From the BBC:
Savers putting their money in funds investing in UK stocks and shares would have made more money since 2000 by putting it in savings accounts instead. If £1,000 was invested at the start of the decade, it would now be worth £1,094 in an average UK unit trust but £1,358 in a typical savings account.
The exclusive research for the BBC found that £1,000 invested in a UK equity income fund would also have made less than in an instant savings account – now being worth £1,302.
The article points out that good timing would have bucked the trend:
The same calculations, but up to July 2007, would have seen shares perform comfortably ahead of cash. (And) if anyone made the unusual decision of investing in a commodities or natural resources fund eight years ago, their £1,000 would now be worth £3,260.
The experts cited in the article said that stocks still outperform savings in the long term. I’m not sure what they’re referring to–the last time I checked, eight years was considered long term. They’ll have to extend their definitions to prove their point.
So much for the dogma that the stock market always wins out over savings.