ii comments on the Treasury Committee savings rates campaign
8th June 2023 11:49
by Myron Jobson from interactive investor
The jury is out as to whether intense scrutiny will translate to more competition in the savings market.
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “With interest rates going up, there is a clear focus on interest on cash savings - but the jury is out as to whether heightened scrutiny will translate to more competition in the savings market.
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“The acceleration in the frequency of rate rises in recent history has meant that some savings providers may still be catching up to past base rate rises. It could take months for the increase in interest rates to trickle through to savers – if at all. Yet the passage of interest rate hikes to savings rates serves as a powerful incentive to promote a savings culture among the masses.
“Those who can afford to put money away for five years or more should consider investing for the potential of long-term inflation-beating returns that far outstrip savings rates. Investing can be volatile on a day-to-day basis and while the potential for greater returns from the stock market comes with inevitable risk, taking a long-term view means you can smooth out some of those highs and lows while benefiting from the long-term potential that comes with this approach. You can invest from £25 per month, and some platforms, such as interactive investor, offer a free regular investing service.”
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