Are you great at spending money, but less experienced when it comes to saving? Don't worry - you're not alone.
So what things should you consider when it comes to deciding where to put your money? Finding the right savings account to suit you will depend on a number of factors such as how much cash you have to save, how regularly you want to add money to your savings, and the frequency with which you may need access to your savings. One option is to look at fixed rate accounts where you save money over a set period of months or years without ever touching it and the rate of interest is guaranteed. Before the end of this period, you cannot access your money unless you close your account. This type of saving is great if you don’t need to access your money and you want a guaranteed return with a high interest rate. For some people the ability to get hold of their money, should they need to, is an important consideration. This type of savings account is called an easy or instant access savings account. You can make unlimited deposits into this type of savings account and, in most cases, access your money as regularly as you need to. Making the most of your savings should be a top priority and so another important option is tax free saving by opening an ISA (Individual Saving Account). Like other savings accounts, ISAs come in a variety of forms - those you can access instantly, or those that are fixed-term accounts - and rates can vary accordingly. You are limited in terms of how much you can save tax free each year but the good news is that from 5 April 2008, the tax free allowance was increased. This means you can now save up to £3,600 tax free every tax year. It is good to bear in mind that you don't have to just save one way or the other. Lots of savers have a range of different accounts to suit all their different savings needs. Take advantage of the many useful and informative resources that are available online to help you find the right savings account for you. Newspapers often discuss the best option for saving so they can offer really useful advice. If you think you don’t have the money to save, remember you do not need huge sums to start. A few pounds put away regularly will soon add up
