Savings Rates

[Kendhni]

I have read various articles and items about that. I think the Oct/Nov timescale is more down to tradition .. markets usually fall about then ... however that may be tied in to the fact that next year America is expected to ease of on its QE which could cause a major shake up in the markets ... I believe they are currently only being supported by 'make believe' money.

[kaymar]

It's all about risk and reward isn't it, Ken. If you are risk averse and the option you have found is 100% safe then 3% sounds like an excellent deal in today's market.

If you are wanting more then there are "reasonably" safe shares in, for example, National Grid, which would double that return but with an element of risk to your capital. I still have a few shares which are up 60% on cost, having also earned an excellent return over the last five years. There are, though, some concerns being expressed about the sustainability of dividends which are not always covered by retained earnings. There was a recent article in the Telegraph about shares bought for income rather than capital growth.

As SS would say, however, I am not in any way qualified to give advice

[Capt Black]

I read an article on moneysavingexpert about "peer to peer" lending. Apparently returns can be as high as 9% and there is an element of choice regarding who you lend to.

I'm pretty risk averse, so not for me.

[Kendhni]

I looked at the personal lending side and talked to a couple of friends who do it .. the returns actually end up lower than the headline rates. Often the money is borrowed on short term loans and there are then periods between loans where it earns no commission ... it also requires some personal management and time which, if you put any value on such things, negates the returns almost entirely.

I have been looking more at business lending which may get round some of these issues.