Cash ISAs Cost Investors £1.6 Billion Due To Inflation

A recent survey has urged investors to be aware of the effect inflation is having on the real value of their cash ISAs.

Using the retail prices index (RPI), a saver with typical cash ISA of £8,171 would have seen its real value drop by £89.13 since January 2010. Across the nation this adds up to a collective loss of approx £1.6 billion. The average easy access account rates have dropped to an average of only 1.38%. Currently not one provider pays enough interest to offset the effects of inflation as measured against the consumer prices index (CPI).

It is undoubtedly harder to earn a positive return on your cash savings but, rather than sitting back and doing nothing, it is more important than ever to be proactive and seek the best returns possible on your money.

Jon Moore, head of Clive Owen & Co LLP Wealth Management and Financial Planning team urges investors to pick up the phone and have their current investments reviewed. He says:

"A one hour meeting with your Financial Advisor can make all the difference. Working hand in glove with the accountancy and tax teams we ensure that there is joined up thinking between the processes of corporate and personal tax planning as well as financial planning."

Jon, who covers all three Clive Owen & Co LLP offices, can be contacted at jon.moore@coniscliffe.com or 01325 349707 if you wish to discuss your needs

Added 29th July 2010

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