Why would anyone move from the safety of cash?

Why would anyone move from the safety of cash?

Savvy Financial Planning cash coins Over the last couple of weeks we have seen savings rates reduce dramatically, additionally the Bank of England cut their interest rates for the first time since March 2009 to help ease business uncertainty and boost the economy but the only certainty for cash ISA savers is yet more pressure on their returns.

Cash ISA savers have received just 6.8% in interest since March 5th 2009 when the Bank of England Monetary Policy Committee cut rates to 0.5%.

From 2010 to 2013 average inflation was higher than average cash ISA rates which means savers effectively lost money.

Currently most cash ISA rates are around 1%. With more than £61 billion invested in cash ISAs last year, it is clear that savers need to look for alternatives that offer the potential for more competitive returns.

With a carefully managed, yet CAUTIOUS spread of investments, our cautious portfolio has shown returns of 42.46% from June 2010 to date.  That’s 3.5% average annual return, AFTER tax and charges!

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