I often see clients fall in to the trap of trying to earn a great rate of return on every penny they own.

Of course it’s important to earn as much as you possibly can in interest, dividends and capital growth. Quite frankly money is hard to earn and it’s understandable that you would want to make best use of it.

However you should also remember that money should be used to facilitate your lifestyle. After all there’s not much point in having it if you can’t spend it.

There have been, and will continue to be some interesting fixed rate deals offering varying levels of interest on cash deposits. Some are excellent, some decent.

However what you really should have in mind is the need to weigh up the benefit of earning higher interest with the drawback of not being able to access your money for a set period of time.

So do think twice before committing your cash. As a rule you should always keep enough instantly accessible cash that can meet both your planned as well as any unplanned expenses that may arise.

Please note that this article is not meant as a personal recommendation. For help and advice on your investments please book an Investment Advice Surgery appointment online. 

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