Investors 'moving away from cash'

By Sarah Engle, Wed 11 Aug 2010 - Published in Banking

The majority of savers are looking for investments other than cash while the Bank of England's base rate sits at 0.5 per cent, it has been found.

Research carried out by the Fair Investment Company found that 69 per cent of savers are considering putting their money into riskier asset classes to make a return while the base rate remains at its historic low.

The survey showed that 55 per cent of investors are thinking about moving their cash into structured products, 16 per cent are looking at corporate bond funds and 14 per cent are considering equity-based vehicles.

Nick Scarrett, head of pensions and investments at Fair Investment Company, commented: "The majority of those not looking to invest in cash are looking at structures, which in the current financial climate is understandable."

He explained that these products allow investors to benefit from higher returns than are found with savings accounts, combined with greater protection than is offered through stock market speculation.

Recently, Fair Investment Company head of investment and pension research George Ladds said savers should make use of their tax-efficient ISA allowance while interest rates are low.

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