Newspaper article Gympie Times, The Qld.

Your Cash Savings Might Be Safe as a Bank but You're Robbing Yourself

Newspaper article Gympie Times, The Qld.

Your Cash Savings Might Be Safe as a Bank but You're Robbing Yourself

Article excerpt

NEW research suggests Britons are overdoing the safety-first approach in growing their rainy-day money by investing in cash savings.

Money experts reckon you should keep at least three months disposable income in cash accounts and about a further $5000 in cash for emergencies.

If that happened, it would mean about $630 billion in cash savings in banks across the UK.

The actual amount at the end of October 2015 was about $1580 billion saved in cash.

In the UK the average interest rate in cash accounts and instant access accounts was just 0.39%.

Most people want better returns than that.

Henderson Global Investors, which put the research together, reckons that if about $945 billion were invested in a mix of UK and international equities, savers would earn an additional $22.3 billion in income every year on top of the savings interest they are receiving.

"British savers are a very conservative bunch, falling back on cash savings because they perceive them to be safer, despite cash abjectly failing to meet their own stated investment aims," Henderson's James de Sausmarez said. …

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