Getting the most out of your savings
In times of economic uncertainty it has been suggested that the safest thing to do is save money and effectively to do this is by using fixed rate bonds.
National Savings Index for September was released recently and the figures show an increase of 10 points to 87 – the lowest level highest since November 2008.
This index is measured by the national level to capture the public on saving, with a higher number indicates greater importance.
The public has made clear that they are in favor of saving money, so it's no surprise to see many big banks and companies react to this trend with the launch of a series of new products.
According which4u.co.uk, although it may be difficult to decide which bond to invest in the next, it is also important to pay attention to the date of the current bonds mature.
Sam Gooch, director of banking at comparison website, said: "It essential that savers keep an eye on its bonds and are aware of the due date, or may lose a considerable amount of interest. "
He added that many href = "http://www.which4u.co.uk/bank-accounts/fixed-rate-bonds/fixed-term-bonds" title = "Fixed-term bonds"> fixed-term bonds automatically switches to a normal rate after the deadline expires, effectively transferring funds in a separate product, and savers fail to establish a new link in order to benefit from higher interest rates.
Recent research by uSwitch showed that 10 different institutions decreased interest in these products "replacement" for up to 0.5%.
Earlier this month, which4u.co.uk published a list of its most high-paying fixed rate savings accounts and best performing products were by Yorkshire Building Society and Barnsley Building Society.
Yorkshire Building Society is currently offering 5.3% in its 5 title = "Year Fixed Rate Bonds"> Fixed Rate Bonds year </ a> and 4.65% in year three bonds, while Barnsley Building Society, is the payment of 5% over the same four-year bonds.
As the base rate of Bank of England kept its record low of 0.5% these rates appear impressive, increasing interest rates in the near future?
The Bank's Monetary Policy Committee should have their vote next with respect to the base rate on 5 November, but no drastic changes are expected in the short term.
Neil Young, executive director of the Youth Group, said: "Investors expect to see an upward movement in base rate from the current historic low of 0.5 percent, but the percentage increase will be gradual, because such expected time when emerging from recession. "
About the Author
UK Price Comparison website Which4U – http://www.which4u.co.uk compares Credit Cards, Savings Accounts, Fixed Rate Bonds, Bank Accounts, ISAs, Loans, Mortgages, Insurance, TV & Broadband and Gas/Electric bills to find the best UK deals
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