Rate cut, what to do with savings

Yoshua

Like so many savers I am being hit hard as rate drop.

I have one fixed rate 7.2% with First bank of Nigeria about 30K, also 30K in Britannia home saver account now down to 5% (expecting to drop more) and instant access Leeds acc now down to 4% also 30K. Both of these BSs will prob drop further soon so I will get it out sharpish.

I want to put it twards a house for my family in London when prices drop enough and come within my reach, but what to do with it until then?

JimLad

wow, 90k in savings! very nice! All those interest rates seem pretty good already to be honest

Yoshua

Yes but I was getting about 7% all round, never saw this coming.

In Sep my 1 yr bond will be up, and I am expecting my Leedsand Brit BS accounts to be reduced.

I want somewhere that I can get at it relatively quickly when house prices have come down enough for my family to get on the ladder.

I was even thinking about Silver from what I have read its way undervalued and about to shoot up in price. It certainly cant go down anymore.

But what is the best way to get my savings into silver? Here in the UK we have to pay VAT on top, no thank you. I was thinking about Perth mint certificate program. What does everyone on here think about it?

ffacoffipawb

Yoshua wrote: »

But what is the best way to get my savings into silver? Here in the UK we have to pay VAT on top, no thank you. I was thinking about Perth mint certificate program. What does everyone on here think about it?

How about a silver ETF ...

http://www.selftrade.co.uk/quote.php?symbole=1uSLVR.L

Or a leveraged version ...

http://www.selftrade.co.uk/quote.php?symbole=1uLSIL.L

I bought some leveraged oil in my SIPP on Friday for 359p ...

http://www.selftrade.co.uk/quote.php?symbole=1uLOIL.L

Obviously there's an exchange rate risk too as many of these are priced in dollars.

Be careful, especially the leveraged versions ...

silver up 5% ==> ETF up 10%.
silver down 10% ==> ETF down 20% !!!

gozomark

Yoshua wrote: »

I was even thinking about Silver from what I have read its way undervalued and about to shoot up in price. It certainly cant go down anymore.

as long as it is above zero, it certainly can go down more.....

cocktail

with savings rates low and house prices falling, the stock markets seem a decent place for investment.

tradetime

I want to put it twards a house for my family in London when prices drop enough and come within my reach, but what to do with it until then?

I would not classify this as money you can afford to lose, thus I would be very cautious putting it into assets that can lose money. Silver is about 40% off its July highs but also about 25% off its November closing low.
You say you need relatively quick access, silver prices may not take that into account and if it is below the price you bought it at when you need it you will have to take a loss.

I was even thinking about Silver from what I have read its way undervalued and about to shoot up in price.

Yes I remember reading a Goldman Sachs note saying that Oil was on its way to $200 back in July.

It certainly cant go down anymore.

Ah yes the cry of many an investor just before they took a big loss. Silver could quite easily drop 20% from here.

yollyp

Yoshua wrote: »

Like so many savers I am being hit hard as rate drop.
I want to put it twards a house for my family in London when prices drop enough and come within my reach, but what to do with it until then?

I can sense you're not keen on putting up your own business. With this amount, you can have build one. You're right, now is the time to buy houses but wait....did you weigh things up before "turning your cash into a home"? Just some 2 cents advice.;)

soulsaver

yollyp wrote: »

I can sense you're not keen on putting up your own business. With this amount, you can have build one. You're right, now is the time to buy houses but wait....did you weigh things up before "turning your cash into a home"? Just some 2 cents advice.;)

And worth every cent....

Primrose

You could check out Investec High5. (Believe interest is based on the five highest interest payers in the market). But I believe the minimum sum you can invest is £25,000.

Yoshua

Primrose wrote: »

You could check out Investec High5. (Believe interest is based on the five highest interest payers in the market). But I believe the minimum sum you can invest is £25,000.

Thanks but still only works out something like 5%.

I still want to buy a house when we touch bottom.

Do you think it will be possible to buy a house in London for 90K in the future?

Until then I will just be content with the 5% odd savings account, even though its about the same as inflation.