The need for income is a foremost concern of every saver and investor alike, whether you are working and need to supplement your earnings, or retired and looking to add to your pension income. The need for income never goes away and with the current economic environment providing one of the most challenging on record, we take a look at one particular solution that is proving popular with income seekers.
The economic landscape is one that continues to offer little in the way of a positive step towards sustainable recovery and those looking for income are affected as much as anyone. Interest rates continue at 0.5% for well into their fourth year, many salaries have been frozen due to the pressures on business, annuity rates are at record lows creating uncertainty at retirement and all of this with inflation continuing well above target.
With interest rates continuing at a low rate, locking cash away in a fixed-rate bond is no longer a guarantee of getting a good return. Fixed rate bonds can potentially offer a better return than easy access savings accounts, in return for tying up your capital for a set period. However, there are alternatives to traditional fixed rate bonds – in particular, structured deposit plans, which are worth a closer look. See below for our selection of some of the fixed rate bond deals and alternative savings plans for September 2013.
Short term fixed rate bonds
Aldermore currently provides a selection of fixed rate deals, including a one year fixed rate bond offering 1.85% gross/AER and a two year fixed rate bond offering 2.15% AER/gross, both of which require a minimum deposit of £1,000. People who bank with NatWest or RBS can take advantage of their 1 and 2 year fixed rate offers, which offer rates of 1.40% and 1.60% AER/gross in return for locking away cash for one or two years respectively.
Cash that is not currently required as capital for the day-to-day running of your business will usually generate more interest in a business savings account than in a business current account. If you haven’t yet opened an account, or you’ve found that your current provider is no longer competitive, it’s worth shopping around for the best possible rates. We’ve put together a selection of some of this month’s business savings accounts to help you choose the right option for you.*
Latest easy access account deals
If you’re likely to need access to your capital at short notice, an easy access business savings account, such as Cater Allen’s Asset 30 account, could be worth considering. This account offer a rate of 0.65% AER/gross and pays monthly interest, with a minimum opening balance of £5,000. Withdrawals can be made at any time, as long as you give 30 days’ notice.
Fair Investment Company is committed to helping charities get the best interest rates on their savings. Here we have put together a selection of the latest charity saving accounts currently available.*
Latest easy access account deals
For charities that are likely to require quick and easy access to their money at short notice, the Scottish Widows Charity Deposit Account offers instant access and with no withdrawal penalties. The account requires a minimum deposit of £500, with an interest rate of up to 0.40% gross AER.