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
This is MoneyShould the triple lock be saved? Work and Pensions Secretary says 'ratchet effect' means it can't last - is he right?This is MoneyThe state pension triple lock cannot last and could still be axed in 2020, according to Work and Pensions Secretary David Gauke. The controversial Tory manifesto plan to axe the valuable guarantee, which sees the state pension go up at least 2.5 per ...and more »
This is MoneyGet a mortgage by video: Banking giant Santander is latest to launch online interviews for home loansThis is MoneyHome buyers can now apply for a mortgage via online video thanks to a new service being rolled out by Santander. The bank announced today the launch of its mortgage video service for buyers and those looking to remortgage in 63 branches across the UK, ...Santander customers can now apply for a mortgage via video chat - in 63 UK branchesMirror.co.ukSantander offers high-tech option of video link with mortgage adviserAOL UKall 6 news articles »
Telegraph.co.ukFirst-time buyers: four ways to capitalise on falling house pricesTelegraph.co.ukLast week, figures from Rightmove, the online estate agent, revealed the average asking price for British properties has fallen for the first time since 2009, down 0.4pc in June. This meant annual growth rate slowed to 1.8pc. While this may be good ...
International AdviserUp to £50bn pulled from DB schemes in pension transfersInternational AdviserThe amount of money being withdrawn through transfers from defined benefit (DB) pension schemes in the UK has reached a record £50bn since the pension freedoms came into force, according to new figures released by professional service group Mercer.and more »
Pension Funds Online (blog)On pension planning and the capacity to bear lossesPension Funds Online (blog)The nature of pension planning has clearly changed as active working people today are building up smaller pensions. As a result people, are now more often confronted with the outlook of having insufficient income for all their intended future expenses.
Have you met...
Latest Members:


wangqing


roknal3arby


mike


Belal alqisi


baidai66


z


Arielmiranda

 

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