Savings News

Over the last few weeks, it seems that the rates at the top of the fixed rate ISA charts have become more stable, with many of last week’s top rates remaining available this week. As well as this, the top rates in last week’s easy access ISA chart are still topping the chart this week and the chart has been strengthened by a new higher-paying second-best rate being available. Saying this, savers looking to secure the best rates should act quickly, as the continuing economic uncertainty means that the top ISA rates may not be available for long.

Savers should note that the rates below are the best rates available at 5pm on Thursday 6 August 2020 and, although correct at the time of publishing, they may not be available after this time.

The numbers of people searching for buy-to-let in the UK has seen an increase of more than 2.5 times from the end of March to mid-July, according to Google trends data. As the economic outlook for the Autumn continues to remain bleak and with the expectation of further job losses to come, those saving for retirement may be concerned about another stock market shock and reductions in value to their pensions and investments. Investing in property during difficult economic times is often seen as a safer option with the security of owning a physical asset.
With more people looking at buy-to-let to generate a return on their funds, we explore how investing in property compares to a pension and where to find the best buy-to-let mortgages.

Studies released this week show the increasing pressures faced by those saving for retirement. Rising care costs are reducing inheritances that many were planning to use towards their own retirement savings, while Covid-19 is stretching people between saving into an emergency fund for today or saving for the longer-term. Those living in the south have a more diverse range of sources to fund their pensions compared to those in the midlands and north, potentially reducing the resilience of their pension savings should their main income source fall.
Those wanting to find the best way to save for retirement are grappling with a potentially volatile stock market, as the economic shock of the Coronavirus pandemic continues, alongside the lowest savings rates in history. Despite concerns about the performance of the stock market, results from the Office of National Statistics (ONS) Wealth and Assets Survey show that the majority (57%) of people still believe workplace and personal pensions to be the safest home for their retirement funds, followed by a quarter of people that see property as their safest place for retirement saving.
The expectation of what would add the most value to their pension savings was significantly higher for property compared to a workplace or personal pension. More than two-fifths (43%) of people believed property would make the most of their money compared to 33% for personal and workplace pensions. A greater proportion of people in the East of England placed their confidence in property, with 53% stating this as the best-performing option.
Even though savings accounts and ISAs have Government protection from the Financial Services Compensation Scheme (FSCS), only 10% thought these would be the safest place for their retirement savings and only 11% expected them to generate the greatest value.
Investing in property may be even more appealing now due to the stamp duty holiday, which could save buyers thousands when looking at acquiring properties for buy-to-let. However, those in workplace schemes should remember that they will also benefit from their employer making contributions into their pension pot and sometimes the more the employee contributes, the more the employer will add as well.

The global Coronavirus pandemic is an unprecedented crisis that has highlighted the importance of having a significant amount of savings to fall back on in case of unexpected events. But while it is important to have money in the bank, the 2008/09 economic crisis showed that banks are not immune to failing during uncertain economic times. As such, we’ve taken a look at how safe savings are in the bank and how consumers can help protect their money.