Savers 'continue to have account options'

Consumers who have used up their cash ISA allowance for the year but wish to continue saving have a number of options, it has been claimed.

Writing for the BBC, Bestinvest financial adviser Adrian Lowcock suggested fixing into another savings account, or using stocks and shares ISAs to invest in corporate bond funds.

These currently yield in excess of four per cent in interest, he stated, but there are some risks to the capital.

Mr Lowcock said that fixed accounts may not always be the preference of people who switch their cash to access the best savings rates, but they are a safe place to put capital.

He reported that much of the one and two-year bond market has "dried up" of late, but noted that National Savings & Investments NS&I currently offers a one-year fixed bond at 3.85 per cent gross, albeit taxable.

"I would suggest fixing for three years, being the minimum available at present, although you may prefer to hold off and see if some good two-year rates become available," Mr Lowcock said.

From 2010, all savers will be able to place £5,100 in a cash ISA and the same amount in a stocks and shares account every year.

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2009-11-10 15:20:12 © Moneyextra.com