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Zombies attack London
Zombies have attacked London! Unlike the typical zombie, these type of zombies can seriously affect your wealth.
We are - of course - talking about zombie accounts. These are accounts which are dead to new funds, and where the interest rates have typically fallen to next to nothing. Over time inflation is goring it way into the purchasing power of your funds.
RateSetter, one of the UK's leading peer-to-peer providers, have been publicising - with graphic effects - zombie accounts and how RateSetter can be the solution. With 5 year interest rates today at 5.6%, after deductions but before tax, these products can keep the effects of inflation at bay.
As we highlighted previously, with inflation still significantly greater than the Bank of England base rate, savers are effectively loosing money in zombie accounts. If inflation is 2% higher than your savings rate, then after 5 years your money will have lost just under a tenth of its value, and after a decade it will have lost just under a fifth of its value.
RateSetter is the only established peer-to-peer provider where every lender has received every penny of expected capital and interest.