More than 8 in 10 investors risk their savings’ value by keeping their money in cash accounts post Brexit, a wealth manager says, as it warned the finance sector that it must find ways to address misconceptions about investing.

A MoneyFarm survey found 81% of savers will keep their money in cash instead of investing it.

The digital wealth management company said that the potential of rising inflation and the Bank of England recent decision to lower interest rates means the real value of money kept in cash accounts will decline.

The firm said savings accounts had become unattractive, with average Cash ISA paying just 0.65% and the FCA recently warning that interest rates on some cash ISAs have already been as low as 0.01%.

Giovanni Dapra, CEO at MoneyFarm, said: “Savers may be nervous about investing or think that leaving their money in cash accounts is the easy choice, but in the current Brexit climate, cash accounts are a high risk option.”

“The financial services industry as a whole needs to address the concerns and misconceptions of savers about investing. Technology allows fund managers to create tailored portfolios for clients, so investors can maximise returns while still operating at a level of risk with which they are comfortable.”

According to the survey, many investors leave their money in cash because they feel that investing in other asset classes is too cumbersome (11%), too difficult to decide what to invest in (18%) or too risky compared to cash (37%).

Ms Dapra said: “The post-Brexit market superficially makes savings in cash accounts more attractive to risk averse investors, but over time that cash will actually underperform and a properly balanced portfolio including bonds and equities will outperform.

“With the Bank of England’s recent decision to lower interest rates, savers risk losing even more money in cash accounts, especially if inflation rises.

“Quantitative Easing will also lower the cost of funds for banks further pushing down ISA rates.”