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saving information
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why save money?
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People can only save money when they have greater income than expenditure.
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People try to save for a variety of reasons, because they:
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May need money at a later date
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Want to buy something more expensive than they can immediately afford
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Like to protect themselves financially for the future
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Have excess income and do not want to waste it
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where can you save money?
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There are many places to save money and almost unlimited financial products you can buy that will help you to save. These include:
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Banks and Building Societies
The major banks and Building Societies offer many savings accounts. Essentially you open an account by visiting a high street branch, by post or via the internet. The savings account will pay interest on the money you put in so that as well as saving money you also gain more money. That sounds like a good deal! However, be careful to select the best account. Always check the ‘small print’ and ask your self these questions:
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How much interest is being paid? |
The amount of interest varies considerably from account to account |
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Can I withdraw my money easily? |
You may not be able to withdraw the money instantly, you may have to wait for 30 days or more.
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Do I have to put in a minimum amount? |
Some accounts can only be opened if you deposit a minimum amount. |
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Credit Unions
See notes attached for details of Credit Unions – see section 3 Borrowing. They are an excellent alternative to traditional banks and building societies.
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Savings Clubs
Some organisations, particularly shops, may offer savings clubs, such as Christmas clubs. Essentially they invite you to put away a sum of money each week or month in order to save for a particular event such as Christmas. This can be a good idea as it helps you to remember to save well in advance for expensive events. However, you should check that you are being given interest on your savings. Some clubs simply save your money without offering any interest so your money does not grow.
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Other ways of investing
There are many other ways of saving or investing money. You could, for example, buy shares. Some of these methods of investing your savings can be risky and it is possible you may lose money, although it is also possible that you can make money as well. Before investing money it is advisable to talk to a Financial Adviser, a CAB adviser, or other person who really understands the risks of such investments.
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