It’s an interesting time in the UK economy. The cost of living has started to fall sharply, as many expected it would. With the rise in VAT from January 2011 now leaving the 12-month comparison, the RPI measure of inflation has dropped below 4%.
Now, for the first time in several months, fixed-rate bonds and fixed-rate ISAs are in a position to offer real rates of return. But even so, none of us can be absolutely sure whether this will hold in the medium term. The Bank of England has announced further quantitative easing measures, and opinion between forecasters varies considerably.
This fall in inflation has prompted consumers to think about saving. However, many remain unsure about their best options. Which4U’s new savings guides focus on these savings issues to present the best options. Let’s preview a few of these now:
Any ideas? Don’t worry if not. You’re in the majority.
UK savers are protected for up to £85,000 per person per financial institution.
And despite a multi-million-pound television advertising campaign designed to raise awareness about the guaranteed compensation level for savings UK deposits, only 3% of people are aware of the measures at the close of 2011, according to the Financial Services Compensation Scheme (FSCS).