October 30, 2009
Have UK savings changed dramatically?
Story link: Have UK savings changed dramatically?
An interesting claim at Information Online states that UK savers have unwittingly become investors, as the only viable savings products are now fixed term bonds.
It’s an interesting observation, not least because fixed term bonds have been available for a long time for savers, but the change being reported is that because traditional savings accounts no longer give a decent return, savers are now forced to pick up on fixed term bonds, because these are the only products being offered to savers that offer any kind of decent return.
See what you think:
Savings accounts give way to investment bonds
“Traditionally, people would put their savings away into a savings account, generally a higher interest savings account, with higher rate accounts offering higher returns the less you touched your money (ie, notice accounts).
Those people with a lot of money to save would often look to save their money in multiple accounts with multiple savings providers, and those in the higher tax bracket put their money into offshore banking.
However, many savings providers are now offering higher rate savings through fixed rate bond accounts, where interest rates can be 4% or more above the Bank of England’s base rate, so long as you lock you money in to the account for two, three, or five years.
The result is a major change in the savings landscape that few have even noticed, as savers are now finding themselves forced into putting their money into bonds for a fixed term. In effect, they are now
investing in investment products, rather than saving in savings products.
The surprise is that only a few savings and investment brokers noticed this change.”
It’s an interesting observation, not least because
April 17, 2009
New bond rates for savings
Story link: New bond rates for savings
The Nationwide Building Society has updated its bond rates for savers, specifically Fixed Rate Bonds, e-Bonds and Fixed Rate ISA Bonds, which all offer a guaranteed rate of return for savers.
Nationwide Announces New Bond Rates for Savers
Nationwide Building Society today announces details of a new range of Fixed Rate Bonds, e-Bonds and Fixed Rate ISA Bonds, which all offer a guaranteed rate of return for savings.
With effect from Thursday 9 April 2009, Nationwide’s bond range will include:
* One year e-Bond* paying up to 3.20% gross p.a. / AER;
* Six month e-Bond* paying up to 2.85% gross p.a. / 2.87% AER;
* One year Fixed Rate Bond paying up to 3.10% gross p.a. / AER;
* Six month Fixed Rate Bond paying up to 2.75% gross p.a. / 2.77% AER;
* Six month Fixed Rate ISA Bond paying up to 2.80% gross p.a. / 2.82% AER.
February 26, 2009
Brits need to think more about saving
Story link: Brits need to think more about saving
The recession is and will continue to put the strain on individual finances throughout the UK, throughout 2009.
That being said, and even though people are saving, there are definitely not enough people putting some cash away for a rainy day. Lets face it though, the interest rates offered by the banks are hardly an incentive are they!?
Brits need to think more about saving
Saga has conducted a survey which reveals that Brits may not be giving their savings enough thought as the recession continues.
The savings account provider found that 38 per cent of over-50s say they haven’t changed their spending habits since the onset of the credit crunch, but as over a third of them have an ongoing savings pot they may be well-placed to weather the financial storm.
New drive for savers
Story link: New drive for savers
As mentioned before, I am definitely with agreement with Abbey Savings here, as I believe the recession has increased the awareness and highlighted the importance of saving and stabilising finances for the future, just in case things get worse.
Abbey Savings has claimed that the recession has given rise to “a new age of thrift” as people cut back on their outgoings in order to save more money.
The bank conducted a study which found that Brits have made an average saving of £3,168 by cutting down on their living expenses in the past year.
Nationwide launches new range of bonds
Story link: Nationwide launches new range of bonds
Savers now have something to be happy about, especially if they are saving over at Nationwide.
The UK building society, the largest in the UK for that matter, will be offering its loyal customers a fixed rate, four year deal, based on a rate of 3.75 percent per annum, very reasonable considering the current low interest rates at the Bank of England.
Nationwide launches new range of bonds
Nationwide, the UK’s largest building society, has announced the launch of a new range of bonds for savers.
The new offerings are all fixed-rate bonds and include a four-year fixed-rate bond, paying up to 3.75 per cent annual interest.
National Savings and Investments to reduce rates
Story link: National Savings and Investments to reduce rates
Savers will be hit hard, again, by the latest news from National Savings and Investments (NS&I), who have announced that they will be chopping a full 1.35 percent from the current savings rates.
There now seems like little or no point for savers to be storing their cash in banks, with little or no return on their investment!
National Savings and Investments to reduce rates
National Savings and Investments (NS&I) has announced that it will reduce the rates of interest it offers on its fixed-rate savings accounts by up to 1.35 per cent.
The savings account provider blamed the reductions on the fall in value of gilt-edged government bonds, which are known as gilts for short.
Newcastle Financial Services wins award
Story link: Newcastle Financial Services wins award
Newcastle Financial Services have been provided excellent services to their customers, something which has finally paid off for their company.
The team over at Newcastle Financial Services has managed to be nominated and actually win the award at the annual industry conference, a great achievement for any financial institution
Newcastle Financial Services wins award
Newcastle Financial Services has been announced as the winner of an award at an annual industry conference.
The building society picked up the top large practice for investment sales accolade at the annual Openwork meet in Birmingham for its Investment and Portfolio ISAs.
New bonds on the market
Story link: New bonds on the market
Both Alliance & Leicester and Abbey have recently announced their launch of new bonds. The new bonds will be offering a fixed rate of interest, which of course means they will not be affected by the fluctuations in the Bank of England rate changes which seem to be happening on almost a weekly basis.
Alliance & Leicester and Abbey have announced the launch of a new bond which offers a guaranteed fixed rate of interest.
The two-year bond offering will pay interest at a rate of 4.01 per cent a year on balances of between £30,000 and £200,000.
The future is bleak for UK finances
Story link: The future is bleak for UK finances
The consumer confidence that is currently present in the UK is at an all time low, with most UK citizens having little or no faith in the Government and their efforts to kickstart the economy.
So far things such as interest rate cuts have done nothing to alter the gloomy path that the UK financial industry is on.
The future is bleak for UK finances
A survey has revealed that the majority of Brits are gloomy about the financial outlook for 2009 and 2010.
The Nottingham, which conducted the poll, claims that 80 per cent of respondents predict that the credit crunch will last until the end of 2010, despite the fact the best efforts of the government and the Bank of England to reverse the shrinking of the economy.
Savings accounts will help Brits
Story link: Savings accounts will help Brits
The recent credit crunch has increased the awareness and importance of trying to build up cash reserves for troubled times, like now for instance.
Banks have seen a sudden increase in savings accounts over the last few weeks with more and more people trying to sustain their finances and even trying to make them more stable for the future.
Savings accounts will help Brits
A new survey has shown that many Brits have been opening savings accounts recently to help them cope with the financial difficulties they face during the credit crunch.
The poll, conducted by the Nottingham, revealed that 10 per cent of respondents had opened a new savings account “in recent weeks”.