UK interest rates are low and show no signs of reversing their downward trajectory any time soon. In fact, there’s even some speculation that the Bank of England could cut them further, taking them into negative territory. That would mean savers having to pay to hold balances in their accounts.
The aim of that would be to boost spending and support economic growth. Low rates are good news for borrowers. It’s not such a positive situation if you have cash in a savings account and don’t want to put it into riskier investments.
However, the concept of risk takes on a new meaning when returns for savers are extremely low. It’s true that cash is safe, but it’s also true that inflation can nibble away at your hard-earned pot, meaning that in real terms, you are losing value.
If you’re in this situation, you need to weigh up whether you are risking a loss without realising it. Maybe it’s time to look at alternatives to cash. An investment linked to a stock market carries the hazard of falls in value, but that said, a well-chosen investment fund has the potential to deliver a substantial return.
Not all investments carry the same levels of risk, so finding one that matches your savings objectives should be part of a wider plan. If you’re needing help with Wealth Management in Shropshire or Chester, give us a call. We aim to help our clients identify the best savings and investment options according to their individual circumstances.