As you can see from the questions below, a number of our clients are becoming concerned about the very low interest rates that are available within cash ISA’s.
“I have several Fixed- Rate Cash ISAs maturing during the next few months, these are now offering much lower rates than I currently have?”
“I have just seen my Cash ISA statement and I am now only getting 0.7% interest rate?”
“Is a cash ISA the best place for my money?”
Over the years people have built up significant amounts within cash ISAs and have often been taking monthly or annual interest payments to help monthly budgets or pay for luxuries or holidays.
With the Bank of England base rate remaining at 0.5% there is little scope for banks and building societies to be able to create attractive rates of interest for savers. The only rates that look reasonable are either fixed or tied in for a number of years or are short term introductory offers that soon disappear.
Although there is no investment risk with a Cash ISA, there is the danger with very low interest rates of suffering the effects of inflation and in real terms your money is worth less in spending power in the longer term.
For many people an attractive alternative to Cash ISA’s are Investment ISA’s.
Under ISA rules you can transfer Cash ISA’s into investment ISA’s without using this year’s ISA allowance and potentially giving you the opportunity to achieve higher rates of growth and income levels.
Investment ISA’s do have Investment risk, however they do have the potential to offset the effects of Inflation, subject to Investment Fund performance.
There are many Investment ISA providers available, and several thousand different funds into which you could invest.
Without expert independent advice this can become a minefield of information and statistics for you to try and understand fully.
At Sibbalds Financial Services we provide a no obligation initial, informal meeting for you to discuss with one of our experience advisers, your own financial situation. This meeting is FREE, we bear all costs. We offer appointments at our offices or at your home, to always suit you, not us. To find out more please contact us on 01332 242257.
*Image sourced from The Telegraph.