Were to put you money fixed deposit

[orsum]

Recently I have been looking to invest some cash in various parts of the world and its quite interesting Barclays for one are a pain to deal with. So not clear with what they will offer. And they also say must put my money with them before they will advise. (yep sure no problem doing that) Absolute idiots thinking I will do that.

UK Barclays Isle of Man branch Fixed deposit for 3 years offer a return rate of between 0.1 to 0.75% PA depending on how I read the offer.

SA ABSA Fixed deposit for 3 years (Barclay carry 100% responsibility of ABSA with only 62.3% of the benefits not sure but they own less now) offer a return of +/-8% PA

That's a big difference why?

So were can we get a good safe % PA return on lets start with say 100,000 pounds, excluding exchange rate changes and over 3 years. No risky investments.

Please correct the UK rate if I have read it incorrectly

[AndyP]

Not sure about the rest of the world but in the UK you're going to struggle to get above 1% on a fixed rate risk free investment at the moment. The only way to get anything higher involves risk.

[LHD_Kid]

Most financial institutions get charged negative interest on their cash - meaning that it actually costs them to keep it.

You will simply not make money on no risk cash deposits. You need to make a higher interest rate than inflation, including tax, exchange rate, transfer fees, etc...

[bazburn]

Probably better investing it in 2/3 classic cars, enjoy them and if you have been clever will get a Good return

[orsum]

So does it make any sense in keeping UK pounds investment?

Why not move savings to a place like South African invest in the Rand at 8% CPI 6.5% 1.5@ over inflation

Is not like ABSA (BARCLAYS) are going to go bust any time soon.

UK 0.1 to 0.75% PA return CPI 1.9%. Money dropping in value!!!! neg 1.15%

must be wrong!!!! how can SA give a better return

[Cottis]

Ive just been opening some new accounts to move my savings about to ensure i get the best rates and to ensure i keep all accounts below the fscs liability limit. It is basically painful how little you make on savings these days and the same painful lack of loyalty that you get from your car insurers. You have to keep moving around to get the best deal and although rates are at best *****, with a fairish clump of cash, it just about pays to shop around

Paragon bank is a decent ISA in terms of rates and being able to transfer 100k of existing ISA savings but its still a ****y 1.05%.

For risk free instant access, virgin is currently my best with sainsburys also offering around 1%. Surr you can lock money away for longer but im looking to buy a house, so i need instant access at any given time.

My sister has savings with RCI bank (renault basically) which is covered by french guarantee system.

Hopefully rates will go up to a point that balances a logical economy with the need for house prices to reduce and for there to actually be some advantage in being sensible and saving. Currently my hard work is being eroded away by inflation as rates are not keeping up. Its a sad state of affairs. An adjustment will have to come soon. If i had a mortgage at the mo, i would be getting it fixed long term asap. Rates were 5% less than 10yrs back. House prices are too high relative to wages. Impending doom is coming i fear

[Cottis]

Soz, just realised you were after fixed rates. Those you are quoting sound awful even by todays standards. You should be able to get 1.5%+ over three yrs. Trouble is, three yrs is a long time and if rates go up, you are screwed. Probably better of sticking it in instant access, losing a little bit but being in control if rates go up. They can hardly drop any further

[orsum]

I am after any rate that is safe, I still do not understand how SA can offer better rates.

Meeting with an SA ABSA advisor soon lets see what he has to say.