Halifax launches new 10% savings account

12 June 2008 / by Joy Tibbs
Halifax has launched a new Regular Saver account which pays 10 per cent interest AER – eight per cent after tax.

The new Halifax savings account allows customers to save between £25 and £500 each month for 12 months providing they open the account and make the first payment before July 20. It is a fixed account so no withdrawals are permitted until the end of the 12-month period.

And another area worth taking notice of for those with a bit of spare cash is investment, according to the Association of Investment Companies (AIC). Despite the damaging effects of the credit crunch, the association has found the investment sector could still offer a 'silver lining'.

Communications director of the AIC, Annabel Brodie-Smith, said: "The usual assumption that a slowdown is bad news for companies is true but some companies are resilient in their ability to make money, even during a slowdown.

"The defensive sectors should do relatively well during a downturn but there will also be opportunities for other companies to benefit in a slowdown through perhaps buying cheaper assets, winning new customers or advising those who are experiencing difficulties."

While property has clearly been affected by the economic downturn, it can still prove a strong source of income, according to Michael Morris, manager of ING UK Real Estate Income Trust.

Speaking about the buy-to-let mortgage sector, he said: In the current environment of a weakening economy, it is essential to find assets that are let to tenants with a strong covenant and good financial background.

"The likelihood of tenant default is expected to increase as economic growth slows so it is important to minimise the risk of tenant default on any portfolio or asset. The result of falling values is that yields rise and for investors looking for a high income return, the period following a fall in values offers a strong opportunity to find good value."

And energy stocks could offer promising prospects according to Mark Urquhart, manager of Edinburgh Worldwide. "Due to the economic growth of nations such as China and India, it is anticipated that energy stocks will continue to perform well through the economic downturn that many western economies are experiencing," he said. "However, some energy companies will perform better than others."

© Fair Investment Company Ltd