In September, National Savings and Investments (NS&I) became the latest provider to announce a cut to interest rates. Effective from 24 November 2020 the reductions will apply to variable rate and some fixed term savings products. The reduction came in response to the economic climate and in a bid to ensure NS&I’s interest rates were ‘aligned appropriately against those of competitors’.
Reduction in interest rates has been widespread amongst providers. For many investors affected by this, now could be a time to consider investing in the stock market.
Investing in the market
Global markets have been and continue to be volatile in response to the uncertainty caused by the coronavirus. While this is obviously a cause for caution for investors, it can also present an opportunity for those who have a well-structured financial plan in place, and who remain committed to well-defined, long-term financial objectives.
History has shown us that over time stock markets recover. If you are able to look beyond current volatility, now could be a good time to buy into the market due to the opportunities to buy shares in businesses at cheaper valuations. The longer you hold your investments the more you increase your potential for making a profit.
Different opportunities for long-term growth
While the ongoing uncertainty in the markets impacts negatively on interest rates it also provides different opportunities for investors to, with the help of a financial adviser and as part of a long-term financial plan, benefit from low share prices and the potential for long-term growth.
If you would like some help in structuring a long-term financial plan, please get in touch.