Just one savings account offers interest rate to beat cost of living


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Just one savings account offers interest rate to beat cost of living

Just one savings account offers interest rate to beat cost of living
A survey by Moneyfacts has found that just one saving account in Britain, offered by Skipton Building Society, is offering a rate of interest sufficient to match the rising cost of living. Moneyfacts said an interest rate of 3.5 per cent was required to ensure savings were not eroded by inflation and the basic rate of tax. Last year 227 out of 800 products on the market were offering inflation-matching or beating rates.
The Daily Telegraph, p. 4

Rising house prices may not be all good news, admits minister
The Council of Mortgage Lenders published figures yesterday showing that 25,300 mortgages were advanced to firsttime buyers in June, up from 19,400 in the same month last year. The government also announced that 10,000 people have taken part in the new Help to Buy scheme, which is designed to stimulate the market by offering loans to give people the chance to buy a new-build home with a deposit of just 5 per cent.
The Daily Telegraph, p. 4

Housing bubble threat underscores pressing need to revise Help to Buy
The Council for Mortgage Lending has publicly expressed concerns about how Help to Buy will operate, and that it risks creating a mini property bubble that will then collapse in early-2017 as the funding is withdrawn.
City AM London, p. 12

Housing pickup sparks rise in blue chip stocks
Fresh signs of a recovery in the UK housing sector helped nudge Britain’s benchmark share index higher yesterday, with several traders expecting more minor gains over the coming month.
City AM London, p. 11

From the blogs Launch in January of mortgage guarantees risks raising prices
The latest figures from the Help to Buy scheme show that more than 10,000 reservations for new-build properties have been made through the government’s flagship housing initiative in the first four months.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 3

Barclays reviews UAE business amid retrenchment from retail banking
Barclays confirmed that it has launched the final phase of its exit from smaller overseas retail banking operations, with a review of its business in the United Arab Emirates that could possibly lead to a sale.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 17

Analysts warn UK banks are still too large
Alberto Gallo, an analyst for RBS, warns that Britain’s banking sector is dangerously big despite slimming down in the wake of the financial crisis, and Europe’s lenders are only half way through scaling back. The Bank of England hopes banks will be able to create plans to let non-essential parts fail when a lender gets into trouble.
City AM London, p. 2

Lloyds attracts bids for Australian businesses
Lloyds Banking Group has received several bids for its Australian financing and commercial lending business, as the taxpayer-backed lender continues to sell off its international operations.
The Daily Telegraph Business, p. 5
Also appeared in : Independent i, p.42, The Times, p.38

Inflation edges down thanks to air fares and clothes prices
Russell Lynch comments on the falling cost of living. The consumer prices index has gone down to 2.9 per cent from 2.8 per cent. Mark Carney warned last week that the Bank of England is unlikely to hit its cost of living target for another two years. Scott Corfe of the Centre for Economics and Business Research commented that households “will still see their spending power eroded for some time”.However, a chief economist at Berenberg Bank said that the the government-set prices such as rail fares and tuition fees are boosting inflation.
The Independent, p. 54

The above articles appeared on 14/08/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.