"I'm tired of my super bonus regular savings fixed term limited withdrawal deposit account paying fuck all in return for the money deposited within."
That's something else you can blame on the EU (though probably the Government would have done it anyway).
Interest rates (like any return on investment) are a reward for taking a risk. Since the Bank Deposit Guarantee Scheme, (under the recast DIRECTIVE 2014/49/EU and previous EU directives) guarantees your money will be paid by the State if the bank goes bust, up to £85,000 since 2010, you aren't taking any risk (except perhaps inflation, which is currently zero, or the UK government becoming bankrupt). So you don't get any reward.
Iceland not being in the EU, it had no scheme (or not one anyone believed in) so a deposit there carried more risk, and hence had to offer higher interest. So they paid 8% or so, around twice what UK banks offered. People seemed to be surprised when that money disappeared, as they claimed not to know they were taking a risk. The interest rate paid is the best possible indicator that they were, even if they closed their eyes to it.
You can get 8% (or even more) if you are prepared to risk losing the lot, just not in a bank deposit. Some corporate bonds pay 4%, and some Government bonds even more (Greece and Argentina probably do, for example). Do you feel lucky?
But if you, sensibly, decide not to risk your money, no-one will pay you much reward. Why should they?
Biting the hand that feeds IT
