Interest rate changes

Savers in bank and building society deposit accounts got some respite from low interest rates, but even the Bank of England’s new base rate of 0.75% remains just a tenth of what it was 20 years ago.  Most deposit accounts fail to preserve the real value of money which is being eroded by inflation at a rate of 2.4% a year, according to the consumer prices interest.

Despite these facts, cash based ISAs continue to outnumber stock market-based ISAs by about four to one.

Income seekers willing to accept some degree of risk to their capital continue to be rewarded for investing in the stock market.

John BaxterComment