With the current economic climate matching the frosty weather, people are advised to save money where possible. Even putting aside a small amount of money per month will help.
The managing director of Yvonne Goodwin Wealth Management Ltd, Yvonne Goodwin, advises on the long-term advantages of opening a savings account as early as possible. She explained, "I think it's been so easy to get a credit card and rely on that as your emergency fund and totally overlook the high interest rate that you are going to have to pay.“
She added, “But conversely, when people look at savings rates [they] think it's not worth saving because [they're] only going to get a low interest rate.”
Ms Goodwin warns that there is no real alternative to saving if you don’t fancy a retirement in poverty, and that starting to save early is key.
There are many types of savings accounts available to choose from and it is important to choose one that is right for you. For example, there are instant access accounts for those who wish to access their funds with no restrictions and notice accounts for those who can afford to give notice before accessing their money. Returns will vary depending on the type of account chosen.
