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Could the value of your state pension rise by more than inflation?
Will your loved one's gift be tax affected?
Looking for inflation beating returns? Investing in shares could be an option.
A healthy credit score has its benefits, so make sure you manage your debt correctly.
Discover the best travel insurance policy for your next trip.
Find current accounts offering in-credit interest rates up to 5.00% AER.
Explore the best cards with a 0% introductory period.
Could the value of your state pension rise by more than inflation?
Will your loved one's gift be tax affected?
Looking for inflation beating returns? Investing in shares could be an option.
Savings rates continue to improve, however, due to a dramatic rise to inflation, not one standard savings account can beat its eroding power.
The Consumer Price Index (CPI) rose to 3.2% during August 2021 up from 2.0% in July 2021. This is the highest level seen since records started in 1997. There remains no single savings account that can outpace inflation. The highest cash savings rate available right now is from Atom Bank at 1.86% for a five year fixed rate bond. This is an improvement compared to 18 August 2021 when the top rate was 1.72% for a five year fixed deal. But, while rates are increasing they are lagging far behind the pace of inflation and even the best rates just prior to the start of the pandemic would not have kept pace. On 18 September 2019 the top return in the market over five-years was 2.45%.
Those needing to save into a cash ISA face even worse news with rates here only reaching 1.50% for a five year fixed rate cash ISA. This means that savers should only use cash ISAs if they are likely to exceed their personal savings allowance and as a result could face paying tax on their interest income.
A combination of low cash savings rates and rising inflation could make investing a more attractive option for some savers. Investment returns have consistently out performed cash savings, but they do come with significantly greater risks including the loss of capital and returns are not guaranteed. In August we reported that the top five ISA unit trust funds had achieved returns over the past 12-months had seen returns of between 61% and 84%.
Savers can use an investment platform and open an account to make investments into funds and into shares on the stock market. This includes the option to invest using an ISA wrapper - savers should note the maximum investment allowed into an investment ISA is £20,000 per tax year.. Alternatively savers can look to open a specific stocks and shares ISA.
Provider |
Min monthly investment |
Number of funds available |
|
Interactive Investor |
£25 |
3,000 plus |
|
Barclays Smart Investor |
£0 |
2,000 plus |
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Furthermore, receive 5.20% interest daily on any uninvested cash with this stocks and shares ISA.
Furthermore, receive 5.20% interest daily on any uninvested cash with this stocks and shares ISA.
From income tax to the new pension reforms, what changes will affect you?
From income tax to the new pension reforms, what changes will affect you?
UK equity funds, which predominantly invest in shares, saw investors withdraw almost £3 billion in August, according to the Investment Association. For the trade body this is a record monthly outflow, and contrasts with the £1.3 billion invested in these funds in August 2021.
UK equity funds, which predominantly invest in shares, saw investors withdraw almost £3 billion in August, according to the Investment Association.
Furthermore, receive 5.20% interest daily on any uninvested cash with this stocks and shares ISA.
Furthermore, receive 5.20% interest daily on any uninvested cash with this stocks and shares ISA.
From income tax to the new pension reforms, what changes will affect you?
From income tax to the new pension reforms, what changes will affect you?
UK equity funds, which predominantly invest in shares, saw investors withdraw almost £3 billion in August, according to the Investment Association. For the trade body this is a record monthly outflow, and contrasts with the £1.3 billion invested in these funds in August 2021.
UK equity funds, which predominantly invest in shares, saw investors withdraw almost £3 billion in August, according to the Investment Association.
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