Short -Term Savings

Short -Term Savings

It is a good idea to keep some money in a savings account, which you can access fairly easily - say, with just a few days notice.

Reasons for Short-Term Savings

  • You might need to spend money urgently on your house, car or on some other expense.
  • You might want to help out a member of your family in an emergency.
  • It is hard to say how much you might need to access immediately, but once you decide on a figure, find the best home for it with high levels of accessibility.

How to save?

It generally helps save money if you can keep savings separately from day to day spending money.

  • Putting a small amount aside each week or month is easier to do than setting an unrealistic target.
  • If you're going to save money in a bank or building society account, ask for a specific savings account. These generally pay higher rates of interest than current accounts, so your money will grow faster. However, interest rates can change, so keep an eye on the amount of interest you're getting.
  • You might want to join a saving club. Some retailers operate schemes specifically to help save for Christmas shopping. You pay in money on a regular basis and get the full amount back at the end.

Further information

The FSA provides comparative tables on savings accounts

www.fsa.gov.uk/tables

Take a look at the FSA's Financial Health Check for tips on a healthier financial lifestyle - now and in the future.

Related Links

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