Over the last few months we have heard concerns about inflation pushing ahead in the short to medium term and the potential impact this could have on the UK savings market. So why is inflation such bad news for your savings?
With savings interest rates at relatively low levels, and indeed many savers receiving minimal or in some cases zero interest on their savings, many savers are now looking around at potential alternatives. So could you make your savings work better in the longer term?
While the UK property market is struggling to pull away from the credit crunch and recession it can be difficult to look longer term in relation to UK property prices. While prices are unlikely to push ahead in the short to medium term, due to increased taxes, a reduced public sector budget and difficulties overseas, is there still potential for long-term capital growth in the property sector?
Despite some savers in the UK hoping that UK base rates would have moved higher in the short to medium term this appears to be highly unlikely. Many experts believe that UK base rates will remain at or around current levels until at least the second half of 2011 and even this may well depend upon economic growth in the UK, which has recently been downgraded by the likes of the IMF. So who will rescue UK savers?
The savings industry in the UK has taken a battering over the last couple of years due to relatively low interest rates and a lack of liquidity in the UK financial markets. As a consequence, many savers in the UK are actually receiving little or, in some cases, no interest on their savings. So how can you make your savings work harder for you?
Over the last two years there has been a dramatic impact on the UK economy caused by the credit crunch and accompanying economic slowdown. However, while many people have been using their savings to pay off high interest debt in the short to medium term how many people were actually saving money before the credit crunch hit home?
As the UK government today launches a program of major changes in the UK pension industry there is a growing debate as to whether the UK savings industry has let down UK consumers. When you consider the levels of debt amongst UK consumers and UK businesses, not to mention sovereign debt, perhaps the historic savings culture of the UK has disappeared forever?
In these times of economic difficulties it can often be easy to live hand to mouth, and indeed many people have no choice but to do this, with many questioning the need for an "emergency fund". Where possible it would be sensible to maintain some kind of emergency funds in the event of unforeseen circumstances which if you're living hand to mouth could literally bankrupt you. However, how do you build an emergency fund?
There have been a number of interesting propositions and comments regarding the future of banking regulations in the UK although one yesterday from the Institute of International Finance has caught the eye of many people in the UK. Should savers lose any rights to protection in the event of a banking collapse?
This evening we saw the UK government's guarantee on Northern Rock deposits expire as of 5 PM with customers transferring back to the Financial Services Compensation Scheme which will protect deposits up to £50,000. Customers who have taken on fixed rate long-term investments will see their funding guaranteed until expiry as long as the arrangement was put in place before 24 February 2010.
