Why it is not beneficial to be a Saver during these times of uncertainty and low interest rates.

Read on to find out why?

Saving used to be the basis of all sound financial planning.
Building up a reserve of cash in a savings account where it would earn interest could pay for holidays, for a car, even help build a deposit for a first home.
When interest rates were at healthy levels, it was reasonable to assume that the net worth of your money would rise, or at least stay on a par with it's current value.
However, in these trying times of uncertainty and low interest rates, your lump sums lodged in the banks, are attracting virtually nothing in interest.
With costs rising almost daily, it doesn't take an Einstein to work out that your money value will not keep pace with inflation.

Inflation has always been the enemy to Capital Growth of your cash, at present it is being heavily attacked!
Low interest rates are seen by the Chancellor of the Exchequer as vital for a post-Covid recovery.
But they are so low that the little or no interest your cash on deposit earns is most probably going to be eaten up by inflation.

Many people have found that they have been able to save record sums during lockdown.
But the low interest rates offered by banks, means that they are finding it hard to benefit from this extra cash.

With savings, your money stays as devaluing cash.
With sound investment, it can gain growth that in effect builds a safety barrier around itself that allows it to return good rates of  growth.

There are several ways to make your money an asset rather than a liability. (A few are listed below).

1. Investing in a buy-to-let property.
2. Buying shares in a business.
3. Buying shares in a fund which will invest in shares on your behalf.

Of all the options available, investing in bricks and mortar has able been a sound staple diet for all investors.
As everyone needs a house then there will always be someone looking to rent or buy property.

Take heed Ladies & Gentlemen, be aware and don't let yourself exit Covid poorer than when we entered it.

If you need any help or FREE advice?
Feel free to give us a call on 01505 615384, where Stevie or Lorraine will always be willing to help, chat, advise or just reassure you on your financial safeguards.

Take Care