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In my case, equities. It makes zero sense for me to have money sat in a bank account earning 0.75% (3.5% below base - it’s the best savings account my bank in t
by madaxe_again 3y ago
In my case, equities. It makes zero sense for me to have money sat in a bank account earning 0.75% (3.5% below base - it’s the best savings account my bank in the U.K. offers) when I’m paying 6.5% on my mortgage with the same bank. Rather than pay off the mortgage with a stiff penalty based on current rates, I’ve stuck it in equities and funds, where at least the yield will be better than a kick in the goolies, which is the best most banks offer.
- cjrp 3y agoJust a note that you can usually overpay the mortgage each year up to a certain percentage of the balance (mine’s 10%) without incurring any penalty.
- itsoktocry 3y ago>I’ve stuck it in equities and funds, where at least the yield will be better than a kick in the goolies, which is the best most banks offer. Highly liquid money market ETFs[0] are paying ~5%, that's hard to beat with minimal risk. Individual equities are..not doing so well. [0] https://www.purposeinvest.com/funds/purpose-high-interest-savings-fund https://www.purposeinvest.com/funds/purpose-high-interest-sa...
- blibble 3y ago> It makes zero sense for me to have money sat in a bank account earning 0.75% (3.5% below base - it’s the best savings account my bank in the U.K. offers) this is more of a lazyman tax than anything else there are instant access savings accounts offering 3.5% and if you lock it up for a year you can get 5%
- theonlybutlet 3y agoNot in Europe. I live in Ireland, the longer the term the lower the return. Counterintuitive but it's the case. https://personalbanking.bankofireland.com/app/uploads/Customer-Rate-Sheet.pdf https://personalbanking.bankofireland.com/app/uploads/Custom...
- blibble 3y agoshould more or less follow the yield curve minus a bit if not they're just ripping you off (t-bills exist though!)
- deleted 3y ago[deleted]
- martinald 3y agoYou can get over 3.5% easily in the UK: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccessanalysis https://www.moneysavingexpert.com/savings/savings-accounts-b...