When the base rate fell back in August, I was bracing myself for cuts to my savings but the good news is that I haven’t been affected that much… yet. Although it’s not the highest return, my HSBC ISA is still paying me 0.8% but I am now missing out on the £10 additional monthly payment I received as an Advance bank account customer, which stopped after a year.
I’ve got some money tied up in a Santander 123 account, which has dropped from 3% to 1.5%. I’ll still get cash back on the bills I pay from the account, but with the £5 monthly fee still attached it’s certainly got less attractive than it was.
Even though my money’s not doing much in savings accounts, I’ve been investing in things that should make me money in the long term. For example, I’ve decided to install new energy-efficient doors throughout my home. While that’s inevitably reduced some of my capital, I’ll be making savings on my energy bills every year so hopefully my investment will pay off.
I do think about stock market investments, but there’s something stopping me – perhaps it’s that I feel I don’t know enough about investing, or whether the people I use to help me will rip me off. At least with my current savings strategy, I’m confident in its success and I keep building up my nest egg. However, I would like to see my savings rise so that my holidays can come from my savings returns and not eat into my capital.
I know interest rates aren’t going up any time soon, and I think there will be some hard times ahead. I’ll have to adapt as and when that comes. Until then, I’m going to be searching for a better deal on my savings and hope that I can keep my dog Robbie out of the vet – he’s costing me a fortune at the moment!