With inflation going the way it is what are you doing with savings?

[Onedropbeat]

Inflation rates are forecast to climb massively meaning any cash savings will fast become worth less and less

If you are fortunate to have some cash savings (not talking about £100k), of a few thousand to maybe £10k are you planning on doing anything with it to try and protect it’s worth and if so what?

Paying them off the mortgage.

Just watching with interest. We don't have much and never do anything except let it sit in the bank account, so am interested to see if there are any tips.

Paying down mortgage.
Maxing out cash and shares ISAs.
Maxing pension payments. In practice this means DH is paying for me to have a better pension .

We have put all rainy day cash into premium bonds as at least we then stand a chance of the big prize. Small prizes if we get them probably match interest in our current accounts.

We have ours in premium bonds at the minute as like @drainrat says at least we have a chance of winning bigger prizes. Interest is so little we’re not losing anything.

I receive private healthcare through work but DH doesn’t so we have taken out a policy for him on my account. In these terrible times I don’t think the NHS could cope with a chronic illness that would prevent DH working and would impact our household income very badly.

If you're talking about a few k then you need to keep it accessible, so I'd say NSI Premium Bonds or similar.

Anything other than that is tying your money up or risking the capital,

Rookie question, and I'm sure I could find this by googling but just wondering if anyone knows, is there any reputable sort of service out there which is good to offer advice on this sort of thing? Or is it best to just do your own research online over time?

I have dyscalculia, so numbers and the general concept of money and how it all works (beyond basic "I have £100 and if I spent £50 I now have £50") really baffle me.

Independent financial advisers charge a percentage management fee or, if your investment isn’t big enough, a flat fee that in practice is an even higher percentage.

If you have less than £100k to invest it’s probably not going to deliver returns that amortise away the fees for years (if at all).

I put our long term savings in trackers - the FT and the Times have good financial coverage so study them for a while and you’ll soon develop a gut feel.

If you have dyscalculia I suggest the MSE website as it’s a very accessible financial education.

Thank you @drainrat, that's really helpful and I appreciate it will go and have a look around MSE.

I'm thinking very small investments to be honest, which perhaps makes it not worthwhile - I'll look. Our (very small to begin with) savings were wiped out by several years of DH ill health and unemployment. I appreciate we're lucky to have any at all of course, many people are much worse off, but I can't even imagine having 100k!

I was very poor twenty years ago. My father’s employer paid my school fees and first university fees, but after that I was on my own - no family money here, and no expectation of it in future.

It’s been a great preparation for prudent financial decisions .

The Meaningful Money podcasts and Facebook group is also a really good resource for investments. MSE is great, but more focussed on savings rather than investments.

We have our savings in premium bonds - we won £100 in the first month!! No bank account can match that!

Just in case you thought my comment about private health cover was a non sequitur, it wasn’t.
It’s really important to protect your ability to earn, and channeling some spare savings into health and income insurances is very sensible as the downside risk of being in poor heaven and reliant on NHS waitlists is far, far greater than gains you might make on shares!

Heaven?Should say health!

self managed stocks and shares isa

17% up since last year...woop!

That’s incredible Hyperion, wow. At that level you’re outperforming several of the leading (ho hum) active fund managers.

I just bought a bigger house for this reason... I would rather have the time in a nicer/ bigger house than watch my savings reduce in value.
Inflation will (hopefully) erode the mortgage and my savings sit in an offset account so I pay less interest.

I think people underestimate the power of inflation on cash savings, especially with interest rates so low.

@Hyperion100

self managed stocks and shares isa

17% up since last year...woop!

That’s an excellent return

Probably too late for me now but still room for growth 👌🏻

Thanks everyone for such a range of different and informative answers

I had totally forgot about bonds. Going to wake a look now.

I’m thinking paying down the mortgage a bit is the simplest, and as I understand it if you need the money again they let you use it as a reserve type thing.
Will check into that more

I've made 4 percent using investment pots on Nutmeg in 4 months. You can set your risk level. It's easy and quite fun

Currently moving savings into premium bonds and using some to make overpayments on the mortgage.

I'm debating this at the moment, I have a stocks and shares ISA I set up last year. I have a fair amount in cash, I'm debating paying down the mortgage against investing. Obviously the mortgage is a safe bet, but I can get a 10 year fixed for 2%, less for shorter deals, I'm thinking lots of funds would out perform this over 10 years?

I've got money in a nationwide account that's being run on the same principle as premium bonds, pooled interest that will be won by random draw at a certain point, I'll either double my money or get zero interest, thought that was worth a punt.

Will look at Nutmeg. Currently have money in EQ investments, it's not just about interest rates, money squirreled away isn't helping anyone is it.

Very impressed at your returns @Hyperion100. How did you learn about investing?

Being a nutter and gambling on crypto

Don't earn enough to have savings after spending 2k on child care

@nitsandwormsdodger its really tough when kids are young, I had no savings whatsoever before both kids started school. Just think how amazing it will be when you don't have that bill every month!