This month Andy Webb offers his advice on maximising your savings, and avoiding losing out on the best ways to save
Interest rates on savings have struggled to match inflation for a long while now. Essentially the cost of living is growing faster than any money you make on cash savings which means your money is losing value in real terms. And the lower the interest that you’re earning, the more money you’re losing.
But this doesn’t mean saving is pointless. Do it right and it is possible to beat inflation. So this month I want to take you back to basics and help you rethink your savings strategy.
STEP 1: USE YOUR SAVINGS TO PAY OFF DEBTS.
If you have any debts then it’s more than likely that the interest you’re paying on them is higher than what you’re getting on your savings. So it makes sense to use your savings to wipe out those debts. If your debts are bigger than your savings, prioritise the most expensive debts.
You might be concerned that doing this means you don’t have any cash available for emergencies. But the savings you make should help you start rebuilding that pot—and in an emergency you can look to credit cards and loans.
STEP 2: FIND OUT THE RATE OF INTEREST YOU’RE EARNING.
Now, for any savings left after the first stage check what interest rates they’re earning. It’s very possible it’s a lot less than you think it is. In part this could be down to the rate being variable. Very few accounts have seen rises, but many have seen falls. Or it could be because you got a bonus rate for the first year, and it’s subsequently dropped.
Denne historien er fra June 2019-utgaven av Reader's Digest UK.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra June 2019-utgaven av Reader's Digest UK.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
EVERY SECOND COUNTS: TIPS TO WIN THE RACE AGAINST TIME
Do you want to save 1.5 seconds every day of your life? According to the dishwasher expert at the consumer organisation Choice, there’s no need to insert the dishwashing tablet into the compartment inside the door.
May Fiction
An escaped slave's perspective renews Huckleberry Finn and the seconds tick down to nuclear Armageddon in Miriam Sallon’s top literary picks this month
Wine Not
In a time of warning studies about alcohol consumption, Paola Westbeek looks at non-alcoholic wines, how they taste and if they pair with food
Train Booking Hacks
With the cost of train travel seemingly always rising, Andy Webb gives some tips to save on ticket prices
JOURNEY TO SALTEN, NORWAY, UNDER THE MIDNIGHT SUN
Here, far from the crowds, in opal clarity, from May to September, the sun knows no rest. As soon as it’s about to set, it rises again
My Britain: Cheltenham
A YEAR IN CHELTENHAM sees a jazz festival, a science festival, a classical music festival and a literature festival. Few towns with 120,000 residents can boast such a huge cultural output!
GET A GREEN(ER) THUMB
Whether you love digging in the dirt, planting seeds and reaping the bounty that bursts forth, or find the whole idea of gardening intimidating, this spring offers the promise of a fresh start.
Under The GRANDFLUENCE Suzi Grant
After working in TV and radio as an author and nutritionist, Suzi Grant started a blog alternativeageing.net) and an Instagram account alternativeageing). She talks to Ian Chaddock about positive ageing”
Sam Quek: If I Ruled The World
Sam Quek MBE is an Olympic gold medalwinning hockey player, team captain on A Question of Sport and host of podcast series Amazing Starts Here
Stand Tall, Ladies
Shorter men may be having their moment, but where are the tall women?
