You really can see for yourself why many people are now turning their backs on saving accounts, and looking at investing in stocks and shares, Forex and Binary Option trading and many other ways of trying to make their money work for them with interest rates being so low.
There was a time when you could put your nest egg and savings into any bank or building society savings account and receive a fairly decent interest rate on those savings, but those days have been long gone for quite some time now, and are not likely to return anytime soon.
Most savers are not putting their savings into an instant access type of savings account, and whilst the interest rates are very poor on such accounts, they do at least have access to them and can use them for other investing purposes as and when they need to without having to give notice of their intention to withdraw those funds.
However, those funds in an instant access type of savings account are by no stretch of the imagination going to be earning them any real interest, in fact the best such account I have some across today is the Newbury BS welcome to Newbury account which pays 1.20% interest to standard tax rate payers!
Savings Amount Can Increase Interest Payment Values
If you do have a very large nest egg to put into an instant access account, you could benefit from slightly higher interest payments, but you will have to do some shopping around to get a better interest rate.
Take for example the Skipton BS Super Tracker, you have to have at least £1,000 in such an account to benefit from the 1.27% interest rate, which is slightly higher in value than for example the Coventry BS Easy Access Saver 5 savings account open to anybody putting into that account at least £1 which pays 1.15% interest.
It’s all down to Personal Investment Risk Aversion
It is, at the end of the day, going to be down to any one investors aversion to risk that will ultimately determine whether a savings account will be worth using for ones savings or whether those savings will be better used being invested in Forex trading or used to trade on the value of stocks and shares or even commodities such as gold and silver.
But keep in mind that for small but steady interest payments a savings account is a rock solid investment opportunity, but one that currently pays only some tiny interest amounts, even over the long term.