Where Should I Put My Cash?

According to recent statistics, prudent savers are putting aside more cash than ever before. But, with recorded low-interest rates, these funds are eroding due to inflation.

Is this true? Let’s look at a few alternative methods to cash savings and the possible advantages, hazards, and measures to take if you use them.

  • Stocks and shares
  • Bonds
  • Peer-to-peer (P2P) lending
  • Crowdfunding
  • Cryptocurrencies
  • Pension plans

Stocks and Shares

One of the most common ones to cash in is investing in shares. The benefit is that you may get more excellent progression over time than you would from cash savings. Equities can be particularly appealing when cash interest rates are low, as they are now.

The negative is that stocks might lose value, causing you to lose money-perhaps all of it.

Over more extended periods, stock markets outperform most cash deposits. You may also diversify your risk by investing in a variety of different securities or through a fund. This does not remove the risk of loss but can cut it. You can keep the danger under control if you prepare your approach and seek help.



If investing in equities appears too risky, consider investing in governmental or corporate bonds. A bond is a debt to the government or entity issuing the bonds. You provide them with cash for a year, and they repay you with interest.

As a result, bonds are often employed to create a guaranteed return over a certain period. Bonds are sometimes portrayed as less risky than stocks, but the truth is a little more complicated. Bonds issued by stable governments are the safest, while bonds issued by developing markets or emerging enterprises are riskier but should provide better yields. As always, it’s a matter of weighing the risks against the possible advantages.

Pension Plans

Although not an investment class in and of itself, a pension scheme can serve as a medium-term investment for people reaching pensionable age. Pensions may be accessible at any age, starting at 55; if you’re searching for investments for the next five to ten years and are in your late 40s or older, don’t rule out your pension.

Anything you pay in gets a 25% boost from tax breaks, and all growth is tax-free. Remember that there are drawbacks to receiving your pension early, so seek counsel before proceeding.

Peer-to-peer (P2P) Lending

When reconsidering where should I put my cash, peer-to-peer (P2P) lending is a recent growth variant of the bond idea. Individuals and corporations can make loans through an online lending platform and get reimbursed with interest.

Peer-to-peer lending has gained popularity because it offers higher interest rates than bank savings accounts. In the way they are marketed to users, P2P platforms appear to be like savings accounts, but this is not the case. While the FCA authorizes them, they are not covered by the Financial Services Compensation Scheme (FSCS) if the provider fails, so you might risk losing your cash. Returns forecasted are likewise not guaranteed. Nonetheless, the major platforms can provide consistent profits.


The concept of crowdfunding is similar to peer-to-peer lending in that you invest your money in a new company or initiative. Crowdfunding based on equity gives you a stake in the company and, therefore, a share of its profits.

Oil and Gold


If you think about where should I put my cash, oil and gold are assets with their enigmas. Despite their notoriety, they are not usually a quick way to wealth. Oil and gold are chalk and cheese as investments, with oil being volatile and gold being stable in times of crisis.

Oil prices are very volatile due to various factors: supply, demand, and international diplomacy. Oil stocks, futures, or options might thus be an excellent asset for one portfolio’s narrow “high risk’ slice. Returns may be skimmed into safer investments, and losses can be restricted to the tiny amount invested here.

Gold tends to function for the rest of the economy. In other words, while the economy is prospering, gold tends to lose or stagnate in valuation. But, when equity markets tumble, and instability looms, gold tends to gain value since it is a last-resort investment. As a result, gold is an excellent counterbalance to volatile commodities such as oil, so keep this in mind while maintaining the portfolio.


Cryptocurrencies are among the most unpredictable investments throughout the decades, with an incredible high around 2018 followed by a challenging ride. There was the minimal prospect of a replay of the period when Bitcoin created billionaires overnight, albeit it has shown a 15% increase over the last two years, albeit with many ups and downs. IFAs do not provide cryptocurrency advice, so you do so at your own risk. File this under ‘extremely volatile.

Bottom Line

As long as interest rates remain low, there is no light at the end of the tunnel for cash. So, where should I put my cash? According to recent statistics, prudent savers are putting aside more cash than ever before. However, these funds are eroding with record low-interest rates due to inflation. If you have extra cash in savings or income, be sure you have a plan for how you want to invest it. Don’t take the path that appears to give the most significant profits; the associated risks may not be appropriate for your objectives. Some alternative methods to cash savings are stocks and shares, bonds, peer-to-peer (P2P) lending, crowdfunding, cryptocurrencies, and pension plans.

If you are looking for places to put your money or about investing your money then check out our article of ‘4 types of investments‘ here:

4 types of Investments


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