These days it comes as no surprise that the leading institutions like Lloyds Bank and National Savings & Investment are reducing their interest rates once again, leaving the UK population with less of an incentive to save than ever before. With Brexit looming on the horizon, interest rates seem destined  a downward trajectory for some time to come. Just this week The Monetary Policy Committee stated that due to the ‘ongoing political events’ that there may be “a further period of entrenched uncertainty”. The committee then concluded that set against a backdrop of a weak global economy, it’s likely that growth and inflation will continue to slow. To put it succinctly, UK interest rates are looking to stay lower and for longer at that. Bad news for the UK’s everyday investors. Research shows that nearly 50% of the UK’s adults are saving less than £50 a month. But with an average easy access rate of 0.64%, who can blame them? With the UK’s population becoming more and more despondent about the state of interest rates across the board, it’s getting harder for people to provide for their financial futures.

Thankfully, these days UK investors have more choice in terms of where they put their money, and no longer have to feel tied down to traditional financial institutions like banks and building societies. P2P lending companies like The House Crowd , for example, are able to facilitate much more flexible and attractive investment propositions. Here at The House Crowd, we’re strong advocates of going against the grain, especially when it’s in the best interest of our investors and providing for their financial future. That’s why we’re raising the interest on our Fusion Account (formerly known as 30 Days Access) to 4.5% for the first six months. That’s a 0.5% increase on the national average of 4% p.a.

Speaking in a recent interview, here’s what our founder and CEO Frazer Fearnhead had to say about the matter,

“It’s not all doom and gloom. We don’t have to put up with the paltry interest rates from traditional providers, because we now have more investment options. We’re proud to be able to do the opposite of the traditional banks by increasing the rate on our fast access account for new investors. We’re doing all we can to get British people making provision for their future – it’s time other providers did, too”

With the P2P sector in general poised for significant further growth in the next few years, it looks like its increasing popularity with investors is showing no signs of slowing down. More and more people continue to ditch traditional institutions in favour of alternative finance companies year on year. In fact, a recent report from The Cambridge Centre for Alternative Finance stated that UK P2P lending industry is growing by 34% on annual basis!

 

If you would like to find out more about The Fusion account, please click here.

 

If you have any questions please feel free to contact our member-support team, who would be more than happy to help.