VICTORIA BISCHOFF: Saving should pay

Many investors will be cheered no end by last week’s overwhelming Conservative victory.

The ‘Boris bounce’ has already boosted a £100,000 nest-egg invested in the FTSE 100 by a whopping £5,400, according to experts at AJ Bell.

But, while great news for those with pensions invested in the stock market, it won’t help the millions who depend on ordinary cash savings accounts.

The ‘Boris bounce’ has already boosted a £100,000 nest-egg invested in the FTSE 100 by a whopping £5,400. But it won’t help those who depend on ordinary cash savings accounts

As we reveal, cash savers have been utterly abandoned by Britain’s biggest banks, forced to watch as their hard-earned money wastes away.

Over the past 12 months, they have been rewarded with as little as 20p for every £100 they put into a cash Isa, our figures show. That’s just £40 in interest on the full £20,000 Isa allowance.

Meanwhile, as the Mail exposed yesterday, nearly a third of all savings accounts no longer even beat the Bank of England base rate.

And the misery looks set to continue, with banks and building societies still pulling their best deals. 

Just today, market-leader Marcus, by Goldman Sachs, cut its top-paying rate from 1.45 per cent to 1.35 per cent for new savers.

Banks have a million-and-one excuses for why savings rates are so low — they don’t need the cash, they are anticipating another base-rate cut, they are responding to ‘market conditions’ — but it’s simply not good enough.

At the very least, banks could stop knowingly ripping off loyal customers by allowing their cash to languish in accounts paying as little as 0.1 per cent.

No doubt Prime Minister Boris Johnson’s in-tray is already overflowing. But savers have suffered for too long — helping them must be firmly on his agenda.

Boosting funding for government-backed National Savings & Investments (NS&I) would be a good start. If NS&I had the money to offer better deals, it would help drive competition and force others to follow suit.

A strong word in the City watchdog’s ear might also help speed up delivery of its promise that all banks will be forced to offer a minimum savings rate.

We launched our Stop Short-Changing Savers campaign to fight for a fairer deal for savers — and we won’t rest until you get one.

Tricky terms

My partner, Chris, can be impossible to buy for. Unless it’s Arsenal memorabilia, he doesn’t really like ‘stuff’ or ‘clutter’ — and there are only so many books and socks you can give someone.

So when his poor mother came to me seeking ideas for his birthday in September, I suggested a cooking course — entirely selflessly, of course.

To Chris’s (and my) delight, a pasta-making class for two (with Prosecco) duly arrived.

With a busy diary ahead of Christmas, we decided to hold off booking a date until later next year. But, last week, I decided I’d better just check the expiry date — and it’s a good job I did, as the voucher is only valid for nine months.

It can be easy to think you have all the time in the world to use these sorts of ‘experience’ gifts.

After all, if someone has generously paid good money, why should the voucher run out after an arbitrary amount of time?

Yet, as we reveal, many of these types of deals come with onerous terms and conditions.

So if you are lucky enough to receive a voucher this Christmas, check the fine print and lock into your chosen date as soon as you can to avoid disappointment.

Merry Christmas!

If you are at a loose end at any point over the festive break, remember Money Mail’s annual customer service competition.

We want to hear your tales of how your bank, insurer, energy provider or favourite High Street shop really went above and beyond. 

There will be a bottle of Champagne for the best letter. Write to [email protected] or Money Mail, Northcliffe House, 2 Derry Street, London, W8 5TT.

Finally, as there will be no Money Mail next week, let me thank you for all your support this year. Your letters drive our campaigning and are the lifeblood of all we do.

So, on behalf of the whole team, we wish you a wonderful Christmas and a very happy New Year.

[email protected]

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