Saving isn't difficult but with the variety and large amount of information out there it could become very confusing. To get rid of the confusion it is important we set a structured approach.
What are you saving for?
If you are just saving for savings sake then you are looking for the best rates out there. If on the other hand you are saving for a mortgage for example then although you are looking for the best rates you will also have to consider saving schemes for first time home buyers such as the Lifetime ISA or help to buy ISA.
You should set a savings target:
Once you have outlined what you are saving for and it begins to get a bit clearer on where/ how you could structure your savings. You must then find out what your savings target is. Is it £100,000 for a 5% deposit on a £2m house or maybe it's £15,000 for a 5% deposit on a £300,000 house with the London help to buy scheme. Is this savings target realistic in your timeline? Do you earn enough to put away the minimum monthly requirement to get here?
These are the questions you must consider when coming up with your savings target.
Stay long, benefit better: 🌟
As you know financial institutions often reserve the best rate for those who are willing to lock their money away without access to it for longer periods of time. This means you can earn even better interest with a savings account with such characteristics.
Where should you put your savings? ✈
So now you know what you are saving for, how much you are saving for and potentially how to get there.There are now different potential destinations for your money. You should certainly consider one with a tax wrapper such as an ISA. This will protect any interest you earn from the taxman. You should also consider an account which is protected by the financial services compensation scheme and ideally does not have high withdraw charges etc except the offset of that are great interest rates. At this point you should seek independent financial advice in light of the many options out there including peer to peer platforms etc.
Look for great interest but beware of introductory offers:
There are loads of great products out there but finding them all might prove impossible. This is where a good financial wellbeing platform comes in and sources they suitable products. You should consider the institution, their FCA permissions and their track record if you believe in that but beware of any introductory offers which sound too good to be true as they usually are.