Kay Ingram, director of Public Policy at the national IFA firm LEBC gives here views on how to manage your cash in the current economic climate.
National Savings and Investments (NS&I), the government backed savings institution took in record amounts over the Summer when its accounts were offering attractive interest rates. At 1.15% its Monthly Income Bond interest rate was market leading. With a government guarantee of up to £1 million per depositor compared with the £85,000 protected limit offered by most UK registered banks it’s easy to see why this and the Income Account offering 0.8% were popular.
The swingeing cut in the rate offered on these accounts to 0.01% from 24th November onwards was an unwelcome surprise for many savers seeking security with a reasonable return. Fortunately, both accounts allow access, so savers will not be forced to endure the low rate of interest to be offered from 24th November and may consider looking for alternative cash deposit accounts.
Savings interest rates offered elsewhere are generally lower than they were a year ago, but there are still some banks offering more than 0.1% so shopping around should yield results. For many the thought of shopping around is daunting as comparing rates can be time consuming and if these then change again the process must be repeated.
LEBC can now offer a solution with a once and done process, so that keeping up with savings rates and the £85,000 protected limit need not be time consuming. LEBC’s Cash Management Service provides an online platform which enables the user to specify how much they wish to save and for how long.
- An array of accounts to choose from.
- Constantly reviews the rates offered from the banks on its panel so that new offers are identified early.
- Keeps track of the £85,000 protection limit with an automatic warning when it is exceeded*.
- Banks on the panel are credit rated, so that the saver can choose how strong a financial base they require.
- One- time application process
- Consolidated interest statement for tax returns.
- Cyber protection to keep your data safe.
The bonus for busy savers is that they only need to provide proof of their identity and an online application form once to the platform and it then verifies this on their behalf to all the banks used.
The LEBC Cash Management Service is available to individuals, businesses, trustees, charities and attorneys.