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Re: Savings

Posted: Mon Nov 01, 2021 9:48 am
by korolev
Never rely on interest rates. A few years ago I used to holiday in Turkey and I got to know a few expats. Many of them had sold up in the UK, bought cheap in Turkey, stuck the difference in a savings account and were living on the interest. When rates started to go south, some of them started dipping into their capital (further reducing the interest take obvs).
Last I heard one couple were trying to move back to the UK having exhausted their savings and, with property prices in the UK rising much faster than in Turkey, were in a right pickle (due to overdevelopment and supply outstripping demand they were struggling to sell).

Since taking early retirement I have a bit of cash stashed away in the erniebonds which is returning about 1.5%. The only way to get more is to invest in fixed term bonds but to get 2-3% you need to tie up your cash for a couple of years or more.

Re: Savings

Posted: Mon Nov 01, 2021 6:04 pm
by jansman
korolev wrote:
Mon Nov 01, 2021 9:48 am
Never rely on interest rates. A few years ago I used to holiday in Turkey and I got to know a few expats. Many of them had sold up in the UK, bought cheap in Turkey, stuck the difference in a savings account and were living on the interest. When rates started to go south, some of them started dipping into their capital (further reducing the interest take obvs).
Last I heard one couple were trying to move back to the UK having exhausted their savings and, with property prices in the UK rising much faster than in Turkey, were in a right pickle (due to overdevelopment and supply outstripping demand they were struggling to sell).

Since taking early retirement I have a bit of cash stashed away in the erniebonds which is returning about 1.5%. The only way to get more is to invest in fixed term bonds but to get 2-3% you need to tie up your cash for a couple of years or more.
Indeed. And that will be for as long as the looming energy crisis causes an inevitable crash.

Re: Savings

Posted: Fri Nov 05, 2021 12:36 pm
by itsybitsy
I try to have at least three months expenses (not income) set aside - in cash - however it ebbs and flows. As someone else has mentioned, it's for emergencies and if it needs to be redirected elsewhere, I do that then shore it back up again as soon as I can.