Guest Blog by John T Hughes
Putting money aside and budgeting to spend less than you earn can help build up what might be an invaluable fund should things go wrong, but how can you help you cash earn some interest while you have it stashed away?
Apart from the traditional easy access savings accounts that have seen relatively low rates of return lately, there are a number of other options that you may like to consider.
Improve your capital earning potential:
Special offers. Many banks and other savings providers offer special limited period deals, especially if you are willing to tie your money up for a fixed period. Make use of these where you can, keep track of your savings and shift them around once the fixed period is over. This will ensure you’re getting the very best rates for your savings. Don’t be afraid to change provider if you can get a better deal with someone else.
Tax savings. Make the most of your ISA allowance- even if you’ve seen a better interest rate offered elsewhere. Saving or investing through a cash or stocks and shares ISA could mean significant tax savings on UK Income Tax and Capital Gains Tax, getting you more for your money in real terms.
Investment. Investing your money need not involve risking your entire capital in an all or nothing scenario, and there are a range of investment options that can provide a relatively low risk way of earning a little bit of extra interest on your savings, such as fixed rate rel=nofollow [http://www.savingsbonds.co.uk/]bonds. However it is important to remember that in pursuit of higher returns you may not get back everything that you put in, investment is not the right everyone and you should consider your attitude to risk carefully before you proceed.
Most importantly, make sure that you keep track of your money. Your capital can lose its value in real terms if left to languish in an account that offers little in the way of returns, lagging behind inflation. Many accounts will offer a special rate for the initial deposit period and then switch back to a standard rate later on.
If you are unsure about the right option for your needs you may want to consider speaking to an independent financial advisor who can help talk you through you options when it comes to saving or investment. Just because we live in a difficult economic climate, it doesn’t mean you can’t get your capital working harder for you.
John T Hughes writes for Savings Bonds , a site dedicated to helping you to find leading savings or investment bonds options that may be suited to your needs.
Article Source: Changing Your Accountant: A Step-By-Step Guide
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