Savers are missing out on free money

Dafferns Wealth

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?

Well, a new survey by the Building Societies Association (BSA) reveals that many of us are, worryingly, doing the former rather than the latter.

According to the data, 34 per cent of savers in the UK don’t ever compare the rate on their savings accounts to other alternatives.

Figures also showed that 30 per cent don’t even check what their rates are with their own 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 thousands of pounds in what’s essentially free money.

So why are so many people letting this happen?

Well, many of us simply don’t have a disciplined approach to saving.

For example, 33 per cent of those polled said they just put money into savings when they can.

Meanwhile, 34 per cent said they only save whatever they can afford to put aside at the end of the month.

It’s clear that many people need to be taking a more strategic approach to saving if they’re to truly benefit from it further down the line.

By putting some thought and planning into it, you’ll be in a position to not only benefit from more favourable interest rates, but also increase the size of your savings pot.

Of course, you’re a busy person, and we understand that, but making a point of 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 having an idea of what you’re 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 get in touch with us, and we’ll be happy to answer any questions you may have.