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How to get the most out of your savings

31st August 2023

Trying to save money can feel like you’re missing out on life’s little pleasures, like shopping trips, dinner reservations and weekend getaways. However, it’s important to remember those small sacrifices today can mean a big investment in tomorrow. To help you reach your saving goals, we’re  here to help you make every penny count.

Read on to find out how you can get the most out of your money, and turn your dreams into reality.

Open a tax free ISA

A cash ISA is like a standard deposit account, but with one big difference – you don’t pay  income tax on the interest you make. This means any interest you make from your savings is yours to keep. Each year, you can deposit a maximum of  £20,000 into one or more types of ISAs. As long as you don’t go over this limit, you’ll be able to save tax free.  It’s  a great way of making the most of your savings. Depending on the type of cash ISA you open,  you could have the option to transfer money from one account to another throughout the year.

Discover our ISAs.

Choose a fixed rate account

If you're aiming for a long-term goal, a fixed term savings account such as a fixed rate bond or fixed rate ISA could be the way to go. Most fixed rate savings accounts follow the same rule – the longer your fix the higher your interest. It’s that simple! And given the current market conditions, this could be a smart way to make the most of your savings. One thing to remember is once you lock in your money, you won't be able to withdraw until the fixed term is up. Otherwise, you could be left with a penalty to pay.

View our fixed term accounts.

Have multiple savings accounts on the go

If you don’t feel comfortable putting all of your savings into a fixed rate account, you can separate your savings into different accounts. For instance, put some of your savings in an easy access savings accounts so you can have instant access to your savings when you need it most. As a general rule of thumb, aim to set aside about three months' worth of wages in an easy access account – consider it your trusty emergency fund. You can then consider locking the rest of your  money securely in a higher fixed rate savings account, which could have a higher  savings interest rate.

Look out for the best deals

Keeping an eye on the interest rates of savings accounts is super important. This can help you to make smart choices about which is the best account for your cash. . If a better deal comes up, you can then  move your money to a savings account with a better interest rate. Remember, even a small difference in interest rates can have a big impact on savings over time. So, make sure you compare savings accounts on a regular basis.

View our current interest rates.

Sign up for government bonuses

Check if you’re eligible to apply for  government bonuses. It can be  an easy way to give your cash savings a boost. For example, Help to Save gives you a bonus payment of up to 50%. You can save between £1 and £50 each month for up to four years. If you manage to save £50 a month for two years, you could save £1,200 and receive an extra £600 from the government. It really is that easy!

Think about switching banks

Switching banks might sound a bit daunting, especially if you have been with the same bank for a long time. However, it can be a lot easier and faster than you think. Staying with the same bank could cause you to miss out on interest rate savings. By switching to a bank with better savings account options, you could earn more on your money. From fixed rate accounts to easy access accounts, there could be a better account out there for your money. And that's not all - you might just find yourself with a bank that offers exceptional customer service. It's a win-win!

Explore our account options.

Speak to a financial adviser

Speaking to a financial adviser can be the key to getting the most out of your savings. Whether you’re saving for a holiday or planning for retirement, they could help you make the best financial decisions.

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