One in five people save less money each following the Bank of England’s interest rate cut last month, found peer-to-peer lender ThinCats.
Policymakers sliced core rates down to 0.25 per cent at the beginning of August, sparking a mass of providers to slash saver returns.
Now two in five Britons are reassessing their approach to savings and investments – with many opting to take more risk amid low income from traditional saving products.
More than one in 10 say they are putting most money into gold to protect portfolios.
And one in 14 say they are more likely to invest in peer-to-peer options – where consumers lend money direct to borrowers in return for higher interest rates.
The trend was more evident among younger people with 16 per cent of 18 to 34-year-olds attracted to platforms that facilitate the transactions.
At the same time, fears of volatility in the wake of Britain’s vote to leave the European Union (EU) almost a third of investors are avoiding traditional investment sectors such as stocks and shares.
Yet, the FTSE 100 has reached 14-month highs and the FTSE 250 has topped its highest level this year in the two months since the referendum result.
Kevin Caley, founder and chairman at ThinCats, said: “An unprecedented period of low interest rates combined with recent market volatility, heightened by the decision to leave the EU, has left many savers and investors scratching their heads about how best to use their cash.
“Alternative finance has come a long way in helping to plug this gap, offering some reprieve for investors, many of whom believed they’d be seeing a rate rise by 2017.
“In the last two months alone, our research tells us that many thousands of investors have started looking at peer to peer lending as a way of earning meaningful returns while avoiding the rollercoaster ride of volatile markets.”