As discussed in a previous post, National Savings & Investments have cut the rates they offer to savers.
For most of our clients, we only see cash as a way to cover short term obligations which we looked at here. However, we have a very small number of clients who have pensions and have not wanted or needed to take any risk with their money. They understand that rising prices mean the fundamental value of their money will decrease but they are comfortable with this fact. For these clients, we have generally recommended they put their cash with NS&I.
It is not that we were not on the lookout or the most competitive rates. It was that NS&I were the main drivers behind other banks offering decent rates.
With the clients who we have recommended put their cash in NS&I, we will discuss their options with them. We could agree to put their money with a range of accounts while ensuring they stay with the £85,000 FSCS protection limit. For some, it may be that we agree that they invest some or all their money. However, it will be their long term strategic financial plan that drives this decision rather than any short-term tactical concerns.
Ultimately, this is what reviewing a plan is about. The landscape has changed, and we need to make sure each client’s plan is well-positioned to help them achieve their goals.