Rock-bottom interest rates mean the majority of cash accounts are losing value in real terms, according to analysis by Equiniti Group (EQ).

The technology-led services and payments specialist was responding to FCA data that showed 37% of adults with more than £10,000 in investible assets are saving wholly in cash accounts, with a further 18% mostly invested in cash.

EQ suggested that while those with larger assets are less likely to keep them in cash, there are still a “surprising” number of people with significant sums of money being eroded in real terms in cash accounts.

The group’s analysis also highlighted that more than a third of those with investible assets of £50,000 to £100,000 hold the full amount in cash, with a further quarter (24%) holding most of their assets in cash. Furthermore, a third of those with investible assets of £100,000 to £250,000 hold savings either fully in cash (15%) or mostly in cash (18%).

EQ has called for greater access to ‘Sharesave’ schemes, to give employees an accessible route to confident investing in the stock market

EQ Boardroom CEO, Paul Matthews, commented: “The FCA figures are clear evidence that too many people are leaving substantial assets in cash accounts where they are losing value. More can be done to encourage people to take their first steps into investing to make their money work harder.

“Sharesave schemes are a great way to get people who might otherwise take the path of least resistance and leave their money in cash savings, to consider taking their first steps towards investing in stocks. They offer employees a low-risk method of investing in their employer and often give participants the confidence to try other forms of investing.

“We urge employers to consider the value that their employees could take from the establishment of these schemes – not to mention the boost to productivity and engagement that owning a share in the company you work for can bring.”

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