What do you do when savings rates keep falling?

Once again, the Bank of England has announced that savings rates are reducing to Historically low levels this past week, which has detrimental effects on those reliant on these interest-bearing accounts to supplement their income.

Since Covid-19, more than £200 Billion has been saved using cash-based savings in Banks and Building societies.

What is frightening is that 1 in 8 of those accounts was paying on 0.01%, according to data released from Moneyfacts. We also now fear rising inflation, which has a negative effect on the real value of your money. In times like these, we used to head to National Savings and Investments; they always had the Index-linked savings certificates, they could at least grow in value with any rise in inflation, but alas, they too were stopped in 2011.

So what is the answer to this predicament we find ourselves in? How do we maintain our standard of living or receive the same level of growth and income when we cannot rely on the savings account.

We should not rush out and do anything that could carry more risk than we are prepared to take, so informed decisions will be necessary. The next step is to break everything down into what you need to maintain your income, your annual holiday savings account, or perhaps the future savings to buy a house or educate the children through private schooling or university?

It is also times like these where we hear of people investing in cryptocurrency to try to make back what they no longer receive from their cash deposit account, we have all heard that story, and most of us know that it usually ends with tears.

Making the wrong decision can have irretrievable consequences, and it is the reason why you should seek professional advice before you do anything.

At Corestone, we believe that informed decisions are the best decisions, so please get in touch to see how we may provide a solution.

 

 

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