Enjoy the fruits of your labour and spend your savings
Savings needn't be something that should just be held for a rainy day. If you're in a position where you're able to put a little money aside each month, you could soon be enjoying the fruits of your labour - the extra income could just mean that you are able to afford those little luxuries that you thought were out of reach. Taking a little time and conducting some basic research can help you find the perfect savings plan for you.
For long term savers an ISA can be one of the best savings accounts on the market. Most people who have savings in a bank or building society will pay income tax on any interest accrued over the year. Cash ISAs are available in England, Scotland, Wales and Northern Ireland and allow you to save up to £5,340 in one tax year, and you will not pay tax on interest earned from your money. A personal financial adviser or your bank will be able to help you find the best ISAs that will suit your needs. ISAs are available for all age groups and limits are especially attractive for younger savers. Many people find this to be the best way of generating savings for children in order to provide them with a nest egg for future years.
A regular savings deal is arguably the most accessible options for consumers. These often provide a limited return in terms of interest gained over a year. Most regular savings schemes restrict access to the customer's money and may not let you deposit extra funds should you find yourself in a position to invest more cash.
Elsewhere, a notice savings account will require you to give an advanced request if you wish to withdraw funds from your account. Often, a bank or building society will require a period of notice before a withdrawal can be made. It has often been the case that this type of plan offers high interest savings rates compared to other schemes, but it is worth doing your homework to make sure you are benefiting from promotions and bonuses offered by banks.
An often-overlooked option is savings bonds. Bonds provide an attractive alternative to the more orthodox savings plans on the market. Savings bonds come in a variety of types and will allow you to save as much or as little as you want; depending on which you choose, they will often allow you instant access to your money or the option to tie it up as part of a longer-term investment. Though bonds are often thought of as not offering the best returns in terms of interest rates, they tend to be popular because of the security they offer.
Once you have decided that you wish to open a savings account you should seek advice from those who will be able to point you in the right direction. This could be a bank manager or even a financial adviser. Alternatively, you could spend a few minutes on a price comparison website to compare savings accounts. The extra income that you could earn from your stowed-away cash might just be able to pay for that new kitchen you've been dreaming of.