September, 2016

Base Rate Move Makes Funeral Plans Even More Attractive

After the Bank of England moved the base rate to a low of just 0.25%, banks and other financial operations have moved savers rates downwards yet again. Many bank accounts pay 0.1% or no interest whatsoever. Even ISAs pay from 1.1% to 1.7% if you’ve very lucky to fix a rate and lock yourself in for a period of time. Unfortunately, there is no sign that rates will increase more in the next few years, but it’s a great time to move some of your savings into a pre-paid funeral plan and save money with your savings. Older people have often put money away, to be able to pay for their funeral. They have consistently seen their savings eroded because inflation always appears and often is ahead of the interest rate on savings accounts. This means that your money in a savings account is worth less in real terms, every year. This is not matched by the vast increases in the cost of funerals in the past decade. Embed from Getty Images Inflation rates have eaten into the value of your savings Looking at any period, the figures are similar. Focusing on 1980 to date, funeral costs have risen 6.1% per annum, while inflation has increased by an average of 4.0%. These figures are certainly more than the average savings rate from your bank, building society or other institution. The cost of a funeral is now just over £4,000 for a burial and just under that for a cremation, but figures do vary across the UK. It would appear obvious that moving £4,000 from a savings account into a funeral plan is a great idea. By placing the money into a funeral plan trust account, you know that you will never have to add to that money because funeral plans guarantee to pay your funeral director’s fees at any time in the future. The funeral director is appointed as you prepare your funeral plan and their services are guaranteed to be provided at no extra cost to you, whenever you finally use the plan. Your money is safe and secure You will want to be confident that your money is safe and secure. The Trust funds are published every year so you can see what’s happening with your money in the Fund with tens of thousands of other individuals. The Fund is audited independently by The Funeral Planning Authority...

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