Interest rates plummeting; impact on savers

Getting most out of your savings despite rate plunge

06:25 15 July 2013

While there is no fool-proof way to protect your savings from reducing its worth through interest plunges, you can be saved by a good savings plan.

Consider the following:

• Cash ISAs still give the best fixed rates in general considering its tax-free status. ISAs historically offer the best rates during the ISA season between February and May.

You can refer to the independent best ISA savings tables for the best accounts offered by financial sites.

• Fix Rate Bonds offer better rates for longer fixes. You can also check out the best fix rate bonds in the best fixed rate bonds table offered by financial sites.

Though market forecasts and predictions can be used as point of reference when making financial decisions, this is not a guarantee to determining the definitive movement of rates which can go either way.

Locked in plans for five years could either be risky or beneficial. You would probably have to consider your general need to access your money.

You could also venture in mixed variable rates investing in medium-term bonds. One good practice is actively monitoring the best buys tables for updated information on any movements.