Steps to grow your savings accounts

Follow these steps to set up good savings habits and watch your savings accounts grow.

10:56 11 May 2013

Many reports show financial improvement for the UK which is welcome news. There are still many who may be feeling the effects of the repressed economy, as is the case with many who have had to dip into their savings accounts in order to make it through the month, or even to purchase groceries.

 

Establishing a method to growing your savings is a great way to ensure that you are prepared for a variety of economic troubles, or emergencies.

 

• Compare—if you want the most from your money, you’ll want to shop around. Check with various institutions to find out what interest rates are paid on regular savings accounts. Find out if there are minimum monthly deposits required, and penalties for withdrawals.

 

• Budget—figure out how much you can easily afford to siphon into savings accounts. If your budget is already a little bit tight, you may want to find ways to reduce costs and you’ll want to ensure that you’ll have easy access to your savings if you need it.

 

• Automate—if possible have the amount you specified in your budget directly deposited into your savings accounts. You’re less likely to miss the money if you never see it on your payday.

 

• Diversify—if you’re lucky enough to have quite a bit extra don’t just use regular savings accounts, but consider trying a Stocks and Shares ISA if you don’t mind a bit of risk. You may find it very rewarding in a relatively short amount of time.

 

• Limits—establish ground rules for yourself so you don’t dip into your savings accounts whenever there’s a sale or a buddy wants to make you a deal for his old vehicle. Deciding—maybe even writing down—guidelines can protect your money for true emergencies.

 

Everyone is different, but these steps can help you make sure that your savings accounts are healthy and ready to take on any emergency.