Time to save again?
Following a couple of years in which rates in the savings accounts market remained pretty much flat, there have been some indications for a slightly greater degree of optimism, argued the Money Saving Expert on the 12th of October 2018.
Whilst taking stock of any instant access savings account, you might also want to consider whether you might make your savings work still harder by opening an account with the bank concerned or locking away the cash for a fixed period of time. Rates as high as 5% are currently offered on the leading top-up and fixed term bank savings accounts.
Bank of England base rate
The major determinant of the savings market, of course, is the Bank of England base rate.
As the BBC reported on the 2nd of August 2018, the last increase in the base rate saw it rise one quarter of a percent from 0.5% to 0.75% - the highest it has been since March 2009. As is usually the case, borrowers are the first to be hit by such an increase in the base rate, whilst savers might expect only “limited” or “gradual” improvement in the interest rate offered on their savings, warned the Bank’s governor Mark Carney.
Doubts about the future of Brexit negotiations and their effect on the economy as a whole are currently delaying any further expected changes in the base rate.
Your savings – whether instant access, fixed term or regular top-up accounts – play a critical part of your overall financial planning. That financial planning is an essential component of the planning that goes into making your retirement as stable and secure as possible through the careful management of your pension arrangements.
These are the areas, of course, in which we at Independent Pension Specialists excel. We are here to help explain your options and to ensure that you keep them open by ensuring that whatever pension arrangements you make, your money continues to work its hardest for you.
The data cited in this piece is correct as at the time of writing.