The results are in. But what does Brexit mean for savers?

25th June 2016

Don’t panic. Whilst there are clearly going to be huge changes nothing will happen immediately, even David Cameron has given us three months’ notice. But no one knows exactly what’s going to happen next and what the timescales will be. Continued uncertainty is likely to prolong a flight to safety, which means more and more people piling their funds into cash. There are providers who are still interested in raising funds from savers, especially as they too are uncertain about the immediate future.

The good news is that cash is a safe haven, especially since up to £75,000 per person, per banking licence is fully protected. And we don’t expect to see a change to this.

But those who want to remain in this asset class need to be proactive. Our advice is to make your cash work as hard as possible.  Savers need to continue to shop around for the very best rates they can find, which may include high interest current accounts or fixed rate bonds, in order to access better rates. And Savings Champion is here to help.

For those who are sitting in an account paying 0.10%, which many people are, actively managing your cash can make a real difference. The best easy access account is paying 1.45%. So that means an extra £135 a year for every £10,000 deposited. And if you are able to tie the money up for a year or more, the extra is even better. The best 1-year bond at the moment is with Charter Savings Bank, paying 1.79%, so £169 a year more and over 2 years it’s 1.91%, so £181 more a year.

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