Keeping your wealth in cash can be extremely appealing. It’s low risk and provides the liquidity reassurance that many people require. But if you want to grow your money and enjoy wealth protection, it’s simply not enough to stash your cash under the mattress – or in a high-street current account.
Today’s high inflation environment makes it even more important to be proactive with your savings. Here are some common saving strategies to boost your interest income.
Shop around and stay on top of the market
Being an active saver is perhaps the most effective way to maximise your savings interest. Many people make the mistake of depositing their savings in any account and forgetting about it. But settling for the first account you come across can be detrimental to your earning potential.
To make sure you’re getting the best rate available, you need to keep an eye on the market, do your research, and regularly review your options. Don’t be afraid to shop around and switch to high interest savings accounts as they arise.
Consider a cash savings platform like Flagstone
A cash savings platform, or cash deposit platform, is a web-based collection of savings accounts available only to its clients. It’s like an online shop for your savings, designed to remove the complexity of opening several accounts.
The advantage of a cash savings platform is that you sign up just once to gain immediate access to dozens of banks and savings accounts. This makes chasing the best rates and moving money freely between accounts hassle-free, so you can grow and protect your savings with ease.
Watch the challenger banks
Challenger banks are small, new entrants to the market, created to compete with the long-established banks. While high-street banks may offer stability, they often provide lower interest rates. Challenger banks, on the other hand, can offer higher rates due to their lower overhead costs.
Not only do these banks often offer competitive rates, but they are also usually easy and convenient to use – especially in a tech-led society. So, it's worth considering these banks when searching for the best savings accounts.
Stagger your maturity dates
If you have a substantial savings pot, opening multiple accounts can have many benefits. One strategy to consider with multiple accounts is to stagger your maturity dates. This works by opening several fixed-term accounts with different terms, so you have accounts maturing at different times. This technique allows you to take advantage of the best rates available, instead of tying up all your funds at once. It also gives you the flexibility to access your money without having to liquidate all of it.
Lock cash away where you can
If you have funds that you won't need to access in the short term, consider locking them away in a fixed-term savings account. These accounts typically offer higher interest rates, and generally the longer the term, the higher the rate. But remember, your money will be inaccessible until the maturity date.
Savvy saving with Flagstone
Flagstone can open the door to become a strategic saver. Opening multiple savings accounts and moving money around is easy with our cash deposit platform. And you can access hundreds of accounts from 50+ banks – so your cash has ample opportunity to grow.
This article is not advice. If you would like to get advice on your savings and investments, consider speaking to Financial Adviser.