Three Ways to Save Your Money
Three Ways to Save Your Money
It’s always nice to think
that you’re saving money, rather than watching your outgoings outweigh
your incomings. Putting money aside is always good, because it means
you’re investing money in your future when you might need it more,
but there are many ways to make your money go further than just putting
it into the piggy bank. Getting the best rates of interest, and finding
the products that are right for you, are not easy in a market with a
great variety of products. If you want to find out a few pointers on
some of the best savings presents around, then take a further read of
this article.
Regular saver
One of the most effective ways
to save money, especially if you’re looking to save small sums every
month, is to get a regular saver. Most of these products have very high
rates of interest when compared to other products. However, there are
often withdrawal penalties, and a maximum amount of money that you’ll
be able to put in each month. If you want to save £500 a month, then
Halifax offers a rate of 10% for its regular saver. Meanwhile, Alliance
and Leicester offers 12%, but a maximum deposit of £250 a month. For
more on A & L’s product, take a look at their current accounts, to which their saver is connected
to.
Savings account or ISA
If you’re looking to save
under £3600 a year, then a bog standard savings account should probably
not be considered. Instead you should consider getting an ISA, or Individual Savings Account. These
are tax free savings accounts that are allowed by the government in
an effort to encourage people save money. You can save a maximum of
£3600 cash a year in one of these, and their tax free status normally
allows you a better interest payment over the course of a year. Meanwhile,
if you’re going to save over £3600 cash in a year, then some of the
top rates are by foreign banks, such as Icesave, Kaupthing Edge and
ICICI.
Fixed Rate Bonds
Fixed rates bonds are savings products that often confuse people, usually because they go under aliases such as ‘fixed term accounts’ or just ‘bond accounts’. Whatever the term used, fixed rate bonds are basically term accounts where you invest a lump sum at a fixed rate, and receive a guaranteed rate of interest in payment at the end of your agreed term. Most of these products have penalties on them for early withdrawal, so make sure you can say goodbye to your money for the full length of your term before you actually do.
