Maximizing Your Savings in the UK: Simple Tips
Interest rates are rising, which means your savings can earn more for you than in recent years, but only if you’re strategic about where you keep your money.
Don’t Settle: According to the Financial Conduct Authority, billions sit in accounts paying little interest. Don’t settle for low rates; take action to make your money work harder for you.
Keep Some Cash Handy: Aim to have enough cash to cover essential expenses for a few months to a few years, depending on your stage in life. This should be in an easy access account for emergencies.
Beware of Headline Rates: Some accounts offer high rates but come with restrictions, like limited withdrawals or minimum deposits. Read the fine print to understand what you’re signing up for.
Regular Saver Accounts: While these may offer eye-catching rates, they often have limitations and require monthly deposits. Understand the terms before committing your money.
Consider Fixed-Rate Bonds: Useful for predictable expenses like a wedding or home improvements. They tie up your money for a set time but offer guaranteed interest rates.
Notice Accounts: These offer a balance between fixed-term and easy access accounts. You agree to give notice before withdrawing money in exchange for higher interest rates.
Explore Cash ISAs: You can save up to £20,000 tax-free each year. With rising interest rates, the tax breaks of ISAs are becoming more valuable for savers.
Tax Considerations: Understand how interest on your savings is taxed based on your income level. Keep track of your interest earnings and ensure you comply with tax regulations.
Stay Informed: Pay attention to the end dates of fixed-rate accounts to avoid unexpected tax liabilities. Keep reviewing your options to make the most of your savings.
By following these simple tips and staying informed about your options, you can maximize your cash savings and make your money work harder for you.
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.
