Savings Interest Rates Getting Worse

[rivarama]

Gone way too deep for my little pea to understand

I'm going to look to buy some blue chip stocks with decent dividend yields into my Investment ISA with some of it I think.

If you’re in for the long term - eg 5+ years - stick to a FTSE100 ETF such as “ISF” (that’s the ticker) - it replicates the performance of the FTSE so more diversified that a few “blue chips” - and also pays a 4.5% dividend. It’s paid quarterly so you pocket about 1% every 3 months.

If you want to diversify more globally - still stocks only - VWRL is not a bad addition as it replicates ALL mid and large caps around the world (weighted average of 4000 stocks) but you’re more exposed to non GBP currency. You don’t beat the market, but replicate its performance. It only pays a 2.75% dividend but is way less exposed to UK and GBP fluctuations.

Both investments have super low fees (0.07% and 0.25% respectively)

 

[Wattie]

Safrane - very good point.
I just realised I wasted 15minute of my life drafting the above response to Wattie, which isn’t going to make him change his mind (which isn’t my intention anyway) - and might just wind him up even more.

Off to have a lovely family breakfast now.

Bless you all - and Wattie, looking forward to a catch up on that very topic over beers one day ;-)

Drinks, Sounds like a plan to me

 

[Wattie]

The Fed Ponzi scheme in action.

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Emergency funding cos when the Ponzi runs out of money.....

Fed Adds $76.9 Billion in Overnight Money to Markets

The New York Fed added $76.9 billion in temporary money to financial markets via an overnight repurchase-agreement, or repo, operation.

www.wsj.com

"Temporary"

Dodgy banking/ financial system, 100% central bank manipulated stock markets with no true price discovery, trillions in negative yielding debt, an idiot American President whose likely to be around for another 4 years and now it looks like

an Iranian war!!!!!
https://www.cnbc.com/2020/01/07/ira...les-at-iraqs-air-base-housing-us-troops.html?

I wonder what will benefit.

Watch the panic in equities if Trump retaliates or Iran strikes Israel/Dubai. Can the last investor out turn the lights off please.

 

[Felonious Crud]

FYI, to the original topic, Marcus, a Goldman Sachs brand, is offering a pretty decent rate of 1.35% on an instant access savings account. I opened one at the weekend, and while I don't expect to retire on the earnings I can at least be 100% certain that it'll earn more interest than leaving any leftovers festering in a current account.

 

[Davidt99]

I did exactly the same and opened a Marcus account the end of last week. Looks like the best option at the moment for an instant access account.

 

[Felonious Crud]

I did exactly the same and opened a Marcus account the end of last week. Looks like the best option at the moment for an instant access account.

It was a remarkably easy process. The fact that it pays as much interest as accounts which prevent you from taking your money out without sacrificing interest and (in the case of an HSBC one) require you to phone a call centre everything you want to do something made it a pretty simple choice. And if I don't like it I can empty it.

 

[Hawk13]

I did exactly the same and opened a Marcus account the end of last week. Looks like the best option at the moment for an instant access account.

I got a Marcus account at 1.5% when they launched .... and this has just been reduced to 1.45% with a 'loyalty' bonus.

1.35% is still very good for instant access.

 

[2b1ask1]

Cheers guys,

Just opened one of these, just £1 in it for a couple of days and then I'll chuck a few grand in it. Darn sight better than the 0.01% it is getting at the moment! Well 135 times better!

 

[midlifecrisis]

1.35% is lower than the CPI at 1.4% so you're effectively losing money. RPI is at 2.2%.

 

[Davidt99]

1.35% is lower than the CPI at 1.4% so you're effectively losing money. RPI is at 2.2%.

But not as much as keeping cash in a bank account or any other account that pays less interest. What do you recommend that is low risk, instant access and pays a higher rate of interest?

 

[Wattie]

I got a Marcus account at 1.5% when they launched .... and this has just been reduced to 1.45% with a 'loyalty' bonus.

1.35% is still very good for instant access.

1-35% is below inflation so you’re losing money.
Did I mention Gold as an alternative......instant access via an online account.
Coronavirus and Brexit deal should send it soaring too as no end looks in sight.

 

[Felonious Crud]

Cheers guys,

Just opened one of these, just £1 in it for a couple of days and then I'll chuck a few grand in it. Darn sight better than the 0.01% it is getting at the moment! Well 135 times better!

Exactly the same. A quid to make sure it arrived, and then a chunk to earn some interest. Unfortunately, I have it on good authority that interest will be minimal due to a bathroom. (Sadly not for laundering money.)

 

[Wattie]

(Sadly not for laundering money.)

Goldman will take care of the ML so no need to be sad,

Fed sanctions former Goldman Sachs bankers over 1MDB money-laundering scandal

The U.S. Federal Reserve said on Tuesday it had sanctioned two former Goldman Sachs Group Inc bankers for their roles in a money-laundering scandal involving 1Malaysia Development Berhad (1MDB), Malaysia's state-owned investment fund.

www.reuters.com

 

[Felonious Crud]

Goldman will take care of the ML so no need to be sad,

Fed sanctions former Goldman Sachs bankers over 1MDB money-laundering scandal

The U.S. Federal Reserve said on Tuesday it had sanctioned two former Goldman Sachs Group Inc bankers for their roles in a money-laundering scandal involving 1Malaysia Development Berhad (1MDB), Malaysia's state-owned investment fund.

www.reuters.com

What a full-service bank! Awesome.

 

[Wattie]

I’m sorry but I don’t get this.

Why invest in something where your money is losing value....guaranteed......even if it is losing less than another even poorer alternative?

Doesn’t that make you question what you’re doing and what’s going on?

 

[lifes2short]

I’m sorry but I don’t get this.

Why invest in something where your money is losing value....guaranteed......even if it is losing less than another even poorer alternative?

Doesn’t that make you question what you’re doing and what’s going on?

tend to agree with you, if you have quite a large lump of dosh sitting in an account even at a meagre 1.35, its earning f all compared to what it could be invested in

 

[Wattie]

tend to agree with you, if you have quite a large lump of dosh sitting in an account even at a meagre 1.35, its earning f all compared to what it could be invested in

5-10 years ago no-one would invest in a deposit account paying interest where your money went backwards. The amount isn’t really relevant but agreed in so much as it’s hard to know what to do!

This shows the indoctrination since the crisis and why some are paying banks to hold their money (negative interest rates).

A rate below inflation means you’re effectively doing that too.....

Today’s financial world requires a total re-think and I understand this is hard, but fellas you gotta understand the game and wake up.

 

[iainw]

5-10 years ago no-one would invest in a deposit account paying interest where your money went backwards. The amount isn’t really relevant but agreed in so much as it’s hard to know what to do!

This shows the indoctrination since the crisis and why some are paying banks to hold their money (negative interest rates).

A rate below inflation means you’re effectively doing that too.....

Today’s financial world requires a total re-think and I understand this is hard, but fellas you gotta understand the game and wake up.

Working harder and increasing earning potential makes more sense to me. And spend to enjoy life. All this 1.35% on 300/ blows my mind. Even working an extra hour on minimum wage is worth more than this

 

[Wattie]

Working harder and increasing earning potential makes more sense to me. And spend to enjoy life. All this 1.35% on 300/ blows my mind. Even working an extra hour on minimum wage is worth more than this

There’s a lot to be said about that.(dunno where the 300 came from tho)
I bought my MC because I felt it was better to have it sat on the drive, than in the bank.
Cypriot bank deposit confiscations proved I was correct to do so.

It’s no different nowadays, in fact the financial situation is 20-30 times worse. Money in the bank is a risk, for 1.35% hold it at home, or invest in something that at least has a chance of going up!

 

[Davidt99]

I have asked this before but let's try again......... Can you tell me where I can put my money where I can have instant access and there is no risk that I will lose my initial deposit.