planteria wrote:this looks interesting too.. 3% interest
* 3% p.a not guaranteed but Rolling Market average for 2016. Rolling Market rate, pre-tax, assumes re-investment and no early repayment.
You have fuddled thinking. The risk of losing money invested in this scheme is far more than any money lost to inflation. But, its your money!!planteria wrote:me, potentially, along with many others. anyone who is investing is putting money at risk. anyone that is holding cash generating a rate of interest below inflation is losing money. and if the values are low enough then rewards/interest from current accounts could be greater than the amount being put at risk.
Or more accurately, more is at risk: A bank deposit is guaranteed by FSCS which means that your capital is protected (albeit in nominal terms only). The purchasing power will be eroded to the extent that the interest does not exceed inflation - so at today's rates, you you have a maximum loss of about 2% (interest of 1% less inflation of 3%)planteria wrote:.. it is at more risk..
Over time they will change the goal posts to the other side of the mountain. They are just being nice today because they need "active" members.planteria wrote:straightforward stuff, yes.. if we can cover our 'investments' with account bonuses or interest that having the account enables us to qualify for, then in effect it would be zero cost, and thereby risk - or at least partly cover the investments. that's the angle that folks are looking at elsewhere.
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