Interest rates are truly historically low as world governments attempt to stimulate the economy by offering rock bottom debt. Not only is this type of government intervention subjectively ineffective, but it’s also bad news for savers. Are you a saver looking to invest your savings? If you have money in savings accounts achieving 0.10% to 1% in returns, you are probably scratching your head wondering where to invest. You are not alone in this conversation about generating income from your investments.

When interest rates are low, loans are cheap and peer to peer sites fight for loan customers. Lower interest rates mean lower returns for lenders. Why are stock market levels so high at the moment? When interest rates fall, people look for better yields and pile money into equities. 

When addressing the issue of low interest rates, the boss of Virgin Money has warned that banks could start charging for basic services if interest rates turn negative.

Chief executive David Duffy said banks would make ‘slow and incremental’ changes over the next three to five years to test which services customers are willing to pay for.

The big banks – including NatWest, Lloyds, Barclays, Royal Bank of Scotland, HSBC, Halifax and Santander – hold a total of £726 billion of our savings in your easy to access account. These banks pay interest at such a low rate, barely above zero, at 0.01 per cent to loyal savers – or 10p a year on £1,000. It doesn’t take a financial expert to deduce that savers should be switching to better deals in order to boost their interest and investments.


What should you do with your savings?

With bank interest rates currently a record low and capital markets showing great volatility the London European Securities offering is attractive to HNW investors. Collective investment schemes can also often be expensive with onging management charges both at the collective and financial adviser level and also inside the underlying sub-funds, the effect of which is to further drive down yields.

Crucially there are no upfront or ongoing management charges to our investors which means that the yields that we produce are provided on a net basis. Net yields at this level offering high security we think provide some of the best returns in the market place.