Put your trust in dividends and you can beat those savings rates

With the best one-year fixed savings account now paying 4.31 per cent, riskier investments such as stocks and shares may seem less attractive than they have been for a long time. If you can get a high interest rate on your money, why take more risk in the stock market?

One reason, of course, is that company shares can grow your capital and also pay regular dividends.

There are 14 investment trusts that buy shares in companies offering a dividend yield of more than Al Rayan’s 4.31 per cent one-year fixed rate, according to the research house Stifel. A further 11 equity trusts yield between 4 per cent and 4.3 per cent, the brokerage firm found.

Henderson Far East Income pays 8.6 per cent. Abrdn