Saving

Saving money can mean two things: paying less for things you already spend money on and; puting money in some form of savings account in return for interest payments.

This section of the website is concerned with saving money in return for interest in some form of savings account, usually a high-interest savings account or a tax free cash ISA.

Saving is different from investing, because when you open up a savings account, you are giving your money to the bank to use it for different purposes such as investing, trading and lending.  In return they pay you interest, which may be fixed or variable.  The aim for the banks is make a return on your money by generating a higher return than the interest they pay you.

Investing means lending your capital to a company or institution in a return for a share of *ownership and any growth that is generated on your capital.  This can be on investment vehicles such as stocks and shares, funds (a collection of equities), bonds, property or even investing in your own business.

* some investments do not give the investor any equity ownership such as bonds and ETFs.  These are trades, rather than true investments.

>>> Find out more about opening or switching to a savings account
>>> Find out more about opening or switching to a cash ISA
>>> Saving fundamentals and tips

Please use the above links to get more information about savings accounts and Cash ISAs.

Good Saving Habits

• First of all, create a personal financial plan.  This will help you to create short-term 'rainy day' funds, holiday savings, retirement planning etc.  You may want to enlist the help of an independent financial adviser for this
• Decide how much you can realistically save each month and commit to that amount.  We recommend a minimum of 10% of your income though you will decide what is affordable for you
• Make it automatic.  In other words, set up a system whereby the amount you are saving each month is put away in to a savings account before you can get hold of it and spend it.  For example, you could set up a standing order from your current account to your savings account on the day after you receive your income each month
• Cut your costs.  Review your outgoings and cut out anything that doesn't bring you enjoyment or value.  Periodically review your household bills like gas, electricity and phone and broadband  to make sure you're paying the most competitive rates on your utilities and therefore have more money to save
  
• Make sure you're getting the best possible rates of return on your savings
• Start NOW to take advantage of the magic of compound growth!

Useful Links

>>> Find out more about opening or switching to a savings account
>>> Find out more about opening or switching to a cash ISA
>>> Learn about investing
>>> Learn about stocks & shares ISAs
>>> Retirement Planning
>>> Money calculators
>>> Save money on your utilities
>>> Money Saving Ideas - Blogs
>>> Questions & Answers