Unfortunately, with inflation at a high and interest rates remaining stubbornly at 0.5%, there’s not much to get excited about recently in terms of finance. This is especially true for those people wanting to save money and get back a significant return. However, despite all the bad news, there are still many ways to boost your savings. Below is a list of 5 ways to make the most out of your savings.
Use your ISA allowance
Your ISA (Individual Savings Account) allowance gives you the ability to save up to £5,340 in a cash ISA tax-free. If you haven’t utilised this properly this tax year, then you’re missing out. Besides, there are cash ISA’s out there with around 3% annual interest, tax-free, that can be opened with just £1. Keep in mind that some ISA’s have a minimum investment amount that can sometimes be from £1,000.
Consider property investment
Savers who want to the best return on their savings should consider property investment. Unlike stocks and shares, property investment comes with virtually no risk, since the property market continues to thrive, especially in Northern cities. Liverpool and Manchester are ideal locations to invest in property due to high rental yields and huge regeneration plans in the next few years. Property companies such as RW Invest can provide potential investors with advice on their properties and what developments will do exceptionally well when they’re on the market. One important thing to remember about property investment is that it doesn’t provide short-term gains. Unlike interest rates, you may have to wait between 10 and 15 years to make large amounts of money. Despite this, it’s ideal for those without the need for immediate cash.
Fix your savings for better returns
If you’re prepared to lock up your money in a fixed-rate account, then you can earn higher rates of return. The likes of Sainsbury’s offer 1-year fixed rate saver accounts that pay 3.35% on an investment of £5,000, and there are various options available. This can be an excellent choice for anyone looking at saving up a mortgage deposit. If you can wait a longer period for the return, then this could be a good way to make the most out of your savings.
Make regular savings
The easiest and most effective way to save your money is to make regular savings. If you pay savings into the account regularly, then you’re more likely to get better rates of interest, resulting in making more out of your money in the long term. However, ensure you’re able to commit to the regular savings, and fit the outgoing transaction as something in your monthly budget.
Watch for bonuses
Similar to fixed-rate accounts and other savings, there are often bonuses available if you know where to look. Watch out for these bonuses as they can give you a good return on your savings without any effort. The bonuses can go unknown to many customers s it’s worth asking in branch or looking at online comparison sites to see what is available.