More On The £35k Bank Savings Guarantee - Watch Out For This Quirk
Most savers now know because of the Northern Wreck fiasco that all banks insure their client's deposits up to £35,000 should they go under.
But as ever the devil is in the small print so watch out for the following.
- Compensation is calculated on a net basis
- Therefore any loans (mortgages, personal loans, credit card balances) with your bank are taken into account alongside your savings
- If for example your mortgage was larger than your savings (held with the same bank) and the institution failed you wouldn't be entitled to any compensation
Yet more proof (if it is needed) that it pays to spread your money and other financial obligations around these days.
10 Year 6% Fixed Savings Account - Looks Interesting
The Birmingham Midshires Building Society have launched a 10 year fixed rate savings account paying 6% gross.
10 years is a long time to tie up your money without the possibility of access but it does all depend on how much you've got in total assets.
If for example I had £1million or more in liquid assets (stocks, bonds, cash) alongside little or no debt (mortgage) plus had few if any financial obligations to pay for over the years (children, a high spending wife) I would definitely consider locking up 5% - 10% of my cash in this account.
It's something to think about anyway for those that like to look at their finances over a multi-year period.
Leeds Building Society 5 Year ISA Fixed At Around 6%
Here's another interesting long term fixed savings accounts for those with hefty cash balances to consider. Note that it is a Cash ISA.
The Leeds Building Society is offering a 5 year semi-fixed ISA. I say 'semi fixed' because the interest rate rises each year.
- Year 1 - 5.55%
- Year 2 - 5.75%
- Year 3 - 6%
- Year 4 - 6.25%
- Year 5 - 6.5%
For those with large cash ISA balances consider allocating up to 20% to this account assuming you won't need access to it over the 5 year term.
Some Help For Buy To Let Investors - Look At Your Tax Situation
With property not doing so well many Buy to Let investors are starting to feel the pinch.
As ever with any business there are always two ways to get better revenues, either increase sales or (intelligently) reduce costs.
The first choice is most probably no longer available for property investors so focusing on costs should be a priority. If I were a Buy to Letter I'd start to look closely at my tax and see if there were some better strategies and (legal) tricks I could employ.
I haven't read the following book but I'm a big fan of buying these sorts of guides. Often you'll find at least one good idea which often pays for the book many times over.
