Interest rates are so low… am I effected?
What is an interest rate?
You may be wondering what interest rates are and how they effect you. Believe it or not, they do in many ways. We all generally know an interest rate is a percentage charged on the total amount you borrow or save from a bank.
I think we all know, for the past few years. Well, the past 15 or more really, interest rates have been so low.
Because of this, our savings are not really working for us are they?
How am I affected?
The change may be very small and it seems insignificant, but even a small change in interest rates can have a big impact. It’s important to keep an eye on whether they rise, fall or stay the same.
Borrower – the interest rate is the amount you are charged for borrowing money. Usually a percentage of the total amount of the loan. The interest is what you pay for the privilege of borrowing.
Saver, it’s the same except the interest is paid to you! Sounds good doesn’t it? It’s the bank that have the privilege of your money.
The problem
Now, the current problem is the interest rates are so low!! So, basically, you are not getting anything back for the privilege of the bank having your money! That doesn’t sound fair does it?
Banks and the interest rates
The interest rates were slashed from 0.75% – 0.25% and then again to 0.1%!!
The lowest on record
This is the lowest on record. It is hard to believe they are so low. But they are said to be looking at 0% by Autumn 2021. Scarily, it could even possibly go into negative. This means below 0%!
How is that possible?
This is a scary time for saving your money with banks. I want to bring this to your attention, because may be now is the time to think differently about your money.
Think differently
What do I mean, by think differently?
There are so many alternative ways to invest your money. If you have money to invest you want it to work for you don’t you? You want it to bring a return on your investment, don’t you?
I am guessing the answer is yes?
As a result, I think we can all agree, the banks are not the way to go, right now anyway. What do you think?
What can you do?
To be honest, there are so many options available to you. So, please do not worry!
What we do is work with our investors, so that you have the confidence to know your money is working for you.
You will not be getting negative rates, put it that way!
If you want to have a conversation on how we may be able to help please just get in touch here.
Take a look
Here are some of our projects. Have a look at them and take a look at this feedback from one of our clients:
‘James and Laura worked very hard to source a property, fully renovated it and sell it for us.
To say we were impressed, is an understatement. Their work ethics, the quality of work and the return on our money is fantastic. We would definitely recommend them for anybody who wants good, honest, hardworking people who actually work to make you money’
Karen and Ross McKinley
You can see they are very happy and because of this it makes us happy.
Take a look for yourself at our You Tube channel
Be back soon
We will keep bringing you up to date information about Sheffield, I Squared Properties and what we are up to and new developments we are taking on.
Speak soon
Laura and James
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