subject: How to save better [print this page] How to save better How to save better
If we can, most of us are saving in one form or another whether it's saving up for a special occasion or saving a little every month for the future.
Millions of us aren't saving as well as we could though. Not only are Britons missing out on an estimated twelve million pounds in extra interest but most of us miss out on the ways that banks can give us money which we can continue to save in the future.
So, first, let's tackle the rates question.
When you compare savings accounts you can see that some accounts will offer as little as 0.1% or 0.5%.
Some accounts even offer as little as 0.01% on savings, a return of just ten pence for every thousand pounds saved annually.
Why do people sign up for such low rates? The simple answer is that they don't.
Many savings accounts have a high introductory rate for the first year or so. In the case of fixed bonds they can last for a number of years. Once these rates expire the saver is left on a low rate, forgetting that they moved to get more cash in the first place.
Moving to get more cash is often portrayed as the point of owning a savings account, a point which is often so overstretched that it can come across as avaricious.
It's nothing of the sort, though: unless you're very rich you won't be making a mint off a savings account but you'll just be making enough to help your money keep its value over the years.
Looking at savings accounts it's important to remember that the longer you can go without accessing the money the more interest you'll be able to earn.
This is particularly true when it comes to tax-free savings.
The amount that Brits can put away changes each year but they're undoubtedly the best rates on the market and tax-free too which can save a lot of money.
More so even that other accounts, though, these high interest rates expire after a year and should be renewed or moved to another bank.
It's also, counter-intuitive, as it sounds possible to save when you compare credit cards either with rewards on spending or with balance transfer cards to save on high interest.
Cash back cards, though, are only worth it if you're a big spender as well as organised enough and financially able to pay off the card at the end of month.
This is the same principle as going to compare personal loans to avoid higher borrowing rates.
