/biz/ - Business & Finance

[Anonymous No.1405037]

Gooood evening ladies and gentlemen.

I come to /biz/ asking about the best methods of saving.

I am 22 and want to start putting some money aside, I can currently put comfortably £250-£500 aside but after doing a lot of reading and talking to my bank I fail to see the point in saving accounts and tax free ISAs...

So, my current account as far as I know earns no to little interest, but savings account boasts a huge 0.7% interest for the first year, falling to 0.2% from their on. Now for that first year lets say I save 4000, I get £28 in interest. The following year another 4000, totaling £8028, woopty fucking doo I then gain £16 interest. So why even bother having that other account to handle and mange?

Then theres 'tax free cash ISAs' - Again an introductory 1.25% interest and after the first year it drops back to 0.2% when the account gets changed to a 'cash isa saver' seems completely pointless. I am pretty sure my current account is 'tax free' anyway? So thats not even an added bonus.

Am I missing something or do they just try and sell you these worthless 'saving' accounts for nothing?