Savings Accounts: How Spring Cleaning Your Savings Could Get You £ 80 More

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The most popular place to save is with our regular bank. This is a natural choice because we generally trust them and we can manage it alongside our checking accounts.

But if you’re saving up with one of the street giants, you’re probably paying full price for the convenience.

Many only pay 0.01% interest on their instant access accounts – that’s just £ 1 interest after a full year on a £ 10,000 savings pot.

And it’s a similar story for fixed terms, too. Big banks can pay as little as 0.10% a year.

But with Active Savings, you can save with different banks and mortgage lenders offering a wide range of products in one online account, often at the best rates in the market.

You can currently earn up to 0.90% AER / gross * over a one-year period and access a market-leading easy-access product with a 0.5% variable rate. That’s up to 50 times more than some of the big banks. Based on the fixed term of 0.90% and a pot of £ 10,000, that’s £ 80 more than the lowest bank after just one year. Fixed terms generally only allow access to funds at maturity, and easy access products allow access to your money after one business day.

This article, like the Active Savings Service, is not personal advice. Remember that inflation reduces the future purchasing power of cash.

Think about how you share your savings

The vast majority of our savings are placed in instant or easy access accounts. Given the degree of uncertainty we have faced recently with our finances, this is understandable. We also need to keep money here to cover our emergency fund.

As a general rule of thumb, we believe you should keep at least three to six months of monthly spending in an easily accessible account if you are working. If you’re retired, we think at least one to three years is reasonable.

Learn more about emergency money

But you may not need to keep all of your savings in these accounts. If you do, you are paying a premium for the convenience, as they are likely to offer you the worst rates in return.

Fixed term accounts usually pay better rates to lock in your money for a set period if you can consider that. You can choose between a few months or up to seven years if you prefer. As a general rule, the longer you fix, the better the rate. But you don’t have much of a choice with the big banks. They typically offer one or two terms and typically last a year or more.

If you think you need to access some of your money, you can spread your savings over several accounts of different lengths. For example, fixes for three months, six months, one year and two years. This way, you will have money coming back to you at different intervals, while increasing your overall rate.

Fixed terms can also be used to time your money that is rightfully yours at any given time. For example, if you are withholding money to pay a tax bill in January, you could choose a six-month fix that would give you access to your money in time to pay the bill, while still getting a better rate than leave it in an easy or instant access account.

The problem is, you will probably have to go to many different banks to achieve this. Opening new accounts and managing your money across all of them can be a hassle. It might not be worth it.

Active Savings makes it easy for you.

Reinvent your savings, hassle-free

Active Saving can help you reinvent your money. An online account allows you to have many savings products from several banks and building societies. You can choose between easy access or fixed terms ranging from six months to five years. You will also have access to a selection of advantageous rates, including five best rates on the market **.

** Rates were compared to Moneyfacts on June 23, 2020 at 9:36 am.

And you can get cashback. More details and conditions are below.

The big banks offer instant access products that provide immediate access to your money. The Active Savings Service offers easy-to-access products and withdrawals typically take one business day. Remember that inflation reduces the future purchasing power of money.

The best rates on Active Savings

Easy access

Until

0.50% | 0.50%


(ARE | Gross)

Up to 1 year

Until

0.90% | 0.90%


(ARE | Gross)

Up to 2 years

Until

1.00% | 1.00%


(ARE | Gross)

Up to 3 years

Until

1.10% | 1.10%


(ARE | Gross)

Easy access

Until

0.50% | 0.50%


(ARE | Gross)

Up to 1 year

Until

0.90% | 0.90%


(ARE | Gross)

Up to 3 years

Until

1.10% | 1.10%


(ARE | Gross)

Find out more

Please note that the above products are some of our most popular, but more are available. Click on the link above to see our full range. Products can be added or removed at any time. Minimum deposit requirements apply to individual products. Easy-access products pay a variable rate and fixed-term products pay a fixed rate.

Get an extra £ 10-100 cashback bonus as a thank you

Open an active savings account before July 28, then add at least £ 10,000 by debit card and choose your savings product (s) within 60 days of opening your account to qualify for cashback. If your balance falls below the eligible amount of your cash offer within 6 months, we can collect your cash back. Full conditions are below.

You pay in Your cash back
£ 10,000 – £ 19,999 £ 10
£ 20,000 – £ 29,999 £ 20
£ 30,000 – £ 49,999 £ 30
£ 50,000 – £ 79,999 £ 50
£ 80,000 or more £ 100

Discover active savings

* AER (Annual Equivalent Rate) – The AER indicates what the expected interest rate / profit rate would be if it were paid and compounded once a year. It helps you compare the rates of different savings products.

Gross – the interest rate without any tax removed. Interest / profits are paid gross. You are responsible for paying any taxes owed on interest / profits that exceed your personal savings allowance to HM Revenue & Customs. Tax treatment may change.

Expected Rate of Profit (EPT) – Islamic banks offer an expected rate of profit rather than interest on their savings products in order to comply with Sharia banking principles.

Active Savings cash back offer – what you need to know

1. This offer is open to anyone who opens a new active savings account between June 23, 2021 and July 28, 2021 inclusive (“the Offer Period”).

2. To qualify for the offer you will need to fund your new account with at least £ 10,000 by debit card and then use that money to ask us to add at least £ 10,000 to one or more savings products at within this offer. Account. Both of these actions must be taken within 60 days of opening the account to be eligible (“the Eligibility Period”). For the avoidance of doubt you can open an account with as little as £ 1 and still qualify for the offer, as long as your account is topped up to a balance of at least £ 10,000 and you use that money to ask us to add at least £ 10,000 to one or more savings products. These two actions must be taken within 60 days of opening the account to be eligible.

3. If you open an account during the offer period and you also meet the criteria listed in clause 2, we will credit your account treasury center with a cash amount between £ 10 and £ 100, depending on how much you add to one or more savings products. We will credit the cash amount within one month of your eligibility period. We will notify you via email once the cash amount has been added.

4. The value of the cash reward will be based on the total amount added to the savings products within 60 days of opening the account. The value of the cash reward will also be based solely on the amount added to your debit card account during the offer period. The value of the cash reward will not be based on amounts added to savings products using cash held in a Fund & Share account.

5. The cash reward will be determined in accordance with the levels identified in the table accompanying these terms and conditions.

6. It is not possible to accumulate the value of selected savings products on accounts with different customer numbers within the framework of this offer. The maximum amount of money you can receive under this offer is £ 100.

7. We reserve the right to recover the cash reward if the aggregate balance of your active savings account falls below the qualifying amount of your cash offer within 6 months of the date of the qualifying deposit. We will notify you if we intend to collect the cash reward and claim it within 7 business days.

8. We reserve the right to modify, extend or withdraw this offer if necessary, including for legal or regulatory or other reasons. If the offer ends earlier, all eligible requests received up to that date will still be accepted. Details of any such modification, extension or withdrawal will be posted on our website at www.hl.co.uk/savings.

9. This offer is not available to anyone who already has an active savings account.

10. You must not be an employee of any Hargreaves Lansdown group company or an immediate family or household member of such employee.

11. This offer is limited to a payment of up to £ 100 per customer.

12. This offer will be governed by English law and, by participating in it, you submit to the jurisdiction of the English courts.

13. References in these terms and conditions to “Hargreaves Lansdown”, “our”, “our” or “we” mean Hargreaves Lansdown Savings Limited (company number 08355960), authorized and regulated by the Financial Conduct Authority (number of FCA register 915119), with registered office at 1 College Square South, Anchor Road, Bristol, BS1 5HL. References to “Hargreaves Lansdown Group” mean Hargreaves Lansdown plc (company number 02122142) and its subsidiaries from time to time.

The Active Savings Service is provided by Hargreaves Lansdown Savings Limited (company number 8355960). Hargreaves Lansdown Savings Limited is authorized by the Financial Conduct Authority under the Electronic Money Regulations 2011 with reference 901007 for the issuance of electronic money.

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