Who’s the Bank Robber?

What image do the words bank robber conjure up? Perhaps the one above?

Well, maybe it’s time to think again about storing your savings in the bank. As I write this in February 2023, a cursory glance at my own bank’s guide to finding an account “that best suits your needs”, the most attractive rate I can find for an expat (we’re not allowed to invest in ISAs while not tax resident in the UK), is 2.55%, assuming I make no more than three withdrawals in a year.

Let’s say I invest £1,000 into this enticingly named “Reward Bonus Saver”.

I’m a good little saver with a distinction in the 'Marshmallow Test' thanks to my disciplined delayed gratification habits.

By then end of the year, I now have £1,0025.50p in my bank account.

But, even if we take the Office for National Statistics’ Consumer Price Index at face value, inflation rose by a whopping 9.2% in the 12 months to December 2022. In truth it probably rose a lot more than this...

If we deduct 2.55% from 9.2% we’re left with 6.65%

So that’s what you’re effectively losing by ‘saving' your money with the bank.

What image do the words bank robber conjure up now?

Perhaps the one below?