If you have a savings accounts or a cash ISA, you have taken the first step to managing your finances responsibly and preparing for the future. However, you may not necessarily be making the most of
Here are a few tips to try and considerations to bear in mind when saving money in any kind of savings account.
Compare savings accounts by checking interest rates
The best way to compare savings accounts and pick the best one for you is to look at interest rates. If you are prepared to lock your savings away for a few years, you can often get higher savings rates.
Move your money around to take advantage of introductory rates
Many savings accounts offer a high introductory rate, which drops after a set period. You need to check how long this lasts for and whether you will be permitted to move your money to a new account (getting another good introductory interest rate) after this time.
Think about how inflation affects your savings
For your savings to be worth as much as possible to you, the interest rate on your savings account needs to match or be higher than the rate of inflation (the cost of living). Look for accounts which match or exceed the Bank of England’s bank rate.
Pay into TFSAs Every Year
A TFSA which is also known as a Tax Free Saving Account has a set limit every year, which determines how much you can save in an TFSA – tax free. Make sure you use your allowance every year, to ensure you’re getting the most from your savings.Photo Credit (vandinglewop)