Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “It is seemingly a case of ‘my cup runneth over’ for the UK government-backed savings bank, which has already smashed its £7.5 billion fundraising target for 2023-24 in just six months. This is largely down to the success of its one-year guaranteed bond, which launched over the summer and saw an unprecedented amount of savers flock to the product before it was quickly pulled.
“Put simply, the NS&I no longer needs to attract new cash, and the savings bank can now afford to row back on its generous offerings. Savers might need to brace themselves for less generous offerings from the NS&I going forwards.
“More broadly, the top savings deals continue to drop like flies, on expectation that interest rates will fall quicker than initial predictions. As such, those who have been waiting to nab a top savings deal might want to get a move on as the very best deals may not be around for much longer.
“Those who can afford to put money away for at least five years or more should consider investing for the potential of long-term inflation-beating returns that far outstrip savings rates.
“While past performance is not indicative of future results, savers can take courage in the fact that history shows that even a ‘middle of the pack’ fund is likely to outperform returns from cash savings interest over the long term - so, you don’t need to be an expert stock picker to benefit. The key is to give your money ample time in the market – at least five years - to smooth out the effects stock market ups and downs.”
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