UK Savings Week, launched by the Building Societies Association, encourages people to develop sustainable savings habits and make the most of their money. Saving is a simple and essential skill for managing both your finances and your life, ensuring that you’re not only covered for unexpected outgoings like one-off bills or replacing lost or broken items, but also that you’re on track to save for the things that matter to you, like a family holiday or a new car.   

While many UK adults have over £1,000 saved, providing them with a potentially much needed buffer during the cost of living crisis and as we enter winter, a worryingly 34% have less to fall back on[1]. By analysing Bank of England data, we also found that 21% of household savings, totalling a staggering £264 billion, is being held in zero-interest, instant access accounts. With savings rates rising sharply over the last 12 months, savers could now be missing out on hundreds of pounds a year in extra returns from their savings.   

Here's how to make your money work harder.

It’s surprising to hear that nearly a quarter (23%) of savers don’t check the interest rate before opening an account; this means that many households are missing out on many pounds of interest by not finding a more competitive rate.

The key before picking a savings account is to first jot down your goals - short-term, long-term and everything in-between. If you’re saving for something specific and special, be it a house deposit, a university fund, or a family holiday, opting for a fixed rate savings account could help your money work harder over time. These accounts usually ask that you lock away money for a year or two and the interest rate won’t change.

If you’re looking to grow your savings pot little and often whilst having some flexibility to access your savings, you should consider a regular saver account, which is designed for smaller amounts saved regularly in return for higher interest rates. But, if greater flexibility is your priority, an easy access savings account could be your best option, allowing you to dip in and out of your savings whenever you like, though this will usually incur lower interest rates compared to a fixed rate account.  There are many different types of accounts that could suit you, depending on your circumstances, including tax efficient ones if you’ve used up your personal savings allowance. And one to remember is that if you're comfortable with more restrictions, e.g. a longer fixed rate or limited access, it can often result in higher rates. 

So what are you waiting for? It’s time to up your savings game! Whether your ambition is to start saving small and create a long-term habit or if you’re looking for ways to make your money work smarter, there are a range of options suited to your financial goals.