According to a survey carried out by MoneyFarm (a digital wealth manager), 81% of savers risk the value of their hard earned savings falling, if they keep them as cash and do not invest.
Experts are predicting that inflation will hit 3% by the end of 2016. With the average Cash ISA paying just 0.65%, savers face the value of their savings falling if they are not more proactive in considering alternative investments.
18% of savers who responded to the survey said it was too difficult to decide what to invest in and how to invest, whilst a further 11% said they found it to cumbersome to try and arrange other investments.
Giovanni Dapra, chief executive at MoneyFarm, said the post-Brexit market superficially makes savings in cash accounts more attractive to risk averse investors, but over time that cash will actually underperform.
“Savers might be nervous about investing or think that leaving their money in cash accounts is the easy choice, but in the current Brexit climate, cash accounts are a high risk option”
The Financial Conduct Authority recently warned that interest rates on some Cash ISAs are now as low as 0.01%*.
Are you worried about investing and the risk that could come with it? Our advisers are here to help.
They take the time to listen to you and tailor advice on your investments around your attitude to risk and future objectives.
Our Stocks and Shares ISA currently has an average income of 3.5% per annum and offers growth potential on top of that.
If you have Cash ISAs and wish to have a chat about whether you should be moving some into alternative investments such as a Stocks and Shares ISA then please call your advisor or one of the team on 01934 875 919.
N.B No Recommendation: Please remember the value of your investments can fall as well as rise, and you may receive less than initially invested.