The Risks of Long-term Cash Savings

Recent economic and political events have undoubtedly made people nervous regarding their personal finances. Stories of market falls, risky investments and low returns mean many people are choosing to keep large amounts of their savings in cash as they believe it to be less risky than other investment options. Yet often they fail to consider the fact cash savings come with their own risks.

1. Low Interest Rates
Cash ISA interest rates have been steadily decreasing since 2008. Bad news for cash savings.

2. Effects of inflation
With interest rates as low as they are currently, inflation could significantly impact the value of savings over time.

3. Inertia
When was the last time you reviewed your cash ISA?

4. Inefficient use of tax allowance
Recent changes to the Personal Savings Allowance mean there’s no real difference between a cash ISA and an instant access savings account, yet many people still believe ISAs are the best choice. Holding cash in an ISA uses up your annual allowance and limits the amount they can pay into a stocks & shares ISA.

So, What Are The Alternatives?

There are many alternative investment options open to you. For more information on investment options, please speak to John Tamblin on 07880 795710 for a no-obligation chat.