UK savers are deserting the High Street banks and building
societies, as rates continue to stay well below the real rate of
inflation. Latest statistics suggest that on average British people
are saving just £87 per month - but is it worth saving
anything with interest rates so low?
Watch My Wallet had a look at some of
the typical rates that a saver with say £5,000 could get on the
Manchester Building Society could only manage 2.3
per cent on an ISA, with 35 days notice required before
HSBC can offer just £567 worth of interest on
savings of £15,000 into an ISA account over three years. This works
out at just over 2 per cent.
The Coventry Building Society offer 3.25 per cent
interest on their telephone saver account, but 1.25 per cent of
that is a first year bonus. So you are back to just over 2 per cent
REAL INFLATION IS RUNNING AT OVER 7 PER
As anyone who buys food, needs petrol or pays rent will know,
real inflation is running way above the official government price
index figure of 4.3 per cent.
A study by NFU Mutual found that in the countryside inflation
has been over 7 per cent over the last 12 months, as food, heating
and transport costs are all higher than in towns and cities -
mainly due to the lack of competition.
DON'T LET CASH JUST SIT THERE LOSING VALUE - MAKE YOUR
Once you set aside some `rainy day' money for emergencies, the
best way to get a decent return is to invest your money. Here are
Demand for metals continues to be strong - invest in rare earth
mining companies, or major metals recycling businesses.
The vintage clothing market is booming - rent a unit and buy
clothes in bulk at car boot sales and charity shops. Wash and iron
them, then sell online.
Look at `Crowdfunding' opportunities - basically become your own
business `Dragon,' lending money to entrepreneurs. Obviously you
need to spend time and money checking on companies and people
before you invest.
Bicycle sales continue to rise as people struggle
to cut commuting costs. Research a local market carefully and
invest in selling a quality, niche brand, leave the kids bike
discounting to Halfords. If you find a good cycle repair person -
hire them, they are worth their weight in gold.
Have you found a way to make decent interest on your
savings? Post a comment below.