Savings Champion

Savings rates continue to soar.
So too do high street bank profits!

This week we have had some respite from base rate and inflation announcements from the Bank of England and the Office for National Statistics, although of course that doesn’t mean that there is nothing happening. Inflation is clearly still extremely worrying with some experts suggesting that even more eye-watering levels are on the horizon. Of course this does create a sort of silver-lining in that savings rates are continuing to increase, as the market expects more base rate rises - certainly in the short term.

So, it was interesting to see that even NS&I has recognised that they need to offer a more competitive rate on the Green Savings Bonds if they hope to raise more money for the Government’s chosen green projects. Although NS&I has not disclosed how much they are looking to raise, to date the previous issues have attracted a disappointing £288million. Which is presumably why the latest issue of the bond is a much more competitive 3%. Hopefully this will attract more environmentally focused savers – but because of the way the bond is structured, it’s important to understand when the interest is deemed to be received and therefore how your interest may be taxed.

🔖 Read: NS&I doubles the rate of interest on its latest Green Savings Bonds

Whilst some savings providers are pushing interest rates up in order to attract more business and therefore help savers to mitigate at least some of the damaging effects of inflation, as I am constantly reporting, on the whole the high street banks are doing as little as they can get away with. And, while they are not passing the base rate rises onto you, were you aware that they are benefitting from the full increase by parking any excess cash that they have at the Bank of England and therefore earning the present base rate of 1.75%? What are you earning on your savings with your high street bank? I can tell you, it’ll be a fraction of the base rate!

🔖 Read: Banks earn billions by parking cash with the Bank of England

With inflation spiralling, more and more people are worried about holding too much of their life-savings in cash, as although savings rates are at their highest level in a decade, with inflation so much higher than expected, anything earning less that the rising cost of living is effectively being eroded in real terms – so the spending power of that money is diminishing.

The problem is that there is simply no direct alternative to cash. However, especially if that is the only asset held, it could be time to look into whether there is anything else you could try, as holding all your eggs in one basket is rarely considered a sensible approach.

If you are looking to invest some or more of your money, it is well known that you should take a longer term view on when you might need access. And you need to understand the risks you could be taking by changing your strategy. So, just how long is long-term and what are some of the options that could be considered?

🔖 Read: How long is long-term investing?

Of course the thought of investing money when things are so uncertain is probably a bit unsettling too – however help is at hand. TPOs Chief Investment Officer, Toni Meadows, and TPO Partner Robert Morse are hosting the latest TPO Markets Matter Webinar next week, where they will be addressing whether we are on the brink of a recession, how the markets are currently behaving and what to expect going forward.

And of course if you can join the live event, you could have a chance to ask Toni and Rob questions about issues that may be worrying you at the moment.

The free webinar is taking place on 7 September 2022 at 10am. 

🔖 Register for your free place at the TPO Markets Matter Webinar

Finally, back to savings and over the last couple of weeks we have seen the upwards trend continue, with new market-leading rates in a number of our best buy tables. Let's hope this doesn't stall anytime soon, as inflation is continuing to ravage savers.

🔖  Read: Rates Rundown - keep the improvements coming.

That’s it from us this week – hope you have a great weekend. See you in a couple of weeks' time.

In the meantime, remember to keep a close eye on our best buy tables.  Why not sign up for our Weekly Best Buy Table email, delivering the top rates to your inbox once a week.

And if you want to be kept up to date with new competitive savings accounts being launched, sign up for our free Rate Alert service. We'll send you an email when we see new savings accounts that you might be interested in.

All the best


Anna Bowes
Savings Champion

NS&I doubles the rate of interest on its latest Green Savings Bonds

NS&I has launched a new issue of its Green Savings Bonds, paying a competitive rate of 3% AER, fixed for three years.

But, because of the way the bond is structured, although NS&I Green Savings Bonds customers do benefit from compounded interest each year, rather than spreading the interest over the term of the bond, all the interest earned will count towards your taxable income in the year the bond matures – increasing the amount of tax you may need to pay.

What is different about this bond? >>

Banks earn billions by parking cash with the Bank of England

As we have reported for years now, we know that the high street banks pay some of the worst savings rates to their long-suffering customers.

But recent analysis carried out by The Times has highlighted that these same banks are benefitting from the rise in the base rate to the tune of billions of pounds – while passing on just a fraction to savers.

What can you do to beat the banks? >>

How long is long-term investing?

When you hear the phrase long-term investing, you might find yourself asking just how long does that really mean? And how long will you have to wait to start seeing the fruits of your investment labours?

Of course, there’s not one all-encompassing answer, but we want to offer you a little more insight into what long-term investing entails, where to invest money long-term and how the end result could make the waiting worthwhile. 

Should you consider long-term investing?>>

Webinar: TPO Markets Matter

Will recession become a reality?

Things are changing rapidly around the world, so I am pleased to tell you that TPO’s next Markets Matter Webinar is approaching, offering you the chance to hear from Chief Investment Officer Toni Meadows and TPO Partner Robert Morse.

During this free 45-minute webinar, the duo will explore;

  • what defines a recession & signals to notice;
  • some scenarios that will or won't likely lead to a recession;
  • how different markets are placed; and
  • how to invest in the face of a recession

There will also be time after the webinar for Questions and Answers.

The free webinar is taking place on 7 September 2022 at 10am. 

Book your free place here>>

Rates Rundown - keep the improvements coming

Last month’s shocking inflation announcement seems to have reinvigorated competition in the savings market, as rates have continued to push upwards.

There’s plenty to choose from for those prepared to shop around, although unfortunately still well below inflation at 10.1%. But earning the best rates can help to mitigate the effects of inflation, so earning as much as you can has never been more important.

What are the best rates right now? >>

Keep up-to-date with all the best savings accounts on the market

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> Fixed Rate Cash ISAs
Notice Accounts
Monthly Income Accounts
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Our Best Buy Tables are based on whole of market research, independent and have no commercial bias, ensuring that you can rely on them to make an informed decision.
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*We are occasionally paid by some providers if you click through from our Best Buy Tables and open a savings or current account with them. We will never accept a payment that compromises in any way our independent, whole of market approach to providing information on savings products. For clarity we will indicate those companies who remunerate us with an asterisk (*).

†High interest current accounts often have a number of conditions attached to qualify for the headline rate. Please ensure you carefully read the terms and conditions before proceeding. Many of these current accounts do not require customers to switch their main account.
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