We have seen a fall in most investments apart from deposits this year. It is most unusual to see Gilts and Bonds fall in value at the same time as Equities. I have not seen this for probably 60 years.
However, when you put money on deposit most banks are paying 0.1% even though we have high inflation and high interest rates. Of course, you can shop around and it makes sense to do so because only £85,000 among banks and building societies is protected in the event of the bank going into liquidation. It can happen and indeed it did happen to RBS back in 2011. It was saved by the Government.
So it makes sense to look around for the best deposit rates. Most of us do not want to lock in money for long periods to obtain higher interest rate.
I saw the Chase Bank offer which I was attracted to. I invested £250,000 in the knowledge that I was risking some money if they went into liquidation although I was happy with this and achieved 1.5% interest with instant access. Having obtained my Chase debit card I can obtain 1% cashback on all purchases for the next year. It’s quite fun getting a nominal sum back for shopping and regular spending.
I was working out the best way to pay for my new electric Mercedes EQS being the equivalent of the S class but electric next month. I checked with Chase Bank and was delighted to hear that the 1% cashback could apply to my spending of £125,000. Mercedes originally pointed out that they could not accept a debit card although when I pointed out that there were no fees payable by them when buying goods using this Chase debit card they agreed that I could use that method of payment. I will get cash back of £1250.
Trevor Downing FPMI FPFS
