Banking savers become investors
Filed under: News — Tags: savings & investments —
NS&I has raised its savings rates this week in the hope of attracting more savers.
The good news is that this already means that it enters the top league tables on returns.
The bad news, is that savings accounts in general are still offering historically low savings rates, due to the policies of the Bank of England.
However, the impact is global, with central banks across the world leaving interest rates cut, which means that even offshore saving may not offer the same advantages if with the wrong savings provider.
The really interesting part of the modern savings landscape, though, is that both banks and building societies are trying to lock savers into bond or fixed term accounts - ie, that instead of instant access or notice savings accounts, they are looking for guaranteed periods of investment where the money cannot be touched.
In other words, savers and being forced into fixed term investment vehicles.
The reality is, therefore, that if you are looking to put a significant amount of money away in the first place, it may be a better idea to cut out the middle-man and instead set up your own portfolio of mixed instruments for investing.
After all, if you are going to be an investor, why not take full advantage of that?
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