Losing interest by keeping cash on deposit?

Ultra low interest rates have benefitted borrowers but savers have had to endure a lengthy period of near zero interest rates. 

People are rightly cautious about investing in other assets such as equities due to their volatility, however, the fact is that, if we are to remain in a low interest rate environment then savers and investors will need to reassess their objectives.

Important points to consider:                                                                                    

  1. With inflation at around 2.5% the real value of investments in cash is reducing

  2. The new ISA limit of £15,000 allows a greater opportunity to build a tax efficient fund

  3. Transferring existing ISAs is easier now and can be beneficial in creating a consolidated fund with potentially lower charges

  4. A portfolio of investments can be created that you will be comfortable with and will match your views on risk i.e. the proportion of your investments held in equities can be varied with the balance in less volatile assets

  5. Charges need not be excessive. It pays to shop around

View our ‘Guide to Investing’ for further details on our approach to investing money for clients.


John BaxterComment