Savings Are Missing Out on Interest
Did you know that around 55% of UK adults leave balances in their current accounts earning 0% or very low interest? 39% of savers rarely or never move their money, thus they are not earning the best interest rates available. AND 6.4m current accounts hold balances of over £10k, the average balance being £35k, meaning each account is losing £1,529 in interest per year, worth nearly £10 billion!! (Source: Center for Economics and Business Research)
I am not winding you up here. Another scary stat is that 10% of the UK population has no cash savings. That is 6.7 million people, based on research by the FCA, and 21% of people have less than £1,000 available for emergencies.
Any saving is a great start, even if it’s £100 a month, and we must get better at moving our money to the best and safest places for our savings. The Raisin app is helping me with this.
This is my savings strategy. The savings ladder
- 3 months of essential expenses saved into an instant access savings account (I check for the best rate of around 4% currently using my Raisin app).
- I save as much as I can afford into a regular saver account (to help pay for the annual family holiday), around £300 a month.
- I save as much as I can afford monthly into a stocks and shares ISA and also into my private pension.
How Raisin Works – Review of the Raisin App.
Raisin gives you access to competitive rates from over 40 partner banks and building societies. This allows you to move your money to an account that fits your needs. You manage everything in one place, with just a single login.
I have just set up my Raisin account with £500 to test the process. It was super simple! I am now earning 4% on my savings rather than the 3.5% in my previous savings account.
The setup process was straightforward, taking me a few minutes to complete. I feel reassured that my money is in a place where I am maximising the interest earned. If rates change, I can easily move my money within the app to a different savings account with the highest rate.
Save with Raisin here using my referral link.
This is a collaborative post with Raisin.
