if banks are so money hungry and evil why do they use compound

I'm generously getting compound interest of 0% on both of my bank accounts. I'm so grateful! Soon they'll be offering negative interest rates. Wow!
>inb4 just change accounts
They all have the same rates. Might get 2-3% in an ISA if you lock away your money for 1000 years.

they give 1% interest on savings and take 6% on loans. i don't know, why would they ever prefer compound interest?

real talk though: compound interest is just simple interest with 100% re-investment. of course they'd rather keep your money and never pay you out than only keep the principal and pay you out every year (and since holding your money is their primary purpose - pay you out how / where to?)

>>1717809
>using CDs to grow your money
LOL

>>1717790
once you have a policy that is several generations old you tend to not change it or risk alienating the people even more.

>>1717809
You sound like a Britfag. Best get on the P2P train while the getting is good. Or stick to buying funds within an isa. Either way, be aware that bank accounts aren't for passive income, and alternatives are readily available. Seriously, if your savings are getting less than 5% on average then you're missing a trick or two. "But nobody told me about this" is no excuse in the age of the internet.

>>1717833
Britbong here, can you explain what you mean by getting on the P2P train?

Also, ISA's are passive by definition so what do you mean by buying funds within an ISA?

>>1717818
Where did I say that?

>>1717833
>be aware that bank accounts aren't for passive income
Oh, I'm fully aware of that. My long term savings are in Gold. If it maintains its purchasing power against inflation over 20-30 years, I'm happy. Anything extra is a bonus. My 2 bank accounts are for some small (£2.5k) cash savings and day to day expenses. I was just making the counter point to the OP that banks don't do you any favours. They used to offer decent interest rates but now savers are getting fucked over in this inflationary environment.

>>1717845
All I mean by that is invest some of your money with P2P. It's currently a very good way to add some high-yield, medium-risk fixed income to whatever kind of portfolio you have. This may not be the case forever though - some platforms have already lowered their lenders rates to low single digits and as p2p becomes more mainstream it'll become more of a borrower's market than the very favourable lenders market it currently is.

My recommendations are Ablrate and Moneything. Both have had lending opportunities between 10%-16% recently which is fucking fantastic compared to just about anything else right about now.

>>1717845
Regarding ISAs: arguably the best use for an ISA at the moment is as a tax wrapper for stocks and shares. Help to Buy ISAs were pretty cool when they were paying 4% but that didn't last long. But yeah, you can get dividends and capital gains tax free, so why not use that ISA wrapper.

>>1718464
>>1718450
Thanks for the info m8

What do you mean by a "tax wrapper"? Do you mean pay the dividends into the ISA to avoid tax?

>>1718003
>long term savings
>a metal producing no income
why not invest in a FTSE tracker fund and make 3%+ dividend yields each year?

>>1718450
Do you use both of these? Currently using a P2B FundingCircle and thinking of changing. I'll go look into these two.

>>1718505
Yes, exactly.

Most UK taxpayers get the first £1000 of interest or capital gains tax-free under the Personal Savings Allowance. An ISA lets you hold another £15240 of cash and/or investments tax-free on top of that.

Most people are unlikely to exceed their PSA at the current crappy rates but it's nice to be able to build investments in the knowledge that you don't have to worry about declaring any of it as taxable.

Incidentally, the Innovative Finance ISA coming this April will let you earn interest on P2P tax-free... in theory, as hardly any platforms have been accredited as ISA providers yet.

>>1718517
Yes I do. I can recommend both, particularly MoneyThing as its incredibly straightforward and uncomplicated. The only downside is that loans often don't hang around long so you'll have to be logged in as the loan goes live ready to snipe a bid in. But still, that's a small price to pay to get easy 12% returns.