To Save or not to Save? That is the Question

By: Andrew Regan

These days, it's easier to get access to extra money via a credit card or by applying for a loan, but many people prefer to save up their money before making a big purchase, in order to feel a greater sense of satisfaction.

And when it comes to saving your money, there are hundreds of choices. Whether you've got ?1 or ?100,000 to put away, and whether you want to save for the short term or the long term, there are savings accounts to cater for every need.

Many people try to put a proportion of their income into a savings account each month by setting up an automatic bank transfer. This is a good way of saving, as it means you are not tempted to spend money which you've allocated to save. It also helps you to keep track of your money in a better way than just keeping it all in one account and, of course, specialised savings accounts usually offer a better rate of interest than the average current account.

If you would prefer to have instant access to you money, then choose a savings account that doesn't penalise you for taking out money whenever you want. However, if you're happy to leave your money and not touch it for a longer period of time, for example 12 months or longer, it's possible to find savings accounts that offer a better rate of interest than instant access saving accounts.

If you're looking for even higher returns than can be offered by the average savings account, then the world of stocks and shares might be what you're looking for. However, it's important to remember these sorts of investment pose a higher risk than savings accounts, (which are risk free), and though you can potentially stand to make more money from stocks and shares, there is also a chance that you could lose money, as the value of stocks and shares can fall as well as rise.

As is the case when buying any goods or services, it pays to shop around for the best deals before committing your cash to any one account. Financial publications such as the Financial Times and MoneySavingExpert.com are excellent places to compare the various interest rates from different banks, and remember these rates are constantly changing. Be sure to keep an eye on the latest updates so that you can always get the best possible returns on your savings.

Money Management
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Money Management