped up from the excessworking capital which comes from regular savings and loan payback.On top of this, fundraising takes place on a regular basis.

[byrdy]

Sorry Pierre, I'm struggling with the maths - they pay out 5% interest on savings - so where do they stash the cash, and at what return? They charge 1% interest on loans, so there's a 4% deficit somewhere?

They charge 1% per MONTH,thats 12% per annum.

[observer]

So where is the "high interest" account? As the concern that prompted this topic, was that ALL bank savings accounts are paying less interest than inflation at the moment.

[byrdy]

that ALL bank savings accounts are paying less interest than inflation at the moment.

Rubbish,i'm still getting 5%,which is more than inflation.

[observer]

Well according to news reports inflation is now slightly above 5%, which appears to contradict that.

[inky pete]

Just had a cash ISA with the Saffron Building Society mature having paid a guaranteed 7% over the past 12 months.

 

NS&I are paying a guaranteed RPI+1% tax free. For a basic rate taxpayer that's currently equivalent to 7.9%, or 10.5% if you pay higher rate.

[observer]

Ta Inky, you've answered the original question!

[byrdy]

NS&I are paying a guaranteed RPI+1% tax free.

If only it was that simple-

http://www.nsandi.com/products/ilsc/whyinflationmatters

[inky pete]

Since RPI is almost always higher than CPI, and NS&I guarantee RPI+1, it certainly is inflation proof.