Interesting findings from Chase Nearly 3 in 5 UK consumers (57%) are keeping most of their money in current accounts rather than savings accounts. The main concern? Access to their funds. This trend highlights a crucial gap in financial planning: 1. Missed growth opportunities 2. Potential erosion of value due to inflation 3. Overlooked tax-efficient options While easy access is important, it's vital to balance this with long-term financial growth and tax efficiency. This is where strategies involving EIS (Enterprise Investment Scheme) and VCTs (Venture Capital Trusts) can play a role: EIS Benefits: 1. 30% income tax relief 2. Tax-free growth 3. Loss relief if investments underperform VCT Advantages: 1. 30% income tax relief 2. Tax-free dividends 3. Tax-free capital gains Yes, these are longer-term investments, but they offer significant tax benefits that could boost overall wealth. Plus, they can be part of a diversified portfolio that includes more liquid assets. At Tax Hub, we specialise in creating balanced strategies that address immediate needs (like access to funds) while also focusing on long-term growth and tax efficiency. How are you balancing liquidity needs with long-term financial planning? Have you considered the role of tax-efficient investments like EIS or VCTs in your strategy?
Nearly three in five (57%) UK consumers admit to keeping the majority of their money in current accounts rather than savings accounts, with some stating concerns about not being able to access money, Chase has found #savings #finance #banking #chase
