The savings market is constantly changing, so how can you make sure you always have the best savings rates, while ensuring your capital is protected?
Philip Irwin-Brown, Senior Private Client Adviser from our Concierge Cash Team, gives us his top tips.
1. It may sound obvious but shop around.
Knowing what you are earning is the first step to improving the return on your savings as you can then move to a more competitive account if there is one available. This can mean the difference between earning just a few pennies or many pounds. And best buy tables are a good place to start.
But not all best buy table are created equally.
Best buy tables tend to cater for the majority.
Accounts may be excluded from best buy tables if they have restrictions on age, postcode, whom the applicant currently banks with, if they can only be opened or accessed in branch and if they have a high minimum deposit.
Savings Champion looks at the whole savings market, not just the high street; our advice is totally independent, although our best buy tables may also exclude some accounts for the reasons outlined above. So why not call us on 0800 321 3581 for a free savings health check and we will happily tell you the best rates available for your unique circumstances.
2. Decide how flexible you are willing to be about access to your deposits.
How much cash do you need to be able to access on an immediate basis? This amount should be deposited into easy access accounts or high interest current accounts.
If you can lock some away for longer in fixed rate bonds and/or notice accounts, it could improve the interest you can earn.
3. Take advantage of the free protection offered by the Financial Services Compensation Scheme (FSCS).
Should your bank or building society fail, the maximum pay-out is £85,000 per person, per banking licence. If you have savings of more than this and want full protection, this will require extra administration as you may need to open and monitor multiple accounts and then switch when fixed rate bonds mature, bonuses end, your provider decides to drop the rate or a better paying account enters the market. However, any extra administration is balanced by the peace of mind of knowing your savings are safe.
4. Check for FSCS licence conflicts.
When you need to open a new account, check there are no clashes with existing accounts.
There are over 141 banks and building societies covered by just 124 licences.
5. Decide if you are happy to use notice accounts and internet-only accounts to increase your return.
Many of the best rates can only be opened and operated online and while this has many benefits, not everyone wishes to use them. You can still find other accounts that are postal, telephone or branch based, but it can be harder to find the best ones, so call us if you want us to help you.
6. Regularly monitor your accounts, to ensure you know if and when your bank or building society drops your interest rate.
Often a rate cut is not always made clear and so to be sure, you will need to check with them regularly, if possible on a weekly basis.
7. Regularly monitor the savings market.
Even when you have found the best accounts and deposited your money, new accounts and new providers are constantly entering the market; We provide free Rate Alerts that can help you monitor this activity and allow you to compare any new accounts against your existing savings and their corresponding FSCS licences, to see if the account is suitable.
Remember to check the account terms and conditions to make sure you are eligible to apply.
8. Maintain a list of all the accounts you hold, so that you know where your money is and what interest rate it is paying.
Our Rate Tracker service will help you to do this and will also alert you when those rates change. This list can also be useful for loved ones in the event of your death.
9. Keep records of all the accounts you have held in any tax year, so that you can make sure you submit your tax return correctly.
10. Let us do the hard work for you and talk to our Concierge Cash Team.
After all, who wouldn’t want a better, more secure return for their savings without the hassle?
To find out more, simply call us on 0808 164 6466 and we will review your existing savings account(s) for free. If we can’t improve your savings return as a result of using our service then there is no commitment to proceed.
Alternatively, download our free concierge guides here see how we can help to supersize your savings.
FREE SAVINGS CHAMPION GUIDE: Concierge Cash Management Service
No one likes to miss out, but if you have not taken stock of your cash deposits for some time, then the chances are that you are missing out on more than you might realise.
We've produced a number of guides to help savers and business get the most from their savings.