Category Archives: Pension

Money On Deposit? Make It Work For You Now!

Do you have money on deposit? Are you just leaving it there? Have you considered starting a regular savings plan or putting a lump sum you have accumulated in an investment? If not, then you really need to understand why now is such a great time to start saving and making your money work for you.

Don’t get me wrong, everyone should have some money on deposit (ideally 3 months net salary). Deposit accounts are accessible and won’t decrease in value (in the short term!).

Current Dilemma

The problem is that for almost 12 years deposit rates have been in free fall. This means banks, building societies and credit unions cannot give you a real return on your savings.

In addition to this, Central Banks (who control monetary policy) need to keep interest rates as low as possible for at least another 5 years. This is to help keep the cost of borrowing low so that businesses and households can function and grow.


So the only solution to growing your savings is to invest.

I’m not suggesting people start emptying their deposit accounts and start trading stocks and shares every morning (this is not Paddy Power stuff!!).

An investment should be spread into a range of diverse assets (i.e. stocks, bonds, commodities and property) and the proportion in each asset class should be determined by what level of risk you are comfortable with and how long you would like to invest for.

There are a wide variety of very attractive regular savings plans and investment bond options available. The fund or funds you invest in is very specific to your needs and objectives so it is important you meet with a qualified advisor who will help you establish the best fit for you.

So, what kind of returns should you expect?

Historically those investors that have had more of their fund invested in equities (i.e. global stocks and shares) have performed the best.

But even the more conservative savers have outperformed deposit rates by taking on a cautious level of risk.

Performance table

The key to this is to choose a fund that you are comfortable investing in. And one which is designed to help you reach your financial goals.

Next steps

The next step to take is to talk to a financial adviser – you can contact us here at Coleman Financial Planning.

After you complete a short investment questionnaire we will help you decide what your saving/investment goal is, how much money you can put away and for how long.

Most importantly we will outline the product options and choices that are best placed to deliver on your goals.