Abstracts » Business

Falling to earth

Article Abstract:

United Kingdom interest rates are falling and do not look likely to rise for some time, so savers seeking fixed-rate deals should find one rapidly. Low rates of interest are not such a serious problem as might first appear since inflation is also low, so real rates of return are better than might first appear. National Savings offer low risk products, but rates are also low. Private sector rates vary according to how long investors are prepared to commit their funds. Bonds and annuities are other alternatives, but annuity rates are low, and look set to worsen.

Personal Financial Mgmt, Analysis, Personal finance

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Mass exodus at National Savings

Article Abstract:

Investors are ceasing to find National Savings products attractive and there is a 56 million pounds sterling net outflow for the 15 months to June 1998. National Savings offers tax advantages and security, but private sector products often offer higher rates. National Savings argues that a strong stock market means that investors are tending to buy stocks and are moving away from savings products as a whole. High short-term interest rates also mean that short-term prodcts ar more attractive than some of National Savings' longer-term products.

Finance, National Savings

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Some safe Plan Bs for family savings

Article Abstract:

United Kingdom savers have been affected by cuts in interest rates, and further cuts could be made. Inflation can erode savings, and this can be a problem even though inflation is low. Bonds and equities can provide higher rewards, though their risks are also higher. Corporate bonds offer better yields than United Kingdom government bonds, which are safer investments. Some blue-chip companies pay good dividends and capital gains may also be made.

Economic policy

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