| You Are Here: Home > Personal Finance > Banking & Saving > Top 3 Savings accounts |
Top 3 Savings Accounts
Updated every Monday
|
|
|
|
Weekly Savings Gossip
- Rates have dropped slightly on 2-year fixed rate bonds but all the other top deals remain, such as -
More information - The Top 3 Savings accounts
|
|
Government Guarantee is now £85,000 on Savings
Good news for savers with large deposits - the Government ups the guarantee from £50,000 to £85,000 (but always check to see if your bank/building society is covered by the one banking licence if you use more than one financial institution).
|
|
Savings Market Outlook for 2012
This is how I think the savings market will shape up:
- Regardless of what you hear or are told by either the political class or those with an agenda, the UK economy is still in a dreadful mess due to the massive debt overhang + decades of fiscal mismanagement
- For this reason base rates, currently 0.5%, aren't going to rise in 2012 and possibly even 2013 (some economists even go as long as 2016)
- That's the bad news for savers and those trying to generate an income from cash holdings
- However, the good news is the banks and other financial institutions (most who are technically insolvent) are desperate for cold, hard cash so expect 3.00% to be a minimum for instant access accounts and 3.25% (minimum) for one-year fixed rate deals
- Inflation with a bit of luck will hold steady to decline a touch (in January 2012 it's at 4.8%)
- Important: I don't trust banks right now, as I said above most are technically insolvent so it's prudent not to hold more than £85,000 in cash in any one institution (the government guarantees all deposits up to £85,000)
- If you have a large amount of cash (in excess of £85,000) make sure you spread it around. If using a building society and bank make sure the bank is not the owner/parent of the building society (I hope that makes sense! Email me if you need a better explanation - Alex Green)
Summary
2012 is likely to be exactly the same as 2011. Base rates hold steady and little change in the savings market.
|
|
|
|
Read more in the Banking & Savings section:
|
|
|
|
|
|
| Looking for something? Then search this site: |
|
|
|
|
|
Navigation: Banking & Savings section
|
|
|
|
|
|
|
|
|
|
|
|
|
- Pays 2.90% AER
- Online access
- Unlimited free withdrawals
- Save from just £1
|
|
|
|
|