Help with saving money

Savings

A savings account is a place for you to put money in and earn interest.
Long term savings: money you don't expect to need to spend within the next 5 years or less. This can be for a pension or a child’s education for example.
Short term savings: money used within 5 years. This can be used on a one-off purchase such as a car, a holiday or a wedding.
Emergency savings fund: for unexpected costs or circumstances. Aim to save 3 months of basic living expenses based on your budget.

For emergencies or unexpected life changes. If you suddenly lose your job or your washing machine breaks you can avoid potential debt.
For a deposit on a house.
For expensive purchases such as a car, holiday, or luxury items.
For retirement.
For Christmas and Birthday gifts.

Create a realistic budget based on your current circumstances. Do you have any money left after all your expenses?
Look at all areas you spend money on and see how you can reduce your spending.
Create goals using savings tracker: Work out how long it will take you to save for an expensive item you want based on how much you have left after bills and normal expenses.
Make it automatic: Set up a Standing Order to transfer money into your savings account on the day you are paid.

If you've got debts including credit cards, doorstep lenders, arrears on priority bills or a mortgage, overpaying often beats saving.
Put savings into your account when you get paid, or have a standing order set up for this automatically.

There are different types of accounts where you can place your savings and choosing where to save them should depend on your circumstances.

Easy access or flexible accounts: If you need instant access to your money.
Fixed rate accounts: Lock cash away in return for higher fixed rates.
Lifetime ISA (Individual Savings Account) to save for your first house or save for later in life gives a 25% boost on up to £4000 per year.
Help to Save scheme gives a 50% bonus to those on welfare benefits.
A cash ISA is useful if you pay tax on savings interest.
If you're able to save monthly, regular savings accounts often pay high rates on small amounts.
If you're saving for your kids, children's accounts often pay better rate.
Credit Unions have saving schemes.

If you're on a low income, you might qualify for a government-backed scheme called Help to Save.

It’s a type of savings account that gives a bonus of 50p for every £1 you save over 4 years.

If you live in the UK, you can open a Help to Save account if one of the following applies:

You’re getting Working Tax Credit
You’re entitled to Working Tax Credit and are getting Child Tax Credit
You’re claiming Universal Credit and your household earned £617.73 or more from paid work in your last monthly assessment period

If you would like more information about this scheme, please click here.