During the pandemic, we’ve all thought about many things, including our savings and savings accounts. Negative interest rates - is this not a reason to find more profitable uses for your money?


Are low interest rates hurting your finances? Palatine
Spoiler alert: yes, they are.

But there is a difference between thinking and doing, even if our thoughts are beneficial. Most Brits don’t want to deal with changing their current account, because, in their opinion, it’s very difficult and time-consuming. Saving time isn’t equal to saving money. Many depositors simply lose savings due to their fears and laziness. It's time to reveal the secret: everything can be much easier than it sounds (even switching from cash to stocks and shares in an ISA).

Winners and losers

If there is inflation, then there are winners who benefit from it and losers who suffer from it. If you are a debtor, you are a winner, and if someone owes you, then you are a loser.

Suppose you have a low-interest bond with a long time horizon (more than 10 years), and suddenly you’re dealing with low interest rates, and your investor friends buy more profitable bonds. Sad.

Ok, different situation. You took out a fixed mortgage at a low interest rate. Inflation is likely to increase the value of the house, but the monthly loan payments will remain the same.

Thus, investors who are worried about inflation may be better off not purchasing individual bonds (especially long-term ones) and may look to mutual funds and Exchange-traded funds (ETFs).

Some moves to consider during a period of low interest rates

There are a few steps that might greatly affect your welfare, depending on your situation.

Use the most of your ISA allowance

In terms of taxation, ISA is a simple and effective way to make your money work more for you, whether you invest in stocks and shares, save money or both. At the moment, if your contributions don’t exceed the annual allowance of £ 20,000, then once in an ISA, your money will be forever exempt from taxes. Use it - don’t lose it.

Try to invest

‘Savings’ and ‘investments’ are not the same, as savings depend on current interest rates and investments depend on market conditions.

Despite the fact that it isn’t worth comparing these two concepts, unlike savings, investments provide an opportunity for growth that outstrips inflation and gives real value in the long run.

There are no guarantees in anything related to investments. If you want higher returns, you usually need to be prepared for higher risk.
Before investing money anywhere, be sure to study all the information.

Investments can not only grow, but also decrease. So, if you do this and invest in stocks and shares, your income will probably be higher than the ISA cash interest rates can offer you.

It will be much easier for you to start investing with the help of an online investment app. The Orca app has a lot of helpful features like its education section, which is chock full of useful investing tips and more.


This concept is simple enough. The returns on the initial shares of the first year of investment are invested in the second year, just like any other potential return. As a result, you’ll receive additional profit from the total amount. If you can reinvest any income from profits, then this means that your money can grow exponentially. Don’t forget that there is a risk of losing your investment, as it depends on the market situation. In the long term, thanks to the compounding effect, even a small investment can ultimately grow into something significant. Let your money work to achieve your financial goals.

Risk warning

As with all investing, you may get back less than you put in. Your capital is at risk. Be sure to conduct research on stocks that you want to invest in. If you are unsure of this you should seek advice from a professional advisor. Orca does not provide investment advice.

Orca is an appointed representative of RiskSave Technologies Ltd, which is authorised and regulated by the Financial Conduct Authority (FRN 775330).