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.
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”.
Credit crunch means dipping into savings
Story link: Credit crunch means dipping into savings
Let’s face it, we don’t save for years on end never to spend the money, so there is no time like the present to get those savings out to keep your finances afloat.
Around 50% of UK savers have withdrawn some of their savings, with around 18% of people saying they have used up to 10% already!
Credit crunch means dipping into savings
A survey has found that nearly half of Brits have withdrawn money from their savings accounts to help them make up the shortfalls in their income during the credit crunch.
Fairinvestment.co.uk, which conducted the study, found that 18 per cent of the people it polled have already used up ten per cent of their savings since the credit crunch hit.
January 23, 2009
Interest rates; 0% too much?
Story link: Interest rates; 0% too much?
As mentioned time and time again, I know quite a few people, paticulary investors on discounted trackers that would be chuft to bits with an interest rate drop to 0%.
However, I know a lot more people who would not be affected by the drop, thanks to the fixed rate deal they intially took out, so who are the interest rate cuts really helping?
Can an interest rate of zero be too high? Unfortunately, yes. A new analysis by Goldman Sachs concludes that the Federal Reserve’s cut in the federal funds rate to a record low of zero to 0.25 percent on Dec. 16 isn’t going to be nearly enough to get the economy going again.
The report says the Fed would need to reduce the federal funds rate to negative 6 percent by the end of 2010 to supply the needed amount of monetary stimulus.