Young British Adults Missing Out on Potential Investment Returns Due To Idle Cash

Young British Adults Missing Out on Potential Investment Returns Due To Idle Cash

This was a highlight of the findings presented in a recent survey, which was commissioned by WisdomTree ; the exchange-traded fund (‘ETF’) and exchange-traded product (‘ETP’) sponsor. With interest rates at record low levels and inflation climbing, those putting most of their money in traditional cash savings accounts are failing to see real returns as their money struggles to keep up with inflation, which currently stands at 2%. Savings accounts are now so low that some young British adults appear to be seeking out riskier asset classes to generate returns. When asked about the main drivers of long-term investment returns, property (22%) and savings accounts (20%) are seen as the main drivers, followed by cryptocurrencies (19%) and stocks (17%). Today, in the UK, the best interest rate available on an easy access savings account is just 0.65%. This compares to the 5.83% average annualised return over the last 10 years from the FTSE 100 and the 69.5% annualised return of bitcoin, the largest cryptocurrency, since the end of 2013. The outperformance of cryptocurrencies, relative to cash savings accounts and stock markets, has increased the investment appetite of young British adults with 67% having already invested or looking to invest in