If your lucky enough to have a bank account not in the red does it shrink during a recession in other words is my 2000 Safe with what’s going on with this c19 don’t want to sound like a poor mans millionaire but is it .
No, if your money is all cash it does not shrink, and is guaranteed up to £85000 should the bank fail as long as it is member of the FSCS . It will buy less if there is high inflation.
So tell me do banks use the accounts for investments which would certainly be losing money at the moment .If thats not so how do they get £14.73 in interest to pay me yearly
They'll have a whip round for you.
I wouldn't worry about the interest- if it's a fixed rate you'll get it. They lend it out to other people at more than they give you in interest, so that's still coming in. And they can still make money on investments through timing the market correctly- they may have sold stock and then bought it back for less a few weeks later
It depends on how long you want to invest it for as to what interest rate you will get. There will be a penalty charge if you withdraw your money before the agreed term expires.