Newspaper article Evening Chronicle (Newcastle, England)

Saving Graces; FED UP EARNING NOTHING ON YOUR SAVINGS? VICKY SHAW SUGGESTS SOME ALTERNATIVE WAYS TO STASH YOUR CASH AND TURN A PROFIT

Newspaper article Evening Chronicle (Newcastle, England)

Saving Graces; FED UP EARNING NOTHING ON YOUR SAVINGS? VICKY SHAW SUGGESTS SOME ALTERNATIVE WAYS TO STASH YOUR CASH AND TURN A PROFIT

Article excerpt

LIVING costs are continuing to rise, tightening the squeeze on households. The Consumer Price Index (CPI) measure of inflation rose to 2.7% in April - the highest level in nearly four years.

With many standard accounts paying little or even zero interest, rising living costs make it harder for savers to find somewhere for money to show real growth.

According to M&G Investments, PS5,000 saved in an average instant access savings account could lose PS127.50 in real terms after inflation, over the next year.

While it's important to keep a rainy-day savings buffer you can access quickly, perhaps it's time to also consider other places to put your cash. Here are some ideas: GET A NEW CURRENT ACCOUNT MANY current accounts pay higher interest rates than you might get from a standard savings account. You could also get paid to pay your bills. For example, Santander's 123 current account pays monthly cashback on selected household bills, while with TSB's Classic Plus account, you can earn PS5 cashback every month for having two direct debits.

Those considering switching will need to weigh up how they use their account to work out which deal may best suit their needs.

People could be about PS92 per year better off typically by switching to a more suitable deal, according to a recent report from the Competition and Markets Authority.

CONSIDER THE STOCK MARKET INVESTORS must be aware of any fund management charges and keep in mind the value of their pots can go down as well as up, according to Rachel Springall, from Moneyfacts.co.uk.

She adds: "The growth potential may persuade some to consider this option, particularly as the average stocks and shares Isa returned growth of 16.5% over the past year. But past performance is no guarantee of the future.

"In comparison, the average return on cash Isas over the past year was just 0. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.