Why You Need to Be Decisive with Your Money

Written by Karen Bryan

be decisiveWhen my Cash ISA savings matured earlier this year, I was rather reluctant to tie up the money again as the fixed rates on offer weren’t that great at around 4% for 2 years. I transferred the Cash ISA savings in to a flexible account paying 3%, hoping that a higher paying account might materialise.

After a few weeks, I had to resign myself to the fact that it was looking highly unlikely that interest rates would increase, in fact there was talk of them dropping. Thank goodness I was galvanised into action by my husband, securing 4% interest on a two year fixed rate Santander Major Cash ISA, as the rate on that account did drop to 3.6% in early August.

In fact, I’m now getting 4.1% on that Santander Major Cash ISA. That account had a 0.1% bonus if UK golfer Rory McIlroy won at least one major golf tournament during the period of the account; Rory won the US PGA Champsionship.

It’s an example of how you have to be decisive with your money, as dithering can be an expensive option. Yes, do your research to find the best savings accounts but then act, versus pontificating for too long. It was a bit silly of me to imagine that interest rates might increase, more a case of wishful thinking.

Now geting 4.1% is giving me a fairly respectable real return of 1.5% on my Cash ISA savings with inflation (CPI) currently at 2.6%; that is if you believe the official inflation figures. I’m not too sure, diesel has gone up around 5 pence a litre in last month and I’ve read that the bad weather this Summer is pushing up food prices.

Update 6 September 2012 – The interest rate on the Santander 2 Year Fixed Rate Cash ISA has now fallen to 3.3%.

One Response to “Why You Need to Be Decisive with Your Money”

  1. It’s a good point Karen, you have to make decisions quickly sometimes to the best of your knowledge at that time – even if it’s something like a small-ish % difference in interest like you’ve mentioned. It’s even more difficult when you’re waiting for something that’s really outside of your control, like economic trends! Whatever the result of your actions, it’s all feedback for you to judge on and adjust in your decisions next time if necessary. If you don’t act, you don’t get any feedback!