Savings And Investments

[lupestripe]

With inflation outstripping interest rates on nearly all savings accounts and ISAs perhaps now is the time to look at other ways of maximizing returns.

I have never turned to the markets but I may have to study this more in-depth. Investing in BP or banking may be a good idea after recent events but the current climate makes things uncertain in both sectors (Middle East unrest in one, Portugal's crisis and new tax levies on the other). I have never been a fan of risk so where is best - commodities?

Pensions is another thing I am considering but I simply do not trust them. Governments and financial authorities seem to make the rules up as they go along and I feel this is a big black hole in which to pour money on the off chance I survive to whatever the retirement age will be in 40 years time. The BoE can't predict the financial situation next year accurately so who is to say what the state of the world will be in 2050? These are gut feelings rather than ones of any education so I do need to look into this further.

Aside from that, what else is there? Megadog linked me to a bond which looks interesting and I may consider locking money away for an extended period of time to gain higher interest. I don't have loads of spare cash but it would be nice for it to do some work for me rather than devaluing over time.

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Comments

[albrecht-fur.livejournal.com]

I've been thinking the exact same things. Savings accounts just doesn't give any sort of meaningful return.
I'd be interested to hear what you find out.

[rustyfox.livejournal.com]

I'll probably shove some money into those bonds on a 3 or 5 year term (depending on what they offer). I figure in the short term it's a wise place to put money given the low-interest/high-inflation rates, but I guess in the longer term other traditional savings accounts would yield higher returns. These times are, after all, (hopefully!) just a blip in the grand scheme of things, and not the way it'll be forever.

[richter-x.livejournal.com]

I'll probably be investing in 1 oz. Silver Coin. That way if the dollar does to shite I'll still have something with actual value.

[bariki.livejournal.com]

For something that's readily convertible into cash, Premium Bonds offer a tax efficient way to save. They don't bear interest, but each £1 you invest gets you one 'ticket' in a monthly prize draw - and the prizes are tax free. So far, in the 13 months I've had mine, I've made a 12.5% return, but I'm a lucky bastard and your mileage may vary. :P

The bonds are issued by HM Government, so it's one of the safest investments there is. Of course, there is the chance that you will win nothing and will simply have your investment eroded by inflation.

[stuart-otterson.livejournal.com]

Pop into your local Co-op Bank and make an appointment to talk about investing. From what I understand they specialise in ethical investments, I presume not to be just some corporate half hearted boast, but something they believe in because they are owned by their members.

On the other hand I won't refuse if you invest cider in me in return for many laughs and crazy discussions.

[klepsydra.livejournal.com]

One of the more interesting things in the recent budget (and not widely reported) was the reintroduction later this year of index-linked treasury bonds. These should be well worth considering once they're available.

[londonwolf.livejournal.com]

I've heard that the National Savings Certificates (http://www.nsandi.com/savings-index-linked-savings-certificates) provide a good return with little risk, and are tax free :)