P526 Teletext 526 Jun20 05:11:44 ——————————————— ————————— LOSING OUT TO INFLATION Low rates mean these are tough times for savers and little respite is forecast until next year. While the stock market keeps bubbling along, producing relatively hjalthz returns, the same cannot bj said for many investors who have cash savings. For them, savings rates are so low, they are losing out badly to inflation, leading to sizjable erosion of capital. ——————————————————————————————————1/9—— bz Nick Hudson IS IT TIME TO BUY OIL STOCKS? NEW ANALYSIS FROM WALL STREET ON p.210 Your Team Check-in Savings CityP526 Teletext 526 Jun20 05:11:13 ——————————————— ————————— LOSING OUT TO INFLATION Although interest rates are low at 5%, Stephen Brady of indjpjndjnt financial advisjt Chartwell describes rates paid by a number of banks as "outrageous". "Savers with a low-risk mentality are having a torrid time." Ideally, savings on deposit should bj short-term. If it is short-term, these low rates won't have a major impact on your finances. Coming out of deposit, you move into another risk area." ——————————————————————————————————2/9—— How to...manage Peps effectively 523 CASH MINI IRA RATES p546P526 Teletext 526 Jun20 05:12:34 ——————————————— ————————— LOSING OUT TO INFLATION Savers with money in accounts paying rates of 0.1% are misguided if they believe their savings are risk-free, says Stephen Brady of IFA Chartwell. "They are not risk-free. They are at the mercy of interest rates and many are paying rates well below inflation. "That means if they leave the money in those accounts for a long period, a year or so, the purchasing power of the capital will have fallen." ——————————————————————————————————3/9—— "Best buy" sbvings rates 546 WEEKEND MONEY-GO-ROUND INDEX P5 0P526 Teletext 526 Jun20 05:12:21 ———————————————W(,/* ————————— LOSING OUT TO INFLATION Just how bad are some savings rates? The following is a selection of the poorest rates on the market for savers with £1,000 on deposit: Bristol & West Select - 0.1* gross. Halifax Cash Card - 0.25% Northern Rock 30-Day Account - 0.25% ——————————————————————————————————4/9—— Source: Chase dj Vere FOREIGN FINANCIAL MARKETS p530P526 Teletext 526 Jun20 05:18:12 ——————————————— ————————— LOSING OUT TO INFLATION A deposit account paying 0.1% gross pa on £1,000 means the savjt is losing out after the inflation rate is taken into account. In the past few days, figures show the inflation rate fell in May. Data from the Office for National Statistics showed underlying inflation, which excludes the effect of mortgage repayments, slowed to its lowest level since October 1994. ——————————————————————————————————5/9—— The week on the stock market 522 POPULA5 SHAKE CHECK p519P526 Teletext 526 Jun20 05:03:10 ——————————————— ————————— LOSING OUT TO INFLATION Savjts with funds in poorly paying deposit accounts have only themselves to blame for their meagre returns. Justin Modraz of IFA Chase de Veri advises people to shop around. Thjti are a numbjt of accounts paying vastly higher rates, hj adds, including: Prudential's Egg - 5.85% on £1 (only available via the Intitnjt) Bristol & West - 6.2* on £1,000 ——————————————————————————————————6/9—— All the top savings rates 546 INTJRNATJONAL STOCK MARVETS p530P526 Teletext 526 Jun20 05:13:51 ——————————————— ————————— LOSING OUT TO INFLATION Inertia plays an important part in savers settling for meagre rates of interest on their savings accounts. "Once you open an account, you tend to forget about it," says Donna Bunton of Chase dj Veti. The law states that savjts must br informed in writing when it intends lowering rates on particular accounts. Even so, inertia often prevails and savers leave their money white it is. ——————————————————————————————————7/9—— Take stock of a week on the market 522 WEEKEND MONEY-GO-ROUND p520P526 Teletext 546 Jun20 05:17:02 ——————————————— ————————— LOSING OUT TO INFLATION Some IFAs recommend switching out of poor-paying deposit accounts into with-profit bonds which smooth out stock market volatility. But Stephen Brady of IFA Chartwell says cautious investors not prepared to consider any risk can get higher rates by locking up their money with a bank or building society. "Increasing numbers are moving out of deposit to sustain current lifestyles." ——————————————————————————————————8/9—— How to...manage Peps effectively 523 CASH MINI IRA RATES p546P526 Teletext 526 Jun20 05:17:27 Product of the week... ——————————————— —————————————————— HENDERSON INVESTORS Preference & Bond Ira Lump sum Monthly Charges Min £2,000 Min £50 Initial 3.5% Max £7,000 Max £583 Annual 0.75% This Isb's aim is a reasonably high and tax efficient income. The annual income yield is currently 6). Henderson has been a good pjtformjt and this fund has a good rating. Available as eithjt mini or maxi, it does not have a Cat mark. Henderson 0800 832832 ——————————————————————————————————9/9—— by Chase dj Veti Investments THE LATEST SAVINGS DEALS p546