Regular UK investors believe savings rates are still not high enough to tempt them to move more money into cash.
Just 35% say they have put more of their investments into cash accounts since the Bank of England started hiking the base rate in December last year with five increases taking it from 0.1% to the current 1.25% with further increases expected, according to new research from fund manager GraniteShares.
Base rate rises have triggered intense competition among savings providers with rates being increased regularly – but the research shows regular investors are not impressed.
Just 4% say they have put a lot more into cash while 31% have put a little more into cash in comparison with shares while 65% say rates are still too low.
One of the main reasons for this is that after inflation, interest rates in cash accounts are still firmly in negative territory. The Bank of England recently predicted UK inflation will hit 11% this year.
Most regular investors are using money in cash accounts to fund share trading – 61% who have bought in the past year say they have used money in cash accounts to do so.
Nearly half (47%) say they have paid for shares from their salary while 5% have switched from cryptocurrency.
There are some worrying signs in the research with one in 20 (5%) who have bought shares in the past year using credit cards to fund their dealing and 3% saying they have taken out loans.