''Spreading your cash'' may help to bolster savings
12 August 2009
Savers who have deposited money into fixed rate savings accounts have lost out on significant amounts of interest because of the timing of their investment.
New data released by Moneyfacts.co.uk revealed that savers who bought fixed-rate policies at the point of lowest interest in February or March this year could lose out on more than £7,000 in interest payments than those who invested eight months before.
The company also noted that savings rates have now rallied to a degree but tying funds into a longer term plan of three to five years may still be a risk.
''"Timing is everything" with fixed rate savings, says the firm, as a three year bond bought in June will return far more than one that was purchased in April.
It said: "An approach where you don''t put all your savings eggs in one basket may be a strategy worth considering; perhaps spreading your cash between fixed terms of one and three years to hedge your bets and to take advantage of rate increases that may be available in 12 months time."
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