Good to know
Opening a new savings account could be a simple way to improve your spending habits
The temptation to spend can be hard to resist, with the latest online deals and high street sales regularly grabbing our attention. This makes changing our spending habits difficult, as there always seems to be a reason to put pressure on our bank balance, rather than save. However, a savings account isn’t just somewhere safe to keep your money. It can also help you to make simple changes with your spending. Here’s how.
The regular saver
If you’ve struggled to save in the past, then a regular savings account could kick-start a new savings habit. Regular savers focus on saving little and often, as there is normally a limit on how much you can save each month. For example, save £50 by setting up a monthly standing order. The money then automatically comes out of a current account, so it’s easy to start building a savings pot and you won’t be tempted to spend it.
The long-term saver
Are you worried about spending the money you’ve saved for something in the future? If so, explore fixed-rate savings accounts. This type of account can work well for a lump sum, as it locks away your money for a set period of time – normally from one to five years. In return, you’ll get a competitive interest rate and the reassurance that the money cannot be spent until the end of the term.
THE SENSIBLE SAVER
If you struggle with impulsive spending,
