Cash is not always king!

Cash is not always king!  Is it time to explore other saving avenues for long term savings? 

After cuts announced, to come into force from 24 November 2020, NS&I will only pay 0.15% maximum on your cash savings with them (this is the Direct Saver rate from 24/11/2020). 

Once you include the effect of inflation on spending power, this means your money effectively loses its value over the time you hold it with them.

With cash savings rates being cut not only at the banks, but also for cash ISAs and now even at the NS&I it may be time to rethink your cash savings if you are saving for a long term goal.

If inflation rates stay positive (RPI was 1.1% in September), a return of 0.15% on your savings actually means a 0.95% REDUCTION in what you can afford with the cash you have saved.

When was the last time you reviewed your savings and investments? Do you know if you are still on track to meet your long term goals?

To discuss your financial planning and savings needs, please call Ellie on 01722 653245 or email ellie@grovelyfinancial.co.uk.