Low interest rates for savers set to remain …?
Solution – consider Structured Deposits
The search for better returns on your savings remains …..
There was some hope that the Bank of England would raise base rates on the 29th of January 2020. However, savers dreams of better rates on savings interest were dashed by the Monetary Policy Committee who voted to hold rates again. It is nearly 11 years since the Bank of England cut the base rate to 0.5%. The lowest ever recorded in the 300-year history of the Bank.
The world was a different place then. The economy was in disarray as the credit crunch bit. Low rates were meant to be a short term measure. But rates are only at 0.75% now in 2020 – with potentially further cuts ahead to kick start the economy post Brexit.
While millions of Baby Boomers wait for rates to go back up again, for anyone under 30 this is the only savings environment they’ve known. The economic establishment prediction that rates “have” to rise again has not borne fruit. The outlook for savings rates is not good.
But here are opportunities to make your cash savings work harder if you are prepared to save for a set term.
Investec Bank plc offer a range of structured deposit plans. Structured deposits are a little different to your typical cash deposit account. They typically offer higher potential returns than a cash deposit but with the risk that you may only get your initial deposit at the end (subject to holding the plan to the ‘contract end date’ where, for qualifying investors, the FSCS protection limits provide capital protection, as with conventional deposit accounts). The Plans offer a defined return which is linked to the movement of the FTSE 100 index. The potential returns on offer range from approx. 3% p.a. to 6.5% p.a. (not compounded), which compare very favourably to the currents rates on fixed rate bonds. Click the link to read and invest – https://www.bestpricefs.co.uk/structured-deposit-plans/. The structured deposits offered are all covered by the FSCS up to the normal statutory limits.
Investec have been the recipient of many awards over the last decade or so, click the links to read more about Investec –
Richard Harry – Director at Best Price FS states “all investors should consider Structured Deposit Plans as part of their asset holding – being mindful of statutory protection levels. Investec’s plans are market leading so, combined with Best Price FS distribution price point, Best Price FS is the best place to access Investec’s quality plan range”.
DON’T FORGET THE RISKS
As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested if encashed before the end of the contract term. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty (although Structured Deposit plans benefit from FSCS protection up to the statutory limits for eligible investors).
Please ensure that you view the plan documents for full details of the features and the risks.
The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.
Should investors require advice in relation to the suitability of the plans to meet their needs and objectives, simply get in touch so the Best Priced advice can be provided.
Best Price FS Team
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