| Saving for something special | |
If you are trying to save up for something special, a new piece of jewellery perhaps, a wedding, or an extravagant gift, then you may be in need of some savings advice. A new survey from Which? has revealed five reasons why people do and don't switch savings accounts. Seeing as most savings accounts are only really attractive for one to five years because of fees, diminishing interest rates and worsening service, switching accounts regularly is a good idea and will make your savings work a lot harder for you. However, there are obvious reasons why people don't switch. According to the survey, 40% of respondents believe that not one single financial institution will offer them a good deal. Which, to be fair, is quite understandable in today's economic market. Many consumers blame banks for the recession and then saw many of them receive huge government bailouts, which of course, was tax payers money. However, there are plenty of savings accounts that will make you money. Some banks are offering rates of up to 2.8% on standard accounts, with fixed rates bonds approaching 4%. However, if you don't switch regularly many of these rates drop down to a measly 0.1% after a certain period of time, quite often just one year on. The second reason is largely as a result of laziness, or if we are nicer, people's hectic schedules. According to Which? 35% of consumers haven't gotten around to finding a new savings account. This is probably because of the choice on offer. There are so many different types of savings accounts from ISAs to bonds to instant access, even current accounts are offering 5% interest at some banks. Confusion is a major problem. 22% of consumers say they didn't see the point of switching because they had two savings accounts anyway. While this has many advantages, it also has some major disadvantages. Firstly, by splitting your cash, you will have two small pots instead of one large one. You will get a better interest rate the larger the sum of money you deposit. But also, you can lose track of what is going on with each account. Many consumers believe all banks offer bad service as they are just out to make money. But according to Which? ratings, some offer far better service than others. For those 14% that can't be bothered, take note. 81% of consumers got a better rate from switching and 20% achieved a most consistent rate. So it is worth switching if you want to see you savings increase faster, making that new necklace more accessible. Santander offer a range of savings options to help you save for something special | |
| Satiating your jewellery addiction | |
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If you are a real lover of jewellery, and like to support British designers, then you will be pleased to learn that in September a new celebration will honour retailers, jewellers and designers of the British Isles. Professional Jeweller Hot 100 plans to highlight certain members of the jewellery community who have made outstanding contributions to the industry this year. This comes amid news that silver and jewellery remain the most popular sectors within the arts and antiques sectors, proving both old and new are equally popular. According to the Royal Institute of Chartered Surveyors, the art and antiques market has remained buoyant despite the recession. But we all know that good quality jewellery that is environmentally and morally sound is usually expensive. You need to check where the piece has come from; some African countries in particular are still exporting blood diamonds, or diamonds for arms, and other places, such as India and China are using child labour. This has led to more and more jewellery addicts seeking local designers, producing quality pieces themselves using natural, sustainable and ethical materials. This is why costs are increasing. But the proof is in the pudding. A few extra pounds is well spent if it means you can be sure your jewellery is ethical, made from high quality metals and jewels and helps support your local community. So if you need to satiate your jewellery addiction, maybe a special occasion is on the horizon and you need to buy a statement piece for a present or even to wear yourself. If you are worried about cost, then take out a loan. Right now, the interest rate set by the Bank of England is at an unprecedented low of just 0.5%, which although doesn't translate into 0.5% offered by banks, the incentive to borrow instead of save is far greater. However, make sure you get a fixed rate deal, as it is possible the Bank is going to raise the interest rate before the end of the year to deal with rising inflation. Check out Santander for some of the best rates on loans on the market. It currently offers a rate of 8.9% which easily wipes the competition off the board. Remember though that as a result of the recession, banks are imposing greater restrictions and conditions on lending, so when you go into your local branch to ask for a loan have all your T's crossed and I's dotted. | |
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