Savers 'remain happy with cash investments'

Over half of all investors have their money stored as cash, according to the Fair Investment Company.

The firm reports that 25 per cent of investors are happy with their savings interest rates and will continue to invest their money in cash-based investment products this year.

Despite the low base environment leading 67 per cent of consumers to review their cash policies, 33 per cent have taken no action.

Nick Scarrett, head of pension and investments at Fair Investment Company, said there is "a lot of talk" of diversifying assets and opting for riskier investments in order to improve returns.

"This suits many people, but the bottom line is, most people are happiest in cash," he claimed.

"If you do want to stick to cash it is still worth reviewing your current investments and seeing if you could do better from a different product."

Earlier this week, David Kuo, director of the financial website Fool.co.uk, claimed that savers are effectively "handing money to the taxman" if they fail to use Isa accounts.

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2010-03-11 13:35:36 © Moneyextra.com