The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
The SunMartin Lewis warns THOUSANDS could miss out on Lowcostholidays refunds as deadline loomsThe SunLowcostholidays didn't have an Air Travel Organiser's Licence (ATOL) – which protects package holidaymakers in the UK when firms go out of business – because in 2013 it moved its business to Spain. Initially, customers who booked both a flight and ...
Spectator.co.uk (blog)Property funds, equity release, debt and pensionsSpectator.co.uk (blog)Standard Life Investments has become the latest financial institution to announce plans to reopen its suspended property fund after declaring that the commercial property market had stabilised, The Times reports. The announcement that its UK Real ...
Pension Industry works on new Workplace Pensions InitiativeActuarial PostIGCs have specific primary duties to act in the interests of scheme members, to make an objective assessment as to whether members are receiving 'value for money' from their workplace personal pension arrangements and to report on their findings.
Leicester MercuryMattioli Woods boss says UK economy is robust enough to enable Brexit to happenLeicester MercuryIt provides pension administration and trustee services to more than 1,500 self-invested personal pension and small self-administered scheme clients, with more than £400 million of assets under administration. Last year it made a profit before tax of ...
SEBI working on more distribution channels for MFs: UK Sinha at AMFI AGMEconomic TimesFor starters, ET MONEY makes it easy to find the best performing funds through auto-created themes. These themes are based on specific goals (for example tax saving) & are created by analyzing performance of more than 5,000+ mutual funds over the last ...and more »
Have you met...
Latest Members:


lidolove201046


expert


SHIMAA222


reda21


hannamarin


nermine


ahmed

 

To Save or To Clear the Debts?

You may have noticed that your savings aren’t doing a lot to pay their way these days. Pensioners are badly hit as many of them use the interest from their life savings to pad out the weekly amount they get from the state. Many mortgage payers are happy as their payments have come down, but just about everyone else with savings is in the situation where the real value of their money is falling because interest payments aren’t as high as inflation.

 The average rate for UK instant access accounts including current accounts was around 0.17% at the end of February and we’ve had another cut in the Bank base rate of half a percent since then. Despite that, with credit hard for many people to come by; credit limits being cut by the card companies and worries about job losses, if you can, it’s best to have some savings on hand for an emergency. And the latest figures show that people are saving more. There’s nearly £1,000 billion of savings in our banks and building societies and another £90 billion in National Savings.  

In terms of interest you may as well keep your money under the bed – but then that’s probably the first place a cash strapped burglar is going to look. Fixed rate bonds pay slightly higher rates than instant access accounts. National Savings and Investments products are increasingly popular because people want to know their money is safe whatever the interest rates and they have a 100% government deposit guarantee. It’s never been more important to shop around and don’t be slow to move your money to higher interest rate paying accounts. Keep a close check on any accounts you do have to see what interest you are being paid. The financial pages of the newspapers are good for advice on which accounts are paying the best rates but these change frequently. 

Once you’ve got your emergency fund in place if there’s any money left over think about clearing expensive debts. There’s no point in having a lot of money sitting in an account getting 2.5% interest if you’re paying off loans or credit card accounts at interest rates in the high teens and 20’s. Homeowners are paying off their mortgages too. Some who’ve seen their monthly payments fall are continuing to pay at the old rate so that they clear their mortgages more quickly.

If you have a lot of savings think about getting some financial advice. Your money may not be doing as well for you as it could and a good Independent Financial Adviser can be worth his or her weight in gold. Visit more than one and choose the advice you feel happiest with. Family, friends and colleagues may be able to recommend advisers they’ve used and found helpful.

If you’re lucky enough to have money to put aside it’s time to take stock and nurture it so that it can nurture you back in the future.

Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks