Alternative Investment Options Listed

As the rates on savings accounts in UK banks still leave much to be desired, the Times has come up with a list of alternative investment options for everyone, from those looking for low-risk to those, looking for high-risk UK investment products. As savings accounts and Isa’s now offer an average of 0.77% and 1.46% respectively, many people start to search for better, more profitable investment options especially as UK investment specialists say that banks’ rates are not expected to improve this year. Savings Accounts (Ed Bowsher, LoveMoney) However, Mr. Ed Bowsher, head of consumer finance department at a financial website LoveMoney, still has confidence in savings accounts as a type of investment. He chose one of the high street lenders to invest his money in. The Coventry building society, which pays as much as 3.3% on its instant-access account, was the investment choice of Mr. Bowsher. In his opinion, the savings rate offered by the building society is very attractive, yet the account is no good for first-time investors as it can’t be operated online or through branch office. All deposits under £50,000 are guaranteed by the Government’s Financial Services Compensation Scheme. Corporate Bonds (Neil Avery, Timothy James & Partners Ltd) Mr. Neil Avery, a shareholder and a member of the Timothy James and Partners advisory board, says that his choice of investment is corporate bonds. Mr. Avery claims that although corporate bonds investment is risky, it now brings good returns (yields in July 2009 were 100% more than gilts, which compares to a mere 20% 2 years ago). He, however, warns all to-be investors that a careful research is needed prior to making an investment decision. Mr. Avery only chooses those companies that are managed by professional managers and are backed by experienced credit analysts (e.g. M&G Strategic Corporate Bond and Invesco Perpetual Monthly Income Plus). Property (George Cardale, Savills) Mr. George Cardale, head of new home at Savills branch in Bristol, said his investment into property turned out to be very successful despite the decline of the UK property sector. The properties he purchased earlier are now being rented out to students. Although so-called “accidental landlords” pushed rent rates in the Bristol area (as well as elsewhere) down, Mr. Cardale still receives a stable return on his investment of 7-10%.

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