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Telegraph.co.ukPension choice for 130000 Tata steel workersTelegraph.co.ukThe letters, seen by Telegraph Money, ask savers to pick between sticking with the existing British Steel scheme, which will fall into the Pension Protection Fund (PPF), the “lifeboat” scheme for “final salary” plans, or moving to an entirely new ...
The GuardianOne in three UK retirees will have to rely solely on state pensionThe GuardianAbout 15 million people have no pension savings and face a bleak future in retirement, according to a major survey of Britain's personal finances published this week by the Financial Conduct Authority. The Financial Lives survey of 13,000 consumers by ...Young people rely on parents and credit cards to cover costsFinancial Timesall 26 news articles »
Telegraph.co.uk'My £4845 pension policy is now worth £945'Telegraph.co.ukIn 1995 I took out a pension policy with J Rothschild Assurance. I could ill-afford it, but an adviser insisted it would be beneficial to pay into it each month. After a short period, and by then being divorced and bringing up two sons, I cancelled the ...
Donohoe avoids calling for tracker mortgage investigationThe TimesThe finance minister has said it is gardaí's responsibility to determine whether there is sufficient evidence for the force to investigate how banks have dealt with tracker mortgage customers. Paschal Donohoe avoided calling for a garda probe and said ...and more »
The TimesHow to bridge the generation gapThe TimesTimes Money looks at what he may propose next month and how he could pay for it. THE GIVEAWAY ... Mr Hammond is said to be considering cutting the national insurance (NI) contributions paid by young people, an idea Tom McPhail, the head of pensions ...
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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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