Oh the joys of selecting a savings account.
Before I go full throttle into this article it’s probably worth me saying that whilst I am motivated by making a profit, I would not do so to the expense of everything else. More than anything I value my time, my friendships and a certain degree of morality. What I mean by a certain degree of morality is that whilst I don’t mind the occasional not paying for a train ticket, I would never push in at a bar (and if you do push in at the bar, you are honestly the worst).
At the moment I’ve currently a fairly healthy amount of savings. Broadly speaking this would be enough to buy a flat in London, with the relevant mortgage of course, not outright, and have enough left over to be comfortable.
What am I currently doing with said savings? Honestly, not a lot. I have it in a current account that pays me roughly 1% interest (in total as it a staged/staggered level of interest).
“But M, you are financially savvy, 1% is not the highest paying interest, why not it have in the 1.45% “Marcus By Goldman Sachs” savings account?” (Currently the highest paying instant access savings account).
(As of October/November 2019 Coventry Building Society offers 1.46% however withdrawals are limited to three penalty free per year)
The answer rests in where this article started.
The sheer accumulation of money without conscious is of no interest to me. To be personally, whilst “Marcus By Goldman Sachs” offers the highest savings rate currently available in the UK, it still has not accounted for it’s role, in any meaningful way, the role it played in the 2007-08 financial crisis and the associated mis-selling of loans (mainly in the form of Collateralised Debt Obligations).
Goldman Sachs role in this particular aspect led to a $550 Million settlement payment to the US Government (different sources, different number, this one is NY Post). This is not to mention the other scandals and controversies which Goldman Sachs has found itself a part of. Whilst I cannot say that I have been personally or directly affected by this, I will not give or place my money with an institution that has been a part of events that impacted individual lives to such a negative extent.
Put simply, yes I actually lose out by not doing so. The extent to which I lose out actually ranges to over £100 per year, enough for a short weekend away. However, this to me isn’t worth it on my conscious to know that I was enabling such an organisation.
Instead, I personally place my savings with an organisation that whilst doesn’t pay me the highest interest possible, does provide me with peace of mind in terms of their ethics.
Perhaps profit with purpose is something we should all aspire to.