We all need savings. Keeping a decent sum held on deposit provides security and peace of mind.

Savings

Deposit Accounts – Emergency funds and short-term savings are best held on deposit, perhaps within a mini cash ISA or an immediate-access account. Safety and access are the most important factors for these funds. Long-term notice accounts and fixed-term deposit bonds can provide higher rates of interest – for money where security of capital is required.

The real value of money on deposit becomes eroded by inflation. Interest rates are at an all-time historic low in this country, with the Bank of England base rate at some of its lowest ever figures. With inflation currently higher than most interest rates, your cash invested is actually losing value.

Investments

Once you move money into non-deposit investments, different types of risk and reward must be balanced. Stock market values fall as well as rise. The price of equities (shares) and the price of fixed-interest stocks (gilts) and bonds also fluctuate, depending on market and economic conditions.

A ‘well-balanced portfolio’ is a term with which most of us are familiar, but how is it achieved? Equally important, how is balance maintained or adjusted to cater for changing circumstances?

Through our Wealth Management Committee, we are able to provide our clients with a number of active portfolios.