While the return might be modest, it generally aims to outpace inflation and provide some growth. On the lending side, banks lend out deposited money to individuals and businesses, charging interest on these loans. This interest rate is typically higher than the savings rate to cover operational costs and generate profit for shareholders.

In Ireland today, we face significant challenges in both these areas. Banks offer minimal returns on savings accounts, leaving savers dissatisfied as their money fails to grow significantly or keep pace with inflation. Despite these low savings returns, borrowers face high interest rates on loans and mortgages. This discrepancy arises from banks needing to recuperate from past financial crises and balance their books. As a result, borrowers experience financial strain due to elevated borrowing costs, while savers see diminished returns.

Financial Brokers can provide valuable solutions in this challenging landscape. They offer access to a wide array of investment options that go beyond traditional savings accounts. These options span various risk levels, from low-risk investments that preserve capital to higher-risk investments aiming for greater returns. Brokers help match investment choices with financial goals, risk tolerance, and investment horizon, ensuring informed decisions that align with individual needs.

Brokers also play a crucial role in optimising returns. They can identify investment vehicles that potentially offer better returns than traditional bank savings accounts, including stocks, bonds, mutual funds, ETFs, and other financial products. By investing in higher-return opportunities, individuals can work towards building their own financial balance sheet and improving their wealth over time.

Moreover, Financial Brokers offer comprehensive financial planning. They develop holistic financial plans that incorporate investments, savings, and other financial strategies, ensuring individuals are not solely reliant on bank savings but are actively growing their wealth. Brokers provide continuous support and advice, adjusting strategies as needed based on market conditions and changes in personal financial situations.

In summary, while traditional banking offers limited returns on savings and high borrowing costs, Financial Brokers provide valuable alternatives. They offer access to diverse investment options that can enhance financial growth and help build wealth more effectively. Don’t let savings stagnate in low-interest bank accounts. Explore the investment opportunities available with the guidance of a Financial Broker and work towards optimising your financial future.