Why you shouldn’t just leave your money in cash?

With inflation rising how can you keep up with the cost of living let alone make your savings grow?

We live in challenging times, and we understand people want to make the most of their money, and might need something different.

High inflation is a problem for savers, particularly when savings interest rates are low.

What is inflation?

Inflation is simply to do with how much your money can buy.

Think about 5, 10, and 15 years ago…

  • How much was a loaf of bread?
  • A pint of milk?
  • Or a pint of beer?

It probably cost less than it does now: that's the effect of inflation.

What is the effect of inflation on savings?

In order for your money to be "worth" the same amount, you will need the income you receive, for example from wages or your pension, to increase by at least the rate of inflation each year.

Likewise, any savings you have will also need to grow by at least the rate of inflation. If they don't, your money will be losing value in real terms.

The concept is simple...

After tax, the rate of interest you earn on your savings must be greater than the rate of inflation in order for your money to actually be growing.

So, if you can’t find a savings interest rate higher than the rate of inflation, and you want your money to grow, you might need to consider other options.

Investing could be for you if you’re looking for more...

Newcastle Financial Advisers can talk to you about tailoring a strategy aimed at making your savings grow.

There are risks involved with investing money, but savings accounts alone won’t help you avoid the impact of inflation.

If you would like to have a no obligation chat with Newcastle Financial Advisers about investing book an appointment or call 0345 600 4330 (Monday - Friday 9am - 5pm)

There are risks involved with investing. The value of your investments and any income from them can fall as well as rise and you may not get back the amount you originally invested.


Newcastle Building Society introduces to Newcastle Financial Advisers Limited for advice on investments, pensions, inheritance tax planning, and life cover. Newcastle Financial Advisers Limited is an appointed representative of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.