Savings Champion

Weathering the Autumn Storms

Firstly, it's important to express our great sadness at the recent death of Her Majesty Queen Elizabeth II. It's a bittersweet weekend and bank holiday coming up, although I expect Her Majesty will have a really wonderful send off.

As we leap into autumn, it would appear that the inflation storm we have been experiencing has eased slightly. While I won’t call it a reprieve, the latest Consumer Prices Index (CPI) announcement from the Office for National Statistics, for the 12 months to August 2022, was slightly lower than the previous month – but still eye-wateringly high at 9.9%. So the storm is definitely still raging.
And of course, 9.9% might not be your own personal rate of inflation – it could be higher or lower depending on your spending habits. But regardless, if inflation is higher than the amount of interest you are earning, it is reducing the spending power of your cash and means you could even need to dip into your capital, exacerbating the problem.
So, what has caused CPI to dip slightly this month and will you see the benefit?

🔖 Read: The rising cost of your roast dinner

Of course, this inflation news has sparked some significant savings rate improvements, with some best buy rates increasing five-fold over the last 18-months. Most of the providers we have in our best buy tables are names that many people are unfamiliar with and therefore unwilling to switch to, so it’s been an interesting development to see Santander back in the best buy tables - something we’ve not seen for years.  For details on the Santander accounts and all the other savings news over the last couple of weeks, take a look at our latest Rates Rundown

🔖 Read: Rates Rundown - will more high street banks follow in Santander’s footsteps?

With inflation at such a high rate, earning as much as you can from your savings and investments is more important than ever. At Savings Champion we hope that we are helping in the battle to earn as much interest on your cash savings as you can. But with investments, it’s not just the stock market returns that are important to maximising your wealth, it’s also how tax efficient you are. Different investment vehicles offer different tax allowances that if used wisely can improve your returns simply my reducing the amount of tax you have to pay. So just what tax might you need to pay on your investments and how can you make sure you are doing the best thing?

🔖 Read: Do you pay tax on investment income and gains?

Sticking with investing and it’s time for TPO’s monthly update on what’s been happening to global markets recently and what we can expect going forwards. The recent period of uncertainty caused by a number of issues has had a significant impact on financial assets, with only three asset classes showing positive returns this year; commodities, infrastructure and cash - although as we know, due to high inflation the latter has actually also produced a negative return. 

In times like this, there are no secret strategies to be used nor is there a single asset class that will offer the benefits of insulating you fully from losses whilst offering the potential for return. The strategy which has proven to be most effective time and again, is to invest in a diversified portfolio of assets which (depending on your risk profile) includes the use of equities, bonds and alternative investments. Holding your nerve and remembering why you invested in the first place has never been more important.

🔖  Read: September Market Update - déjà vu…all over again!

That’s it from us this week. 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

The rising cost of your roast dinner

Inflation figures for August are out and whilst not a reprieve, the Consumer Prices Index (CPI) rate for the 12 months to August 2022 was down slightly from 10.1% in July – but still an eye-watering 9.9%. This means that on average, the cost of things that we buy have gone up by nearly 10%.

Not everything in the CPI ‘shopping basket’ rises at the same pace though and there are even some items that have fallen - but of course the opposite is also true.

What has gone up and what has gone down? >>

Do you pay tax on investment income and gains?

You may have to pay tax on any income and growth you take from your investments, but the tax rate will vary depending on the type of income you take, and the type of investment product you take it from.

Plus you have tax allowances that allow you to take income and gains from your investments without paying tax of any kind. Being as tax efficient as possible can help you make your savings and investments work as hard as possible.

Are you as tax efficient as possible? >>

Market Update - déjà vu…all over again!

The last two years have demonstrated that there is no such thing as normality in the investment markets. The pandemic caused the global economy to shut down which was exacerbated by Russia’s invasion of Ukraine. Add into the mix the escalating threat of China invading Taiwan and rising interest rates, it becomes clear that investors have been kept on their toes. 

In times like these, it's prudent to take a step back and evaluate your investments in the context of the broader market. And above all - hold your nerve!

What should investors do now?>>

Rates Rundown - will more high street banks follow in Santander's footsteps?

With inflation still riding high, competition in the savings market has continued unabated. And there are even some high street names back in the fray - looking to raise money from savers. 

There’s plenty to choose from for those prepared to shop around, although unfortunately still well below inflation at 9.9%. But earning the best rates can help to mitigate the effects of inflation, so earning as much as possible has never been more important.

What are the best rates right now? >>

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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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