New year income generating investments

After a calamitous 2008 where putting my faith in highly leveraged income generating investments. This clearly was a big mistake.

I was not the only income seeking investor that fell foul of this mistake given the fall in the numbers and fortunes of many of the worlds billionaires. However, in 09 with my meagre pile much depleted I am determined to pursue much less risky income generating options. Lets hope that 09 is far more successful. In many ways it couldn't be less so.

Income seeking investors who watched this week with horror as UK income seeking investors were confronted with the reality that interest rates in the UK have hit an all time low of 1.5%. Many income seeking investors are now confronted with deposit rates in the UK of less than 1%. My interest rates on the various esavings accounts I hold such as my Natwest and First Direct are now at 1.3 and 1.75% AER. I'm therefore looking at alternative fixed rate saving accounts anticipating that interest rates and therefore deposit rates are likely to fall further in 09.

Having studied the financial press such as the FT it seems like I'm going to be hard pressed to get any more than 5% from a fixed savings account. Moneyfacts has shown me a table of the best fixed savings rates around. Not wishing to tie my cash up for more than a year. I think interest rates could rise rapidly in 2010 as all the liquidity being pumped into financial system turns the spectre of deflation into rampant inflation. I am therefore looking at going for the Anglo Irish Bank's 4.6% Fixed Rate Bond. I understand that this is guaranteed by the Irish government. Any more information from readers would be appreciated before I put my trust in our Celtic cousins.