Although we are always told that saving should be one of the first things we do the latest survey results from the Nationwide Building Society show that only a quarter of us are ranking it highly.
The main reason for this at the moment has to be the cost of living, which is changing the focus of the population towards covering the rising costs of bills rather than saving. This is supported by an aspect of the Nationwide Building Society study that showed how over 60 percent of people felt they were not saving enough.
In real terms this is the time when people should save even harder than usual. Looking at an uncertain future consumers really need to be building up a resource they can call upon should they face unexpected costs. The Nationwide Building Society, along with most other financial institutions, suggests having enough cash to manage for around three months.
Savers looking for a guaranteed return over a fixed term and a low minimum investment should pop down to the Post Office where they have introduced a bond that offers just that.
The Post Office bond pays interest over a 12 month period at a rate of 7.05 percent and with a minimum investment of just GBP500 is accessible to pretty much everyone. As long as customers can leave the money intact for the year then they can earn a great rate of interest guaranteed. Such guaranteed investments are becoming more popular than ever now that the economy is in such a difficult position. Investors are looking for security rather than extravagant claims.
For anyone interested in what is an excellent savings and investment opportunity the bond can be invested in either direct at the Post Office Insurance counter, by phone or online and that GBP500 minimum investment amount is certain to make it very popular.
Alliance and Leicester fixed rate bonds have enjoyed some interest rate changes, with the one year fixed rate product going up from 6.5 percent to 6.65 percent AER.
All the fixed rate bonds provided by Alliance and Leicester will payout on a monthly basis should that be preferable to the customer, with the balance invested needing to be between GBP2,500 and GBP2 million to be eligible for monthly payments. The minimum amount needed to invest in one of these bonds is GBP1,000.
The benefit of fixed rate bonds is the security of the capital invested as well as there being a set, guaranteed, return said an Alliance and Leicester spokesman. This means customers know exactly what they will receive back from their investment, enabling them to plan more effectively.
