Savings: How you could boost your money as interest rates hit ‘all-time low’
Savings accounts have been rocked by the pandemic, with the Bank of England lowering its base rate to 0.1 percent back in March 2020. With the base rate remaining the same ever since, many people are becoming dissatisfied with the return they are receiving on their accounts. Highlighting interest rates as hitting an “all-time low”, experts have now suggested Britons explore an alternative approach.
Investing, they have said, could be an excellent way for Britons to boost cash savings, but many are unsure as to how to approach the matter.
Svenja Keller, Head of Wealth Planning, and Rachel Winter, Associate Investment Director, both at Killik & Co explained the issue in further detail.
They highlighted the key tips Britons can deploy when starting on their investment journey to increase the value of savings.
Ms Keller and Ms Winter said: “Before you begin your investing journey, consider your long-term and short-term objectives.
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Some may consider the use of investment tools and apps which are designed to make the experience as easy as possible, especially for beginners.
These platforms utilise fact-finding information such as questionnaires which can assess a person’s interest, and perhaps most importantly, their risk tolerance.
For those who are not so keen on the idea of a more automated process, other steps can be taken on an investment journey.
Ms Keller and Ms Winter went on to suggest procuring personalised advice from a private bank or a wealth manager.
These advisers can act as both investment advisers and financial planners to help people progress.
A more tailored approach is likely to be gained from this kind of advice, as in-person help can allow people to go into more detail.
It is, however, worth noting that this can potentially be a more expensive pursuit than using an investment app.
Ms Keller and Ms Winter issued a final tip to help Britons who are starting on their investment journey.
They said: “If you would like to pick investments yourself, make sure you conduct thorough research on all of the available investment options.
“It is always beneficial to invest in companies and sectors that are of personal interest to you.
“You will be better informed about the industry and more involved in your investment future.
“For example, if you have strong values, ethical investments can be better suited to your needs.”
People should always be aware of inherent risks which accompany investment.
This is because the value of an investment can go up or down, and so this should always be considered first.
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