how to double your money!?

[superheavyrhun]

Put into a ISA account and leave it in during the uk tax year(April to april)for 12months,and you'll get interest on it tax free within a year.

The quesion was how to double your money, not make 1.8% interest tax-free!

Are interest rates that low in the UK?

If so, all I can say is wow! I just opened a new savings acocunt last week out here and the interest was 4.9%. Anything less and your money is effectively shrinking in real terms anyway.

Yup, if it wasn't for the price of petrol we would be in a deflationary situation, and the petrol increases are the only ones keeping us about even, or maybe a minute increase. Most of the savings accounts in the uk offer around 0.05-0.5% interest, unless you either want to tie in the funds to a bond (3.5% for 2 years or more) or you check out online accounts at building societies (mine is 2.5% instant access, but that rate crashes after a year or so.

Basic fact is that government doesn't give a shit about the people who save, because savings get them very little tax revenue, whilst spending is much better, therefore they want low interest rates to keep people borrowing and spending, and voila, the government has more money to pay for the insane borrowing the country has.

We'll soon be pulling the oliver twist act outside the IMF offices begging for a penny.

[Gandalf]

The quesion was how to double your money, not make 1.8% interest tax-free!

Are interest rates that low in the UK?

If so, all I can say is wow! I just opened a new savings acocunt last week out here and the interest was 4.9%. Anything less and your money is effectively shrinking in real terms anyway.

Yup, if it wasn't for the price of petrol we would be in a deflationary situation, and the petrol increases are the only ones keeping us about even, or maybe a minute increase. Most of the savings accounts in the uk offer around 0.05-0.5% interest, unless you either want to tie in the funds to a bond (3.5% for 2 years or more) or you check out online accounts at building societies (mine is 2.5% instant access, but that rate crashes after a year or so.

Basic fact is that government doesn't give a shit about the people who save, because savings get them very little tax revenue, whilst spending is much better, therefore they want low interest rates to keep people borrowing and spending, and voila, the government has more money to pay for the insane borrowing the country has.

We'll soon be pulling the oliver twist act outside the IMF offices begging for a penny.

It sounds really grim.

The banks are charging people all this money for loan repayments and credit card charges and yet there really appears to be little to no incentive to save with rates like those. A case of take and take and offer next to nothing in return. Very harsh.

I was reading an article in some newspaper the other week (might have been The Guardian?) and it was interesting to read how they were describing the economic situation and the economy shrinking again. It also mentioned that people were saving more and it almost came across as though this was a bad thing because it was hampering growth. I find it nuts that saving for a rainy day can come across in a newspaper as being an unhealthy thing.

I wish more people would avoid loans and credit cards and start saving for themselves, but that is far from easy in the UK where expenses for everything add up pretty quickly. After taxes, health insurance, rent and bills you aren't really left with all that much. Well, I never was anyway. And with saving rates like that then you have to think "Why bother trying?".

Two year bonds for a max of 3.5% return. Ouch!

[Master]

Yes savings is shite, but at least you have it, do not waste it. The Isa will go up from £3.6K to over £5K next year.