Cash Or Investing?
Released On 22nd Nov 2023
CASH OR INVESTING: WHICH OPTION IS BEST SUITED TO YOUR FINANCIAL GOALS?
Chamber member Milsted Langdon examines between the benefits of keeping cash or investing. In the wake of the 2008 financial crisis, interest rates plummeted and savers likely saw very limited returns on their cash savings. However, over the last few years, the situation has changed.
The Bank of England (BoE) raised its base rate 14 consecutive times between December 2021 and August 2023 to combat rising inflation. After pressure from the government, banks began increasing their cash savings interest rates alongside it.
As a result, you may be thinking that now is a good time to move your wealth into a cash savings account instead of investing it because you could see healthy returns with less risk. This might seem especially attractive during a period of market volatility when investors are concerned about potential losses.
Yet, cash is not necessarily as safe as some people assume it is and, in many cases, investing could be a more effective way to grow your wealth.
