Savers are missing out on free money.
Over a third of Brits never compare their savings interest rate to others available, and savers risk missing hundreds of pounds of extra income annually.
What do you do with your monthly earnings when they land? Do you leave all the money sitting in your current account, or as a saver, do you move it around so you can make your money work hard for you and maximise your returns?
Well, a new survey by the Building Societies Association (BSA) reveals that many of us worryingly do the former rather than the latter.
Survey Findings
According to the data, 34 per cent of UK savers don’t compare the rate on their savings accounts to other alternatives.
Figures also showed that 30 per cent don’t even check their rates with their bank or building society.
Yet 34 per cent of people are storing most of their savings in a current account.
And since these offer little interest at best, they could potentially be missing out on hundreds of pounds in what’s essentially free money.
So why are so many savers letting this happen?
Many of us don’t have a disciplined approach to saving.
For example, 33 per cent of those polled said they just put money into savings when possible.
Meanwhile, 34 per cent said they only save whatever they can afford to put aside at the end of the month.
Many savers need to take a more strategic approach to saving if they’re to benefit from it further down the line.
By putting some thought and planning into it, you’ll be able to benefit from more favourable interest rates and increase the size of your savings pot.
Use Moneyhelper’s savings calculator
Read about NS&I Green savings bond.
What to do
Of course, you’re busy, and we understand that, but putting a set amount into a high-interest savings account doesn’t take much time and effort.
It’s simply a case of getting into the habit of saving, and good savers know what they are saving up for, such as a dream holiday, private school fees or money for a rainy day.
A professional planner can work with you to build a savings strategy so you can be confident you’re 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 contact us; we’ll be happy to answer them.
