Even though the UK appears to have left the worst depths of the recession, all of us have been looking for ways to save up to make sure we’re prepared in case we hit another financial rough patch. Preparing for an economic downturn may be tricky, but we’ve listed the three most straightforward ways you can ready your saving accounts for the worst.
Establish a cash ISA. Save over £5,000 every year (and rising, as the deposit limits increase with inflation each fiscal year) without paying tax on your money. With so many ISA products on the market, be sure to compare cash ISA rates online and select the one with the best interest rates from a reputable bank that offers the accessibility you need.
- Switch internet savings accounts. It’s easy to compare online savings accounts to find the ones with the highest interest. While some will require your funds to remain in place for a certain period of time (at the risk of a harsh penalty if you access or transfer them), once that period is up, you should always look for the best offers.
- Set up automatic monthly deposits. Willpower often ends up derailing our best savings goals – it is hard to plan for the future when you see something you want right at that time. But if you automatically siphon some of your wages to go into a savings account, you can avoid accessing the funds for more frivolous purchases. This means you’ll have a guaranteed income in that account every month, allowing you to more easily plan for the future.
Actually getting hold of the spare cash to put in your savings accounts may still be tricky, but knowing how to handle the money you’ve got is the most effective way to ensure that your nest egg is thoroughly protected.