How to Earn More on Your Savings

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
your savings.

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)

Comments

  1. Good tips. I have a TFSA, as well as high interest savings accounts.

  2. Good post Eddie. While savings accounts are good for short term holding the interest you gain from it is so low they are not even worth it when it comes to long term holdings. I completed dumped my savings and moved my short term holdings over to my money market account.
    Adam Hathaway recently posted..How I Am Generating Passive Income by Dumping My Savings Account and How You Can TooMy Profile

  3. Very interesting article. Everyone wants to earn good money on their saving and I think this article can help.
    Parvinder@Readtoawake recently posted..11 Personal Finance Tips Your Teacher Never Taught YouMy Profile

  4. I have a very good idea. What about to invest your savings? In this case you may earn much more and faster.
    Alexander Collins recently posted..5 Forex Trading Techniques for a Newbie Which Are Often OverlookedMy Profile

  5. Nice read! Who would not want to earn more from their savings account right? I will surely keep these things in mind especially now that I’m planning to change bank because of the minimal interest rate that I get from my current bank.