Make It Stack

Make it Stack #24 - how to protect cash savings from inflation?

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In this episode, I talk about how you can protect your cash savings from inflation.

Key summary:

  • Inflation in the developed world has increased substantially due to a variety of factors including the war in Ukraine, supply chain issues, the expansion of the money supply and the global economy emerging from COVID-19.
  • Inflation is an insidious force which reduce the value of cash over time if you aren't careful. The value of money has fallen by c15% since the beginning of 2020.
  • Call to action: protect your cash from inflation by depositing it in an account with the highest possible risk free interest rate. Competitive interest rates for savings accounts are currently >4.8% p.a.

      • When depositing money in a savings account, please also consider: 

        1. Is your money safe? i.e. FSCS protected. 
        2. Is admin/monitoring simple? Active Savings is a good tool which I use.   
        3. Deposit limits? Make sure you are eligible to receive the headline rate.  
        4. Your liquidity profile? Use easy access accounts for your “rainy day” fund. Consider fixed term accounts if you want to try and lock in a “better rate for longer”. 

          5. Other useful links to competitive cash savings accounts:

          • Money Saving Expert
          • Money.co.uk

            • Want to get in contact with me? Use the following channels:

            Instagram: ⁠⁠@_makeitstack⁠⁠  TikTok: ⁠⁠MakeItStack⁠⁠  Website: ⁠⁠https://caytonanalytics.com/⁠⁠  Email: [email protected]

            Disclaimer: This podcast is for educational purposes only and should not be construed as financial advice. If you are unsure of making any investment decision, please contact your financial advisor.

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            Make It StackBy Will Waterhouse