Inflation jumps to record high as savings lose value,

Adam was contacted by The Express to comment on the effect of rising inflation on savings accounts…

As inflation rises, holding money in savings accounts will continue to be futile in the months ahead. There are few accounts which offer interest rates anywhere near 3.2 percent and as such, savers may be forced to look elsewhere.

Adam Walkom, the co-founder at London-based Permanent Wealth Partners, explained: “When the Bank of England rate, or ‘risk-free’ rate as it’s known, is 0.10 percent, then that means if you want risk-free returns, you will need to accept this rate. Any return above this rate, by definition, will involve some sort of risk.

“We help our clients understand this which then drives to the reason why the client wants to hold the cash in the first place. If it is for emergencies and other contingencies, which is a great idea, then it shouldn’t matter on the return as that is not the point of holding it. If the cash is held for investment purposes, then perhaps cash is not suitable and they should look at other vehicles. It all comes back to understanding the why.”

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