Having savings could save you
Saving and investing isn’t just about earning interest or making money – having an easily accessible cash lump sum can help you cope with a whole multitude of unexpected events.
Financial experts generally suggest saving up the equivalent to six months to a year’s salary. It’s good advice – here’s why you should follow it.
What would you do if you lost your job?
No one has a “job for life” anymore. Unfortunately, thousands of people get made redundant each year. About 5,000 Poundland employees are the latest workers to fear for their jobs after the budget retailer went into administration. Other people find themselves without work when short-term contracts end, or when they simply get fired.
Having savings can put your mind at rest that if you lost your job you’d have a bit of breathing space in which to find another.
Of course, you’ll need a home for your savings. How about an easyMoney account offering 7.28% per annum, to both regular and IFISA investors? You can ask to withdraw your money at any time but please note instant access is not guaranteed.
Things break down
Cars, boilers, relationships… they all breakdown at one time or another. So it pays to have savings you could use to pay for repairs or, in the case of relationships, move on.
Many people without savings are forced to turn to short-term credit to deal with unexpected expenses. But interest can accumulate quickly with some types of loan and you may end up repaying much more than you originally borrowed.
Stashing away a lump sum means you’ll hopefully be able to deal with any emergencies without borrowing money.
Is your bank infallible?
TSB customers have been suffering a whole raft of issues over the past two months. In the worse cases, people are locked out of their accounts and unable to access their own money to pay bills, buy food and generally get by.
While such technology issues are thankfully rare in the banking sector, the TSB saga shows how important it is to spread your money between different financial institutions. So if one gets hit by computer problems or a hacking attack, you can still access money held elsewhere.
How about stashing some of your cash in an easyMoney innovative finance (IF) ISA? It pays up to 7.28% and you can ask to withdraw your money whenever you need to.
How to start saving
The best way to build up an emergency fund is by saving money every time you are paid, which is normally weekly or monthly. The easiest way is by setting up a standing order each month, to move cash from your current account to savings account or ISA.
Keeping your savings separate from your main current account helps you keep track of how much you have saved up and stops you accidentally spending your savings.
Investing your money makes it work harder. You can earn tax-free returns of up to 7.28% if you invest in an easyMoney innovative finance ISA – that’s a lot higher than the cash savings rates on offer.
You can open an easyMoney account at **easymoney.com** or by calling 020 3858 7269. You can either start from scratch or transfer from other stocks and shares or cash ISAs. The minimum investment is £100. Remember, as with all investing, your capital is at risk. If you invest £1,000 or more you’ll receive an easyMoney Plus card for free offering some serious discounts at more than 100 of the UK’s biggest retailers.