FREE Investment Guide
Your money matters – how you can make the most of what you have
It’s no secret that interest rates on savings accounts have been on the lower side for some time now. It’s why many people are being urged to consider their options to see if they could make more of their money.
In August, the average interest rate on an instant access savings account stood at 0.07%. That means if you had £20,000 in an easy-access account, your cash would only generate £14 in interest after a year.
Mark Butterworth – Head of Financial Advice Planning & Research at Skipton Building Society, explains, “When it comes to low interest rates, many savers seem to think there’s little they can do to try and get their money working harder. But there are options available. It may be that these cuts could be a good opportunity to review your overall financial position and what it is you’d like to achieve with your money, especially over the long-term.”
An opportunity to make more of your money
“Between March and April, £11 billion was saved into easy-access bank accounts, compared with just £2.7 billion during the same period in 2019. If you’ve found yourself in a position to save more this year, it could be that you’d benefit from considering different kinds of products to put your money into”, continues Mark.
Of course, it’s always a good idea to have a savings account to store money in. The recommended amount is that you usually have at least three months earnings in cash savings for unexpected emergencies that crop up every now and then. And for your
short-term needs, like planning for holidays.
However, for your long-term goals you might want to consider investing as an additional way of making your money go further. If you don’t think you’ll need access to your money for at least five years and are prepared to take some risks, then investing could be the way forward for you in potentially achieving stronger returns.
Mark explains, “Investing for the long-term could provide you with better returns than regular savings accounts. Investing isn’t just about stocks and shares. It involves spreading your money across different assets – for example it could be a mix of shares, bonds and other assets.”
An expert could help you to work out how you can invest in a way that suits your circumstances, your feelings towards risk and your financial needs.
Now could be a really good time to think about your financial future. By reviewing your plans, you could have a greater chance of achieving your long-term objectives.
Growing your money doesn’t need to be complicated
That’s why our financial advice partner, Skipton Building Society are on hand to help.
Skipton want to support you in your journey towards building a stronger financial future. An adviser will take time to understand what it is you want to achieve with your money and your feelings in general towards investing. Next, they’ll explore options to invest your money into assets that suit your circumstances. It’s all about what’s right for you.
Your Skipton adviser will present personalised recommendations for you to consider. A fee only applies if you take up a recommendation, and there will be no pressure to act on the advice.
By investing with Skipton’s advice, their main aim is to grow your money by a greater extent than is available through cash savings accounts to help you achieve your goals. Although funds are not like bank and building society savings accounts. It does mean placing your capital at risk, as its value can fall as well as rise and you may get back less than you originally invest.