With inflation rising in recent months, hitting its highest level in more three years at 2.3% in February and remaining flat at 2.3% in March, this means that in real terms, taking into account low wages growth and little to no growth on savings held in banks and building societies, people are worse off month after month than they have been for many years.
We are all aware that interest rates offered to savers have been low to zero in the UK as well as across Europe for years now, but that didn’t matter as much all the while inflation was at zero or negative percent, but this is now a worry as the effect of inflation means that the buying power of the cash people have is steadily decreasing.
Arguably, many savers with decent pots should invest some of their money over and above a rainy day (contingency) fund, and savers are missing out on the potential for better returns by not doing so, however, they are also avoiding the chance of losing money if markets fall. But the savvy savers are realising that nowadays they have to accept some risk if they are going protect their money against growing inflation that will diminish the real value of their savings.
Be smart with your money – if you would like advice on what’s on offer, Blacktower and myself are here to help you.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
re happy with the interest rates accruing on their savings, with many adults saying their children now save more in bank accounts than they do. On average, people said they would need to be able to generate at least £120 in additional interest a year to be persuaded to move their money.
As it stands, EU citizens living in the UK are required to apply to the EU Settlement Scheme, which confirms that they are a settled resident of the UK. This has raised concern for many expats, and those living and working in the EU, about how they will be able to prove their identity and claim residency abroad if a no-deal Brexit goes ahead.