MONEY TALK SUE’S GUIDE TO Bagging The Best Savings Deals
Consumer expert Sue Hayward’s savvy finance tips and advice
Savings rates haven’t been anything to celebrate for some time, but if you were savvy, there were ways to snaffle short term 5% rates.
With the Bank of England base rate slashed to a historic low of 0.1% a while back, savings rates have been tumbling. Even the 5% rate on Nationwide’s FlexDirect account has dropped to 2%. Every penny counts right now, so here’s how to get more power for your pound. ◆ Easy Access accounts Just as it says on the tin! Instant access to your cash and you’ll get a bit of interest. Top rates right now come from Marcus and Saga which both pay 1.2%. ◆ Regular savings If you can commit to paying in each month, you can bag better rates. Some banks including First Direct, HSBC & M&S offer rates of 2.75% to existing current account customers. Best of the rest is Halifax, at 2% if you pay in from £25 a month. ◆ Stay local Some smaller building societies offer deals for local residents. Saffron Building Society pay 4% on regular savings for a year but you need to live near a branch, so that’s in Essex, Hertfordshire or Suffolk. WWW.SAFFRONBS.CO.UK ◆ Start small
Halifax’s Save The Change option rounds up debit card purchases to the nearest pound and switches the extra into your savings. Spend £2.20 on a take-out coffee and you pay £3, with 80p going straight to your savings.
◆ Check terms on fixed deals. You may pay
a penalty if you need cash in a hurry.
◆ The free Rate Tracker at WWW.SAVINGSCHAM PION.CO.UK checks if you’re getting the best deal on savings. it also reminds you when bonus rates end and it’s time to switch. Don’t forget Premium Bonds. Average return is reckoned to be 1.4% a year and you could win a million! Minimum investment is from £25.