…if you lock up the money for 2 years
…if you are prepared to invest a maximum of £2k
I get 0.65% with Tandem, easy access, and 0.59% with Tesco, easy access.
Both have limits well in excess of 2k
Even if you believe inflation is at 2% (CPI), which it probably isn’t, your savings even at 0.65% will buy you less and less each month. RPI was at 3.8% in July.
It’s hardly surprising that people aren’t saving --there’s little incentive to. You can be charged anywhere from 3% to 30% on debt, but earn a paltry .65% on savings?
True, but what’s the alternative?
For anyone doing the Skipton to Tesco move, I added it as a linked account in Skipton. Verified it with the opening letter. The withdrawals work fine.
That’s the million pound question, isn’t it. Over on the premium bonds thread we’re having a debate around relative risk. These days I’m minded to put anything I don’t need for the next few months into my S&S ISA, taking on the potential for a drop in value, but with the hope of capital appreciation and dividends --but then again I’m following the Dave Ramsey school of finance and avoid debt like the plague.
However, providing you can put away more than you lose in spending power each month, you should come out ahead. You just can’t park your money somewhere and hope it’ll compound like it might have done 20 years ago.
I see a lot about this guy but I think the other way works pretty well to, debt is pressure. A pressure cooker on your life means you’ll cook well or explode.
Debt I see as more of a grenade, with the pin out. A pressure cooker you can turn off --the grenade you have to get rid of before it blows up in your face and takes your hands with it.
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The thing is with debt, unexpected life events can suddenly compound the situation. You’re not in control of your own life, to a certain extent, and having debt is like a ball and chain that can prevent you escaping the life event.
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Or, to extend the analogy, put the pin back in?
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It really depends whether you still have the pin to put back in --in this case, the money you borrowed. 
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Hmm, my debt is different I guess. Most of it is student debt. Generally my field pays enough that I would end up paying this off (and will do it ASAP, as I don’t believe on being a drain to the state).
It’s a pressure cooker, the presence of it makes me want to finish cooking ASAP because I’m hungry to get rid of it, but the lack of getting rid of it won’t negatively affect me at all.
I still make good returns on my investments regardless, with the exception of crypto (that seems to crash every time I put money in).