Maximizing Savings: Navigating the Best Deals Available
Savers in the UK have more choices now than in the past 12 years. There are 2,014 savings deals available, which is the highest number since 2012. This means more options, but also more need to shop around.
Why You Should Shop Around
Loyalty doesn’t always pay off. Often, staying with the same bank means getting lower returns on your savings. Interest rates on old accounts are usually not the best. To get better returns, it’s crucial to compare different offers.
Types of Savings Accounts
There are many types of savings accounts. Of the 2,014 deals available, 571 are cash ISAs, which are tax-free. Some accounts offer higher interest rates if you lock your money away for a longer period.
Interest Rates and the Bank of England
Interest rates might drop if the Bank of England cuts the benchmark rate. This decision is due on August 1. Currently, the benchmark rate is 5.25%, which is higher than in recent years. If the rate drops, savings rates might decrease too.
Finding the Best Deal
The best savings deal depends on your personal circumstances. Some accounts offer better rates for locking money away, but this might not suit everyone. It’s important to choose a savings account that fits your needs.
Keep an Eye on Your Savings
Review your savings account regularly. If your account is closed to new savers, it might offer a lower interest rate. Switching to a new account can help you get better returns.
Benefits of Regular Saving
Saving money regularly can have more benefits than just financial. A study from Bristol University found that it can also help improve your sleep. Even saving a small amount can help cover unexpected costs and give you peace of mind.
Conclusion
With more savings options available now than in the past 12 years, it’s important to shop around. Don’t let loyalty to your bank cost you money. Regularly reviewing and switching accounts can help you get the best returns on your savings.
Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom. Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.
