it's been a while

It has been a while since I wrote on here. Possibly because not much has changed. Interest rates are still at the 'give the savers a kick in the teeth' rate of 0.5%.

Still best thing out there at the moment are still some fixed rate bonds. These do have, on averidge, better interest rates but the draw back is you have to sort of lock your money away for a number of months. The shortest term one I know of is a 6 month one.

Also whilst interest rates are low those who have an 'interest only mortgage' have seen their payments drop. Well the tip here is don't go spending that extra cash you may now have either use it to pay of part of the capital of the mortgage or alternatively put it into a regular saving account so that when interest rates do go back up you can use the capital you have built up in this account to pay a sum off the capital. Both ways you are reducing the amount that the bank can charge the interest on so in the long term it will save you money.

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