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Saving Your Money In A UK bank 2020

 

Saving Your Money In A UK bank 2020
Saving your money in a bank account well unfortunately due to it losing a lot of its value long temps that's why I was investors we are particularly keen on his neck pain shins on our basements to ensure the buying power over money is still there for many years down the line in 2 days top savings accounts I could find for the U. K. in 2020 so if you are considering moving your money around to get the best deal look and even for a year to to grow this Article is ideal for you.

1 of the greatest concepts for investors or savers in general is using the principle of calm paint and chase essentially it means when you deposit money N. as a little bit of magic with the industry the allies not only your money that you deposited into cool but also the entrance from the previous year the previous years and fight that you've kept and I can't today and also grew how you basically see as an exponential graph you start off very slowly and over time your money can really skyrocket now the playing of paradise and make compound interest working your fever couple of concepts is the time you leave your money as the interest rate that you gates while your savings on the vehicle the re on return actually receiving for leaving your money there and also the amount of money that you to post it now this is interest rate is critical it's basically like the lighter fluid the alleged to say to on fire and really grow it dramatically the concept called the number 72 which basically is describing how long it will take your money to double so essentially what you would do is the interest rate will determine how quickly your amount of money will double the length of time to achieve it so for example if you had an interest rate of 10 percent into the number 72 so we go 72 divided by 10 every team 7.2 years to double your money 9 interesting enough of course with savings accounts these are where the bank gives a small and I mean small industry as a thank you for depositing with fame they need to earn money to land 82 companies are individuals in the form of loans and then generally built their own wheels and they lay some of the profits back to you as a thank you and usually very small interest rates now the key thing determine when you should be using a savings account is really how you want to use your money so I describe as a part of your goals for that money that you're keeping in the savings account when we actually look at the power of your money in a savings account it tends to be very small amounts of entries and often the cases is actually going to lose buying power and I'll explain why now as.

They say this and J. street is given to you is basically out of money that's put on to your seem to care while you sleep you don't have to earn the extra money it's also mostly for being a customer and depositing with the bank after every every turn is not in line with inflation order Bob actually means of buying power of your money will decrease over time essentially with inflation as the cost of living goes up and generally was seen this year about 2 percent and most years so if you're getting less and not as a re of return on your investments your pension or your savings account then the buying power and the value of money is not going to be the same as when you deposit today and and it's a face when going to buy you lace and your normal life when you do withdraw inflation in 2019 was roughly 1.74 percent 0.55 decrease from the previous year so you'll see if you were in achieving at least 1.74 which is actually relatively small compared to previous years previous decades then the buying power all of your money in a savings account or investment or pension would be decreasing my most regular savings accounts and most of these are messages to you are under that bracket the require you to commit to a minimum amount usually every month that you will P. N. the also only peer usually at the end of 1 year and in most cases where it will be a yearly fee that's for new customers and most cases when there is higher interest rates as well we see that tan Sri veiny take conditions you will not have access to your money you'll have to commit to those minimum mains and also a maximum amount you can pretend it's not gonna be the same as a normal bank account you would use for paying your bills or your current came to meet a certain criteria you must meet to have this high interest accounts no you won't necessarily become financially free from using high interest savings account but why do you see as if that is your strategy you want financial freedom independence it can be a really good tool to use as part of your normal saving and investing strategy because we not only a poor.

Tion of our money can be locked into these high interest accounts and it's usually for a minimum of 1 year you're looking only to then get entry spot you will know that maybe is for you in your purchase his fund maybe it's for those long term goals where you're okay with not having access to that money in order to get higher rates of return I said financial freedom the concept it is you basically want to guarantee in some way the naming of interest you're receiving on your basement vehicle is going to be much higher than the actual amount you want to draw every year so for example the use the 4 percent rule is that Jane okay thank you commit to withdrawing only 4 percent of your total investment every single year and really the vehicle you be using has at least 6.578 percent or above and not weaker always eating into just the entrance games and also inflation is taken into court as well as I see these high interest accounts are ideal if you want new opportunities fund to you've already committed to making maybe 3 to 6 months of savings of immediate access money you would need if you wanted to maybe travel the world start a business perhaps leave your job anything that changes your world in some way what we have to be cleared off though as these high interest accounts I'm going to mention you probably will need to be VAT closely watching when you come to the end of your bracket the reason as they usually wanting for new customers and once the year is up you'll be switched to a lower rate automatically and if you're not also afraid of moving your money you can take advantage take 1 dealing a customer with 1 bank move it to another when simply the deal that you want is there so here on the 7 need to know if things when you're picking high interest senior care the first thing is you need to know how much money you're late to depose and every single month or year as I've covered these accounts on our high end chains are usually on a couple of different reasons first of all it's usually because you are new customer to that bank if they want your business to the willing to pay for that business opportunity they will also make sure it's only a certain amount of money that the reason is they don't want to have. Commit to huge amounts of interest for a year he went to the polls and 1000000 paintings or anything like that the only 1 to benefit some of your money to get your business so make sure you understand how much money is actually allowed to be seen every single year and the second the other thing to be aware of is usually the headline grabber is locked in for the year as I say it's safe endings you can get 2.5 percent or 1.5 percent read the small print it generally as only for the first 6 months or years invading here any longer than 12 months now the great thing as well you can also open many accounts in different banks this isn't the same as a cash ISA or basement isa so for example you could open a high interest seems a campus on Sunday here they may be the royal bank of Scotland have as many as you want to take advantage of these high interest rates however of course I can say is lightly because you're a new customer your late these race so make sure of course you're not buying with them before but also be aware that this could be very short space of time where you get these high interest rates from about bank yeah the great thing is that of course all the bank accounts are covered by the 85 days in pain to the F. A. C. S. cover you by so that's a compensation scheme if anything was to go wrong without buying the perhaps couldn't fulfill their obligations to you and they went on to you at least be covered of the value up to your capital that you'd actually please into the banks to be spread out better

If you get large amounts of money again a similarly to bank accounts that I'm in is I'm protected at each institution that you're banking with so for example if you were saving 300 payments for a year so every single month putting a week 300 paintings if you were able to get 2.75 percent interest rate locked in for that year you would take home an extra pair 54 pains as a thank you all the interest payment after the end of the year so not a huge amount for your 3000 600 pains you deposit and but certainly I could demand a good amount of and chase compared to a normal banking came through the first.  I said it's 2.75 percent for the first year however after the treatments are over he Dan moved to their normal standard came in at 2.75 percent is roughly equal to that 45 panes of interest every year for that 1 year that you're actually opening that can qualify now this particular offer is available if you use our current account switch seats up do you have to be banking with someone else and disabled person to use their team to move over and you do have to have 2 direct debits in the eye candy going to setup is male you can place between 25 to 250 pounds every single month via standing order into S. A. K. and the great thing is if you do not use your 250 paint allocation that some not some you can put in every month the leftover might then rolls over to the next month so for example if you're only paying 50 pains 1 month then you can talk up you can you put 450 pains up the next month to make up for the difference partial withdrawals are not allowed in any circumstance if you do want access to your money make sure you understand this is not something that is permitted in order to get the interest rate return if you do withdrawing your money before the 12 month mark this actually means it will close down your account and transferred into normal savings account with them in states the second I can't escape free to K. 4 is HSBC's regular saver I came in a similar way to the marks and

Spencer's bank account the only to be up to 3000 panes into your opening account for the first 12 months yeah this 1 is almost identical to the marks and Spencer's times and conditions your lights pick between 25 pains 2 250 every single month into this account no more no less than that 25 pains anything left over of that 250 payment allocation Daniels. Over to the next month and so want to have to fill 3000 pains that you can actually deposit into this account the way the entrance once again if you decide to withdraw it's not permitted before the year mark you would lose the interest gained on the account and then you simply been a normal savings account based on the interest rate you have to commit to the the the fool 12 months to get a 2.75 percent and traced on another option for you is how faxes regular saver again it has to be for new customers but they're offering 1.5 percent interest rate right now if you want to commit to putting behind that 25 pounds to 250 pains every month to seem tame is up to 3000 panes in 1 calendar year Hey it works as they will open the account for you at the end of the year that's when you'll be credited with the Phil interest rate and based on 1.5 percent as you can market is roughly about 35 payments for the course of the year now you can change the quantity that you want to see every single month as long as it's within that promise of 25 pains to 250 pains you don't need to set up a standing order and the same with the other kids too the great thing about this Halifax a candle as he actually into a monthly prize draw his bail so they came to play on the idea of premium bones here where you put your name into her and you could actually win even more money just by having this high interest account with them at the end of the year when she opened this account as a new customer then the 12 month mark will come along and I'll transfer the contents into normal savings account they backed into their normal interest rates the S. 1 terror and that is the amount of money you deposit and has to hate you to came by the 20 fifth of every month so keep that in mind you have to be someone who's absolutely dedicated to percent monthly standing order or direct debit also into this account although the great thing is you can change the amount every month as you see fit up to the 3 things in paymark says he said and these are can't tend to be well below the 3.5 they. As in payment you can actually see it as a new customer to get the special interest rates the great thing as are also above inflation I see the last option which is the house lights which is only one point five percent the race a lady to be above inflation with your money B. Tang and holding on to the value the ex wife and gaining you buying power over old the sad thing is it's only a year so I would love to see these accounts I should offer those terms perhaps or to even five years to new customers Graham really tough times I knew a lot of banks are going to suffer but if you can take advantage of these high interest

#Saving Your Money In A UK bank 2020

#Saving Your Money In A UK bank

#Saving Your Money In bank 2020

#Saving Your bank Money 2020