The best places to put your savings
So you’ve been busy setting budgets and saving your money, and you’ve now ended up with an attractive amount of savings — what’s next? It’s crucial to take all the right steps after saving money to ensure you’re getting the most out of your savings. From ISA’s to emergency funds, there are a range of things to consider when it comes to your finances. To help you pick the best route to take, here are some of the most popular things people do with their savings.
Open an ISA account
One of the most popular ways to save money is by putting your cash in an Individual Savings Account. ISA’s are a tax-free way to earn interest on your savings over time, and there are a lot of different types to choose from. ‘Help to buy ISA’s’ are one of the most popular types, used to help first-time homeowners save for their first property. With these ISA’s, the government rewards savers with bonus amounts reaching as high as £3,000 for the maximum bonus once the account holder has saved a total sum of £12,000. Other popular types of ISA include a lifetime ISA, which helps people save for retirement and a cash ISA which is commonly used for short-term savings goals. If you want to open up an ISA to get interest on your money, it’s definitely worth spending some time researching the different ones on offer to find the perfect option for you.
Open an emergency fund
You’re probably familiar with the term ‘rainy-day fund’, which is a savings account that can be instantly accessed in the case of emergency. You never know what’s going to happen with your financial status, so if issues arise such as losing your job or having to spend a large amount on home repairs, it’s vital that you have some cash spare. In this savings account, you should have enough money to cover food, rent and bills for at least three months, giving you more time and freedom to get your finances back on track.
Invest in property
If you’re serious about saving for a better financial future, then property investment is definitely something you should consider. With buy to let investment, you’re able to make a more immediate return on investment and generate extra income from the payments made by tenants. When investing in an area with strong potential for capital appreciation, you’re also likely to benefit from your property going up in value, generating large returns when you choose to sell. If you decide that property investment is a good way to utilise your savings, be sure to research the market properly. For instance, certain cities in the UK have a stronger property market than others, with attractive rental yields and increasing demand for rental properties. It’s also important to make sure you select a trusted property investment company like RW Invest, who offer opportunities in property hotspots like Liverpool and Manchester with high rental yields of up to 7 and 8%.
