Low interest levels on standard savings accounts are causing those putting money aside to seek out risky investments, one specialist has claimed.
James Booker at comparison site Which4u.co.uk suggested that consumers are looking towards investment bonds, with many showing more of an “appetite for risk”.
“People are not happy with the return they get on a standard savings account and investment bonds are becoming increasingly interesting,” he remarked.
These types of investments are reliant on the stock market and Mr Booker said that fluctuations since May could have left individuals 20 per cent better off than three months ago.
A rise of 200 per cent in the number of investment bonds could indicate the general public would rather risk having nothing than current rates offered by traditional savings accounts, he added.
Recent research by comparison site Unbiased.co.uk has implied that optimism for the economy has resulted in people taking a more carefree attitude to their finances. The study found that new debt had risen to £2.7 billion in the first quarter of 2009.
By Francis Finch