Whatever happened to the interest on savings accounts?

[MontyVeda]

Back in the 90s i had a savings account which gave 5 or 6% interest, but I had to give 60 days notice if i wanted to make a withdrawal... I've recently been looking for a similar savings account but the interest is barely above 1%... which is sh!te in comparison.

Why? Where, and when did the interest go?

 

[I like Skol]

Back in the 90s

Have you been living in an isolated cave for the last 30 years? The economic situation isn't quite what it was....

 

[Brains]

The Bankers "down their last million" bonus scheme ?

If you have a load of cash under the figurative mattress your best bet is Premium Bonds, as they typically pay above 1% in interest,
otherwise invest with a ISA &/or Wealth Fund Manager, but that is typically for cash you are not going to need in the foreseeable future

 

[Darius_Jedburgh]

1%?
As much as that?
Snatch their hands off.

 

[itboffin]

Put any saving you might have in bricks and mortar

 

[MontyVeda]

1%?
As much as that?
Snatch their hands off.

seems kind of pointless... when £1000 saved only gets me £10 in interest.

 

[MontyVeda]

Put any saving you might have in bricks and mortar

How many bricks can i buy for £1000?

Seriously though... I'm just looking at somewhere to stash a couple of grand because that's how much I'll need when I have to move to a new flat/house; month's rent in advance, the same amount again for the deposit, the cost of moving, agent's fees etc. So I'll want to get my hand on it at shortish (4 weeks) notice.

 

[screenman]

The Bankers "down their last million" bonus scheme ?

If you have a load of cash under the figurative mattress your best bet is Premium Bonds, as they typically pay above 1% in interest,
otherwise invest with a ISA &/or Wealth Fund Manager, but that is typically for cash you are not going to need in the foreseeable future

I think you need a good bit of luck to get that, my premium bonds have not won a penny in the 53 years I have owned them.

 

[Beebo]

Back in the 90s i had a savings account which gave 5 or 6% interest, but I had to give 60 days notice if i wanted to make a withdrawal... I've recently been looking for a similar savings account but the interest is barely above 1%... which is sh!te in comparison.

Why? Where, and when did the interest go?

Check the current base rate for a clue.
It’s been below 1% for years and is currently 0.1%.

Edit. I just checked it hasn’t been above 1% since Feb 09, which is almost 12 years ago.

 

[Darius_Jedburgh]

How many bricks can i buy for £1000?

Seriously though... I'm just looking at somewhere to stash a couple of grand because that's how much I'll need when I have to move to a new flat/house; month's rent in advance, the same amount again for the deposit, the cost of moving, agent's fees etc. So I'll want to get my hand on it at shortish (4 weeks) notice.

Just use an ordinary account. You are not going to get very much interest wherever you put it. It just ain't worth the hassle of shopping around for that small amount, especially if you need short notice withdrawals.

Gordon Brown's legacy has long arms.

 

[ColinJ]

I think you need a good bit of luck to get that, my premium bonds have not won a penny in the 53 years I have owned them.

What, neither of them?

 

[DCLane]

It's been going down for several years and went to almost nothing this year.

That's why I decided to pay my mortgage off yesterday.

 

[MontyVeda]

Just use an ordinary account. You are not going to get very much interest wherever you put it. It just ain't worth the hassle of shopping around for that small amount, especially if you need short notice withdrawals.

Gordon Brown's legacy has long arms.

aye... that's the only option really. Was just a bit surprised at how non-existent the interest rates are as I've not looked into savings accounts since about 1993.

 

[PK99]

The Bankers "down their last million" bonus scheme ?

If you have a load of cash under the figurative mattress your best bet is Premium Bonds, as they typically pay above 1% in interest,
otherwise invest with a ISA &/or Wealth Fund Manager, but that is typically for cash you are not going to need in the foreseeable future

WRONG!

The prize pool rate is 1%.

Even with the maximum holding of £50k, the most likely return is 0.9%
https://www.moneysavingexpert.com/savings/premium-bonds/

 

[Sharky]

What, neither of them?

When my first daughter was born, somebody gave me £3, with instruction to buy a premium bond. The minimum then was £5, so I added £2 and bought a single premium bond. Roll on about 10 years and a house move and I wrote to them advising change of address. To my surprise, she had won £50!