I’m sure that it won’t have escaped your notice that interest rates are rising which has captured many headlines given the impact this is having on the mortgage rates.

The media has been less vocal about the impact this is having on cash savings rates. While the real returns on cash is worse than last year, deposit rates are improving.

According to Moneyfacts (11 October 2022), the average no notice account is now pay 1.01% and one-year bond 3.0%. Of course, these are average, so there are better rates available.

Of course, holding too much cash in the long-term is a wealth drainer given the devastating impact of inflation. However, cash plays an important role in everyone’s personal finances such as helping fund short-term purchases and to bridge any expenditure shortfalls over a 1–2-year period as part of a retirement decumulation strategy. It should also offer peace of mind when investment portfolios are falling, as they do from time to time, allowing investors to wait out the storm and benefit from the market recovery without drawing down on their portfolios.

It is important therefore that the monies you hold in cash for such purposes are yielding competitive returns.

As a client of Henwood Court, we are happy to help you source competitive deposit accounts from across the whole market and provide advice.

Should you wish to take advantage of this service then please contact your financial planner who can assist in reviewing your current arrangements and where suitable, source for you a suitable home for your cash savings.