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Original poster

The least worst place for savings

15 replies

MissSueFlay · 20/05/2022 09:19

It's hard to know where to direct regular savings at the moment - cash is obviously depreciating by the day, no savings accounts are coming close to inflation, my S&S ISA and SIPP are tanking (I actually can't bear to look at them at the moment).... Is this the time to just keep investing in the S&S stuff and hope to benefit from buying low? There don't seem to be many other options other than crypto! 😂

OP posts:
No1HolidayPlanner · 20/05/2022 10:11

It's hard to know.. I'm still adding monthly to SIPP/ ISA.. also moved some easy access savings to Chase.. 1.5% interest and very easy app.. the current account with them offers 1% cash back on spends.. I think we just need to ride it out and hopefully will reap some rewards in years to come

Gufo · 20/05/2022 10:15

Premium Bonds - mine have worked out at about 1.25% over the last 12 months along with the hope of winning big Grin. Easy to pay in and withdraw too.

CurlsLDN · 20/05/2022 10:42

Premium bonds, and a LISA if you are under 40

Original poster
MissSueFlay · 20/05/2022 11:28

Not under 40, so LISA not an option for me - but with the government boost that's obviously a good one if you are.

1.25% and 1.5% just seems so insignificant compared to 9% inflation, although my Vanguard S&S ISA is currently -6.75%, so maybe I'm just being picky here!

I will likely just keep my monthly drip into my existing things and hopefully see some growth later down the line... And not look at statements for a while!

OP posts:
Mia85 · 20/05/2022 11:34

What are you saving for? If it's long term/retirement then at least a pension is a tax efficient way of losing money at the moment!

Original poster
MissSueFlay · 20/05/2022 14:07

That's a good way of looking at it @Mia85! Grin

OP posts:
Cokehead · 20/05/2022 14:12

When do you need the money? How much do you currently have in cash?

ICanSmellSummerComing · 20/05/2022 22:31

This is when stocks are on sale.
Buy!
( Varied fund's of course not individual stocks)

Mia85 · 20/05/2022 23:07

I think the worry is that the sale will be a lot deeper in the coming months/years…

Original poster
MissSueFlay · 22/05/2022 08:10

Cokehead · 20/05/2022 14:12

When do you need the money? How much do you currently have in cash?

This is some cash savings, not earmarked for anything specific. I've been having a look at the Hargreaves Lansdown active savings facility (I already have an ISA & SIPP with HL) and that's offering up to 2.5% for a one-year, fixed term cash deposit. So I might go with that, and only see my cash deplete by 7.5% this year instead of 10%, ha! Grin

OP posts:
KangarooKenny · 22/05/2022 08:23

I’ve never won a penny in 50 years of premium bonds.

SierraSapphire · 22/05/2022 08:28

I'm also still putting money into S&S Vanguard ISA on the basis that at some point it will grow again and buying low is good. The rest into premium bonds. If I had a bit more disposable income (temporary health issues) I would likely also have a fixed rate bond on the go, I used to get 5% for a year from my bank but it dropped to practically nothing so I stopped.

stanfi · 22/05/2022 11:04

With inflation as it is, I would make any big purchases you have planned for the next couple of years now as prices are inevitably going to go up.

BarbaraofSeville · 22/05/2022 12:04

KangarooKenny · 22/05/2022 08:23

I’ve never won a penny in 50 years of premium bonds.

Whereas I have comfortably beat cash savings for the last 3 years, as would most if they have more than around £10/15k in there, less is less likely, granted, but then we're talking about quite small amounts of money in cash terms, eg 1% of £10k is £100, so it's barely here nor there in terms of an annual return.

2019 - 2% return
2020 - 6% return
2021 - 0.6% return - OK, could have done a tiny bit better in other cash accounts but seeing as it's our emergency fund/mortgage self offset and the return was (just) higher than our mortgage rate, I'm not complaining.
2022 so far - have won enough for another 0.7% return even if I don't win anything more for the rest of the year, which is quite unlikely.

OP, I know it's an issue that any cash is declining in value and it's a worrying time with investments, but you still need some savings behind you in case of loss of income, and also to cover any large purchases that you may need to make. How little you can get away with depends on factors like the security of your income and whether you plan any big purchases in the next few years.

All you can do is put your emergency fund in a Chase account or similar and use any more spare to overpay the mortgage and/or invest. Perhaps split roughly into thirds PBs (or cash) vs invest vs pension?

Blaggertyjibbet · 23/05/2022 15:56

We are keeping up our drip feed into S&S ISA. It will eventually go back up and right now prices are low, so it’s a good time to buy.

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