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Don’t dance with debt, do the savings shuffle

26/02/2020

When it comes to finances, you’re always pushed to save, save and save some more, but are you really getting the most out of your savings account?

Avid savers have long been on the hunt for the perfect deal, however, sometimes it can be easier said than done. Interest rates continue to drop and these days only a few accounts beat inflation.

That’s why we’re introducing The Savings Shuffle – to help you make the most of your money.

Its basis is straightforward, you simply move your savings through different accounts to get different benefits and make the most out of your money.

Research conducted by Moneyfacts in 2018 found that 77% of people find savings accounts too complicated. It’s for this reason that many people might never have thought about moving their savings around.

That’s where the shuffle comes in – here we explain how it could help you give your savings a much-needed boost.

Catch deals before they disappear

Most banks/providers that offer best-buy accounts get thousands of requests each time they put a deal out, leaving them no choice but to limit the offers to a few days. This means you have to be on the button to be able to catch one in time.

Normally, the majority of these deals will only be attached to current or reward accounts – but that doesn’t mean they can’t be good for your savings. Simply moving your money from one account to one that has an opening offer/reward could add to your balance or give you a much better interest rate for a period of time.

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These rates ain’t loyal

Back in the day, it was an unwritten rule that you were better to leave your savings in one place and stick to one rate – even if it wasn’t the greatest. But nowadays they’ve dropped at an alarming rate, leaving everyone scrambling to find a decent interest rate.

That’s why many are now shuffling their money between different banks/providers; to allow their money to continually be getting the best rates.

However, it’s important to check the T&Cs when doing this as you don’t want to get caught out by a rate that will get slashed within a few months or a year. It’s all about keeping the value of your savings on the increase, so be savvy about it.

ISA good move for tax-free savings

For some, the best account to use is an Individual Savings Account (ISA). There are four different types:

  • Cash ISAs
  • Stocks and shares ISAs
  • Innovative ISAs
  • Lifetime ISAs

Which one you use will be dependent on your situation, but the most common is cash. These are a great way to save money as the funds you put in will be kept on a tax-free basis for the year. And for the most part, you can make ISA transfers if you’re looking for a better interest rate.

However, this is a lot more difficult when it comes to cash ISAs, as if you remove money from it then it can sometimes lose its ISA status. That’s not to say it’s impossible; you just need to take the proper steps to do so.

The best way to do this is to pick the new cash ISA you want to open and check that it allows transfers before you do anything. If they do, then all you need to do is give the new provider the details of the old one and they will do the rest for you.

We know moving your money across accounts all the time is a lot of work, and it will take a lot of commitment, but once you’ve built up a nice little nest egg, you’ll be reaping the rewards.

Give the savings shuffle a try today and see how you can make the most of your money.

If you’re struggling with money worries and debt, contact us today. Our advisors are on hand to offer you free and confidential advice tailored to your situation; all you need to do is contact 0808 2234 102 or click the button below to be connected.

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