Interest rate cut
Many experts believe that the bank of England will cut interest rates again. Most banks and building societies have cut their rates effective from 1st Jan. However there may still be some good fixed rate accounts available.
These usually have a fixed term of availability but the bank can withdraw them early.
It may be worthwhile shopping around to find a good fixed rate account say for one year and transfering some money to it. This means that whatever the BoE changes the interest rates to the interest on your money remains the same. However, remember that only £50,000 per person per institution (hence a joint account is protected up to £100,000) is protected by the government should the bank go under. Remember that is per bank NOT per account.
Also this protection only applies to savings and bank accounts. Any money in stocks and shares is NOT protected. If put all your money into shares and the company then goes under - you lose the lot. However, you were warned when you took out the shares that the value can go down as well as up so you have accepted that there is a risk to your money if you went ahead.
The best option for shares at the moment is probably a guaranteed bond. These guarantee to return at least the capital you invested plus a minimum return or whatever the bond makes on the stock market during the period of the bond - whichever is the greatest.
These usually have a fixed term of availability but the bank can withdraw them early.
It may be worthwhile shopping around to find a good fixed rate account say for one year and transfering some money to it. This means that whatever the BoE changes the interest rates to the interest on your money remains the same. However, remember that only £50,000 per person per institution (hence a joint account is protected up to £100,000) is protected by the government should the bank go under. Remember that is per bank NOT per account.
Also this protection only applies to savings and bank accounts. Any money in stocks and shares is NOT protected. If put all your money into shares and the company then goes under - you lose the lot. However, you were warned when you took out the shares that the value can go down as well as up so you have accepted that there is a risk to your money if you went ahead.
The best option for shares at the moment is probably a guaranteed bond. These guarantee to return at least the capital you invested plus a minimum return or whatever the bond makes on the stock market during the period of the bond - whichever is the greatest.
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