Articles - Uncertainty over timing of an interest rate increase


The period of ultra low interest rates continues, leaving savers with limited options when inflation is above four per cent.

 Head of savings and investments at Fair Investment Company Oliver Roylance-Smith looks at some of the short term options for savers.

 "With growing uncertainty over when the Bank of England will raise interest rates from their historic low of 0.50 per cent, savers may be looking for temporary homes for their cash savings.

 "The Monetary Policy Committee (MPC) is waiting to see how economic growth and the risks of inflation develop before moving to raise rates - uncertainty around both has led to a lively debate on when interest rates will rise.

 "For savers who may be reluctant to opt for a long-term fixed rate account and would rather wait and see what path the MPC takes there are some short-term homes for savings.

 "Although the rates are not as competitive as longer term accounts, instant access accounts are one option, such as the ING Direct Savings Account offers 3.00 per cent AER guaranteed for 12 months, while the one year fixed rate bonds can offer up to 3.50 per cent."

Back to Index


Similar News to this Story

Pension policy's long distance roadmap
The Pensions Schemes Bill has fired the starting pistol on a marathon set of proposals for pension change. The passage of the Pension Schemes Bill and
Guided Retirement Duty a promise or pipe dream for savers
The Pensions Policy Institute (PPI), sponsored by The Pensions Regulator (TPR), recently highlighted a key challenge for defined contribution (DC) pen
Design Thinking in practice starting with Empathy
You may ask “But why bring empathy into pensions?”. Checking your projected pension or receiving a correct payment each month - surely this is all jus

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.