Money
Managing your money
Credit crunch - now for some good news
The credit crunch is raging on, dominating the news each day. So there has never been a better time to find a silver lining, writes Holly Thomas
Despite the doom and gloom there are several after-affects of the crunch that are benefiting consumers in the financial sector.
Savers
Savings rates around an impressive seven per cent are available if you look hard enough. Many financial companies that have been stung by doing too much mortgage business are trying to encourage money back into their accounts.
But generally rates are good. The last time interest rates were at today's levels (five per cent) the average savings account paid around 5.5 per cent.
Current accounts
Banks are still vying for our business with current accounts becoming more competitive. Customers who sign up for the Plus version of one of Lloyds TSB's accounts will now earn 5.84 per cent gross credit interest for the first 12 months. The Plus range includes the fee-free Classic account, but watch out as the others all come with monthly fees.
Gas and electricity
While energy bills are expected to increase by around 40 per cent this year - there are ways in which we can move to protect ourselves from these price hikes.
With a fixed or capped tariff, you get the financial security of knowing your energy costs will not rise above a certain level. With a capped tariff, you also benefit from any falls in energy prices.
While you may pay more initially, you may well make savings over the longer term if prices rise. But with a fixed tariff you are taking a gamble, and could end up losing out if prices do fall.
Four of the 'big six' energy providers now offer these tariffs, under which you pay a set price for a set period of time.
The latest offerings include the British Gas Price Guarantee until December 2009, and the Scottish Power Fixed Price 2009 tariff until August 2009.
E.ON offers Energy Saver 2, a capped deal until October 2009, while Npower offers Fixed Price 2011, a tariff fixed until December 2010.
Property
While the slumping property market can be painful for those who need to sell, it presents a serious buying opportunity for those looking to invest.
This week Halifax predicted property will fall by nine per cent in 2008. This is good news for first-time buyers. So if your children or grandchildren want to get their feet on the first rung of the ladder, it is time for them to think about it while prices are low.
* Holly Thomas is an award-winning financial journalist and Deputy Personal Finance Editor at the Daily Express and Sunday Express. Holly's views represent her own opinions and are for general information only. Always seek independent financial advice.
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