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Eh, some online banks give good interests like Ally with 1% savings. It's not as good as investing but it is easy and significantly more than any major bank.
by Justsignedup 11y ago
Eh, some online banks give good interests like Ally with 1% savings. It's not as good as investing but it is easy and significantly more than any major bank.
- packetslave 11y agoAlly is also compounded daily, instead of monthly like most low-end savings accounts.
- billmalarky 11y ago"Good" should be qualified here. That's still significantly less than average US historical inflation. Ally gives a crappy return. It's just less crappy than other banks. The concept of "saving" does not make sense past the point of a 6 month emergency fund (for _most_ people's financial needs). All of that money should be buying investments not sitting in some database losing value over time.
- deleted 11y ago[deleted]
- beejiu 11y agoBecause he's using pounds, I assume he is in the UK, where you can get 3%-5% in current accounts within certain limits. Even on a relatively small amount of savings, those amounts are decent enough to worry about, and it certainly makes sense to park your money in the most appropriate place. It literally takes about 2 minutes to find the best rate (with MoneySavingExpert, for example).
- callumlocke 11y agoExample: saving £200/month, with 3% interest compounded monthly - after a year you'll have saved £2,400 and earned £40 interest. Ok, day to day, £40 is real money. But £2.4k vs £2.44k, over a year of your life? I don't agree that's worth worrying about. Not if worrying about finding the best rate means choosing a bank with shit customer service or a shit website etc, which could ultimately lead to indecision, inaction, and saving less money. Maybe you're more disciplined than me though :)