The Santander 123 account, one of the “best accounts” in the UK offering a 3% interest rate has decided to slash their interest rates to 1.5%, this change has sent several million UK savers into despair. This is not all as NatWest and Royal Bank of Scotland (RBS) have warned businesses they may have to charge them to accept deposits due to low interest rates.
The changes in interest rates affect all individuals and businesses, not only because of bank charges but also inflation. With Inflation expected to rise, a saver in the average account is actually losing money in real terms and experiencing negative interest rates.
Cash deposits are not the only method for savings, there are various alternatives that can be used to safeguard your money against the effects of inflation and it is important you consider these alternatives as part of a robust financial plan.
But this is where Platinum can help. We are happy to speak to anyone who is concerned about how these changes will impact their savings. Our specialist Advisers can help you understand how these changes will affect you and look at alternative strategies to current accounts.