Soaring inflation figures over the past year or so have had a big impact on the UK economy, not only for those who have seen the surge in the cost of living erode household finances, but also to those who have a lump sum to invest, but are facing a landscape that offers them way below inflation interest rates.

Whether that investment pot comes from the sale of a property or business, a divorce settlement or inheritance, a year-end bonus, savings for a house deposit, school fees, healthcare or a wedding, you will be faced with the same fundamental problem – that bank and building society rates are a fraction of the inflation figure and your pot cannot grow at the anywhere near the same rate as inflation without savvy intervention.

Of course, securing the money, by spreading the funds between institutions within Financial Services Compensation Scheme (FSCS) protection limits, is of paramount importance – it should be remembered that if you hold money with a UK-authorised bank or building society that fails, the FSCS will compensate you up to £85,000 per person, per institution, and up to £170,000 for joint accounts. After that, and depending on how accessible you want your funds, there remains precious few savings options that offer flexibility alongside a half-decent rate of return. 

Several building societies are currently offering various products hovering around the 3% mark for those requiring instant, or short notice, withdrawal options, with a figure of 4% achievable if you’re happy to give 30-days notice to access your savings pot, however, with inflation nudging 11%, that’s a modest return on a potential sizeable amount of money.

Premium Bonds remain a popular option for some and have been described as “a clever move at a time when we know people are searching for a solution to the financial dead end.”

Prize draws have been recently increased and have become far more tempting at times like this, so premium bonds are positioning themselves as the ultimate game of chance – with your money back if you don’t win a prize. However, there is no guaranteed interest.

Here at The Financial Planning Group, we help individuals, families and businesses to place their financial affairs in context with their future goals and aspirations. We provide a simple, structured, disciplined and reviewable planning service.

We are here to help our clients understand their existing financial products and advise on: Personal Pensions, Stakeholder Pensions, SIPPS, SSAS, company benefits, government schemes, state benefits, ISA’s, onshore investment bonds, offshore investment bonds, OEICs, unit trusts, investment trusts, ETFs, VCTs, EIS, structured products, mortgages… plus many more products.

If you would like to speak to us about a longer term strategy for a significant fund, please contact us to arrange a meeting in our office in central Teddington by calling Tim Norris on 020 8614 4780 or emailing him at

Click Here To Call Us Now