Calculating finance

Have your savings rates reached an all time low?

Over the last few weeks many banks have been cutting their savings rates, especially on ISAs which could mean a large chunk of your savings are now earning very little.

The average cash ISA is reported to attract just 0.99%* whilst Children’s fixed rates and Junior ISAs (JISAs) have seen some of the biggest cuts, by up to 2.00%**. Some banks are even predicting negative interest rates.

However in recent months there as been a drop in the value of the pound and this appears to have had a positive effect on the UK stock market. In fact one of the funds we recommend is the 05 RSM Portfolio, a mid range balanced risk portfolio offered through RSM. This fund has actually returned 80.2% growth over the last five years, including 14.3% over the last twelve months***

5-year-performance-rsm-5_page_3
Time to consider your saving options?
It is always important to review your financial situation regularly, as circumstances change all the time, but perhaps now is an even better time to make sure you are exploring all your options and getting the best advice.

If you have money in cash accounts or savings accounts that you know you won’t need for the short term, then why not explore alternative options. There are still tax-efficient alternatives and your attitude to risk and personal circumstances would be considered before any recommendations were suggested.

Any existing investment portfolio could also be reviewed at the same time to make sure all actions are aligned to meet your financial goals. You may want to add money to this portfolio or look at alternative options.

One of our team would be happy to discuss your circumstances and help you explore your options. Just give one of the team a call on 0333 456 0333.

Graph shows 05 RSM Model Portolio Cumulative Returns – 01 October 2011 – 30 September 2016

Please remember that the stock market can go up and down and you may get back less than you invested. Past performance is not a guide to future performance and no decision should be made based on the content of this email, it is for information purposes only and independent advice should be sort before any action is taken.

*https://www.theguardian.com/money/2016/sep/05/cash-isas-savers-despair-alternatives-for-your-money
** http://moneyfacts.co.uk/news/savings/child-savings-accounts-face-gruelling-rate-cuts/
*** RSM 05 Model Portfolio 1st October 2011 – 30 September 2016