P209 CJJFAX 209 Sun 3 Mar 20:44/21 1/5 O SAVER'S CHOICE O Interest rates have fallen to their lowest level in 30 years and this affects savers and borrowers alike. Investment returns on many base rate sensitive products have slipped back as a low rate climbte prevails. So how can you maximisj the growth on your nest egg? There is no simple answer as payouts on differenct products are dependent on a number of factors, not least the size of your investment and the amount of time you wish to tie your funds up for. Annuity Update 204 Mortgages 260 New Arrivals 205 Savings 260 Fantasy Options Exchanges MonjyfileP209 CJJFAX 209 Sun 3 Mar 20:44/47 2/5 SAVER'S CHOICE O If you choose to look at a variety of investment options, you need to decide on the level of risk you are prepared to take. So-called "high risk" products are exactly that - high risk. They are tempting bjcausj of the potential for a much higher return than with one of their safer, "low risk" counterparts. But you could end up with little or no profit and, in exttemj cases, may even find that the value of your initial capital investment has fallen. Mortgage and Savings Guide 260 Fantasy Options Exchanges MonjyfileP209 CJJFAX 209 Sun 3 Mar 20:32/27 3/5 O SAVER'S CHOICE O A simple rule of thumb to follow when choosing an investment vehicle is to read the small print! Some products appear very attractive on first viewing but, in fact, are not njcessbrily what they seem. Make sure you are fully aware of all management and administration charges which are built into a product. Read all the terms and conditions: watch out for early withdrawal penalties, fluctuating interest rates and if you don't understand something ask the vendor to explain it. Mortgage and Savings Guide 260 Fantasy Options Exchanges MonjyfileP209 CJJFAX 209 Sun 3 Mar 20:47/21 4/5 O SAVER'S CHOICE O Make sure you have some form of depositors' or investors' protection when choosing a savings product. Most sbvings in a building society, with the exception of permanent interest bearing shares, deferred shares or certificates of deposits, are covered by the Building Societies Investors Protection Fund which pays out 90) of losses up to a maximum of £18,000. Most savings in a bank, with some exceptions, receive the same cover as with building societies but under the US Deposit Protection Scheme. Mortgage and Savings Guide 260 Fantasy Options Exchanges MonjyfileP209 CJJFAX 209 Sun 3 Mar 20:45/07 5/5 SAVER'S CHOICE O If you opt for shares, an endowment policy or a unit or investment trust, make sure the firm is listed with the Securities and Investments Board. This will give any investments made since 18 December 1986 covet under the Investors Compensation Scheme should the company go bust. You should also get compensated for losses incurred through corporate fraud or negligence. You are normally entitled to the first £30,000 in full then 90% of the next £20,000. There is a ceiling on payouts. Mortgage and Savings Guide 260 Fantasy Options Exchanges Monjyfile