What's the best way to save money?
The economy isn’t very good for those who want to save money at the moment. Interest rates have been consistently low ever since the recession, and sometimes you might think it’s simpler to avoid putting money in the bank.
Yet with a bit of perseverance you can make the most of the current situation. Here we’ve put together some ways to maximise the amount of interest you’re getting to benefit you.
Be on the look out for offers
Banks realise that it isn’t a great time to be a saver, so keep an eye out for special account offers that have a higher than normal interest rate for a limited amount of time, usually for around 12 months.
Make sure you keep a note of when the interest rate drops as the bank probably won’t remind you and be prepared to move your money around again.
Consider a fixed rate bond
If you can afford to lock your money away for a set amount of time, consider setting up a fixed rate bond. These often have decent saving rates given the climate and are more beneficial than leaving your money in a bank account.
It also guarantees that if interest rates drop again you won't suffer, which isn't the case if you choose a tracker rate bond.
The only downside is that your money is literally locked away – you won’t be able to take any out without incurring a fee, so make sure that you allow for any unexpected expenses before investing.
Make the most of any saving schemes
Another way to save money is to make the most of any saving schemes associated with supermarkets or high street stores. Be patient and save up points over time so that you can knock the money off when you have an expensive bill.
Invest in premium bonds
A less guaranteed way of making the most of your savings is to invest some money in premium bonds. Your money is safe but won’t have any interest.
The way it works is that your bonds are entered into lotteries and if you win you’ll make money. With interest rates being so low, it’s worthwhile if you’re struggling to find decent rates elsewhere.
Trying to earn money on your savings can seem like a dead end in these tough economic times. Yet if you’re clever with your money and are prepared to shift it around, you can make the most of what’s there.
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