Cash is King is an old saying which is often used to highlight the importance of having enough cash on hand. With deposit based interest rates at an, all-time low is cash still king?
Deposit based savings do not pose risk to your capital however they do not keep pace with inflation which means your money will lose value over time therefore it is paramount that your money works hard for you.
It can be a minefield trying to source the most competitive deposit based rates with so much choice in the market place. With the rise of challenger banks in recent years, it may be difficult to feel confident with names you do not recognise even if they are authorised and regulated by the Financial Conduct Authority.
You need to ensure you place deposits within the Financial Services Compensation Scheme limits for protection whilst at the same time you need to be careful as some institutions share banking licences.
For larger deposit based transactions it is quite cumbersome making various applications to the individual institutions and providing evidence of address and photographic identification each time, this can be particularly challenging for solicitors and Power of Attorney who are opening accounts.
How much can you afford to lock away to avail of a more competitive fixed interest rate?
Do you know how much your emergency fund should and what is a sensible amount to retain in instant access for those unforeseen expenditure items?
Would you like to know about better rate opportunities on your maturing deposit-based accounts to ensure inertia is minimised and returns are maximised?
If you would like to have a chat about taking advice on the largest cash dataset in the UK market and ensure that you have the greatest degree of depositor protection and financial return please feel free to get in touch.
The information contained in this blog post does not constitute advice or recommendations. You should seek independent financial advice before acting on any information on this website.
