UK savers hit again as rates fall
UK savers have been hit again as UK base rates continue to fall with this week's reduction to 0.5% and a possible further move towards zero percent. Quite literally the UK savings market has been decimated and those who once lived off their interest are being forced to dip into their capital. The situation is set to worsen over the next few weeks as UK rates, even though recent falls do not appear to have had an impact, are expected to fall further.
In a traditional type recession this continuous reduction in UK base rates would see many savers rush for the investment markets and other long-term savings plans but unfortunately we are not dealing with a traditional economic downturn. Investment markets are literally frozen at the moment and continue to fall with investors fearful of the future, long-term savings plans have disappeared and there are literally very few places to deposit funds with 100% security. This is forcing more and more UK savers to retain their funds in bank accounts which at this moment in time are offering security and very little else. But is there hope on the horizon?
These are the times when savers should be taking professional advice about the investment of their remaining funds for the longer term. There are opportunities, although there are risks, and depending upon your time scale of investment and expected returns it should be possible to improve the income currently available via traditional savings accounts.
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