NS&I Interest rate cuts

NS&I Interest rate cutsIn 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.

This article is distributed for educational purposes and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.

Past performance is not indicative of future results and the value of investments can fall as well as rise. No representation is made that the stated results will be replicated.

Author Ian McKenzie

Associate Director, Wealth

Ian has vast experience within the financial services industry.

Learn more about Ian McKenzie

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