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The Week UKRBS fires warning shot to Bank of England over negative interest ratesThe Week UKIf rates are cut it could have a knock-on affect on pensions. “A cut in base rate reduces returns on cash and encourages some investors to switch money to bonds or shares, driving their prices higher and cutting yields,” says Spence. “Those whose ...NatWest warns of plan to CHARGE customers to hold savings in the bankExpress.co.ukNatwest may set NEGATIVE interest rates for accountsDaily Mailall 63 news articles »
Mortgage StrategyWhy Investors Are Too Wary of Some Brexit BlowsWall Street JournalVirgin Money is at the sharp-end of Brexit risks: a smaller, upstart bank almost entirely focused on mortgages, 18% of which are riskier buy-to-let loans. It is gaining market share and took 13% of U.K. net new mortgage lending in the first half ...Virgin Money's pre-tax profit up 53%Mortgage StrategyVirgin Money profits boom as customers splurge on credit cardsTelegraph.co.ukVirgin Money CEO: More Mortgages Paid Down Post-BrexitYahoo Finance UKFT Adviser -Financial Times -Evening Standardall 27 news articles »
Mortgage StrategyVirgin Money's pre-tax profit up 53%Mortgage StrategyVirgin's mortgage book is now 82 per cent residential mortgages and 18 per cent buy-to-let. However, Virgin Money says there is a risk the UK mortgage market could slow down. Other risks include interest rates staying low for longer and rising ...Virgin Money profits boom as customers splurge on credit cardsTelegraph.co.ukVirgin Money CEO: More Mortgages Paid Down Post-BrexitYahoo Finance UKVirgin Money mortgage book boosts first half profitsFT AdviserFinancial Times -Evening Standard -Interactive Investorall 30 news articles »
The GuardianBank of England policymaker backs stimulus as UK economy worsens – business liveThe GuardianIn sum, the US data seems to point to a possible rate rise this year, which has not been lost on the stock market. Wall Street has now lost ground, with the Dow Jones Industrial Average now down 80 points or 0.44%. Joshua Mahony, market analyst at IG ...and more »
QuartzFirst Brexit, now this: British companies could be forced to pay to put their money in the bankQuartzIn yet another sign the financial world is being turned on its head, one of the UK's biggest banks has warned customers that it may saddle them with negative interest rates. That is, depositors would be charged for putting their money in the bank ...Just when you thought it couldn't get worse... Banks plan NEGATIVE interest ratesMirror.co.ukNatwest may set NEGATIVE interest rates for accountsDaily MailNatWest, negative interest rates: Your questions answerediNewsall 50 news articles »
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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.

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