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By Marc O’Sullivan

Rising interest rates and financial planning

Media centre financial planning
1 min
Lady in white

If you’re covering the rising interest rates this summer, please see the following comment from Marc O’Sullivan, Head of Investments at Wesleyan Financial Services:

"Rising interest rates have made cash seem a more attractive option for savers. But people should remember it’s not always the best option for long-term saving plans such as retirement.

"Standard bank accounts still aren’t paying interest anywhere near the current rate of inflation. The best easy-access deals are offering less than 4%, compared to inflation of 10.1%. Interest rates are likely to start falling later this year too, when inflation starts to cool, so now is an ideal time to carefully consider your financial goals and how best to achieve them.

"Investing your money gives the opportunity to increase the value of your cash over time. Investment markets can be volatile, with sharp rises and falls; however, there are options – such as With Profits – that provide customers with a ‘smoothed’ investment return."

For more comments from Wesleyan, contact our PR Manager, Nicola Pledger.