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.