Managing your money as a student can be hard, especially when starting a new course or academic year. That’s why its important to start the year right by making sure you have a clear budget to make your money work for you. This week is #uksavingsweek from the 9th to 15th September and we want to help you to know what to look out for when choosing a savings account.
Budgeting and Getting Started Saving
The start of each academic year is a great time to make a financial plan and review your budget. This can help you to know if you’ll be able to save, how much you can save and think about maximising your savings. Creating a savings plan early on can help you to reserve funds for unexpected costs throughout the year or towards the cost of expected activities or events.
The main types of savings accounts are:
- Instant Access Accounts - these allow you access to withdraw your money at any time. You normally only need a small amount of money to open one (some start with just £1) and you have access to your savings whenever you need it. These can be great for emergency fund savings.
- Notice Accounts – require you to give advance notice to your provider before you can take your money out. The amount of notice can vary, as well as the restrictions on funds withdrawn.
- Regular Savings Accounts – these accounts usually require a regular commitment to depositing a sum into the account, sometimes over a fixed period.
- Fixed Rate Accounts - these accounts usually require a regular commitment to depositing a sum into the account over a fixed period. The period can vary, however, can be up to several years. These accounts may be better to suited to longer term savings, which you know you will not need to access in the short term.
- Individual Savings Accounts (ISAs) – these accounts allow you to save within a tax-free limit and vary depending on the different types of ISAs, including easy access ISAs, fixed rate ISAs and stocks and shares ISAs. The current limit to the amount you can save in each tax year is currently £20,000 per person. ISAs have various restrictions depending on the type and it is important to check your eligibility before opening an account.
- Help to Save – these accounts may be available if you receive certain Tax Credits or Universal Credit. If eligible, this can be a helpful option as every pound you save the Government gives you a bonus of 50p and allow you to you to save up to £50 a month.
For free and confidential support creating a budget to see how you can start saving or the chance to speak to someone about improving your financial situation, contact the advice service for an appointment at [email protected]
For more information on how to save and make the most of your savings visit https://uksavingsweek.co.uk/
The above information is for general information purposes and does not constitute financial advice. For tailored financial advice, students are advised to do their own research, seek independent regulated financial advice and speak to their chosen banking provider before accessing any financial products.
Sources https://uksavingsweek.co.uk/