Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Investing

New study from Scottish Friendly reveals that half of British savers are suffering from ‘investophobia’

New study from Scottish Friendly reveals that half of British savers are suffering from ‘investophobia’

-Inflation is currently running at 2.4% yet the best easy-access cash savings rate currently available is 1.33%
– Almost two-thirds (66%) of savers are aware that interest rates on savings accounts are less than the current rate of inflation
– Despite that more than half (53%) of UK savers say they wouldn’t consider investing in stocks and shares
– Almost half (49%) say fear of potential losses is the main reason holding them back from investing

A study released today by Scottish Friendly reveals that many British savers are suffering from a chronic case of ‘investophobia’.

 The survey of 2,000 UK savers by one of the country’s largest financial mutuals reveals that many people remain reluctant to invest their money. This is despite a combination of inflation and rock bottom rates on cash accounts reducing the value of their savings in real terms.

Often the fear created by a phobia can lead people to make decisions that aren’t easy to understand or may appear to be irrational to an outsider. Scottish Friendly’s findings suggest that many savers may be acting in a similar fashion when it comes to investing.

Two-thirds of the savers (66%) in the research are aware that interest rates on savings accounts are less than the current rate of inflation, but the fact that they are losing money in real terms seems to do little to change their minds.

More than half (53%) of respondents said they wouldn’t consider investing in stocks and shares even though inflation reduced the value of the money they have in secure cash savings. However, confusingly, the most common reason cited by almost half (49%) of respondents that would not invest was fear of losing money.

The findings also revealed that:
·         Almost four in ten (39%) feel more comfortable with keeping savings in cash
·         Nearly three in ten (29%) save their money in cash because it is what I have always done
·         More than a quarter (28%) view financial products as too complex and cannot understand them.
·         A quarter (25%) do not believe investing in shares or a stocks & shares ISA is an affordable option for them.
·         Others (12%) are put off by the investment jargon used by financial services providers

Calum Bennie, Scottish Friendly’s savings specialist, says:
“By holding savings exclusively in cash at the moment many British savers’ are effectively letting their money diminish. Every pound that they save becomes less valuable while held in an account that delivers returns below the rate of inflation. Worryingly, our findings suggest the savings and investment decisions of so many Brits are being driven by a nagging fear of losing money and this ‘investophobia’ may be clouding personal judgement when it comes to important financial decisions.

Bennie continues:
“Investing is not without risk of course and the value of investments can go down as well as up. However, interest rates on secure cash accounts have been rock bottom for a very long time now and inflation is consistently eating away at the value of that money. Attitude to risk is a personal thing and ultimately you shouldn’t feel uncomfortable about where you’ve put your money. If you’re waking up with a cold sweat in the middle of the night it’s clearly not the right option for you. However, it seems that many savers are not willing to even consider stepping out of their comfort zone to look at possible investment options, which suggests fear is winning out over options that could make financial sense.

Bennie concludes:
“Investing doesn’t have to be scary, or complicated, or only for the wealthy; it’s for everyone. It is a tool that is readily available to all that could help empower financial well-being and could be well worth considering at the very least. Don’t let fear stop you from considering ways that could make your money work harder.”
The value of investments can go down as well as up and the value of the original investment is not guaranteed.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post