Savings: Is ‘peer to peer’ lending the answer to beating inflation?

Savings: Is ‘peer to peer’ lending the answer to beating inflation?With inflation outstripping interest rates it is hard, if almost impossible, for most UK savers to get a return on their savings accounts above inflation. Furthermore, with the extension of the Funding for Lending Scheme (FLS), inflation predicted to rise and more Quantitative Easing (QE) on the horizon, things are likely get worse for savers before they get better. What rate of interest do you need to beat inflation? Inflation is ...

Savings: Ideas to deal with high inflation and low interest rates

Our savings are under attack at the moment, historically low interest rates, combined with high inflation is eroding the capital of many savers. A typical saver, paying basic rate tax, and investing £50,000 in the best one year fixed rate will see the real value of their savings fall by £866 this year if inflation, using the CPI measurement, stays at 4.5%. Even for non tax payers or Cash ISA investors very few accounts offer an interest rate which beats inflation, for basic rate and higher rate tax payers the situation is dire, no accounts currently offer a rate of ...

Can you trust your bank? Lessons from BBC’s Panorama program

Monday night’s Panorama program looked at whether the consumer can trust their bank. In particular it focused on the quality of financial advice offered by some of the major high street banks. Mystery shoppers looking to invest a lump sum of money were sent in to a range of banks; the results were mixed to say the least. Some banks such as the Co-Operative were praised by the program; others however did not fare so well. A number of advisers came in for particular criticism especially when assessing a customer’s attitude to risk and explaining charges. Others were accused of putting undue ...