LIFESTYLE-Magazine-Winter-2016

INTEREST RATES at all time low - are there any alternatives? W

e have recently seen the Bank of England again reduce the base rate to an all-time low of 0.25%. Many banks and building societies have followed suit, further affecting savings rates for many people. With inflation now increasing from a sustained low period, could your savings rate actually be losing you money in ‘real terms’? There are alternatives available to deposit accounts offering the potential for greater returns. These alternatives are widely referred to as investments. Investment contracts offer potential advantages over savings accounts, however, you need to be prepared to accept you money needs to be le intact for a minimum period of 5 years. It is crucial to establish your aitude to risk on the investment selected. Do you want a return that is guaranteed in the future or are you chasing higher returns and are prepared to see your capital ebb and flow in line with underlying market conditions? It is important to make sure you have an adequate cash buffer in savings to protect the amount you have invested. The message is you don’t always have to sele for low interest rates, there are a wide range of investments out there worthy of consideration.

Take care if doing your own research, ensuring any companies you invest with are protected by the Financial Services Compensation Scheme (FSCS) and be aware of

an eye catching high returns which may expose you to risk you may not be comfortable with. Seeking independent financial advice will ensure you are made

Could your savings rate actually be losing you money?

aware of the many alternatives in the market place and give you an impartial view on the many products available.

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