She added it would take a while for these consumers to regain the confidence to move out of cash.
Chartered financial planner at Rowley & Turton, Scott Gallacher, agreed, adding: “It may simply be that people are being more savvy and see these cash management services as a way of avoiding being ripped off by the banks and building societies reducing rates.
“Personally I think this is dangerous in terms of inflation eroding the real value of your wealth, which is worrying given that most people need to be growing and maintaining the real value of their wealth to help fund what could be a 30- or 40-year retirement.”
Martin Bamford, director of client education at Informed Choice, said sustained low interest rates meant investors were scrambling around for every basis they could get.
He added: “With increasingly busy lives, the ability to pass responsibility for shopping around and getting the most competitive rates is bound to become more popular.
“There’s still something incredibly reassuring about holding money in cash, despite the poor returns, negative in real terms once inflation is factored in over the longer term.”
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