Savings rates have fallen since the Bank of England base interest rate was cut to 0.1% in March in an attempt to boost the economy. This means that people with the majority of their savings in cash in the bank will find that their savings are not even beating the rate of inflation and will find their buying power being quickly eroded.
Below are some tips from our financial advisers to help you make more of your money.
Check the interest rates on your savings
Many people do not know the rate that they are getting on their savings. You can easily find out the rate of return from your provider. Some of the major providers now only pay 0.01% on easy access savings accounts. This equates to just £1 for every £10,000.
Look into fixed rate savings
If you do not need instant access to your savings then you could look into fixed rate interest accounts and bonds. These generally offer better rates than instant access accounts but there are restrictions on when you can access your money. However, due to the interest rate cuts, many providers stopped offering fixed rate accounts in June 2020.
Consider a Stocks & Shares ISA
To make more of your money, you could consider moving your savings to a Stocks & Shares ISA.
A Stocks & Shares ISA allows you to invest your money in the stock market. At Four Wealth Management, our Financial Advisers will work with you to determine which investments are in line with your financial goals. They recommend only considering a Stocks & Shares ISA if you are planning on investing over the longer term, generally a minimum of 5 years. Stocks & Shares ISA’s. However, investing in the stock market does mean that your money can go down as well as up.
The maximum you can contribute to a Stocks & Shares ISA is £20,000 and all growth on your investment is tax-efficient.
Transfer your Cash ISA’s
Similarly to bank accounts, Cash ISA’s now offer poor returns and good fixed rate Cash ISA’s are very hard to find. You could consider transferring your Cash ISA’s to a Stocks & Shares ISA to potentially increase your returns.
Find out more about making the most of your savings
You can book a no-obligation financial review of your existing savings with one of our financial advisers by phoning us on 0117 973 0500. They will then write to you with recommendations to help you make more of your money.
The value of an ISA with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested. An investment in a Stocks and Shares ISA will not provide the same security of capital associated with a Cash ISA.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances
Four Wealth Management Ltd is an Appointed Representative of and represents only St. James’s Place Wealth Management (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at www.sjp.co.uk/products.