Recent research from Mintel has shown that 43 per cent of consumers in the UK plan to save this year but how can people to make the most of their funds?
Last year only 15 per cent of UK consumers planned to set aside some money in savings. Despite this year’s significant increase, times are still tough financially and it is important to uncover the best tricks to make the most of funds in this era of low interest rates.
First of all, consumers should always look at tax-free options for savings, such as ISAs (Individual Savings Accounts). Cash or stocks and shares can be invested in ISAs and any returns made are tax-free. As savers must usually pay 20 per cent tax on money earned, and 40 per cent for those earning a higher rate, this means that up to £3,600 a year can be saved by investing in an ISA.
Another important recommendation for savers is to look for the best rates available on the market and then act quickly. Some banks may withdraw good deals if they perceive that they are losing money on them, so moving quickly when a good deal is spotted is vital.
