Why Does Yomo Exist?
We were all told as kids that we should put our savings somewhere safe. Somewhere they could grow. Never to leave them under the mattress to lose value as inflation kicks in.
The process was pretty simple back then. Earn it. And then put it in the bank (to earn a decent rate of interest), government bonds (less easy to access, but rock solid with interest rates a little higher than the bank), or the stock market (for higher risk and potentially higher returns).
And then the context changed. The 2008 financial crisis and subsequent credit crunch created an era of government cutbacks and a commitment to keep the price of borrowing at rock bottom. It was labelled a time of ‘austerity’.
This was great news for people with mortgages and companies with large borrowings who were saved from financial implosion by the slashing of interest rates. But, the pain was passed to those who had been responsibly saving and investing while living within their means.
Suddenly, interest rates offered little more value than those notes stuffed under the mattress. Interest rates from government bonds imploded and while the stock market rose it is as risky and opaque as it has ever been.
What began as a short-term fix has now seen ten years of rock-bottom interest rates, where the ‘real’ value of money has fallen year after year as inflation remains significantly greater than the return on savings.
All of which has left a generation of savers frustrated and desperate to find a sensible home for their money.
The same question is being asked of fund managers, bank managers and financial advisers time after time:
How do I get a better return on my money without locking my cash away?
And having asked it ourselves on countless occasions, we decided to do something about it. Which is why we created Yomo.
Yomo has a single purpose. To help savers and investors make the most of their money without locking their cash away.
We’re launching a simple product offering 2.75% interest with easy access. That’s 2% + the Bank of England base rate (currently 0.75%). To top it off savers can get started from £1 with no limits or lock ins, and interest will be paid daily.
In a stroke, it makes sense to save again. And when the Bank of England base rate rises, creating an even more appetising home for your savings, Yomo rates will rise too.
Want to know more? We’ve tried to answer all your questions on our FAQ page. If you’re interested in how we can offer 2.75%, or how we keep your money safe, then we recommend paying this page a visit. If you can’t an answer to your question there, then please drop us a message.