11 hours ago
Millions of Brits could be nearly £10,000 better off by switching savings accounts
MILLIONS of Brits could be nearly £10,000 better off as banks directly tell them how to best invest their savings.
Chancellor Rachel Reeves unveiled the move as part of the biggest shake-up in a decade of financial regulation in a summit with executives from the sector.
Banks will send investment opportunities to savers for the first time from next April to help boost their savings pot.
The changes will mean that anyone with money sat in a low-interest savings will be offered advice to switch to stocks and shares.
Industry estimates say more than 29 million adults have their savings sat in an account offering less than 1 per cent.
The average return for stocks and shares accounts is around the 9 per cent mark.
The Treasury - who unveiled the plans as part of their Leeds Reforms - say that under current trends millions of people could be more than £9,000 better off in twenty years time.
Those who invest £2,000 today could have their hands on £12,700 if they put their money in stocks and shares. This contrasts with just £2,700 in a cash account at 1.5 per cent.
High Street banks and financial institutions will be getting behind an advertising campaign to help consumers.
Ms Reeves set out a host of reforms for the financial sector which is seen as one of the top eight drivers of growth for the UK as identified by Industrial Strategy.
She said: 'We fixed the public finances and stabilised the economy.
'Now we need to double down on our global strengths to put the UK ahead in the global race for financial businesses - creating good skilled jobs in every part of the country and helping savers' money go further through our Plan for Change.'
Emma Reynolds, Economic Secretary to the Treasury, said: 'Helping people take advantage of better returns from investing is key to better financial health, giving them a stake in a growing economy and connecting promising businesses with capital.
'These reforms will make the UK the best location for financial services firms and tear down barriers to investment to growing our economy and making families better off.'
The Leeds Reforms will cut red tape for the sector in a bid to drive investment from markets such as America and Asia.
The Chancellor will make her Mansion House speech tonight where she will rip up financial red tape to make the UK a more attractive place to do business for financial firms.
But City grandees will be listening out for reassurance that wealth taxes will not be imposed in the Budget - to avoid entrepreneurs and the wealthy from fleeing the country.
