Member Article

What’s safe for your money in summer 2012?

Current areas that are safe for investment, plus tips on maximizing saving solutions such as the new ISA allowances for 2012-13

For many of us with personal savings that we are looking to safeguard and grow in the next few years, the economic dramas of the Eurozone since the recession in 2008 has left savers feeling doubtful over the security of investments in traditional safe areas of business and finance.

And with stocks and shares in some of the once-safest names appearing to drop in value, we’re asking where the new investment areas are for savers looking to grow a small sum into something healthy over the next few years.

With savings and investments UK-wide in branches of Santander, Europe’s safest bank is a safe place to start when it comes to looking at possibilities for ISAs, savings accounts and short-term investments.

In October 2011, HM Treasury announced its planned changes to the allowances for ISAs and cash ISAs following the rise in inflation, and this is currently in effect for the 2012-2013 financial year.

Following the HM Treasury’s announcement, the limit for an Individual Savings Account (ISA) is now £11, 280 (up to half of which can be saved in cash). Those saving for their children can also make the most of the Government’s desire to encourage investment for children – limits for Junior ISAs now stand at £3,600 as of November 2011.

With these two incentives, now is an excellent time to make the most of this increase, and an ISA is an excellent option for a short term, tax-free saving that you can grow over a short period and then use for down payments on a mortgage, or for further reinvestment elsewhere.

For investors with larger sums who are looking to support a new area of growth, gold, silver and platinum remain popular – as does vintage wine. Indeed, with the boost of the wine market in the prosperous Far East, investing in a case of one of France’s finest vintages could see a 5-to10-fold increase on returns in ten years’ time.

For those keen to invest in the property market, viable options in the current economic climate are divergent: either a large investment in the luxury property market, or a smaller but enterprising investment in a lower-than-market-value property in a city with prices and growth on the rise. London is a usual tip, but canny investors should also look to Leeds, Bristol and Cardiff as cities to watch.

This was posted in Bdaily's Members' News section by Jonny Marshall .