Cash Is Back (Kind Of)

make money Aug 09, 2022

This is a short post, but one designed to make an important point!

Over the past 15 years or so, the interest rates paid on cash have been so low as to be almost not worth mentioning (I did say almost - something is always better than nothing).

In recent months however, the rates on cash savings accounts have been increasing on the back of central banks around the world increasing their base rates. Here in the UK average instant access rates have increased from perhaps as low as 0.5% to around 2% per annum. Fixed rates are now available well over 3% per annum.

As such, there are now much better rates of return to be earned on any cash savings you might be lucky enough to have by shopping around for the best savings rates and deals. 

This is something which people used to do quite often, before the Great Financial Crisis that is. Back then, you could easily get 5%+ on a savings account - can you imagine! Well now you can sort of because those times seem to be returning.

Right now, I would suggest you do the following things:


1. Check the rate that your current savings accounts are paying. 

2. See how competitive these rates are compared to the wider savings market. You can use your favoured financial comparison site to do this.

3. If your current rate is not competitive, then vote with your feet and move your savings somewhere else to get a better return. 

During times like these, every little helps and if your hard earned cash can earn you a bit more cash, then all the better!

There - I said it was going to be short and sweet this month.



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