Greece crisis: what static interest rates would mean for savers and investors
Savings rates risingSavers can take a smidgen of comfort in the news that savings accounts are paying the highest rates in more than 12 months. The current average rate for a one-year fixed-rate bond is 3.47pc, compared with 2.95pc a year ago, an increase of 0.52 percentage points. Similarly, two, three, four and five-year fixes have seen a steady increase since the start of 2011.
Naturally, many of the best payers have a bonus rate attached, so savers need to have their wits about them in a year's time.
They may also have to act quickly. Kevin Mountford of Moneysupermarket.com said: "Savers should grab them while they still can. For those who are able to lock their money away for a while, the current rates on fixed-rate bonds are very appealing."
Heebie-jeebies?Markets have wobbled, and, with the uncertainty set to continue, many investors will be nervous.
A defensive fund that financial advisers recommend is Trojan Income. Managed by Francis Brooke, it has maintained an unbroken record of rising payments since its launch more than six years ago, and it tries to address a concern of many income investors: sacrificing capital to secure a growing dividend stream.
Mark Dampier of Hargreaves Lansdown said: "No one fund is the complete answer. Most funds do go through good and poorer times, although Trojan does have a long-term track record. Mr Dampier also suggested that investors consider Newton Real Return, Artemis Strategic Assets, managed by William Littlewood, and Jupiter's UK Absolute fund.
Opportunity knocksWhen disaster strikes, it's the savvy (and brave) investors who often gain an advantage by buying on the dips. If you are in this camp, advisers suggest you look at a fund such as Standard Life UK Equity Unconstrained (managed by Ed Legget).
As the manager of an "unconstrained" fund, Mr Legget can invest in almost any British stock he likes; he is not forced, like many of his rivals, to buy just large companies. Five-year returns are 97pc.
Andrew Merricks of Skerritts recently said: "There comes a time when domestic opportunities are being overlooked, and it is these that Ed Legget finds."
Other funds recommended by advisers include Cazenove European and Axa Framlington UK Opportunities.
Check your mortgage rateHome owners should check their lender's standard variable rates, as it has emerged that 95pc of lenders have failed to cut their SVRs since Bank Rate fell to 0.5pc. It might pay to look around for a better deal: Santander, for instance, has a two-year fixed-rate deal charging 2.79pc, with a minimum deposit of 40pc. Halifax, meanwhile, offers a fix at 2.89pc to September 30 2013; the minimum deposit is 25pc.
What Does Variable Interest Mean - News
"With the minutes appearing more dovish due to heightened concerns over the economy, it is looking ever more likely that the Bank of England will hold off from raising interest rates until 2012," he said. So where does this leave savers and investors?
This would be mainly because interest rates would be much more stable. It would be partly because more stable interest rates would mean more stable economic growth, which together should mean less dramatic cycles in the exchange rate.
Interest rates are stable for at least 3 years (2014). That doesn't mean the banks won't jack up their lending rates periodically to scare people into locking in but a variable rate mortgage is the way to go until 2014. The US economy is entering a
31, 2010 ------------- ------------- Assets Current Assets: Cash and cash equivalents (variable interest entities restricted - 2011:$103) $ 1074 $ 1485 Short-term investments 250 -- Trade receivables, net (variable interest entities restricted
If a company is in a position where they may qualify for an affordable card, this still does not mean that every business owner needs to rush out and acquire a business credit card for their company, as there are some companies who may only need a loan
Student Loan: Variable Interest Cap? | Student Loan Interest Rates
I have three student loans. The highest of these 3 is a private loan with a variable interest rate. Does anyone know if there is a cap on a variable interest rate student loan?
My parent plus loan is about the same interest as my variable interest loan, but the difference is it is fixed. Part of me wants to pay off my parent plus loan right now (as I can afford that); however, should I make every effort to pay the loan off that is not fixed and that is variable?
Confused, advice appreciated!
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