12/03/2010 by bill.

We always recommend anyone thinking of opening a savings account to shop around for the best deals. Interest rates can change quickly in this highly competitive market even though it seems unlikely that the Bank of England will cut rates below the current record low of 0.5%. Interest rates may be variable at short notice or fixed for a specified period. However, we have identified the following Internet accounts as good deals available on-line on 12th March 2010.

On-line Savings accounts

The AA - AA Internet Extra (Issue 1) Account 2.80% aer (rate includes 2.30% bonus payable for 12 months)
Halifax - Web Saver Extra 2.80% aer (1 withdrawal a year without loss of interest, further withdrawals with loss of 30 days interest)
Alliance and Leicester - Online Saver Issue 7 2.75% aer (rate includes a variable rate bonus payable for at least 12 months) Minimum deposit £1000

Cash ISAs

Alliance & Leicester Flexible ISA 3.50% aer For 12 months the rate will be 3.00% above the Bank of England base rate, but is guaranteed not to drop below 3.50% for 12 months.
Santander Flexible ISA 3.50% aer For 12 months the rate will be 3.00% above the Bank of England base rate, but is guaranteed not to drop below 3.50% for 12 months.
Barclays Golden ISA Issue 2  3.10% aer includes a fixed rate 12 month bonus of 1% gross
First Direct cash e-ISA 2.75% aer fixed until 31 August 2011
Nationwide e-ISA Online Cash ISA 2.75% aer includes 1.00% bonus fixed until 30th June 2011

See moneyjungle.net for more on selecting the right savings account.

Please note that although we check rates regularly moneyjungle.net does not claim that the products listed above are the most appropriate for an individual investor and does not claim that the list is exhaustive. We exclude introductory offers that offer short term high interest rates that later fall or those that require the customer to open another account such as a current account. We always recommend thorough research, reading terms and conditions carefully and, where appropriate, consulting an independent financial advisor. See the moneyjungle.net independent advice page for further information.

Posted in Personal Finance, Savings, Investments | Print | 1 Comment »

12/10/2009 by bill.

The Centre for Economics and Business Research (CEBR) believes UK interest rates will stay low for years. This is good news for borrowers but bad news for savers.

It is difficult to find instant access accounts or cash ISAs offering interest rates much above 2% and many are currently paying less than 1%. Fixed rate savings bonds and fixed rate ISAs offer higher returns. If the CEBR forecast proves correct anyone who can afford to lock cash away for 2 or three years would do best to move their savings into fixed rate deals.

More

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09/10/2009 by bill.

According to Yorkshire Building Society savings data Paul and Gemma hold the title of Britain’s richest kids. On average Pauls across the nation have £4,700 each in savings and Gemmas have on average £3,530 stashed away in a savings account.

The most popular names according to the Office of National Statistics for babies born in 2008 are Jack and Olivia but they’re not doing as well as some of their friends when it comes to savings. Jack is the 217th richest children’s name with average savings of only £1,300 and Olivia is the 141st richest with average savings of £1,550.

The research also highlighted that girls are more likely to save than boys but those boys who do get into the savings habit have higher savings balances than girls.

Chris Edwards, Head of Savings & Mortgages at Yorkshire Building Society said: “It’s great news that children are quite obviously getting into the savings habit early on in their life. With so much financial pressure on young people when they leave school now such as further education fees, deposits for houses or saving up for a car, it’s important that they have a nest egg as early on as possible.

“I think that a combination of Child Trust Fund vouchers and parents wishing their children to have a nest egg when they’re older have led to children having more savings than perhaps some would think which can only be a good thing.”

A little saving soon adds up
Parents wanting their children to have a sizable savings pot in their Child Trust Fund when they reach 18 need to start the savings habit early. The good news is that saving little and often soon adds up. Just £10 per week saved in a Yorkshire Building Society Cash Child Trust Fund from birth would be worth approximately £11,740¹ by the time they reach 18.

Yorkshire Building Society has over 1.5 million savers and has a range of savings accounts to suit all age groups and needs.

People wanting to find out more can visit www.ybs.co.uk/savings or telephone 0845 1 200 100

More about saving for children

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26/09/2009 by bill.

The annual tax free ISA limit goes up to £10,200 from 6th April 2010 but comes into effect from 6th October 2009 for anyone over 50 or whose 5oth birthday is before 5th April 2009. The Cash ISA limit goes up to £5,100.

Most banks and buliding societies will allow you to top up your cash ISA although you may not be able to top up a fixed rate ISA bond. Check with your ISA provider for options.

More about Individual Savings Accounts

Posted in Individual savings accounts, Savings | Print | 1 Comment »

24/08/2009 by bill.

5.4% for five years still available from Barnsley’s e-Bond

Consumers looking for a guaranteed return on their savings are urged to look at some of the excellent rates currently available on fixed rate savings before they are pulled from the market.

Fixed rate savings over the last five years have averaged at a rate of 4.75%, however Barnsley Building Society is offering a fixed rate for the next five years of 5.40% on its Online Bond. Barnsley’s full range of Online Bonds includes;

5 year fixed rate – 5.40% gross/AER
4 year fixed rate – 5.15% gross/AER
3 year fixed rate – 5.00% gross/AER

Sarah Lawrence, Senior Product Manager at the Society said: “The fixed rate Online Bonds are proving very popular in the current low interest rate environment. I would however stress that there is only limited availability for these products and I would urge savers to act quickly if they want to secure these rates on their savings. As with all products like this, it is likely that they will be withdrawn at very short notice.”

Sarah continued: “Some consumers are suggesting that they are resisting the current tempting fixed rate offers, believing interest rates will increase. Whilst it’s is likely that the Bank of England base rate will rise above it’s current 0.5% over the coming years, it is by no means certain that savings rates will increase in tandem. I believe that, considering the average performance of fixed rate savings over the peaks and troughs of the last five years, our three, four and five year fixed rate bonds offer members excellent, long term value. By waiting savings could miss out on significant returns.”

A recent survey* indicated that five year fixed rate savings rates had increased by more than 50% since March this year - from 2.86% to 4.86% - which supports Sarah’s comments that now is a great time to secure a fixed rate savings account. This is particularly important for those investors who rely on their savings for income.

The Barnsley Online Bonds can be opened with as little as £100 up to a maximum of £500,000, using the Society’s completely paperless application process. Anyone wishing to open a Barnsley Online Bond can do so at www.barnsley-bs.co.uk

*Independent rate compilers Moneyfacts

More savings accounts

Posted in Bonds, Savings | Print | 1 Comment »

21/08/2009 by bill.

National Savings and Investments has almost doubled the rate of interest paid on Direct ISA accounts from 1.3% to 2.5% aer.

Although not the top rate available in the market place the increase will appeal to those savers who like the security offered by National Savings investments.

More about ISAs

Posted in National Savings, Individual savings accounts, Savings | Print | No Comments »

19/08/2009 by bill.

With many savers in recent months having seen their Child Trust Fund (CTF) savings plummet according to research carried out by Money Management in May 2009, figures from Yorkshire Building Society show that parents are thinking more carefully about the type of CTF they choose. In the past month alone the Yorkshire has seen a 20% increase in parents opening a cash Child Trust Fund and with parents whose children were born after 31st August 2002 soon to be the first to share a second £150 million windfall as their children start turning seven in a few weeks time, Yorkshire Building Society is urging parents to take a closer look at the performance of their chosen fund to date.

Chris Edwards, Yorkshire’s Head of Savings & Mortgages said: “Child Trust Funds have always been popular because parents like their simplicity and understand the concept but we’re not surprised by our new figures which show an increase in their take-up, as recent research has found that cash Child Trust Funds have proved to offer greater returns than stakeholder versions.”

Catching the savings habit

According to the Yorkshire’s own data, 41% of its Child Trust Fund savings accounts have been contributed to with the average amount added being £266 but over half of all parents who have children eligible for a Child Trust Fund do not realise that they can transfer to another provider.

A little saving soon adds up

Parents wanting their children to have a sizable savings pot in their Child Trust Fund when they reach 18 need to start the savings habit early. The good news is that saving little and often soon adds up.

Chris Edwards, Yorkshire’s Head of Savings & Mortgages said: “Child Trust Funds are a really good way for parents to save for their child’s future. However, we’re urging parents who have existing Child Trust Funds or those who are in the process of choosing a provider, to shop around for a good deal. Just £10 per week saved in a Yorkshire Building Society Cash Child Trust Fund since they were born would be worth approximately £11,740 when the child reaches 18 but a provider paying just 1% less in interest would mean that they would get just £10,870, an £800 reduction in lost interest over the duration of the fund.”

He continues: “Our research also shows that over half of parents are saving more money into other savings accounts for their children rather than their Child Trust Fund. It’s great news that parents are doing this for their children but often these other accounts pay less interest than a Child Trust Fund, which could cost them dearly over 18 years.”

Choices when opening a Child Trust Fund Savings Account

When parents are choosing a Child Trust Fund provider it comes as no surprise that the rate and whether the provider is a well known brand, influences the choice of parents with just over two thirds of parents citing these as the main factors in making their decision.

Choices at 18

According to Yorkshire’s research, when children have access to the fund at the age of 18, parents would ideally like their children to put the money towards further education but many parents are happy for them to spend it on whatever they choose (see below). The research also unearthed that some parents would like their children to use their entrepreneurial skills and use the proceeds setting up their own business.

How parents would ideally like their children to use their Child Trust Fund Savings

- Further education 22%
- Deposit on a house 15%
- Continue to save 15%
- A car 13%
- Driving lessons 11%
- They can spend it on whatever they like 8%
- A Gap Year/holiday 7%
- To set up their own business 5%
- Towards a wedding 4%

More about Child Trust Funds

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26/06/2009 by bill.

The Government is giving each newborn child a voucher worth £250 when their parents register for Child Benefit. This must be used to open an account – called a Child Trust Fund (CTF) account – on the child’s behalf. You, your family and friends can all then add to this account. The Government will make a second contribution when the child is seven and is considering a third in the teenage years. The idea is that the account grows into a lump sum for the child to use when they are 18. Baby Bond is The Children’s Mutual’s simple and straightforward stakeholder CTF account. Such accounts are the Government’s preferred way of growing your child’s savings. In 2006 The Children’s Mutual was named Best CTF Provider by independent financial magazine Moneyfacts Life & Pensions.

The Children’s Mutual also offers Sharia compliant Child Trust Funds.

Click here for more about Child Trust Funds

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08/06/2009 by bill.

The interest rate on several of the best Cash ISA accounts have been cut over the past two or three weeks as the banks meet their targets for deposits. The best variable rates available on 8th June, 2009 were from Ruffler Banks offering 3.10% aer and M and S offering 3.02%. Anyone looking to invest in a Cash ISA may well be advised to do so quickly before rates fall further.

It is still possible to find higher rates for fixed term ISAs but these are only suitable for savers who will not require access to funds during the fixed rate period. Inevitably the best rates of require fixed periods of 4 years or more and of course interest rates may go up during that period so you could lose out in later years. But as at 8th June, Halifax is offering 3.50% on its two year fixed rate ISA saver account or 4.00% fixed for 4 years.

As always, do your research and shop around to find

Click here for more information about finding the right Individual Savings Account for you.

Posted in Individual savings accounts, ISAs, Interest rates, Savings | Print | No Comments »

27/05/2009 by bill.

With many savings accounts now offering interest rates below 1% savers are asking how to get higher rates. It is still possible to get over 2% on instant access internet savings accounts and over 3% on cash ISAs and we regularly report on the best rates currently available on this blog.

But switch to fixed rate savings or bonds to get the best rates. Only do this if you are sure that you will not need to access your savings during the fixed rate period otherwise you could face serious penalties but if you can lock away your savings for a year or more there are attractive rates available.

Inevitably the best rates are available for fairly long term bonds, maybe 4 years or more. Caution is needed here because it is almost certain that interest rates will rise during that period and you could lose out in the later years but a rate of 4.4% as offered by Halifax for its 5 year bond looks tempting. Otherwise ICICI bank is offering 4.35% fixed for 2 years or 4% fixed for 12 months.

The same applies to ISAs. Leeds Building Society is offering 4% on its 5 year fixed rate ISA and Halifax is offering 4% on its Fixed Rate ISA fixed for 4 years.

Click here for more about selecting the right places for your savings.

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