- Consider pursuing exciting investment opportunities with promising returns
One of the latest opportunities available for savers is to invest in farmland, with prices for plots of British agriculture growing notably in recent years, ensuring that the gains from a piece of land surpass inflation. According to statistics from Knight Frank Residential Research, the actual growth in the price of farmland year on year was 25.3 per cent in 2007, and 16.2 per cent in 2008.
Forecasts for the next three years are equally promising, with growth predicted to be 16.2, 13.9 and 12.2 per cent in 2012, 2013 and 2014 respectively.
More people are beginning to make detailed enquiries about whether they can benefit from the rental income that a patch of farmland would provide. The most reassuring fact about this type of investment opportunity is that the laws and guidelines surrounding agricultural land are transparent and easy to understand. You also receive the advice, guidance and expertise of solicitors handling your transaction in a secure and confidential manner.
- Find a fixed rate ISA that suits your circumstances
There's a cash ISA for everyone, and choosing a fixed rate account will ensure that the excellent rates in your deal are frozen for the entire duration of your agreement. Many banks offer ISAs that will protect your savings for up to five years, and the longer the term of your ISA, the better the rates that will be on the table. Many consumers enjoy high interest savings from banks where they already have a current account, and this is because they are rewarded for their loyalty.
Of course, we're talking about investing wisely. If you think that you're going to need to use your nest egg in the next couple of months, going for a 12-month ISA that does not allow withdrawals is a bad idea. You could be penalised and forego 90 days of interest by severing the deal prematurely, or worse still, receive no interest at all.
- Stocks and shares ISAs: More risk, better tax-free returns
Through comparing stocks and shares ISAs, you can browse funds based on risk, and the past performance of the fund in the past three years. Expect a correlation between risk levels and the returns you could receive, but it's important to remember that the profits generated for investors recently won't be an indicator of future prospects.
There are even ethical stocks and shares ISAs available, where you will make profit only from companies that are making a valid contribution to society. Some funds have stricter criteria than others, and if you would like the opportunity to select the companies you back financially, a self-select ISA comes recommended.
Whereas you can only use 50 per cent of your ISA limit on a savings account, you can use the whole £10,680 for stocks and shares.
- Compare savings bonds online with the wealth of information provided from specialist websites
The Internet has become a wonderful resource for discovering the best places to save money. Leading brands now provide you with the opportunity to bank with them, including supermarkets. Savings bonds give you the flexibility you deserve, allowing you to choose the length of your fixed term (typically one, two or three years), and whether you receive interest on a monthly or an annual basis.
You should remember that a minimum investment is usually required for savings bonds, and it can be substantial. Market-leading offerings vary, and whereas you will only need £1 to open one account, £25,000 could be the bare minimum in other scenarios. The higher the minimum investment threshold, the higher the AER in most circumstances.
If you are planning to invest a significant amount of money into one of these bonds, also investigate if there is a cap on the savings you can stow way in a bond. Typical limits vary from £250,000 to £5 million.
Do bear in mind that unlike ISAs, where the interest is tax free, you will need to pay tax on any money that grows while sitting in your bank account.
Finally, if you have £20,000 but plan to add money to the bond at a later date, double check with your bank to see whether this is possible. It's not uncommon for financial companies to deny you the right to make further deposits after you have made your initial investment.
- With interest rates being so disappointing, why not join NS&I Premium Bonds?
On a monthly basis, NS&I stages a £1 million prize draw, with every £1 you save being assigned an individual code. If this code is drawn out by the computer at random, you could win this jackpot or another cash prize. Here's the best thing: the money you pocket will be tax-free, too.
You can withdraw your money whenever is best for you. Interest is not paid however, and this means that inflation could erode the true value of the savings you invest into Premium Bonds.
You need to invest a minimum of £100, but no more than £30,000, in order to benefit from Premium Bonds.
As you can see, there are plenty of ways to invest your money wisely. Each is accompanied by its own individual set of benefits and drawbacks, so do your homework and think all of your financial decisions through.
