Whilst the Bank of England’s low interest rates are benefiting those with variable rate loans and mortgages, savers are losing out massively. New research has shown that eight in ten savings accounts are effectively losing money.

Some savings accounts have been given rates as low as 0.05 percent. To put that into perspective, a basic rate tax payer with £5,000 in an account with this interest rate would receive £2 a year after tax; for a higher-rate tax payer, this equates to just £1.50 a year after tax. The low rates mean that savings rates are lower than the rate of inflation – September’s inflation rate was 1.1 percent, October is 1.5 percent – thus savers are losing money in real terms.  Read more... (237 words, 1 image, estimated 57 secs reading time)

Commodities are always a popular thing to trade, however one particular commodity seems to be catching the eye of many investors.

Water – the stuff we often take for granted – has so far been ignored by many investors however interest in this precious commodity is on the increase. So why has it been ignored so far? The first reason is that it isn’t often traded by itself. Many investors also look to the more traditional trades such as oil as these have the potential for big gains whereas water tends to be seen as quite a defensive strategy.  Read more... (259 words, estimated 1:02 mins reading time)

The current upturn in the UK stock market is said to be being driven ‘ordinary’ householders buying shares because they are sick of the poor interest rates attached to their savings account.

The FTSE 100 index was pushed up 3.2 percent last week. This has followed a six month rally that has driven blue-chip shares up 50 percent over their March low.

Experts believe that both of these rallies are in part due to ordinary buyers, that is buyers who are not represented by big investment firms. Since June, the number of these buyers has risen to levels equal to the dotcom boom of 2000, and in the last three months, deals placed through execution-only stockbrokers has risen to over 4 million.  Read more... (294 words, estimated 1:11 mins reading time)

The black hole in the UK’s final salary private pension schemes is reported to have passed the £1 trillion mark.

Research by Aon Consulting has shown that the cost of meeting pensions is has risen with the 200 largest schemes now facing liabilities of over £500 billion. The rise in liabilities is down to a number of factors, most notably the fall of corporate bond yields (on which the costs of future pensions are based).

The figures make poor reading for those heading for retirement age in the near future as it means they will either have less money per year than they had planned for, or they will have to work for longer than anticipated.  Read more... (157 words, estimated 38 secs reading time)

5 ways to save £50 a month

The news is full of articles on the recession – the lack of jobs, the rising levels of unemployment, the cost of pensions and the lack of savings. So now is a fantastic time to start saving. Here at MoneyTowers, we have put together five quick tips to hep you save £50 a month.  Read more... (425 words, estimated 1:42 mins reading time)

According to the latest figures from the Pension Protection Fund, 88 percent of the UK’s 7,400 defined-benefit pensions schemes are facing a short fall. The problem is driven by two major factors – the fall in the stock market and the fact that people are living longer. The deficit in company schemes is now thought to be over £200 billion.

The figures are a stark contrast to the figures two years ago when pension funds were seen with a surplus of more than £100 billion. In the space of a year, the surplus had been wiped out and funds were seen with a deficit of £13 billion. This figure has now increased to a deficit of around £200 billion just one year later.  Read more... (242 words, estimated 58 secs reading time)

We have all become familiar with the news of doom and gloom brought on by the recent sub-prime crisis, the credit crunch and the global recession. When the downturn began to bite and the previous euphoria of overseas property investment began to dwindle, many investors braced themselves to ride the storm, while others were led into a blind panic as they hurried to trim down their portfolios, particularly in established property markets such as Spain.  Read more... (594 words, estimated 2:23 mins reading time)