Many savers are choosing cash during a time of uncertainty, but many savings accounts still yield under two per cent. There is a better way, says Nigel Terrington

In periods of relentless noise, steep market sell-offs and economic uncertainty, the most sensible decision can be to do nothing. To accomplish this, you need to hold cash.

Cash, once derided as “trash” in the era of zero interest rates, is making an unglamorous but quietly powerful comeback. For the saver, it offers something that no ETF, bond or share can provide during turbulent times: optionality and calm. In volatile markets, the ability to respond, or to wait, is the most underrated benefit of all.

Yet for all this, savers are still being short-changed. High street banks, flush with deposits, are offering savers paltry returns, often well below the Bank of England’s base rate. At the time of writing, the base rate stands at 4.5 per cent and the rate of inflation in the economy is running at 2.8 per cent and is likely to rise. A quick scan of major UK retail........

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