With interest rates remaining at record lows, it has never been more difficult for savers to get a decent return on their money – and the task became more difficult earlier this month when National Savings withdrew its Index-Linked Savings Certificates.
Platinum has recently been advising a number of its clients on different ways to combat the low returns on cash, including the transfer of existing Cash ISAs to either structured deposits within the Cash ISA wrapper or a Stocks and Shares ISA, both of which potentially offer better returns.
Structured Deposits always return at least the amount initially invested at the end of the term but will hopefully provide a greater return, depending on the performance of the shares or share index it is linked to.
Platinum Portfolios adviser Mark Taylor said: “For certain clients, these plans can be a useful way to achieve additional income or growth without necessarily being directly exposed to the stock market.”
For other individuals, a Stocks and Shares ISA may be more suitable. As with a cash ISA, they are tax free, but the returns are potentially greater – although the possibility of a fall in the value of investments is also possible. Investors should always consider carefully before investing in the stock market and take expert advice if they are unsure.
For those who want to retain a simple savings account, there are undoubtedly some which are better than others. In particular, it is worth shopping around for bonus introductory rates and higher interest rates for fixed-term deposits.
Mark added: “Banks and other financial institutions frequently lure people in with a high introductory rate, but these can often fall dramatically after the first year or so.
“To receive a consistently good rate, either be prepared to move your money on a regular basis, or look at a fixed-term product which provides higher interest payments for those willing or able to lock their money away for a longer period of time – usually one, two, three or five years.”
For more information contact Platinum Portfolios on 01323 642568 or visit www.platinumportfolios.co.uk.
The information contained in this article is for information purposes only and should not be viewed as financial advice. Please contact us should you require advice in this area.