Member Article

UK interest rate rise is a waiting game

Looking to cash in on rising interest rates? After the Bank of England’s announcement today, it’s time to get yourself ready for the waiting game, says a leading savings expert.

In December, the US Federal Reserve voted to raise interest rates for the first time in 9 years. There is an expectation that central banks globally to follow the US’ lead and raise interest rates within the next year, finally bringing an end to a period of record low interest rates sparked by the 2008 financial crisis.

But experts are warning that the rise might not come a quickly as savers may hope, judging by the decision today to keep rates unchanged. That’s the forecast echoed by Andrew Featherstone, new business manager at Dynamic Cash Management, which has recently launched an innovative online portal offering improved access to savings account data for clients and Independent Financial Advisers (IFAs).

Andrew says: “Stagnant wage growth means that Britain has kept interest rates at a record low of 0.5% since March 2009. This is likely to continue to further stimulate the economy and boost the amount of money in people’s pockets. Many economists are predicting that the Bank of England will raise rates later this year. However, forecasts keep being pushed back.”

Despite the bleak picture, Andrew suggests that this is an opportunity to take stock and prepare for the future.

He said: “It’s true that anyone waiting for rate rises is going to be waiting a very long time – and there have been several blows recently; the slashing of pensioner bonds and the poor rates currently offered by high street banks means they are awash with cash, with no need to attract new customers.”

“However, now more than ever, taking a clever and calculated approach to cash management can help serious investors to make the most of their money.”

The Dynamic Cash Management service selects the most suitable cash investments by actively monitoring the performance of savings accounts at more than 165 institutions. The service is more cost effective for clients investing over £70,000, whereby balances are switched when rates change and new opportunities arise, with all paperwork arranged on the client’s behalf.

Andrew Featherstone, new business manager at Dynamic Cash Management, said: “We are working very hard to develop new services to help clients and financial advisers to make the most of the current situation with interest rates. Our new online portal can add value to the services offered by IFAs and professional introducers, by allowing them to offer clients a personal, responsive service with an up to date breakdown of investments, 24 hours a day, through any desktop, laptop, tablet or smartphone.

“Decisions about moving money are made only after we’ve taken time to understand a client’s needs, attitude to risk and liquidity. We don’t believe that the process of understanding should be rushed, so for professional introducers our service is a time-saver, easing the administrative burden and giving peace of mind that their clients’ cash is providing the maximum return for minimal effort.

“Introducers can also submit new cases directly through the portal, cutting down on paperwork and speeding up the application process. This is all contained in a user friendly site, with the same high level of security as any online bank.”

For further information on Dynamic Cash Management, visit the free-to-use illustration tool and online portal at www.dcmcash.com or email DCM@DCMCash.com

This was posted in Bdaily's Members' News section by Gale and Phillipson .