It's a timing thing. I think to much emphasis is on waiting for the FED to raise rates. I think some of the best value investors of all time started with pass book saving accounts. I don't think they got their notoriety from being great CD investors or passbook saving account investors. :+ ) IMO this is why the generic saying. Stocks over the long haul are considered a better investments than savings accounts,bonds or CDs. A similar generic saying comes to mind. The closer you get to retirement the less exposure to higher risk assets should be taken. I don't apply that to myself. I think many here including myself expect some repercussions from a eventual rate increase. IMO that mainly deals with trending economic indicators. However being a individual investor for the long haul,is learning and dealing with hiccups, and eventually adjusting to them. Are great market timers great stock pickers? That depends on who you know and ask I suppose.
P.S. As not to forget the topic of this board. I'm currently looking at ICON -Iconix Brand Group as a value stock purchase for myself.
FWIW- This is why I currently believe stocks are holding up well.
Savings Account Interest Rates - 2003 onwards
Jan03Oct03Jul04Apr05Jan06Oct06Jul07Apr08Jan09Oct09Jul10Apr11Jan12Oct12Jul13Apr14Jan150.01.53.04.56.0
MonthYearRate|
| Jan03 | 4.00 | | Feb03 | 4.00 | | Mar03 | 3.75 | | Apr03 | 3.75 | | May03 | 3.75 | | Jun03 | 3.75 | | Jul03 | 3.75 | | Aug03 | 3.50 | | Sep03 | 3.50 | | Oct03 | 3.50 | | Nov03 | 3.50 | | Dec03 | 4.00 | | Jan04 | 4.00 | | Feb04 | 4.00 | | Mar04 | 4.25 | | Apr04 | 4.25 | | May04 | 4.25 | | Jun04 | 4.50 | | Jul04 | 4.75 | | Aug04 | 4.75 | | Sep04 | 5.00 | | Oct04 | 5.00 | | Nov04 | 5.00 | | Dec04 | 5.00 | | Jan05 | 5.00 | | Feb05 | 5.00 | | Mar05 | 5.00 | | Apr05 | 5.00 | | May05 | 5.00 | | Jun05 | 5.00 | | Jul05 | 5.00 | | Aug05 | 4.75 | | Sep05 | 4.75 | | Oct05 | 4.75 | | Nov05 | 4.75 | | Dec05 | 4.75 | | Jan06 | 4.75 | | Feb06 | 4.65 | | Mar06 | 4.55 | | Apr06 | 4.55 | | May06 | 4.55 | | Jun06 | 4.55 | | Jul06 | 4.55 | | Aug06 | 4.55 | | Sep06 | 4.80 | | Oct06 | 4.80 | | Nov06 | 4.80 | | Dec06 | 5.05 | | Jan07 | 5.05 | | Feb07 | 5.30 | | Mar07 | 5.30 | | Apr07 | 5.30 | | May07 | 5.55 | | Jun07 | 5.55 | | Jul07 | 5.55 | | Aug07 | 5.80 | | Sep07 | 5.80 | | Oct07 | 5.80 | | Nov07 | 5.80 | | Dec07 | 5.80 | | Jan08 | 5.55 | | Feb08 | 5.55 | | Mar08 | 5.55 | | Apr08 | 5.55 | | May08 | 5.55 | | Jun08 | 5.55 | | Jul08 | 5.05 | | Aug08 | 5.05 | | Sep08 | 5.05 | | Oct08 | 5.05 | | Nov08 | 4.55 | | Dec08 | 3.05 | | Jan09 | 3.00 | | Feb09 | 3.00 | | Mar09 | 2.50 | | Apr09 | 2.00 | | May09 | 2.00 | | Jun09 | 2.00 | | Jul09 | 2.00 | | Aug09 | 2.00 | | Sep09 | 2.00 | | Oct09 | 2.00 | | Nov09 | 2.00 | | Dec09 | 2.00 | | Jan10 | 2.80 | | Feb10 | 2.80 | | Mar10 | 2.80 | | Apr10 | 2.80 | | May10 | 2.80 | | Jun10 | 2.80 | | Jul10 | 2.80 | | Aug10 | 2.80 | | Sep10 | 2.80 | | Oct10 | 2.80 | | Nov10 | 2.80 | | Dec10 | 2.80 | | Jan11 | 2.75 | | Feb11 | 2.75 | | Mar11 | 2.75 | | Apr11 | 2.75 | | May11 | 2.75 | | Jun11 | 2.75 | | Jul11 | 2.75 | | Aug11 | 2.75 | | Sep11 | 2.75 | | Oct11 | 2.75 | | Nov11 | 2.75 | | Dec11 | 2.75 | | Jan12 | 2.75 | | Feb12 | 3.10 | | Mar12 | 3.10 | | Apr12 | 3.10 | | May12 | 3.10 | | Jun12 | 3.10 | | Jul12 | 2.75 | | Aug12 | 2.75 | | Sep12 | 2.75 | | Oct12 | 2.55 | | Nov12 | 2.25 | | Dec12 | 2.25 | | Jan13 | 1.75 | | Feb13 | 2.25 | | Mar13 | 2.25 | | Apr13 | 2.00 | | May13 | 2.00 | | Jun13 | 2.00 | | Jul13 | 1.50 | | Aug13 | 1.50 | | Sep13 | 1.50 | | Oct13 | 1.50 | | Nov13 | 1.50 | | Dec13 | 1.50 | | Jan14 | 1.50 | | Feb14 | 1.50 | | Mar14 | 1.50 | | Apr14 | 1.50 | | May14 | 1.50 | | Jun14 | 1.50 | | Jul14 | 1.50 | | Aug14 | 1.50 | | Sep14 | 1.50 | | Oct14 | 1.40 | | Nov14 | 1.40 | | Dec14 | 1.40 | | Jan15 | 1.40 | | Feb15 | 1.40 | | Mar15 | 1.40 | | Apr15 | 1.40 |
Interest Rates on Savings Accounts since 1960
Year Annual Average |
| | | 2014 | 1.48 | | 2013 | 1.75 | | 2012 | 2.80 | | 2011 | 2.75 | | 2010 | 2.80 | | 2009 | 2.21 | | 2008 | 5.09 | | 2007 | 5.55 | | 2006 | 4.68 | | 2005 | 4.92 | | 2004 | 4.56 | | 2003 | 3.73 | | 2002 | 4.00 | | 2001 | 4.31 | | 2000 | 5.00 | | 1999 | 5.17 | | 1998 | 5.75 | | 1997 | 5.17 | | 1996 | 4.54 | | 1995 | 5.60 | | 1994 | 5.36 | | 1993 | 5.66 | | 1992 | 8.19 | | 1991 | 10.57 | | 1990 | 13.56 | | 1989 | 11.96 | | 1988 | 9.30 | | 1987 | 9.83 | | 1986 | 9.22 | | 1985 | 7.57 | | 1984 | 7.00 | | 1983 | 6.75 | | 1982 | 8.54 | | 1981 | 8.90 | | 1980 | 10.50 | | 1979 | 8.31 | | 1978 | 6.25 | | 1977 | 7.00 | | 1976 | 6.88 | | 1975 | 7.21 | | 1974 | 7.50 | | 1973 | 6.58 | | 1972 | 4.88 | | 1971 | 5.00 | | 1970 | 5.00 | | 1969 | 4.88 | | 1968 | 4.17 | | 1967 | 4.25 | | 1966 | 4.00 | | 1965 | 3.88 | | 1964 | 3.50 | | 1963 | 3.56 | | 1962 | 3.75 | | 1961 | 3.56 | | 1960 | 3.38 |
Savings Account Interest Rates vs Inflation at a glanceSavingsPrices19701973197619791982198519881991199419972000200320062009201207142128
YearSavingsPrices|
| 1970 | 5.00 | 7.90 | | 1971 | 5.00 | 9.00 | | 1972 | 4.88 | 7.70 | | 1973 | 6.58 | 10.60 | | 1974 | 7.50 | 19.10 | | 1975 | 7.21 | 24.90 | | 1976 | 6.88 | 15.10 | | 1977 | 7.00 | 12.10 | | 1978 | 6.25 | 8.40 | | 1979 | 8.31 | 17.20 | | 1980 | 10.50 | 15.10 | | 1981 | 8.90 | 12.00 | | 1982 | 8.54 | 5.40 | | 1983 | 6.75 | 5.30 | | 1984 | 7.00 | 4.60 | | 1985 | 7.57 | 5.70 | | 1986 | 9.22 | 3.70 | | 1987 | 9.83 | 3.70 | | 1988 | 9.30 | 6.80 | | 1989 | 11.96 | 7.70 | | 1990 | 13.56 | 9.30 | | 1991 | 10.57 | 4.50 | | 1992 | 8.19 | 2.60 | | 1993 | 5.66 | 1.90 | | 1994 | 5.36 | 2.90 | | 1995 | 5.60 | 3.20 | | 1996 | 4.54 | 2.50 | | 1997 | 5.17 | 3.40 | | 1998 | 5.75 | 2.40 | | 1999 | 5.17 | 1.40 | | 2000 | 5.00 | 2.50 | | 2001 | 4.31 | 0.50 | | 2002 | 4.00 | 2.60 | | 2003 | 3.73 | 2.50 | | 2004 | 4.56 | 3.20 | | 2005 | 4.92 | 1.80 | | 2006 | 4.68 | 4.00 | | 2007 | 5.55 | 3.70 | | 2008 | 5.09 | 0.50 | | 2009 | 2.21 | 2.00 | | 2010 | 2.80 | 4.10 | | 2011 | 2.75 | 4.10 | | 2012 | 2.80 | 2.50 | | 2013 | 1.75 | 2.00 | | 2014 | 1.48 | 1.00 |
Interest rates shown are gross.
Prior to November 1984 the rates are an average of monthly rates for a building society share account. They reflect the rates recommended by the Council of the Building Societies Association.
From 1984 to 1996 they are 'predominant and average rates' as collected by the Building Societies Association.
From 1997 to 2000 they are savings rates (balance £1-£10,000) for certain retail banks as collected by the Office for National Statistics.
From 2001 to 2008 they are average annual rate for instant-access internet savings-account of selected retail banks: Halifax and Nationwide.
Early in 2009 banks and building societies cut rates on their instant-access internet accounts to 0.1% or 0.2%. They launched new instant-access internet accounts with rates of about 2.2% provided number-of-withdrawls restrictions were met. So for 2009 to 2011 the rate shown is cash ISA (£1,000+) from Nationwide; and for 2012/2013, online ISA from Nationwide.
Rates rose to 3.1% in first half of 2012 but fell back to 2.2% by the end of the year after the Bank of England Help-to-Buy and Funding for Lending schemes meant less competition for savings. This gave an average of 2.8% for 2012.
In the second-half of 2013 rates fell further to 1.5% giving an average for 2013 of 1.75%.
After rates stayed at 1.5% through most of 2014, it was hard to believe they fell again in late September to 1.4% giving an average for the year of 1.48%.
The 1.4% is GE Capital Direct ISA Issue 4 which is variable rate and allows ISA-transfers-in, internet-only.
Post Office Premier Cash ISA also allows transfers-in, 1.5% including bonus 0.75% for 18 months, telephone, post, branch not internet.
Isa-transfer-in and easy-access requirements used in these pages arise from Banks and Building Societies using cash ISA's to attract new customers using limited-period-bonus-rates.
So the rates shown here tend to be lower than some new accounts and longer-term-fixed-rate-accounts.
Followers of the Martin Lewis MoneySavingExpert website know the Santander 123 current-account provides the best savings rate around currently: 3.0% on balances £3,000-£20,000, £2.00/month fee, pay-in £500/month, cashbacks providing bills paid by direct debit of 3% on landline, mobile, internet and tv bills, 2% on energy bills and 1% on water and council tax bills.
Thanks to John Ndege of www.pocketrisk.com for highlighting the quarterly interest rate averages published by the Building Societies Association which are now used for 1986-Q2 thru 1996-Q4 (June 2013).
Last updated 28 December 2014
Sources: 'Annual Abstract of Statistics' 2000 edition. Office for National Statistics.
'Building Societies Association Yearbook 2011-2012' from www.bsa.org.uk. |
