The Anonymous Widower

Are The Banks Serious?

When I log in to my bank, I get an advert saying I can get a wonderful rate of two percent, if I lock money away with them for two years.

At present I have a sum of money invested in Zopa and my current return to date this year is just around five percent. Admittedly, I pay tax on that so it’s effectively a rate of three percent. With Zopa’s Safeguarding promises, that money is guaranteed.

So I’m getting an effective rate that is half as good again, as I would with the best banks.

But the big advantage of Zopa has shown itself this month.

I have the last Tax bill to pay concerning the sale of my house in Suffolk and also the bill for the handrails for my staircase, which as they were custom-made weren’t cheap. Couple that with other expenses and I have a lot of bills to pay at the end of this month.

But due to the churn in Zopa, every month, I get access to about six percent of the money I have deposited in the system, as borrowers repay capital, pay interest and end their loans early. So instead of reinvesting this money as I do normally, I have withdrawn most of the money to my Current Account, so I can pay my bills.

I have a feeling that I have actually withdrawn a couple of thousand too much. But no matter, when all the bills are paid it’ll go back into Zopa. All I’ve lost is three percent gross on £2,000 for a month or a fiver.

So why do people put so much faith in the Banks, as they rip us off?

My Current Account at Nationwide is mainly just a means to transfer money to and from other accounts.

What other benefits do I get?

1. At the Angel, there is an inside ATM, that I use when it’s pouring with rain. There are also seats, so if I’m drawing out a larger amount of cash, I can sit down and put everything away properly.

2. I have a Credit Card, which is recommended by many, that if I use abroad, charges me nothing extra for the currency conversion.

3. I have an on-line bank account, that to access from anywhere in the world, only needs to have information stored in the brain, I was born with.

4. I get a basic travel insurance, which covers me for everything but medical expenses. So if easyJet or whoever, were to lose my baggage on the way to wherever I’m covered.

On the other hand, I get the following annoyances.

1. The dreaded Verified by Visa, when I use the debit or credit card on-line.

2. No contactless service on the Credit Card, which means I have to carry another credit card that does, in case I lose my Freedom Pass.

Nationwide should be pleased that I’m not thinking of leaving yet!

 

June 27, 2015 - Posted by | Finance | , ,

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