05 August, 2016
The Bank of England Monetary Policy Committee has cut the base rate to 0.25%.
But what does this mean for savers and investors?
Interest rates on deposit-based accounts have been falling for some time. There has been a steady increase over the past two weeks in the number of providers offering even lower rates for their non-savings accounts.
Existing clients who locked their savings in are, of course, still benefitting from higher rates. Around five years ago two banks were offering market leading rates for 5-year fixed term deposits. The fixed term on these deposits are coming to an end. The clients who were receiving between 4% and 5% gross now face a very low interest rate environment in which they can re-invest.
Whilst everybody needs to hold some cash on deposit, the current environment means that clients should now review the amount held in this low interest environment.
The need for financial planning has never been greater.
If you are looking for any more information with regards to our services view our Financial Services section. You can also contact Peter Toner in our Financial Services department via email or phone on 01772 220383. Alternatively send any question through to Forbes Solicitors via our online Contact Form.