The state-owned bank, Northern Rock has launched two new issues of fixed-rate bonds which offer guaranteed savings interest rates of at least 3.15 per cent. They offer the rate to one-year bonds, or a higher level of interest, 3.5 per cent, to consumers who put their money away for two years.

Account holders can choose to have their interest paid annually or monthly, although the latter rate is 0.3 per cent lower than the former. You can open the bonds either by post or through Northern Rock branches and you will be able to make additional deposits during the offer period up to a maximum of £2 million.

When the bond matures, they will become no notice accounts and all savers will be notified of the interest rate paid.

Last month, the Treasury removed the 100 per cent guarantee on Northern Rock savings, in a move welcomed by other UK lenders.

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Just in ahead of the new tax year, the National Counties Building Society has unveiled a 45 Day Notice Cash ISA.

This cash ISA offers a variable interest rate of up to 3.10 per cent tax-free AER for all balances of £35,000 and above.

It is tiered to reward balance growth as new deposits are made in order to take advantage of the annual ISA allowance, with interest starting at two per cent for all minimum balances of £3,000.

Although 45 days’ notice is required to make a withdrawal, there are no limits on the number of withdrawals that can be made.

The National Counties commented: “The First Issue 45 Day Notice Cash ISA can be operated by post, telephone, online or at the National Counties branch in Epsom.”

Last week, totallymoney.com claimed that ISAs, given their tax-free status, really are the best place for consumers to start saving money.

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Santander, the high street lender, has launched a new range of fixed-rate bonds.

These new bonds should be of particular interest to those consumers seeking the best savings interest rates, which with these pay up to 3.75 per cent gross/AER.

Director of savings and investments at Santander, Reza Attar-Zadeh, said the new range of fixed rate bonds “continue to offer good value for customers looking for a guaranteed fixed income”.

They offer peace of mind for those savers “who want to know exactly what return they will receive from the outset”, he added.

“These bonds are only available while stocks last so those customers wishing to take advantage should act now to secure what are competitive rates in the current low base rate environment,” Mr Attar-Zadeh added.

Last month, the Guernsey-based savings and mortgages provider Skipton International launched a new fixed-rate sterling account paying 3.5 per cent gross per annum.

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Part of the reason for a future dip in the housing market could be new buyers unable to secure a cheap mortgage.

This is according to Kate Barker, policymaker and housing market expert at the Bank of England, who said she has been surprised at how the market has bounced back following the recession, Reuters reports.

According to the news provider, she told lawmakers that levels of mortgage availability are unlikely to return to pre-recession levels.

She stated, “I was rather surprised by the strength of prices in the housing market through last year and it’s possible some people delayed decisions to move or put houses on the market.”

“In some sense that can’t continue.”

The housing market has come back to nearly half of the drop it experienced in the period between August 2007 and April 2009, meaning that a relatively large number of people are securing cheap mortgages.

Earlier this month, the government’s latest house price survey revealed that house prices rose by 2.9 per cent during 2009.

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Fixed-rate mortgage just celebrated its 21^st anniversary and Halifax celebrated by launching a new product.

The new product is a 21-month fixed-rate deal that allows homeowners to guarantee their mortgage payments over the next one and three-quarter years.

Mortgages commercial director at Halifax, Stephen Noakes, said that in today’s market, borrowers can select their product based on a number of factors – including the term, type and rate.

“It’s easy for us to take that level of choice for granted, but before the introduction of fixed rates, borrowers simply didn’t have access to the same options,” he stated.

“Ever since their introduction 21 years ago, fixed rate mortgages have been fundamental for homeowners looking for certainty and stability in managing their household expenses, and this is an important milestone to mark.”

The Council of Mortgage Lenders last week reported that gross mortgage lending fell by 32 per cent during January 2010.

The organisation said that the end of the stamp duty holiday had impacted upon the take-up of borrowing during the first month of the year.

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A combination of £13 billion has been wasted by UK consumers failing to take advantage of individual savings accounts Isas.

This information comes from new research conducted by Clydesdale & Yorkshire Banks. They found that savers have only put one-sixth of what they could have into Isas since their beginning in 1999.

Because of this, many savers have unnecessarily been paying tax on their cash stores, since other savings and investments face charges being levied.

Retail director for Clydesdale Bank, Steve Reid, said Isas should be the basis of any taxpayer’s savings portfolio. “By not taking advantage of these tax-free accounts, UK savers have potentially lost billions of pounds in tax they need not have incurred,” he commented.

“Even if every taxpayer only used their full cash allowance from April 5th, the total saved in Isas would rise next year by 45 per cent, meaning they paid almost a billion pounds less in tax.”

Last week, the Children’s Mutual urged young parents to save for the future of their offspring.

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A new study has indicated that money worries are leading some UK consumers to neglect their love lives.
According to research conducted by Scottish Widows, one in eight people are too busy worrying about their finances to enjoy quality time with their loved ones.

The study revealed that a lack of time and work commitments are also having a negative impact upon many couples’ relationships.

Alison Morris, savings expert for Scottish Widows, said better financial planning can help take the strain off many professionals and enable them to enjoy a better work/life balance.

“By looking ahead and planning their finances now, people can spend more time focusing on the important things in life such as their loved ones,” she commented.

“And for those that are able to put money aside for their retirement, Scottish Widows recommends saving 12 per cent of your income.”

Last week, a study conducted by Birmingham Midshires indicated that British consumers saved more in the three months to January 2010 than a year previously.

On average, savers put away £776 in the fourth quarter of 2009, compared to £329 in the same period 12 months ago.

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The economic difficulties experienced during the recession have turned some spenders into savers, it has been suggested.
The sudden impact on their wealth for some people was a shock and has prompted them to make sure they do not make the same mistake twice, according to Ed Bowsher, head of consumer finance at lovemoney.com.

He added that in his experience consumers are now “trying not to borrow as much, they are trying to save and they are trying to repair their finances”.

The Bank of England had reported that there had been an increase in the total net lending figures to individuals during December by £1.2 billion. But Mr Bowsher described this rise as a “very modest kick upwards”.

Overall he sees the increase in consumer savings as an indication that people have learned their lessons from the credit crunch and he feels that this increased responsibility towards money is “absolutely the right thing to do”.

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The fourth issue of the Coventry Building Society’s popular 1st Class Postal account is now available.
The account offers variable-rate, easy-access postal savings with a best-buy return of 3.15 per cent AER.

Consumers seeking the best savings rates can make up to four withdrawals per year without penalty.

Rachel Haworth, head of marketing at the Coventry, said the organisation was “delighted” to be launching the new issue.

“With the Bank base rate still at an unprecedented low level, savers will be looking for the best possible return on their funds without having to sacrifice access,” she added.

“Our 1st Class Postal is the perfect solution, we predict it will be very popular so savers should act quickly to avoid missing out.”

Earlier this week, Birmingham Midshires reported that UK consumers are saving on average 136 per cent more than at the same time last year.

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Virgin Money has announced putting money into Isas has grown in popularity for savers over 50.
As a direct response to the government increasing the limits placed on Isa contributions for people aged over 50 from £7,200 to £10,200 a year, there has been an increase in the sums that individuals have paid in.

The biggest increases have been seen in income funds, with contributions going up by 130 per cent between October 5th 2009 and January 5th this year.

Additionally, figures from the Investment Management Association have shown that a record net £23.6 billion was invested into retail fund sales in the 11 months to 30th November 2009.

Grant Bather, spokesman at Virgin Money, said “With the Isa allowance of £10,200 to be extended to all savers in the new tax year, we would urge all investors to consider making the most of the increase in the tax efficient allowance.”

For investors who prefer to put their money into shares, Virgin Money reported in December that advisors were optimistic about emerging markets this year.

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