Dreaming of sunny beaches or exploring historic cities? With the arrival of the New Year, many of us are thinking of an overseas trip (or staycation)…post pandemic of course.
Beginning a new regular savings habit could be a way towards reaching those destinations.
The benefits of saving regularly
Saving regularly can be a solid foundation for financial wellbeing. Did you know that 1 in 10 brits have no savings at all? With no savings to fall back on, it can pose a challenge to building financial independence.
Saving can be accessible to everyone, it’s all about implementing the habit of allocating a portion of your income even if it’s just a small amount. By saving regularly, you’ll notice your funds grow quicker than you may expect. Setting up a regular payment from your bank account into a chosen savings account will encourage you to put a sum aside each month.
What is a Regular Savings Account?
A regular savings account is a useful place to keep your money and enables you to accumulate interest on the balance held. By depositing to a regular savings account every month, the amount will continue to grow based on the set interest rate which is usually payable annually.
Typically, you can deposit between £10 - £500 every month to a regular saver.
At the end of the stated term, you will then have the balance of the money invested - plus the accrued interest over that period. Those travel plans have hopefully taken a big step forward (again post pandemic of course).
Can I access my money anytime?
With many regular savings accounts, you are likely to be able to withdraw sum(s) at any point, however, this restriction does vary between accounts so we recommended you check the accounts terms and conditions – ensuring this is a suitable option for you and your savings habits. Some will not allow early withdrawals; others will reduce the interest rate if you withdraw. Depositing regularly is a key commitment to this account type.
Is my money protected?
Money held in UK banks or building societies (of which are authorised by the Prudential Regulation Authority) are protected by the Financial Services Compensation Scheme (FSCS).
The FSCS savings protection maximum is £85,000 per provider (£170,000 for joint accounts). If your account exceeds the limit range within the same bank, it is recommended to move excess money to another provider to ensure you are protected.
Ready to start saving?
Here at Ipswich Building Society, we want to help you reach your savings goals. Our Suffolk Regular Savings account could be suitable to kickstart your money pot - click here for more information.