Four in 10 people expect no improvement to their personal finances in 2024, according to a survey by AJ Bell.
With the cost of living on the rise, finding effective and straightforward ways to save money has never been more crucial. Here are five easy methods to boost your savings in the UK with minimal effort.
1. Automated Savings Apps
One of the simplest ways to save money without thinking about it is by using automated savings apps. These apps link to your bank account and automatically transfer small amounts of money into a savings account based on your spending habits.
Popular apps in the UK:
- Chip: This app uses AI to determine how much you can save and transfers that amount automatically.
- Plum: Plum analyses your spending and moves money into a savings pot regularly.
- Moneybox: This app rounds up your purchases to the nearest pound and saves the difference.
2. Cashback and Rewards Programs
Cashback and rewards programs can help you save money on purchases you’re already making. By earning cashback on your spending, you can accumulate extra savings over time.
Best programs available:
- Quidco: Offers cashback on purchases from a wide range of retailers.
- TopCashback: Similar to Quidco, it provides cashback on online and in-store purchases.
- Nectar: Earn points on your shopping at Sainsbury’s, Argos, and other partners, which can be redeemed for discounts or rewards.
3. Direct Debits for Savings
Setting up direct debits to transfer money into your savings account on payday ensures you save consistently. This “pay yourself first” approach helps you prioritise savings before other expenses.
Benefits of consistency:
- Automatic saving: You don’t have to remember to transfer money manually.
- Disciplined approach: Ensures regular contributions to your savings.
- Builds good habits: Encourages a consistent saving habit over time.
4. High-Interest Savings Accounts
Utilising high-interest savings accounts can significantly boost your savings. These accounts offer better interest rates compared to standard savings accounts, allowing your money to grow faster.
Comparison of top accounts:
- Nationwide FlexDirect: Offers competitive interest rates with easy access.
- Santander 123 Lite: Provides good interest rates and cashback on household bills.
- Marcus by Goldman Sachs: Known for its high-interest rates and no fees.
5. Government Savings Schemes
Take advantage of government-backed savings schemes designed to help you save more efficiently. These schemes often come with added benefits like bonuses or tax advantages.
Details on popular schemes:
- Lifetime ISA (LISA): Save up to £4,000 a year with a 25% government bonus for first-time homebuyers or retirement.
- Help to Save: A government scheme offering a 50% bonus on savings up to £2,400 over four years for those on Universal Credit or Working Tax Credit.
Conclusion
Boosting your savings doesn’t have to be a daunting task. By leveraging automated savings apps, cashback programs, regular direct debits, high-interest accounts, and government schemes, you can make your money work harder for you with minimal effort. Start implementing these strategies today and watch your savings grow!
