Independent Financial Life Planners Bishop's Stortford: What are you saving for?

Thursday, 27 February 2014

What are you saving for?

For any savings ISA’s are always a good idea but far fewer new cash Isa savings accounts have been launched at the start of the "Isa season", according to analysis by a data firm, pointing to a "very slow and unoptimistic start to the 2014 Isa season". In past years, the best rates on cash Isas have risen in February and March, this is because so many people rush to use their £5,760 tax-free allowance ahead of the end of the tax year on 5 April. But Sylvia Waycot of Moneyfacts said: “Isa season is the equivalent of Christmas for savers, with lots of competitive rates, fanfares and razzmatazz, but so far this year it is turning out to be a bit of a lame duck." In December 2012, there were a total of 73 cash Isas that were either new launches or new issues of fixed rates. Last month, in comparison, there were only 24. For January, the figure was 91 compared to 27 so far this year.

The average cash Isa rate this year is only 1.64pc, down from 1.87pc a year ago, although there have been marginal improvements in savings rates in the last few months. Rates have been depressed by the Funding for Lending Scheme, aimed at pushing down borrowing rates for mortgages and small businesses. Banks and building societies have been able to tap a separate source of finance, FLS loans from the Bank of England with rates as low as 0.25pc, instead of having to attract deposits from savers .But as the economy improves borrowing rates on money markets should continue to rise which may also lead to marginally better savings rates.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

No comments:

Post a Comment

IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.