Ten years ago, Bank interest rates stood at 5%. Today they are .75% but some will remember back to the second half of the last century when they reached a giddy 17% (November 1979). Those days don’t look like returning in the foreseeable future, so what should you do with your savings?
Bond Mason have just conducted a poll to see where savers are putting their money with such historically low rates from banks. 22% thought that putting their money anywhere but with banks was too risky, and 9% were unaware of other options. Perhaps more worryingly, 14.5% have increased the amount they hold in savings in banks, but another 23% are investing more in shares.
With rates expected to stay low for the next ten years, investors need to consult independent financial advisors and do a bit of research themselves to make sure their hard-earned savings don’t get swallowed by the effects of inflation.
The Bank of England’s latest report for August offers as its key points:
o “Household borrowing growth moderated slightly in August. Annual consumer credit growth slowed to 8.1%, while secured lending growth ticked down to 3.1%.
o The number of approvals for re-mortgaging, which has been volatile in recent months, increased to 53,125 in August.
o Net finance raised by private non-financial corporations (PNFCs) remained positive in August. Within this, net bank lending to businesses was positive, whilst finance raised through financial markets was negative.
The total amount outstanding of businesses’ borrowing from … sources increased by £3.2 billion in August. Within this, net finance raised from banks remained positive, but weak, at £1.0 billion. There were net redemptions of funds raised through financial markets, however, indicating that repayments were larger than new issuance on the month. There was a £0.9 billion net redemption of bonds, as well as £0.4 billion of commercial paper and £0.2 billion of equities.”
Bank of England August-2018
We are pleased to announce that Jeremy Lloyd joined MoneyThing this week as Relationship Director. Jeremy has a wealth of experience in banking as well as the P2P market having held roles at Santander and latterly Assetz Captial.
Jeremy will be responsible for bringing on new business and managing borrowers.
Sophie Pearce commented “We are delighted to welcome Jeremy to the team. Jeremy will play a key role as we ramp up our loan origination in the coming months.”
Jeremy Lloyd stated “I’ve had a great reception and I’m pleased to be part of such a vibrant team. I’m looking forward to the journey with MoneyThing”.