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 ...

Poll of leading economists predicts interest rates to remain unchanged until 2012

A poll done by the BBC has shown that the many leading economists believe interest rates will not rise until next year. When will rates first go up? Q4 2011: 6 economists Q1 2012: 12 Q2 2012: 5 Q3 2012: 6 Q4 2012: 0 Q1 2013: 2 Q2 2013: 1 Source: BBC poll of leading economists 32 economists took part in the poll, 26 said rates would not rise until 2012 and three even said there would be no rate increase until 2013. Whilst it is the Bank of England’s nine strong ...

Interest rates on mortgage deals at lowest levels since 1988

According to Moneyfacts, the financial information provider, interest rates for new mortgage deals have fallen to their lowest level for 23 years. Moneyfacts said that as it became apparent the Bank of England are likely to delay before they raise interest rates banks were finding it cheaper to raise funds and could therefore offer mortgage deals with lower interest rates to their customers. Michelle Slade of Moneyfacts said, "Earlier this year the market expected a rise in bank base rate, that saw mortgage rates start to rise,” she went on to say "An imminent rise in bank base rate now appears unlikely, ...