There’s a well-known phrase that says – ‘Look after the pennies, and the pounds will look after themselves’. It’s another way of saying that every little bit adds up in the end. So even after you’ve looked under sofas and in your trouser pockets for loose change, what are the best ways of saving? And maybe turn a few coins into a tidy sum for the future by putting them into a savings account?
Every penny counts
You’d be amazed at how much money people waste or lose everyday. It’s easy to forget about the piles of change we leave lying around the house, or stuffed into drawers for ‘safe keeping’. But it all adds up. And when you consider that everything we buy seems to cost twice as much as last year, we can’t really afford to be so careless about money, however small the amount. So what are some of the little things you can do that can make a big difference?
- Make looking for loose change an everyday habit: in the bottom of your bags, clothing and coat pockets – not forgetting clothing that you’ve stashed away. Look between sofa and chair cushions as well as beneath and behind the furniture itself. In and around the washing machine and clothes dryer. And beneath the driver’s and passenger seats of your car.
- Turn a collection of smaller coins into larger, more useful notes: you’ll be surprised how quickly all that spare change lying around on the bedside table adds up. Find an old jar and drop in your loose coins. You can then take them to your bank and deposit them into your account or get a set of easy to carry notes.
- Collect any spare coins and deposit them into a savings account: another handy idea for your loose change... Turn it into a savings account. It’s a great way of making the most of any spare money. Compare savings accounts that are out there and decide what’s best for you.
Get into the savings habit
Some savings accounts will let you open one with as little as £1. And depending on how you save and what you might be saving up for – you’ll first need to decide on the type of account you want.
For instance – easy access accounts are the most flexible. They let you put money in and take it out as often as you want. And most will let you manage your savings online, in branch or over the phone. Bear in mind though, the variable interest rates offered on easy access accounts tend not to be as high as savings accounts that feature fixed rates. So if you’re wanting to save up for something special like a car or a holiday, you might be better off locking your money away for a while at a higher interest rate – for anything from three months to five years. You would then not make any withdrawals or deposits during the term you’ve agreed.
A happy medium between easy access and the more long term fixed rate savings accounts are the regular saver type of accounts. Some offer a reward of a higher interest rate if you pay a certain amount into a qualifying current account and don’t make more than four withdrawals a year. Others help you reach your savings goals by encouraging you into saving a regular amount each month by standing order. This would be at a fixed rate for a year, before reverting back into an easy access account at a variable rate.
So even if you just put by a small amount each month, your regular payments could soon add up to a sizeable amount. What better way to make those pennies count? So compare savings accounts today to find the right one for you.