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2008.08.01 | 2008.07.01

Thursday, August 28, 2008

Off too work on my tan so will update any of the databases that go out of date on my return.
12:44 pm gmt

Monday, August 18, 2008

Back by popular request
After a number of requests i have re-added the spinning lady brain test to the quiz page. For those of you who have never tried it do you know which side of the brain you use?
4:16 pm gmt

Sunday, August 17, 2008

Protecting your savings from Inflation
With RPI hitting 5% in July 2008 and forecast to rise further i thought it was time to revisit what accounts allow a real positive return and it is not good.
 
RPI at 5% means a basic rate tax payer needs a gross return of 6.25% and a 40% taxpayer needs 8.33%. If you are not getting these rates on your current savings accounts your savings are losing value in real terms. Even many ISA's are paying less than 5% so also bad news.
 
The best of the bunch for ISA's is the Market Harborough Building Society paying 6.5% on 3600 minimum. If you don't have that amount consider the HSBC ISA paying 6.25% on minimum 1.
 
The best of the fixed rate bonds both require a minimum of 1000 and are ICICI 7.2% and National Counties Building Society paying 7.11% (launches Monday 18/08/2008. These will give inflation beating returns for a standard tax payer but not if you pay 40%.
 
For fully regulated regular saver accounts the best are Darlington Building Society requiring a minimum of 50 per month paying 8% and the Chorley Building Society santa Saver paying 8.25%. Great for a basic tax payer but not so good if you are a higher rate tax payer.
 
The Government backed NS&I savings certificates pay 1% plus the RPI over 3 years or five years-or 6% this is equivalent to 10% for a higher rate tax payer so well worth considering if you can afford to lock your money up for that time.
 
Two others but with greater risk are the Halifax International regular saver paying 10% but as it is offshore if disaster strikes you are not fully protected and Zopa, Zopa again has greater risk although i use it and currently over the last couple of months an estimated return of 10% after anticipated bad debts and fees is feasible. (again you are locking some of your money up for 3 or 5 years) If zopa interests you i blogged about it previously.
 
One final thought is that the Bank of England forecasts RPI tumbling next year and with swap rates falling it is unlikely many of the higher rate fixed rate bonds will be around much longer so might be worth grabbing one while they are still available.
11:17 am gmt

Tuesday, August 12, 2008

RPI hits 5%
Having previously discussed how Retail Price Inflation is eroding the value of savings for many 40% tax payers it is disappointing to see RPI rise to 5% today. For anyone who has not read my previous discussion on how to try to mitigate against it please read my blog entitled "Inflation Busting Savings Accounts" dated 31/07/2008 for details of some of the accounts that are worth considering.
6:48 pm gmt

Thursday, August 7, 2008

ZOPA
Zopa UK have today announced on the lenders weekly email that they have had the best week for disbursals ever with 380,400 lent out.
Also 30 loans have already been completed in the new young markets. Finally for me it was a good week too as my average loan on ZOPA was 12.89% after the lenders fee.
4:31 pm gmt

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