Welcome to day 1 of 7 days of new year money tips – today we consider how you can make the most of your cash savings.Review your savings
From April 2016, almost all UK adults will be able to earn £500 (higher rate tax payers) or £1,000 interest a year on their savings without paying tax on it using their new personal savings allowance. The new rules are a good opportunity to review your savings’ deals. Savers are earning poorer returns than necessary from their bank accounts, with established customers in particular, losing out, according to a Financial Conduct Authority investigation into competition in the cash savings market. A recent article in the FT quoted Richard Lloyd, Executive Director at consumer group Which? “Consumers are losing out on billions of pounds from savings stuck in poor value accounts, and the banks are simply not doing enough to help their customers get the best deals,”
You should also make sure your savings are protected. The maximum amount the Financial Services Compensation Scheme will pay to a customer whose bank or building society goes under, fell from £85000 to £75000. You can protect yourself by spreading your savings across several accounts.
Disclaimer: This article not constitute financial or other professional advice. You should consult a professional adviser if you require financial advice.
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