In this episode, I talk about how you can protect your cash savings from inflation.
Key summary:
- Inflation in the developed world has increased substantially due to a variety of factors including the war in Ukraine, supply chain issues, the expansion of the money supply and the global economy emerging from COVID-19.
- Inflation is an insidious force which reduce the value of cash over time if you aren't careful. The value of money has fallen by c15% since the beginning of 2020.
- Call to action: protect your cash from inflation by depositing it in an account with the highest possible risk free interest rate. Competitive interest rates for savings accounts are currently >4.8% p.a.
When depositing money in a savings account, please also consider:
- Is your money safe? i.e. FSCS protected.
- Is admin/monitoring simple? Active Savings is a good tool which I use.
- Deposit limits? Make sure you are eligible to receive the headline rate.
- Your liquidity profile? Use easy access accounts for your “rainy day” fund. Consider fixed term accounts if you want to try and lock in a “better rate for longer”.
Other useful links to competitive cash savings accounts:
Want to get in contact with me? Use the following channels:
Instagram: @_makeitstack TikTok: MakeItStack Website: https://caytonanalytics.com/ Email: william.waterhouse@cayton-analytics.com
Disclaimer: This podcast is for educational purposes only and should not be construed as financial advice. If you are unsure of making any investment decision, please contact your financial advisor.
