People who benefit from a financial windfall have been warned not to leave the money languishing in low paying high street savings accounts.
Of around 14 million people who have received a lump sum payment of at least £500 in the last two years in the form of either a bonus, inheritance or a cash gift from family members, almost a third have invested the money in a high street savings account, according to Schroders.
However, with instant access accounts paying no more than 0.23% over the past year, and inflation reaching 4.4% in February, the real value of these savings will have dropped in that time.
In order to at least maintain the purchasing power of their windfall, savers have been told they must explore all the various investment options available.
Only one person in 20 claimed to have invested their money in stocks and shares.
Worryingly, less than one-in-10 said they had sought professional advice over where they should put their funds.
If you've recently come into some money, or already have some languishing in a low paying savings account, it might be worth considering an investment such as a stocks and shares ISA.
As investing in stocks and shares carries a certain risk (investments can go down as well as up!), it is vital you have enough money set aside in a relatively safe and easily accessible place to cover any emergencies.
Besides these 'rainy day' funds, however, it might be worth taking more of a chance with your money to try to maintain its value and grow it further.
If you're unsure as to whether you should invest, getting financial advice should be your first port of call.
If you want to invest, but are uncertain over where to invest, Skipton Financial Services will be able to help.
They can compare over 1,100 ISAs and funds from over 60 providers – if you need help in choosing the right investment, call Skipton Financial Services free on 0800 731 5342
A product such as the Baillie Gifford Investment Trust ISA also offers access to a wide range of investments and funds.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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