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Recently, major banks like Nationwide (Bank of England) have lowered their savings interest rates. This comes at a time when inflation is high, which means your savings are losing value in real terms. So what does this mean for you as a saver? And what are the alternatives if you want your money to grow? In this blog, we’ll explore the recent rate cuts, what they mean for savers, and the different ways to earn better returns, ranging from crypto and real estate to platforms like Yieldfund.
In many European countries, savings interest rates have been lowered. For example, in the United Kingdom, the Bank of England reduced its rate from 4.75% to 4.5%, after which banks like Nationwide lowered savings rates on dozens of accounts. In Australia, savings rates have also dropped: the central bank cut its rate from 4.35% to 4.10% in February 2025. These types of measures are intended to stimulate the economy, but for savers, they result in lower returns.
A lower interest rate means you earn less return on your savings, while inflation has risen in many countries over the past few years. As a result, the money in your savings account is losing value over time. In fact, saving now actually costs you money, because rising prices reduce the value of your savings faster than the interest can grow it.
Low interest rates mainly affect people who want to keep their money safe in a savings account. Many believe their money is secure and growing thanks to interest, but with inflation outpacing returns, the value of that money is actually shrinking.
For instance, if you have €10,000 in your savings account earning 1.25% interest, you would earn only €125 in a year. But if inflation is 3%, the real value of your money drops by €300 that year. That means you’re losing buying power, even though your money is “safe” in the bank.
Banks cutting interest rates also makes saving less attractive overall. More and more people are looking for better ways to grow their money, because simply saving isn’t enough to keep up with the rising cost of living.
Now that you understand the current situation, let’s look at some alternatives that may offer better returns. Each has its own pros and cons. Here are five popular options:
Cryptocurrencies like Bitcoin, Ethereum, and other altcoins have become a popular investment option in recent years. Because of their high volatility, crypto prices can rise sharply, offering the potential for big gains.
However, this also means the risk is high. Values can drop just as quickly as they rise. If you’re willing to take risks and have a good understanding of the market, crypto can be an exciting alternative to traditional savings.
Investing in real estate has long been a way to earn stable returns. You can invest in residential properties, commercial buildings, or real estate funds. Real estate often provides steady rental income and can increase in value over time.
On the downside, real estate usually requires a large initial investment. Managing properties can be time-consuming and expensive, with maintenance, taxes, and the risk of vacancies to consider. Like all markets, real estate can also be unpredictable.
Gold has been considered a safe investment for centuries. Its price often rises during times of economic uncertainty, and it can help protect your wealth from inflation.
The downside is that gold doesn’t generate any income, interest or dividends. It can also be harder to sell quickly compared to stocks or crypto.
Buying stocks is one of the most common ways to build wealth. You can earn returns through rising stock prices and dividends. Over the long term, stock markets have generally outperformed savings accounts.
However, stock markets can be volatile. You might experience losses, especially in the short term. Successful investing in stocks requires patience and a solid understanding of the market.
There are platforms that offer alternative investment opportunities through automated trading strategies that leverage market volatility, particularly in the crypto space. One key advantage of these solutions is that investors don’t need to manage their portfolios actively.
The platform handles trading and risk management, making it attractive for those seeking potential returns without the need for in-depth market knowledge or time-intensive involvement.
| Alternative | Pro’s | Con’s |
| Cryptocurrency | ✅ High potential returns ✅ Access to a growing global market | ❌ Very volatile ❌ Requires market knowledge |
| Real estate | ✅ Stable rental income ✅ Can protect against long-term inflation | ❌ High upfront investment ❌ Time-consuming management |
| Gold | ✅ Safe in uncertain times ✅ Inflation protection | ❌ No income or dividends ❌ Less liquid |
| Stocks | ✅ Growth and dividend potential ✅ Proven long-term returns | ❌ Market fluctuations ❌ Requires patience and knowledge |
| Quantitative trading platforms | ✅ Hands-off investing ✅ High potential returns | ❌ Less control than when acting on your own ❌ Depending on the performance of the algorithm |
For those interested in seizing opportunities in the volatile crypto market but lacking the time or experience to actively trade, there are now alternatives available. Thanks to technological advancements, it is possible to invest through platforms that completely take over this work. These platforms use smart algorithms and advanced strategies to respond optimally to market movements. Yieldfund is a quantitative trading company that can achieve returns of up to 60% per year. We offer access to professional trading strategies without the need to follow the market daily or have in-depth knowledge of crypto.
Falling interest rates and rising inflation are making traditional saving less rewarding. Instead of leaving your money in a low-interest savings account, consider alternatives like crypto, real estate, gold, stocks, or platforms like Yieldfund. Each option comes with its own risks and benefits, but they all offer the potential for better returns than saving alone.
If you’re looking to grow your money without being hands-on every day, Yieldfund offers a compelling solution. With smart technology and strong return potential, it allows investors to benefit from market movements without needing to trade themselves.
Want to learn more about our strategies and how Yieldfund takes the worry out of investing? Feel free to contact us. Discover how we invest in the future.
Disclaimer: This text is for informational purposes only and does not constitute investment advice or a recommendation.
Entry price
23.6002
Exit price
23.7330
Date
May 16, 2025
Entry price
2.3620
Exit price
2.3487
Date
May 16, 2025
Entry price
170.6731
Exit price
171.6100
Date
May 16, 2025
*The trade percentages are the net percentages. The trade costs have already been deducted.
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To help you choose the right investment