Savers losing patience with poor interest rates are increasingly turning to stocks and shares savings methods, as the latest fall in inflation looks likely to keep the interest rate low for a little longer now.
With Cash ISAs and other cash savings vehicles paying little over 3% in interest many savers are looking at riskier but potentially higher yielding methods to make the most of their savings.
Inflation is still high, despite falling in the last month meaning investments are more likely to perform than they would do in a period of negative inflation, or deflation.
Fidelity have released research that reveals investors waiting to the end of the tax year to take advantage of the ISA limit for the year could be over £6,000 worse off over the last 15 years, than those who invest their limit for the year as soon as it become available.
Rob Fisher from the firm said, “Investing earlier rather than later in the tax year simply gives your money more time to grow in the market over the long run.
“Put another way, more of your money is sheltered from the taxman for longer.”
Andrew Hagger from Moneynet.co.uk added, “Don’t leave your savings earning a below average return when you can make your money work harder elsewhere. Older savings accounts will be paying far less than the newer products, so make sure you don’t rely on a base-rate increase to boost your meagre returns.”