The first quarter of 2012 saw some strength return to the markets, but investors who took advantage of this got a kick in the teeth last week as the FTSE 100 hit its lowest level of the year so far.

Trouble in both Greece and Spain knocked a massive £25 billion off the value of Britain biggest companies and shares in BP, GlaxoSmithKline went ex-dividend, meaning that anyone who invests in them from now on will be excluded from the latest pay out.

A certain level of volatility is normal for any market and should not always be turned away from or panicked over, in fact with the correct knowledge it can be turned into an advantage. We’ve looked a few different ways investors may be able to protect their assets, as forecasts expect a high level of volatility to continue over the coming months.

Speaking to the Telegraph, Barclays behavioural finance expert, Greg Davies, investors often overestimate the importance of volatility when making a decision: “They tend to equate volatility with risk, when in fact the two are generally quite different; risk is the chance that your portfolio’s value is low when you need it, any fluctuations taking place before then are immaterial.”

Investors are advised to control their fear when faced with a volatile situation and stick to their long term investment plans. It’s also a wise decision to employ a fund manager with proven experience working in a volatile environment.

Seeking out a safe haven for your investment can also be wise, though are likely to be few of these if the Eurozone does collapse. Gold has been one of the most successful assets in recent years; although its price has fallen recently it can still be useful as an alternative store value which is resistant to volatility and inflation.

The self-described ‘next generation’ stock market will wind down its activities over the next six months and has promised to assist companies whose shares are traded on its exchange with finding another suitable arrangement.

The company blames over regulation for its collapse, Chief Executive Cyril Theret warned that rules put in place since 2007 are discouraging smaller businesses from floating themselves on stock exchanges, which is having an adverse effect on growth: “ The danger is that excessive regulation combined with adversity to risk is essentially creating a negative impact on growth” he said.

“In this country there is no appetite for early stage investment, if we are not innovating and allowing small and medium businesses access to investment through listing, how will we grow?”

The majority of the 156 companies listed on Plus Markets, which includes Arsenal FC, the Brewer Shepherd Neame and Quercus, the publishers of Stieg Larsson’s wildly popular Millennium Trilogy, will most likely end up listed on rival exchange AIM.

The company made pre-tax losses of £1.4 million in the six months to July 2011, the seventh consecutive year it has posted a loss. Plus Markets was originally an offshoot of Ofex, an exchange for stocks that required less regulation than the London Stock Exchange.

In a press release the company stated: “Due to the on-going operating costs of its business in the context of its regulatory status, the company’s cash balance has reached a level at which the board has informed the FSA that it intends to commence a process of orderly closure.

Theret, who had been Chief Executive of the company since 2010, closed by saying “It is a huge disappointment that we have to shut down after all the fighting we’ve done to keep going”.

Those who already have an interest only mortgage with the bank will be able to continue paying just the interest or switch to other products from the Coop’s range, provided they are not seeking to borrow more money. Experts have warned that this move could majorly restrict options for those with an interest only loan that are looking to re-mortgage.

Regulations put in place by the FSA following the 2008 financial crisis have led to the decline of interest only products, as they only want to see them offered where there is a credible plan for repayment of the capital, rather than just a vague hope that house prices will rise.

According to the Coop, uncertainty about house prices and the economy in general had virtually wiped out demand for interest only loans, in the last few months fewer than 10 per cent of new mortgage customers took out a deal in the basis, while in 2007 the figure stood at almost 25 per cent.

The Coop’s head of Mortgages, James Hillon said that existing interest only customers would be able to port their current deal and extend the term of their loan should they decide to move house, but any more money borrowed will be on a capital and repayment basis.

“What we have seen in house prices over the past five years has given rise to a dawning realisation that it is dangerous to rely on rising appreciation in your home. That has driven down the volume of people taking out interest only loans.”

Many other lenders are phasing out or placing major restrictions on the amount that can be borrowed, over a million homeowners have also seen their rates put up, with lenders blaming the weak economy and higher costs associated with funding a mortgage.

Another study by Zoopla suggests that sellers are less likely to drop their asking prices or offer a discount than they were 3 months ago. This survey suggests that demand is strong enough for sellers to stick to their guns, in spite of the recent changes to stamp duty which brought about an increase in costs for buyers.

Estate agents have also raised concerns about a dip in the market, following a rush to buy before the stamp duty concession for first time buyers was removed in March. Many lenders have also raised their rates and made it more difficult for borrowers to get a mortgage in recent months.

Despite this, respondents to the Rightmove survey cited improvements in the mortgage market and the rock bottom interest rates being maintained by the Bank of England. Rightmove director Miles Shipside stated that: “Confidence plays an important role in motivating those considering buying to actually go through with it.”

Within the minority expecting to see prices fall rising interest rates as well as high deposits and lack of mortgage availability are cited as the main reasons. The report also found that the number of properties on the market is 35 per cent lower than in 2007, as more people continue to stay put hoping to ride out the storm of the continuing financial crisis.

Some are offering to pay cash for you to switch to them; others are offering a transfer promise of cash if they don’t hit their targets to get you a better deal. Most organisations now have dedicating switching teams promising to take care of the paperwork and hassle associated with switching banks.

Before you switch it’s advisable to take a detailed look at what’s on offer and decide which account will suit your needs the best. First Direct are usually very highly rated for customer service and claimed earlier this year to have received the “highest ever” score in a Which? customer satisfaction survey.

First Direct also offer customers a switching payment of £100, providing a monthly salary of at least £1500 is transferred within three months of opening an account.

The Cooperative Bank have also scored highly in customer satisfaction surveys and offer a free £200 overdraft facility to those paying in at least £800 a month, as well as boasting all UK based call centres and an ethical policy on investing. If you don’t make regular use of an overdraft The Halifax Reward Current Account offers to credit your account with an extra £5 for each month that at least £1000 is paid in.

The best way to switch current accounts is to approach the new bank before taking any action, ensure that you actually qualify for the offer you’ve been tempted by and that there are no nasty surprises hidden in the terms and conditions. Once you’re sure the new bank should take care of the switching process for you and keep you informed of any required actions.

The cleverest ones, who keep their money in the most competitive accounts and move it around regularly, could be earning close to 300 times more interest than those who neglect their savings in a low paying bank account.

£1000 kept in the best instant access accounts since May 2009 would have earned £71.73 by now, while the lowest paying account would have added just 24p to the same amount. The average consumer would have received £23.47.

David Black, a banking specialist at Defaqto, said: “This data really illustrates the benefit of having regular reviews of your savings account. There are significant benefits in switching your account every year to take advantage of successive accounts offering introductory bonuses.”

“With such a wide variance of interest rates savers should wake up and take advantage of the best offers available rather than paying the price for staying with the same easy access account for years.”

Black added: “The highest rates available usually have an introductory bonus or a guaranteed minimum rate, using them and switching to another account when the initial rate period ends will significantly boost your returns, however, it is important to make sure you’re aware of any withdrawal restrictions or other conditions the account may have”.

Reductions to the threshold for paying 40 per cent tax, as well as ‘fiscal drag’, where tax bands are not moved in line with inflation, and wage increases which are push more people into paying higher rate tax.

Despite this, the total number of UK taxpayers this year is set to fall by 400,000 as more of the lowest paid are taken out of tax altogether, thanks to increases in the personal allowance each person is entitled to before tax kicks in. Both of these factors have combined to bring the number of basic rate taxpayers down from last year’s historic high of 27.1 million to 24.8 million in the current financial year.

A Treasury spokesman stated that that the higher rate tax threshold had not changed: “Increasing the personal allowance has not created any new higher rate tax payers, although there will be some whose income increases over two years, moving them into the higher rate”.

The 50 per cent tax rate was introduced in 2010 to boost the economy during the recession and has since proved controversial. Chancellor George Osborne announced that it would be reduced to 45p as of April 2013, arguing that many of the country’s highest earners use other means to pay very low taxes.

Treasury Secretary David Gauke said that the latest set of tax changes would result in those earning more than £150,000 paying an extra £1300 annually in tax.

Several lists have been recovered from companies which had breached the authority’s regulations and were believed to have been fraudulently selling investments in land or shares which are worthless and sometimes completely non-existent.

The biggest list contained over 55,000 names and was recovered from a landbanking firm, which cannot be named yet as the FSA is still taking action against them. The majority of names were taken from boiler rooms, which generally telephone people and use high pressure sales tactics to con investors into buying useless, overpriced or even non-existent financial instruments.

Landbanking scams sell plots to investors promising that the land will soon be available for development and its value will soar, but the land usually has no actual chance of being built on. Sale of land is not actually regulated by the FSA, but landbanking can be classed as a collective investment, which does fall under their remit.

The FSA warned that even though the firms caught out in this instance have been shut down the lists may already have been sold on to other fraudsters. Jonathan Phelan, the FSA’s head of unauthorised business, said “These lists are nothing more than fraudsters phonebooks, the people who use them are ruthless, calculated and will stop at nothing to steal your money.”

“A call out of the blue is the hallmark of an investment scam. If you ever get a call promising fantastic returns you should be extremely sceptical.”

The FSA say that this is the largest number of potential victims they had ever had to contact in one go, it will take up to six weeks for everyone to receive their letter. They also said it was unlikely that any money could be recovered, and that the businesses are unauthorised and therefore not covered by the financial services compensation scheme.

The authority recommends that in all instances people who have been contacted by a firm offering to buy/sell investments should check the organisations status on the FSA register or any other warning lists, and consider seeking professional advice before parting with any money.

This is the first time in six months that the consumer price index, which is the primary measurement of inflation, has gone up. The rise is being blamed on unexpected increases to the price of food and clothing.

Economists have calculated that in order to beat inflation and see an actual return on their money, basic rate tax payers must save in account which pays at a least 4.38 per cent interest annually, while higher rate tax payers will need a minimum of 5.83 per cent.

Data analysts at moneyfacts.co.uk say there are 50 savings accounts on offer in the UK which meet these criteria, the vast majority of which are ISAs, where interest is paid tax free but the amount which can be saved is limited to £5640 a year. The only other accounts offering an inflation beating return are fixed rate bonds, where the money has to be locked up for a minimum of three years, usually with penalties for early withdrawal.

The average interest rate for a UK savings account is a paltry 1.05 per cent, significantly less than what is needed to offset inflation. Moneyfacts spokesperson Sylvia Waycot said: “This shows the size of the problem savers are facing; Inflation is on the rise again and people all over the country must be heaving a huge sigh of frustration.”

Consumers need to stay on top of things if they are going to beat inflation, making sure they have the best deals available and that any returns are maximised is the most effective way to reduce the impact of inflation.

Authorised by the Financial Services Authority and backed by NESTA, Abundance Generation has been set up to provide a link between individuals working on renewable energy projects and the communities they serve. It is an ambitious project aiming to grow the UK’s renewable energy sector through a variety of activities; the first is a community wind turbine in the forest of dean, which is seeking to raise £1.3 million from investors.

The 500kw wind turbine is being built by Andrew and Sue Clarke, a local couple who have invested their pensions in the project. The project is open to investment from anyone over 18 who has a UK bank account with at least £5 to invest. The project will last for 20 years, investors will receive a regular cash return for their investment and receive their original stake back once the time runs out.

Abundance Generation’s investment method is known as a debenture. These are more often used by large companies looking to borrow money. Abundance is the first financial service to use a debenture to create an opportunity for small investors to fund energy projects.

Investors should receive an average return of 7-8 per cent over the lifetime of their investment, according to the project’s executive director Bruce Davis, who says: “the real attraction of this type of investment is that investors get to see exactly where their return is coming from.”

As well as the Forest of Dean wind turbine, Abundance is looking to fund a wide range of renewable energy projects in 2012, ultimately looking to upscale the renewable energy sector and ‘shake up’ the financial services industry.

“We are a building society for the 21^st century. Building societies stepped in when banks wouldn’t fund houses, and we are doing the same for renewables.” Said Davis.