When the Bank of England cut interest rates on 4 August, although mortgage holders might have been pleased, those with savings on deposit must be wondering where to go to get a decent return on their money (Financial Planners).
You might get 1% a year interest if you’re lucky, and I suppose we should be grateful that inflation is still very low because you are still getting a real return on your savings…but for how long?
And the newly-introduced Personal Savings Allowance of £1,000 of interest tax-free (for basic rate taxpayers) means that the advantages of Cash ISAs are sometimes no longer as relevant.
To get a decent return on your savings, you would need to ditch the secure (but low-paying) deposit account and turn to investment funds. You could invest in individual shares, fixed income stock and other assets, but that would increase the risk (Financial Planners).
Admittedly, the higher the risk, the bigger the potential return…but it may be at a low just when you want to cash in.
But the three golden rules of investment are: spread, spread and spread again.
By using a collective investment fund, your investment will be spread between many different investments, reducing the impact of any bad investments affecting your overall returns (Financial Planners).
And we would normally recommend that you invest in several different assets, again reducing the risk.
You can invest just a modest amount to begin with, if you wish, so you can see if it suits you. Any investment you make through us will be monitored on a regular basis, to make sure that it is still worthwhile.
Financial Planners Bristol
If you would like to speak with one of our Independent Financial Planners and potentially receive financial advice, please contact us on 0117 923 7652. We are based in Clifton, Bristol but we are happy to service clients from across the UK and we provide free initial meetings at our client’s convenience.
About Us: Churchill Wealth Management is a team of independent financial advisors/financial advisers (IFAs) based in Clifton, Bristol – Website: http://www.churchillwealthmanagement.co.uk
We provide independent financial advice, including pension advice, investment advice, inheritance tax planning, protection/insurance advice and ethical investment advice through our trading style Churchill Ethical Investment – www.churchillethicalinvestment.com