Ahead of the Bank of England announcement on interest rates, a consumer attitudes survey from True Potential LLP revealed almost half of the population still hold all their savings in cash.
A survey of more than 2,000 people has shown just 11 per cent have moved their investments into stocks and shares where greater value can be achieved, and 8 per cent have chosen to invest in property.
These figures increase among women, with 50 per cent choosing to keep all of their savings in cash, and just 7 per cent investing in stocks and shares, compared with 14 per cent of men.
Daniel Harrison, senior partner at True Potential, said: “Interest rates decreased to this record-low level in March 2009 and since then savers have been hard hit.
“Stocks and shares investments have consistently performed better than cash, however as our research shows, savers still prefer to put their money into cash savings accounts.
“This means that in almost all cases, the fund cannot keep pace with inflation and so is actually reducing in value. The only real winners with cash savings are the banks who use these vast reserves to lend money at a much higher rate.
“We need to see a move from saving in cash alone and a greater use of stocks and shares investments, especially as the new Isa means the average family can shelter £30,000 per year from the taxman.
“For this to be possible, it needs to be as easy to save as it is to get a loan and that means there is a need for greater education around ways to save and technology to make saving and investing a simple part of everyday life.”
