Due to low interest rates, it seems wealthy individuals are looking to find money managers to bolster their savings.

Low rates on regular savings accounts have helped drive a 52 per cent jump in the proportion of affluent individuals seeking a wealth manager, findaWEALTHMANAGER.com has said.

The low rates has caused wealthy individuals to seek out wealth manager because they were sitting on large cash sums likely to be earning next to no interest.

During the second quarter of 2017, 44 per cent of findaWEALTHMANAGER.com’s users, 266 high net worth individuals, said they were holding cash, compared to 29 per cent in the first quarter. 

Similarly, the online matching service saw almost a trebling (from 10 per cent to 28 per cent) in the proportion who indicated they were the recipients of large sums of money that they were unsure what to do with for maximum gain – either through inheritance, bonuses, property sales or other windfalls.  

Due to the state of savings rates in the UK, the number of accounts available continues to swell, but all the while interest rates continue to slide. According to the firm, there are now reportedly some 1,700 savings accounts on offer. 

Bank of England figures suggest the average easy-access account yields only 0.15 per cent today (compared to 0.47 per cent at the start of 2016). The highest-paying yield is only around 1.5 per cent.

“Prevailing interest rates are bad enough if we are talking about ‘rainy day’ money, but when the funds are for education, retirement or something similarly important, savers really need to seek alternatives,” said Lee Goggin, co-founder of findaWEALTHMANAGER.com. “Leaving your wealth languishing at rock-bottom rates will mean effectively losing a lot of money year after year. Savers need to ensure their money is growing at least in line with inflation, and of course preferably by significantly more. Some are opting to lock up their money in savings bonds in order to squeeze more yield, but many would be far better off with a diversified investment portfolio. Even cash isn’t risk free, particularly in an inflationary environment, and there are a lot of options even the most conservative investors can discuss with a wealth manager."