Seven ways to save more with low interest rates
Interest rates are currently at historic lows.
So low in fact, that the government have announced that they’ll launch a new savings bond to help savers. But if you’re not convinced that locking your money away for two years is the right thing for your finances, but you need to put your money somewhere that has a rate above inflation, what should you do?
1. Set aside your rainy-day fund
If your fridge broke, or you needed to fix the exhaust on your car, how much money would you need? This is the money you’ll likely need in a hurry, maybe within 24 hours. You’ll want these savings in cash, likely in a current account with no penalties for withdrawing.
2. Know what your savings are for
Are these savings for that fortnight in the Maldives you’ve been dreaming of, to help your children get on the housing ladder, or maybe for your grandchild’s education. If you know that, you’ll likely know the timescale that you have.
3. Set clear goals
You have your target and timescale, you know how much you have, but are you close to reaching those goals? Your goals will help you to define monthly contributions, and even the level of risk you’re able to take. Setting and checking in with clear goals is the best way to ensure your savings and investments are working.
4. Invest instead
Cash savings are no longer king and investing is no longer reserved for the finance professional. If you’re goals are slightly further off taking on some investment risk could be a good way to grow your wealth. Investment risk gives you the opportunity for higher returns which can help you to beat inflation. Investments can also be flexible so check that, at Moneyfarm you can get your money back in a week.
5. Focus on cost
Cost is one of the most important elements of investing because you have control over it. By keeping costs to a minimum you’re able to maximise the impact of any returns.
6. Understand the markets
You’ll want to ensure you have a range of investments making up your portfolio, this will help limit the amount of risk that you’re taking. Fortunately, companies like Moneyfarm can make this a little easier, they’ll manage the investment for you, based on your goals.
7. Review your investment
Risk and return needs to be monitored carefully when you invest. Over time some investments are likely to perform better than others and this will change the shape of your portfolio. You could become over-exposed to a particular asset class, or be holding on to something of limited value. Reviewing your portfolio and rebalancing when required allows you to realise the profits from a successful investment and reallocate it to another area, whilst maintaining a level of risk that is suited to your goals. At Moneyfarm a team of experts monitors the markets and makes these changes for you.
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.
Latest posts by Sally - Silversurfer's Editor (see all)
- Would you support the introduction of immunity certificates? - February 25, 2021
- Why I let Echo by LloydsPharmacy take the strain - February 22, 2021
- 5 Delicious Recipes to Bring a Little Wow Factor to the Dining Table - February 21, 2021
- Best Pets for Older Adults Guide & Benefits - February 21, 2021
- Would you buy an orange flavoured Maltesers® Bunny? - February 18, 2021
Leave a Comment!
Community Terms & Conditions
These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.
You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.
be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.
Contributions must not:
contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
Nurturing a safe environment
Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.
We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!