The way people save has undergone a fundamental shift, but not a lot of people have noticed the change.

Traditionally, people would put their savings away into a savings
account, generally a higher interest savings account, with higher rate accounts offering higher returns the
less you touched your money (ie, notice accounts).

Those people with a lot of money to save would often look to save their
money in multiple accounts with multiple savings providers, and those
in the higher tax bracket put their money into offshore banking.

While there were additional savings options for tax-free interest, such
as TESSA's, PEP's, then ISA's, and variations on savings such as the
premium bonds, that was as complicated as it got.

Those who did not want to invest in stocks and shares, mutual funds or
index funds, futures, bonds, or other investment vehicles as part of a
portfolio, remained just savers.

What has happened since the financial crisis is now those savers have become investors, without realising it.

Savings rates have been slashed as the Bank of England dropped central
banking rates through the floor to the record lows of 0.5% - with both
current account and savings account rates following suit.

The result? Most current accounts now pay 0% interest, and savings accounts rarely offer more than 1.5% .

However, many savings providers are now offering higher rate savings
through fixed rate bond accounts, where interest rates can be 4% or
more above the Bank of England's base rate, so long as you lock you
money in to the account for two, three, or five years.

The result is a major change in the savings landscape that few have
even noticed, as savers are now finding themselves forced into putting
their money into bonds for a fixed term. In effect, they are now
investing in investment products, rather than saving in savings
products.

The surprise is that only a few savings and investment brokers noticed this change.

While some commentators have suggested that 2009 saw the growth of
green shoots in the economy, others remain adamant that we are looking
at a W shaped recession.

Either way, it looks like the savings landscape is not going to change
any time soon, and that fixed term plans will continue to force savers
to become investors in all but name.

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