Savings: Britons urged to take action as ‘lockdown cash’ could offer important 'boost'
Savings accounts have taken a hit due to the pandemic, with interest rates at shocking lows. With the Bank of England keeping its base rate at 0.1 percent for over a year, a challenging environment has been created for savers. However, it does not have to be all doom and gloom for those who are still hopeful about growing their cash.
“As new investors flocked to the stock market last year, it was easy to assume that it was just a lockdown hobby, and that many would go back to their old spending habits when the world re-opened.
“The prediction that many will continue or increase the amount they invest going forward is likely driven by a rise in lockdown savings, with the Office for National Statistics reporting that UK household savings are nearing an all-time high.
“If you’ve been lucky enough to boost your savings under lockdown, it’s worth considering whether investing is right for you.
“Over the longer term, stock markets tend to perform better than cash and, while you won’t lose money by leaving everything in a savings account, with interest rates where they are, your spending power could fall because of the impact of rising inflation.”
