With the possibility of negative interest rates, we ask, IS YOUR MONEY REALLY SAFE?

Are you a saver? Saving your hard earned surplus cash for a rainy day? Or a big occasion? Or maybe for your retirement? Perhaps you’re squirrelling away pennies in a “safe” savings account ready for when you want to spend it.

But…what is safe?

The capital amount may be guaranteed and will grow with interest added but what about its value? Would your hard-earned savings be enough to buy you a luxury sports car one day, but 10 years later, only a small family hatch back? That’s the effect of inflation eroding the value of your savings.

Savings interest rates haven’t kept up with the rate of inflation and are at an all time low now. There’s even talk of negative rates which would mean paying a bank or building society to look after your money for you. The longer you keep money in a cash savings account the more the true value of your money will reduce.

It’s always important to keep cash readily available, to draw on for emergencies, who expected Covid to come along? Also keep money in cash if you are planning to spend it in the short term. But if you have savings you don’t expect to use for 5 years or more it may be worthwhile looking at investment options.

Are you one of the many people who are scared of the word “investment” and worried you could lose all your money? There is risk involved in investing but also very worthwhile rewards. Our advisers are trained to help you decide how much risk you feel comfortable with. We will recommend funds that spread your risk with the aim of the best return with the least amount of risk. Please get in touch with us for a free consultation.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.