Interest Rates

[stewarty27]

A bit of advice please. When I was made redundant I got a £20 grand pay off which I put in a cash ISA. I've used some but there is still about £15,000 left, Its basically made Sweet FA over the years so give rising interest rate should I move it to another type of account ? Thanks Guys.

[57vintage]

Leave it far it is would be my guess. Whilst these capitalist shagbags will never increase interest rates for savers to the same extent, or as rapidly as they’ll increase the borrowing rate, your cash will be safe (inflation notwithstanding). I’m assuming it’s a fixed rate of about half a crown per thousand, which you can then look at at the start of FY 23-24 next March/April to see if you can get a better rate on transfer.

Just a guess, of course. I’m nae expert, or as the Longmore Hall, Keith chat-up line used to go, “I’m nae a gynaecologist, but I’ll hae a ****ing good look”.

[stewarty27]

Leave it far it is would be my guess. Whilst these capitalist shagbags will never increase interest rates for savers to the same extent, or as rapidly as they’ll increase the borrowing rate, your cash will be safe (inflation notwithstanding). I’m assuming it’s a fixed rate of about half a crown per thousand, which you can then look at at the start of FY 23-24 next March/April to see if you can get a better rate on transfer.

Just a guess, of course. I’m nae expert, or as the Longmore Hall, Keith chat-up line used to go, “I’m nae a gynaecologist, but I’ll hae a ****ing good look”.

Thanks Vintage,

[Red Zone]

A bit of advice please. When I was made redundant I got a £20 grand pay off which I put in a cash ISA. I've used some but there is still about £15,000 left, Its basically made Sweet FA over the years so give rising interest rate should I move it to another type of account ? Thanks Guys.

The answer will depend on your circumstances.

1. Do you need access to the cash? If you do then best have it in some sort of instant access account. If you don't then you should consider tying it up in a fixed rate bond with a bank/building society. In broad terms you should be able to get somewhere in the 1.5%-2% range for an instant access account and somewhere in the 3%-3.5% range for a fixed rate bond depending on how long you tie it up for.

2. Do you need an ISA or is a non-ISA just as good? That largely depends on both your annual income as well as the amount of other savings you have. All basic rate taxpayers get a £1,000 per annum allowance for interest, which reduces to £500 if you are a higher rate taxpayer. If your interest income is less than the allowance there is no advantage to having an ISA, a normal bank/building society account will do just as good and may pay a slightly higher rate of interest than an ISA account. (If your income is less than the personal allowance then you can get £5,000 of interest allowance but I will assume that doesn't apply here).

For the sake of completeness the other option is to invest in some sort of unit trust, which is basically investing in shares or bonds. More potential upside than a building society account but equally a risk you lose some of your capital. With all the sh1t going on at the moment I wouldn't recommend this.

Hope that helps

[stewarty27]

The answer will depend on your circumstances.

1. Do you need access to the cash? If you do then best have it in some sort of instant access account. If you don't then you should consider tying it up in a fixed rate bond with a bank/building society. In broad terms you should be able to get somewhere in the 1.5%-2% range for an instant access account and somewhere in the 3%-3.5% range for a fixed rate bond depending on how long you tie it up for.

2. Do you need an ISA or is a non-ISA just as good? That largely depends on both your annual income as well as the amount of other savings you have. All basic rate taxpayers get a £1,000 per annum allowance for interest, which reduces to £500 if you are a higher rate taxpayer. If your interest income is less than the allowance there is no advantage to having an ISA, a normal bank/building society account will do just as good and may pay a slightly higher rate of interest than an ISA account. (If your income is less than the personal allowance then you can get £5,000 of interest allowance but I will assume that doesn't apply here).

For the sake of completeness the other option is to invest in some sort of unit trust, which is basically investing in shares or bonds. More potential upside than a building society account but equally a risk you lose some of your capital. With all the sh1t going on at the moment I wouldn't recommend this.

Hope that helps

Thank you so much RZ for taking the time and your comprehensive reply, Think I'll make an appointment wi the bank. Me thinks

[Red Zone]

Thank you so much RZ for taking the time and your comprehensive reply, Think I'll make an appointment wi the bank. Me thinks

Yes that makes good sense

[Shetland Don]

The answer will depend on your circumstances.

1. Do you need access to the cash? If you do then best have it in some sort of instant access account. If you don't then you should consider tying it up in a fixed rate bond with a bank/building society. In broad terms you should be able to get somewhere in the 1.5%-2% range for an instant access account and somewhere in the 3%-3.5% range for a fixed rate bond depending on how long you tie it up for.

2. Do you need an ISA or is a non-ISA just as good? That largely depends on both your annual income as well as the amount of other savings you have. All basic rate taxpayers get a £1,000 per annum allowance for interest, which reduces to £500 if you are a higher rate taxpayer. If your interest income is less than the allowance there is no advantage to having an ISA, a normal bank/building society account will do just as good and may pay a slightly higher rate of interest than an ISA account. (If your income is less than the personal allowance then you can get £5,000 of interest allowance but I will assume that doesn't apply here).

For the sake of completeness the other option is to invest in some sort of unit trust, which is basically investing in shares or bonds. More potential upside than a building society account but equally a risk you lose some of your capital. With all the sh1t going on at the moment I wouldn't recommend this.

Hope that helps

Spot on RZ. Also, don’t “go to the Bank” - interest rates are predicted to keep on rising in the short-term but won’t be nearly as much as current inflation rates, so it’s really about mitigating inflationary effects. The stock market has taken a battering in recent weeks but will rebound, I’m sure. It might therefore be seen by some as good value just now for that reason. It’s risky though but if you are able to take a long-term view it generally outperforms cash by a significant margin. Don’t act on this please as it’s just my personal thoughts - see a financial adviser, I’d suggest.

[donsdaft]

Bloody capitalists.

[stewarty27]

Bloody capitalists.

[57vintage]

Bloody capitalists.

Well, considering that it’s the party of arch-capitalism that has endangered the fixed payments on which pensioners and others rely, those individuals are duty-bound to look at any way they can to avoid poverty. Tax cuts mean fuuck all to those whose incomes are so low that they don’t qualify to pay income tax, whilst price inflation is a universal drain on income regardless of income level.

Not everything’s up for laughs.