- The real value of cash has been massively eroded in the past few months
- But cash acts as a great diversifier in a difficult environment
- In a recession, you might want to review or increase your emergency savings
If you used to furiously shop around for savings accounts, frowning at the meagre rates offered by your bank, this year’s developments will have left you understandably excited.
While good news for investors has been hard to come by, the steady climb of interest rates on savings accounts has made cash look increasingly tempting, at least on the surface. As at December 2022, you can get up to 2.9 per cent on an easy-access savings account, which is not something to sneeze at when compared to last year’s rates.