For much of the period since the 2007-08 financial crisis, savings accounts were barely worth it. Ultra-low interest rates meant limited or negative real returns on cash, at a time when stocks and bonds generally marched higher.
But now, even dyed-in-the-wool stockpickers will struggle to ignore the lure of the savings market. In the UK, you can lock in interest rates of 6 per cent on fixed-rate bonds of between one and three years, and even 5 per cent from some easy-access accounts.
By giving up between 25 and 50 basis points, savers can shelter interest from tax in a cash Isa. Max out your allowance, and gilts’ exemption from capital gains tax offers comparable near-guaranteed returns from medium-duration government bonds, providing you hold to maturity.