Savings: Uninterested


HSBC have sent me an advert for their ‘Premier Savings’ account. The advantages are manifold- the account can be opened with only one pound, there’s instant access and no charges; I can open it online, in branch or over the phone. Great.

The interest they’ll pay? 0.01% gross. Yep, for every pound I lend them, they’ll pay one hundredth of a penny after a twelve-month period. Anyone daft enough to open such an account deserves even less than that. The interest paid would not justify the time taken to click the mouse and transfer the funds. Oh, I offer no real criticism of HSBC, they’re merely responding to market forces. The economy’s shrinkage has lowered demand for capital among businesses and borrowers, so consequently our savings are not needed. A savings account I have has just lowered the APR to zero. That’s right, the only advantage of storing cash in that account, rather than under my mattress, is the bank vault’s better security.

All earthly investments are precarious and risky. You might have bought gold, shares, or property, which might perform far better than a savings account, but they too will prove ultimately worthless, a poor return for a lifetime’s thrift.

Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: For where your treasure is, there will your heart be also. Matthew 6:19-21