Follow this topic
Q&A » Savings
For example, should I withdraw my savings and put them somewhere else (is anywhere safe though?) Or is 'under the mattress' the best bet until the uncertainty passes?
Report
6National Savings and Premium Bonds are government 'owned' so you can't get safer bolt holes than that. If the UK government ever reneged on its deposits and debts - and with our own currency they can always print more money - then the £sterling would just collapse and your money would be completely worthless, even if you had it in cash under your mattress.
The biggest threat to your savings is inflation - if you are not earning interest on it that is at least commensurate with the prevailing rate - then the value of your savings will decline. You might want to look at higher interest UK FSA covered savings accounts - you can get circa 4% over 3 years (net 3.2% or 2.6% depending on your tax rate) if you shop around. You should also look at ISA options if you have not already done so - you could save 25% of your existing savings tax free in a Cash ISA and again 4% is available over 2 or 3 years if you shop around.
Posted on 05 June 2012 |
Love 0 loves
Report
878As Burgdorf has said, Your money capital is as safe as anything can be. Some would advocate gold as being safer, but that is not necessarily so and with the amount you have, I would not advocate it.
Your main problem is inflation and the prizes on Premium Bonds are equivalent to an interest rate much lower than inflation, so I would not recommend them to anyone not on higher rate tax.
Are the other National Savings that you have index-linked and tax-free? If so, you are protected from inflation. Index-linked certificates are not currently available so I would max out on Cash ISAs.
Mike
Posted on 05 June 2012 | Love 0 loves
Report
174You are not protected against currency collapse. A few Sovereigns or a Britannia would give you a holding in physical gold that may achieve such protection.
Posted on 05 June 2012 | Love 0 loves
Report
0Thanks for the comments, they are very helpful. Re inflation considerations, are cash ISA's or UK FSA savings accounts as safe as the government 'owned' options?
Posted on 08 June 2012 | Love 0 loves
Report
6"are cash ISA's or UK FSA savings accounts as safe as the government 'owned' options?"
Yes - all UK financial institutions regulated by the FSA, are covered by the government sponsored FCSC which effectively 'insures' your capital up to a maximum amount of £85,000 in any single group or individual institution.
Posted on 10 June 2012 | Love 0 loves
Report
878 0Sign in or register to post an answer.
Register with lovemoney.com to start asking and answering questions on Q&A.
Get started nowRegistered already? Great! You can just sign in to ask and answer questions.
Sign in
Retweet
Comments (
Facebook