Sixty nine per cent of savers have had enough of poor savings rates saying they will invest in riskier assets going forward, according to the latest research by Fair Investment Company.
The research has revealed that more than two thirds of investors are prepared to take more risk while rates remain so low in the hope of better returns on their cash.
When asked what type of investment product they were most likely to opt for, only 31 per cent of respondents said cash. The remaining 69 per cent said they would look at riskier assets, with more than half (55 per cent) of those respondents choosing structured products.
Other options respondents said they would choose included equity funds(14 per cent) and corporate bond funds (16 per cent).
"With the base rate still stuck at 0.5 per cent, savings rates are very poor," said Nick Scarrett, head of pensions and investments at Fair Investment Company.
"The average savings rate is currently just 1.63 per cent while the average cash ISA rate is 2.07 per cent. Even the top rates aren't paying much over four per cent when you fix for five years, so it is not really surprising savers have had enough of earning such little interest on their cash.
"The majority of those not looking to invest in cash are looking at structured products which, in the current financial climate, is understandable.
"This is because structured products offer a way of moving into riskier assets while keeping a level of capital protection; this makes them popular with investors looking for higher returns than on cash savings but not willing to take the risks involved with stock-market investing.
"And with the financial climate as it is, and rates more likely to fall further than increase, a diversified investment portfolio including some structured products is certainly worth considering.
"But remember, if you are considering structures - or any other investment product - you need to make sure you understand the product and the risks involved before making a decision."
