With inflation on the rise again, eight out of ten savings accounts are costing you money, according to new research by Moneynet. What should you do?
New figures this week show that Consumer Price Index inflation has jumped from 1.1% in September to 1.5% in October. That’s the first increase in the CPI measure of inflation since February. But with the average savings account paying just 0.98% interest, many savers will find that once their interest has been taxed, they are not keeping up with the cost of living.
Indeed, to beat inflation, a basic-rate taxpayer needs to earn at least 1.875% interest while a higher-rate taxpayer needs to earn 2.5% or more, says Becky Barrow in the Daily Mail. However, 91% of savings accounts pay less than 2.5%. So check your rate as there are plenty of ways to boost it.
First off, minimise the tax you pay on savings by using up your Isa allowance – you can save up to £3,600 a year (rising to £5,100 from 6 April 2010) with the interest paid tax-free. And
People often see home loans as an option when they are in need of financial support or when they have a bad credit ahead of them. Let us first discuss the two types of home loans a person can apply for – home equity loans and home equity line of credit (HELOC).
If we have a good job, and we think our life is set for the next couple years, we often never think about bankruptcy. Bankruptcy can happen to anyone, and actually it happens to more people than you’d think. It is a scary thing, that you want to prepare for as much as possible. Do whatever you can do avoid it, and never let yourself fall into that position. If you consider a few of these tips, you can help avoid bankruptcy for the rest of your life!
