UK Savers Sit on £614bn in Excess Cash – But Are There Smarter Ways to Grow Wealth?
A recent Financial Times article highlights a striking trend: UK savers are sitting on more than £614 billion in excess cash, a figure that’s grown by a third since 2022. According to Barclays, around 15 million adults now hold more than six months’ worth of income in cash
Barclays attribute this surge in cash holdings to rising interest rates, which have made traditional savings accounts more attractive. But while higher rates have helped boost returns on cash, they’ve also masked a deeper issue: a growing investment gap in the UK.
The Cost of Comfort
Holding cash can feel safe, especially during recent periods of economic uncertainty and high living costs. But comfort can come at a cost. With inflation still impacting purchasing power, cash sitting in low-interest current accounts may actually be losing value in real terms. The FT article underscores the government’s concern: too much capital is sitting idle, rather than being channelled into investments that could support long-term financial growth and economic resilience.
Time to Explore Alternatives?
This is where alternative investments can come into play. While traditional stocks and bonds remain popular, alternative platforms offer a range of different investment opportunities, including CapitalRise, which offers access to asset-backed investments in prime UK real estate, specifically in the luxury residential development space. These types of investments are designed to deliver risk-adjusted returns and are backed by tangible assets in some of London and the South of England’s most valuable postcodes.
CapitalRise’s offering is not for everyone though, and is restricted to high-net worth, self-certified sophisticated, and corporate investors (see here for more about investor categorisation). It is important that individuals also assess their own risk/reward appetite and financial goals. But for those looking to make their surplus cash work harder, especially in an environment where the cost of living continues to rise, exploring alternative investment platforms could be a good place to start.
A Nation of Savers, But Not Yet Investors
The UK has long been a nation of savers, but becoming a nation of investors requires confidence, education, and access to the right opportunities. CapitalRise is part of a growing ecosystem of platforms that aim to bridge this gap, offering curated investment opportunities that are transparent, asset-backed, and aligned with a variety of investor interests.
Final Thoughts
Exploring a variety of investment options for spare cash savings could be the first step toward building a more resilient financial future. Whether through traditional markets or alternative platforms like CapitalRise, the key is to make informed decisions that reflect your goals and appetite for risk.
Please note: CapitalRise does not provide tax or financial advice and encourages investors to seek advice from an independent financial adviser. Nothing in this article constitutes a recommendation to invest or investment advice. You should always seek advice from an independent financial advisor before making any investments.
