BlackRock MyMap

MyMap helps you do more with your savings

Lockdown has created a country of savers

A staggering £1.5 trillion is sitting in UK savings accounts right now. 1But that excess cash isn’t working for savers with interest rates so low. We are also seeing inflation on the rise and that means higher prices, which can reduce your savings’ purchasing power. In 2020, the 12-month inflation rate was 0.6%, meaning the country’s £1.5 trillion in savings would have depreciated by £9 billion when adjusted for inflation2.And by January this year, inflation had risen once more to 0.7%2 - knocking another £1.5 billion off savers’ real spending power.

We all want to see our savings stretch further. But as the economy recovers from Covid-19, we are likely to see prices rise and the real-world value of our money fall.

Is investing the best way to grow your capital?

Investments in the right stocks and bonds may have delivered better returns than cash and mitigate the risks of rising inflation. For example, let’s compare £10,000 kept in a bank account with a portfolio of stocks and bonds between 2010 and 2020.

The purchasing power of the £10,000 cash investment is eroded by inflation to the tune of £1,300 over the 10-year period, despite inflation not being at particularly high levels historically.3

The £10,000 investment in a portfolio of 60% stocks and 40% bonds, however, has almost doubled in that time, reaching £18,500 by the end of 2020.4 Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

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The industry is rightly concerned about highlighting the risks of investing but there is a balance to be struck. Holding cash for the long term is unlikely to meet your goals and allow you to retire one day.

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Joe Parkin Head of Banks and Digital Channels

Could your savings be doing more ?

Are you a dedicated saver who wants your money to do more in the face of rising inflation and low interest rates, but are too busy to build a portfolio of investment funds? Perhaps you’re looking for an introduction to the world of investing?  Or are you an experienced investor who wants a one-stop investment that does more for your retirement fund and your family’s future?

If you’re among the many savers who could benefit from investing, consider BlackRock’s simple, cost-effective and risk-managed MyMap range of funds – investment products designed to help you do more with your money.

1Bank of England Database - November 2020
2Office for National Statistics – Consumer price inflation, January 2021
3Bank of England and Office of National Statistics, as of 31 December 2020. Monthly interest rates on savings calculated from the BoE deposit rates estimates on instant access savings, excluding unconditional bonuses. Note: Methodology changed from 2013. Inflation adjustment based on UK CPI index harmonized and seasonally adjusted.
4Bloomberg, as at 31 December 2020. Portfolio performance is a composite of 60% MSCI All Countries World Index and 40% Bloomberg Barclays Global Aggregate Index in GBP adjusted with inflation and is shown cumulatively between 31 December 2010 and 31 December 2020 with no fees or transaction costs embedded. Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.