Satoshi Nakamoto Blog
Image default
Banks BondMason interest rates NEWS p2p Personal Finance News Stephen Findlay

Investors still failing to look beyond the bank despite a decade of low rates


ALMOST a third of investors are keeping their money in a traditional savings account as they are unaware of the alternatives or think they are too risky, research claims.

A BondMason poll of more than 1,000 investors with more than £25,000 of investments – to coincide with the tenth anniversary since interest rates were cut to record lows – found savers were losing out on decent returns due to inertia.

The research found nine per cent of respondents were unaware of the alternatives to bank savings accounts and 22 per cent thinking all other options are too risky.

Read more: Rising interest rates tipped to boost P2P returns

In responding to the low interest rates of the past 10 years, 23 per cent said they had tended to invest more in shares, 15.5 per cent had tended to invest more in fixed-term bonds, 8.2 per cent had tended to invest more in property, and 14.5 per cent had actually increased the amount of money they hold in the bank.

“There was a small Bank of England base rate rise in August to 0.75 per cent, even with further increases it will still be way short of the five per cent rate we were enjoying at the start of October 2008, and we don’t expect it to move above two per cent in the next five to eight years,” Stephen Findlay, chief executive of BondMason, said.

“Any further increases will be good for savers, but I don’t expect to see a return to bank accounts paying a decent positive return on savings any time in the foreseeable future.

“My message to the millions of people with large amounts languishing in the bank waiting for better times is to instead to speak to a financial adviser and also start doing your own research.  Otherwise, if you leave it there another 10 years, you may well find the value of your savings has reduced even further through the hidden effects of inflation.”

Read more: A quarter of Britons think inflation is well above official figures

Read more: Interest rates could rise higher and earlier than expected








Source link

Related posts

One other US County Hits Pause on Crypto Mining Energy Requests

satoshi

PlayStation VR Mega Pack Bundle Coming to EU With 5 Games – VRFocus

satoshi

Wells Fargo Agrees to Sell Retirement Unit for $1.2 Billion

satoshi

Bitcoin Cash, Litecoin Futures Volumes Top $150 Million at Kraken Exchange – BTC Ethereum Crypto Currency Blog

satoshi

How to Turn Any Smartphone Into a Cryptocurrency Hardware Wallet

satoshi

The latest model iPad Pro is back on sale with a $100 discount on Amazon

satoshi