Savers are missing out on extra money

Savers are missing out on extra money

What do you do with your monthly earnings when they land?  Do you leave all the money sitting in your current account?  Or do you invest some elsewhere, so you can make your money work hard for you and maximise your returns?

A new survey by the Building Societies Association (BSA) reveals that many of us are, worryingly, not really doing anything at all!

According to the data, 34% of savers in the UK don’t ever compare the rate on their savings accounts to other alternatives.  As such, they then don’t move their money, which could earn them an extra 5% interest currently.  Savings interest is the easiest way to increase passive income, which is why it is so important to know what the best options out there are.

Figures also showed that 30% of people are unaware of their current rates with their own bank or building society.  Having an interest in finances means that you will always be looking for the best options and make your money work for you.

A shocking 34% of people are storing most of their savings in a current account, completely missing out on any decent savings rates that have cropped up in the last 2 years.  Since current accounts offer little interest at best, they could potentially be missing out on thousands of pounds of what is essentially free money.

So why are so many people letting this happen?

Many of us simply don’t have a disciplined approach to saving.  For example, 66% of those polled said they just put money into savings when they can, like at the end of the month if they have any money left.  It is clear that many people need to be taking a more strategic approach to saving if they are to truly benefit from it further down the line.  It is recommended that the easiest way to regularly save is to set up a direct debit to a savings account that comes out on the day your salary is paid to you.

By putting some thought and planning into it, you can be in a position to not only benefit from more favourable interest rates, but also easily increase the size of your savings pot(s).  Of course, many of us are busy, but making a point of putting a set amount into a high-interest savings account doesn’t take much time and effort.  Getting into the habit of saving regularly and having an idea of what you are saving up for, such as a dream holiday, a new car or money for a rainy day makes actually putting money aside easier.

A professional planner can work with you to build a savings strategy, so you can be confident you are on course to achieve your long-term goals, rather than just hoping for the best.  If you have any questions about planning for the future and maximising your income, please don’t hesitate to get in touch with us, and we will be happy to answer any questions you may have.