There isn’t one right way to save.
For some people, savings are a safety net – money put aside for the broken boiler, unexpected car repair or sudden change in circumstances. For others, they’re about something altogether more enjoyable: a holiday, a new car, helping the children or they’re about peace of mind and simply having more freedom to make choices in the future.
That’s why I like the theme of this year’s UK Savings Week, taking place from 21–27 September: “Save your way today. Thank yourself tomorrow.”
It’s a simple message, but an important one.
And here’s the encouraging part: building financial resilience doesn’t necessarily require dramatic changes. The key is to start with what works for you. One of the central messages of UK Savings Week is that whether you can save £1 or £100, developing the habit is the most important part. Because particularly when household budgets remain under pressure, saving shouldn’t become another financial stick to beat ourselves up with. For some people, putting money aside simply isn’t possible at the moment. For others, starting small and saving regularly can gradually build a surprisingly useful sum.
And if you’re already a saver, Savings Week provides a good prompt to ask a different question: could your existing savings be working harder?
According to recent Bank of England data, over £300bn is currently sitting in accounts paying no interest. The Savings Week campaign has therefore set itself two ambitious targets for 2030: to create two million new regular savers and to move £50 billion out of 0% accounts. Both make an important point. Saving smarter isn’t just about how much you put away. It’s also about what you do with the money you’ve already saved.
Give your savings a job
That doesn’t mean simply finding the account paying the highest headline rate and moving everything into it. Think instead about what your savings are for.
Money you might need tomorrow needs to be accessible. Different savings products offer different features and levels of access. Therefore, some savers may choose products that restrict access for a set period of time in return for potentially higher rates of interest. If you have several different goals, there’s nothing wrong with having several different savings pots. The important thing is to make conscious choices rather than allowing inertia to make them for you.
Savings Week is a useful annual reminder to do exactly that. Look at what you have. Review the features and returns linked with your savings arrangements. Think about what you’re saving for. And, if you can, maybe consider putting a little more aside regularly.
Save your way today – and there’s every chance your future self really will thank you for it.
Check out UTB’s latest rates here.
By Joe Harris
Senior Product Manager – United Trust Bank
Although this article may contain helpful information and tips, this is not advice. You may wish to seek advice from a financial advisor if you are unsure about next steps.