Making money: what the experts think
● Cash Isas return Spring is on its way and, with it, the 5 April Isa deadline, said George Nixon in The Times. The best interest rates in ten years have put cash Isas – which allow you to save up to £20,000 a year tax-free – back on the radar. And savings groups are feeling bullish. “For the first time in years it feels like there will be a strong Isa season,” said Anna Bowes, of the website Savings Champion – not least because Isa rates are finally catching up with ordinary accounts. The best rate on a fixed one-year Isa (4% from Barclays) is currently just a fraction below the best non-Isa rate of 4.17% from the online bank SmartSave.
● Mix and match As a general rule, you’ll earn more “if you agree to lock your money up”. The best rate on a two-year fixed Isa is 4.1% from Castle Trust Bank; and the best five-year rate is 4.3% from Close Brothers. “In a rising-rate environment, many savers are choosing short-term fixes in the hope that rates will go even higher.” That’s a gamble. But you could “mix and match”, by putting some cash in “an easy access account” (the best rates are hovering around the 3.05% mark) and “locking some up for a better rate”. Don’t forget, you can also split your £20,000 allowance between cash and shares.
● Mift opportunity The hallmark of any good investment trend is an acronym, said David Brenchley in The Sunday Times. The latest from Bank of America is “Mifts” – aka “metals important for future technologies”, which are set to benefit from the drive for net zero. The list is pretty long: ranging from lithium, nickel, manganese and cobalt (used in batteries); copper, iron ore, aluminium, silver and zinc (used in charging stations, solar panels and wind turbines). There are two ways to invest: buy miners, or an exchangetraded fund (ETF). Andrew Duncan of Killik & Co rates the US copper miner Freeport-McMoRan. Alternatively, home in on lithium via the TB Amati Strategic Metals fund, or the Global X Lithium &Battery Tech ETF. Be wary of hype, though, cautions Jason Hollands of BestInvest, and be aware that the metals market can be very volatile. Still, the long-term argument for Mifts looks sound.