Ok, first off, let’s not get too hung up on the word strategy. What you really want to ask yourself is what is your savings goal, has it changed over the past few years, and is your money in the best place to help you reach it?

We’re here to help get your savings on the right track to meet your future plans.

Understanding your current savings strategy

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    What are your savings goals?

    This is a key question before you start saving. When you know why you’re saving, it’s easier to keep the habit and reach your goal. It can also help you set clear and realistic targets, like how much you can save and by when. Then, if you face a tough decision between a new gadget and the savings pot, you can see why the savings pot matters and how much a splurge on the new tech could delay you reaching your goal.

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    Have your savings goals changed recently?

    Six years ago, baking banana bread and wearing Crocs with socks was all the rage. Things move on, and so do your savings needs. Think about your goals and how you save now. If you have a lump sum, you don’t need for a few years, a fixed-rate savings account may suit you well, because your money can earn interest without you having to think about it every day. If you need to dip in and out of your cash, an easy access savings account could suit you better. There’s no single right answer. A mix can work well too.

Interest rates comparison

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    How interest rates affect savings

    The interest rates on savings accounts show how much interest you can earn on your money, usually shown as a percentage of your balance. Even a small change in interest rates can affect how fast your savings grow so, it pays to keep an eye on them.

    You can find more about how interest rates work here
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    Savings accounts and good rates

    Using interest rate comparison tools is a good way to shop around for the best deals on savings accounts that could work for you. Taking a few minutes to research can be useful before you open a new account. Make sure you check terms and conditions, fees or exit charges before you make a switch.

The importance of an emergency fund

An emergency fund helps when life changes unexpectedly: the boiler breaks, a visit to the vet, car costs. Yet despite this, we found one in five (19.3%) said they aren’t currently saving anything for emergencies.

Try our unexpected costs calculator

  • Look for flexible savings accounts

If you’re considering saving but don’t have a specific goal in mind, a savings pot for unexpected expenses can be a good place to start.

Start small if you need to. Put away a set amount each month or move spare cash into a separate account. Keep the fund easy to reach, but not too easy to spend. An Easy Access savings account could be just what you’re looking for.

You can find more about Hodge Easy Access savings accounts here.

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Tax-efficient savings

Tax can reduce what you keep from your savings. Understanding the Personal Savings Allowance (PSA) and your ISA allowance will help make sure you’re making the most suitable choice for your money.  An ISA can be a tax-efficient home for savings because any interest earned is generally free from UK income tax, subject to ISA rules and allowances

You can find more about Hodge ISAs here

Making the most of your money management

Whether you’re a beginner to budgeting or a savvy saver, everyone starts by building good money management habits. Building a budget by tracking what comes in, what goes out, and what you can save, can really get your head around your finances.

Once you understand your spending and saving habits, you can regularly review and adjust them to support your longer-term plans.

Is your money where it needs to be?

If you’re comparing savings accounts or using our Savings Calculator, you may have a few questions. Our savings decision tree tool can help you find out what could work best for your money.

Take a look at our savings decision tree.

This article is correct at time of publishing and for general information purposes only. This content is not intended to give advice or guide individual circumstances. If you need additional support, please reach out to charities offering support. For financial advice, we recommend you speak to a professional financial adviser. You can find a financial adviser and further personal finance information at unbiased.co.uk.