Why savers must take advantage of the current climate?
With interest rates increasing regularly, there are opportunities to be had for savers. But what are the options, and is your money working as hard as it could be?
Every cloud has a silver lining
Higher interest rates are good for savers. You might be paying more for your mortgage or increased interest rates on debt, but the good news is that you may get a higher interest rate on your hard-earned cash savings.
High inflation means now is the time to save
As buying goods and services becomes more expensive, you need more money to cover those costs. As inflation increases, the value of your savings account decreases. This is why having the right savings plan is imperative to get the most from your money.
Saving for a rainy day or something much better?
Your motives for saving, whether to create a more secure future for you and your loved ones by providing funds for those unexpected events, life can sometimes throw up or for something you have wanted for a long time. You may have many reasons for saving. You may be saving for the classic car you have always wanted, a memorable holiday, and added security. If so, it’s essential to find the correct account for you.
Easy access savings accounts
These accounts allow you quick access to your money when you need it, and the price you pay is lower interest rates.
It allows you to access your funds faster than fixed-interest rate accounts. The interest rates earned are still relatively low, with a notice period of one to six months.
Fixed-rate savings accounts
You pay into these accounts for an agreed fixed interest rate for an agreed period. These accounts require more commitment, but you will be rewarded with higher interest payments. There may be penalties if you withdraw funds from this type of account so it’s important you understand how long your committing to the specific account.
Individual Savings Accounts (ISAs)
There is no limit to how much you can save in an ISA during your lifetime, and you can contribute up to £20,000 every financial year. Interest rates for these types of accounts can
sometimes be higher than standard savings accounts. There are several forms of ISAs, from instant access cash ISAs, stocks and shares ISAs and Lifetime ISA’s (LISA’s). These LISA’s are slightly more restrictive in terms of contribution (£4,000 per year) and access but they also carry a Government incentive which increases your contribution by 25% up to £1,000.
If you’re under the age of 18 or perhaps your considering investing on behalf of someone else under 18 there is the chance to put up to £9,000 per year into a Junior ISA (JISA). These convert to an ISA at age 18.
Choosing the right strategy is essential. Investing your hard-earned money can offer much better returns than savings accounts. If you are looking for a long-term investment with minimal risk and the smallest possible tax bill, seeking the best investment advice and guidance is crucial.
Wills and Trusts have the right investment strategy for you
Our dedicated and knowledgeable team understands that your long-term goals differ from the next person’s. You want to minimise your exposure to tax while making the best return on investment so that you and your family can reap the rewards of sound investment choices. We don’t just create a fund and hope for the best; instead, we constantly review our processes so that we mitigate risk, increasing your return while minimising your tax bill.
Please contact us today so you can make a start on creating your ideal investment portfolio.