Weathering the credit crunch in retirement

AIG Premier Bond - This is a potential alternative to a high street savings account where you can invest in an onshore bond that can offer high guaranteed returns but with a greater element of policyholders protection. As the contract is covered under the long term insurance rules, the protection offered to policyholders is 100% of the first £2,000 with 90% of the rest of the investment covered. Fixed rates can be obtained between 3 months and 5 years. For example, a 1 year fixed rate would currently attract a 6.49% gross interest.

Use National Savings for secure inflation linked returns - these are estimated to be 8.08% for a higher rate tax payer and 6.06% for a basic rate taxpayer and offers full capital security.