Smarter Saving
If you already have some savings, how often do you check on them to make sure they’re helping you achieve your goals? Here are some tips to help you make the most of the money you’ve put away.
Think about your finances
Can you save more than you do right now?
- Look at your money – Take a full inventory of your finances and understand what money you have coming in, and how much you’re spending. Try to get an estimate of how much you need to live in a week or month. Knowing this will give you an idea of where you’re able to save.
- Need vs want – Look at your spending habits and categorise them into ‘needs’ and ‘wants’. Think about what items are must-have essentials for living, and what are little luxuries that you could realistically go without. Once you cut out the habitual spending of unnecessary items, you’ll be surprised by how much you’re already saving.
- Working harder – Ensure that the savings your making are in an account that works for you. Different account types serve different purposes, so have a shop around at to find the right account type that will suit you and will generate interest for your savings.
Set your money goals
Having targets to aim for means you’re more likely to achieve what you want to do.
- Be realistic – If your targets are specific, you’ll be more likely to achieve them. Setting a goal like ‘save £2,000 for my holiday at the end of the year’ is more actionable to achieve than a vague ‘save more this year.’
- Stay focused – Put a visual reminder somewhere of what you’re working towards. Whether it’s your dream holiday as your screensaver, or a new car on your fridge, a small reminder to keep you motivated can make all the difference. Track your progress, and feel proud about reaching milestones.
- Reminders – There’s no harm in making yourself reminders to deposit into your savings, whether that’s digitally on your phone, or a physically one somewhere that you’ll see it constantly.
- Be confident – Once you’ve built a good amount of savings, you’ve proven to yourself that you can do it, so you can be confident in your decisions.
Stay in control
Ensuring that you’re in control of the savings you have will allow you to build even more.
- Temptations – If you know there’s a place where you can be tempted to spend too much money, like a particular shop or restaurant, try to avoid going there too much if possible.
- If… then – Commit to having an ‘If…then’ conversation with yourself to think through spending decisions. For example, ‘If I see a top I really want on a shopping app, then I’ll picture three similar items of clothing I already own and weigh up if I really need it.’
- Structure your spending – Look at ways to help you budget; there are lots of apps out there to help, and using pre-paid cards or savings pots to split up your money could help you structure your spending.
- Remember to check – Allocate some time every once in a while to check on your savings. Even if it’s once every few months, knowing what’s going in and out of your accounts and keeping on top of deal deadlines will ensure that you have your savings working the best that they can for you.
- Small rewards – While working towards the bigger picture, it’s important to acknowledge the small victories and milestones as well. This could just be a moment to reflect on your achievement, or a sweet treat to say ‘Well done!’.
Top Tips:
- It’s always advised to pay off any debts that you have before you start to save.
- If your income fluctuates, make sure to take this into account when planning your savings- they should account for scenarios where your income is lower than expected for a month, as well as for emergencies.
- Figure out if you prefer setting aside money and then spending, or spending what’s necessary and then putting away your savings. Either way works – just figure out what’s best for you.
- Keep your savings goals flexible with your life circumstances. If a situation arises and you need to change what you’re saving for, don’t stress – this is what savings are for.
- Have a look at selling items that you no longer want, either through online platforms or in person at car boot sales. A little bit of extra money can go a long way in your savings.
- When buying something, make sure to shop around and keep your eye out for deals, whether that be on clothes, food or even subscriptions. Make sure to take advantage of vouchers and coupons as well.
- Having the right savings account is one of the best ways to make the most out of your savings. Once your accounts are tailored to your needs, that’s when your savings start to grow.
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ISA changes in 2027: Why 2026/27 might be your last chance for a £20,000 ISA Allowance
If you follow the financial press, you might already know that changes are coming to the ISA system from April 2027. Whilst some of the headlines have been a little dramatic (the financial press does love a good scare…), one thing is clear: For many savers, the ability to put up to £20,000 per year into an ISA will be reduced from April 2027 onwards. That means the 2026/27 tax year could be your last opportunity to make full use of today’s generous ISA rules. So, let me break down what’s happening, what it means for you, and why now might be a very good time to take action. So… what’s actually changing? The Government has announced a restructuring of the ISA system from April 2027. Their aim is to create a more streamlined, simplified ISA landscape, but through that simplification, some allowances will tighten up. While the finer details are still emerging, the big takeaway for everyday savers is this: 1. Cash ISA allowance cut from £20,000 to £12,000 per tax year (for anyone under 65). The overall ISA allowance stays at £20,000, but anything above £12,000 must go into an investment-based ISA (Stocks & Shares, Innovative Finance, or Lifetime ISA). 2. Over‑65s keep the full £20,000 Cash ISA allowance. If you are 65 or older on 6th April 2027, you may continue to save £20,000 per year in Cash ISAs, unchanged. 3. New rules to stop people bypassing the lower Cash ISA limit. The government will introduce anti‑avoidance measures, including: No transfers from Stocks & Shares ISAs or Innovative Finance ISAs back into Cash ISAs (for under‑65s). Tests to determine whether an asset in a Stocks & Shares ISA is “cash‑like.” Charges on interest earned if “cash‑like” assets sit inside non‑cash ISAs. 4. Transfers remain allowed (with limits as above) ISA transfers between providers will still be allowed and unlimited, subject to normal product terms. Only the new restriction applies: under‑65s won’t be able to transfer into Cash ISAs from investment ISAs. It is important to highlight that the new rules will apply only to contributions made from 6 April 2027 onwards. Money already inside your Cash ISAs stays tax‑free and does not need to be moved. Why this matters (even if you’ve never hit £20,000 before) A lot of people hear “£20,000 allowance” and think: “Well, I’ve never put that much away, so what does it matter?” But here’s the thing- ISA allowances are like umbrellas. You don’t always need one… until suddenly you really do. A few reasons you’ll want to keep your full allowance while you still have it: Life can surprise you- an inheritance, a bonus, or the sale of an asset can create a one‑off lump sum you’d love to keep tax‑free. Future-you might be a bigger saver than present-you- many people’s strongest saving years are in their 40s, 50s, and 60s. ISAs protect you from tax you don’t yet pay- but with interest rates generally stabilising more people are being dragged into paying tax on savings. Losing the £20,000 allowance doesn’t just affect high earners. It affects anyone who wants the option to tuck money away, tax‑free, in future. 2026/27: A golden window before the rules change You’ve got just over a year before the new system kicks in, but the message from us is simple: Make the most of this final full year while you have it. If you’ve been meaning to top up your ISA… If you’ve been thinking about shifting savings into something tax-free… If you’ve been procrastinating (we’ve all been there)… The 2026/27 tax year is absolutely the moment to take action. Think of it like the final call at your local pub- the opportunity’s still there, but not for long. How we can help Whether you’re an experienced saver or opening your first ISA, we’re here to guide you through the changes and help you make the most of your allowance while it still exists in its current form. If you’d like to talk through your options or even if you just want to understand what the changes mean for you- come and speak to us. No jargon, no pressure, just a good honest conversation (and occasionally a car‑related anecdote if you catch me on a nostalgic day…). Final thoughts Change is nothing new in the world of savings. But this one is significant and for many people, it’s the last chance to shelter money tax‑free at today’s generous levels. So, whether you fill the whole £20,000 or only a fraction of it, the key message is use it while you can. Your future self will thank you probably with a slightly smug smile, a healthy ISA balance, and the warm glow of knowing you got in just before the goalposts moved. Jon SweetingCommercial Manager – Savings
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The importance of talking about money
“Dad, I need to borrow £300.” “Why?” “I’ve flooded the engine” “That shouldn’t cost £300- where is the car?” “[nervous cough] … in the River Avon” An actual (albeit slightly redacted and paraphrased) conversation in my household about a quarter of a century ago… but that is about as far as conversations about finances went for another two decades. Money. It’s not going away, and it’s one of the most essential parts of our lives—and yet, for many, it’s still one of the hardest things to talk about. Whether it’s how much we earn, how much we save, or how we manage debt, money conversations are often avoided due to discomfort, fear of judgment, or simply not knowing where to start. But here’s the truth: talking about money is powerful. And when we open up about it, especially when it comes to saving, we unlock opportunities for growth, learning, and financial well-being. I did some research for this blog, and was disappointed, yet oddly not surprised on some of the key facts and figures regarding this subject: Despite living in a world of digital banking, investing apps, and financial influencers, only 33% of adults globally are considered financially literate. That means over 3.5 billion people lack the basic knowledge to make informed financial decisions. A 2024 Intuit survey found that 55% of women wish they understood more about their finances but don’t know where to start. Generation Z (ages 18–24) has the lowest financial literacy rates, with only 36–42% considered financially literate. Within my 20 years of working within the industry, it seems the only two constants have been A) change and B) increased complexity. The good thing is that there are more tools to help you navigate the minefield that is personal finances, however in my humble opinion, nothing beats a good old natter with someone! So why is talking about money matters important? It breaks the ‘taboo’ Money has long been a taboo topic, especially in families, friendships, and even romantic relationships. But silence can lead to misinformation, poor decisions, and financial stress. Open conversations help normalise financial literacy and empower people to ask questions and seek help. It encourages better habits When we talk about savings goals - whether it’s building an emergency fund, saving for a home, or planning for retirement - we’re more likely to stay accountable. Sharing goals with others can motivate us to stick to a budget, avoid unnecessary spending, and celebrate progress. It promotes financial literacy Many people were never taught how to manage money. By talking about savings strategies, budgeting tools, or investment options, we create a culture of learning. These conversations can be especially impactful for younger generations who are just starting their financial journeys. It strengthens relationships Money is one of the top causes of stress in relationships. Being transparent about finances, income, debt and savings can build trust and help couples or families make informed decisions together. It also reduces the risk of financial surprises down the road. It helps close the wealth gap Open dialogue about money can shine a light on systemic inequalities and help people advocate for fair wages, access to financial services, and better financial education. Knowledge is power, and sharing it can lead to more equitable outcomes. How to start the conversation With friends: “Have you tried any budgeting apps that actually work?” With family: “What’s one thing you wish you knew about money when you were younger?” With a partner: “Can we set a savings goal together for the next 6 months?” With yourself: “What are my financial priorities right now?” Final thoughts... Talking about money doesn’t have to be awkward or intimidating. In fact, the more we talk about it, the more confident and informed we become. Whether you’re just starting to save or you’re well on your way to financial independence, remember: you don’t have to do it alone. Let’s normalise money conversations, because financial health is just as important as physical and mental health. As for my dear first car, a new distributor cap and some spark plugs resulted in the car being none the worse for its unaccustomed dip in the river… albeit with a new aroma which could only be described as ‘pungent’. Jon Sweeting – Product Manager (Savings)
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Savings advice: 50/30/20 budgeting method
With rising costs continuing for UK households, the importance of budgeting and creating a spending plan is becoming increasingly more essential. If you haven’t got one in place already, it can be daunting knowing where to start. Here we explore a useful budgeting method that is continuing to be popular: the 50/30/20 rule. What is the 50/30/20 rule? It’s a budgeting method that can help you effectively manage your money on a monthly basis. Saving up for something special? Or just want to have better control of your money? This helpful technique is easy to use, so why not give it a go and see what difference it can make to your finances. The 50/30/20 budget rule is as follows: • Spend 50% of your income (after tax) on essential ‘needs’• Spend 30% on ‘wants’• Put the remaining 20% towards ‘savings’ It’s a good idea to regularly check your income and outgoings. That way, you know exactly what your situation is, have more control over your finances, and can avoid unexpected surprises. As an example, if your monthly income is £2,000 after-tax, following the 50/30/20 rule that would break down into: Needs – £1,000 Wants – £600 Savings – £400 50% on ‘Needs’ Needs are classed as outgoings that you need to pay each month. These payments are usually the largest. Needs can vary; however, some typical examples may include: Mortgage or rent payments Food shop Utility bills Insurance Transport Childcare Minimum borrowing repayments Whilst you may think it is difficult to reduce spending on your needs, there are ways you may be able to achieve this. For example, by comparing prices across various utility providers, you could get a cheaper rate elsewhere. Other ways to try save money on your needs include: Shopping at different supermarkets for better deals Meal planning Switching to a cheaper phone contract Switching your car insurance Be more efficient with your energy use at home 30% on ‘Wants’ ‘Wants’ can be classified as non-essential expenses. These are things or areas you would like to spend your money on, but can go without if needed. Wants do vary from person to person, but may include things such as: Trips or holidays Eating out, ordering takeaways or coffee shop purchases Subscriptions Memberships Sports events Non-essential clothes Delving deeper into your outgoings can help you avoid impulse buying or stop you paying for services you don’t use or need. If you find you are spending more than 30% on wants in a month, try to ask yourself “Do I really need this?” or “Could I get this cheaper if I shopped around?”Many of us spend money on areas we think we need, but in reality, use very little. Subscriptions are a prime example of this. The average Brit spends £696 a year, or £58 a month, on subscription services, including streaming*. Whereas, according to Citizens Advice, consumers spent £688 million on unused subscriptions in the last year**. *finder.com – Subscription service statistics**Citizens Advice – Consumers spend £688 million on unused subscriptions 20% on ‘Savings’ After organising your needs and wants, you should be left with 20% to put into savings. What you save for is up to you. Having a particular savings target or goal can be a great motivator and help you stay on track. Whether it be towards a holiday, some designer clothes, or setting aside for your dream home, every little helps. Having a rainy day or emergency fund is also just as important. Unfortunately, unexpected circumstances can happen. In a time of need, you will be thankful for having a financial buffer to fall back on. As a rule, it is suggested having enough money in an emergency fund to cover your expenses for at least three months. Unforeseen issues can include:• Medical emergencies• Urgent home repairs• Car issues• Job loss Or, if more suitable, these savings set aside could be used to pay off any outstanding debts or repayments. Putting away a certain percentage of your monthly income every month will certainly start to add up in the long run. When it comes to saving, having an appropriate savings account which befits your needs is key. Do you have long term savings goals? A fixed term savings account may be best for you. Whereas, if you are saving towards an emergency fund, an instant access account would be more suitable. Having the wrong access to your account when you need it most can cause unnecessary stress. Be sure to do your research. This budgeting method is just one way to manage your money and save. Ultimately, everyone is different, and you may have circumstances where this approach isn’t suitable. If you feel like the percentages are too big, slightly adjust them to cater for you. If this isn’t right for you, there are other budgeting methods in place to help you get the most out of your money.
JUN 20, 2025
Choosing the right savings account – Let’s break it down
Once again, I’ve been invited to channel my thoughts and perspectives – previously shared with my colleagues into a format that our members might genuinely enjoy. Choosing the right savings account to meet your goals can be a minefield, further exacerbated by nearly all the data available in the world at your fingertips, where information (and I speak from bitter experience) can be somewhat overwhelming. So, what I have tried to do is explain the most common types of savings accounts and how they can fit different goals and needs. Easy access savings accounts These can also be known as instant access saving accounts; this type of savings account gives you pretty much immediate access to your money. You pay cash into them, earn some interest on your savings, and take out your money whenever you want, with no fees or charges. Keep in mind that some institutions will limit the number of withdrawals you can make. You can typically open an easy access savings account online in a few minutes; however, easy access accounts tend to offer lower interest rates than other savings products and that these interest rates are variable, they can go up and down depending on changes in the market. An easy access savings account might be a good choice if you: • Need instant access to your money, for example, if this is your emergency fund.• Need to start small with your savings.• Want to add money to your account whenever you like. Notice savings accounts Instead of allowing instant access to your funds, a notice savings account requires you to give advance notice before taking your money out. This means that you need to submit a request for withdrawal. Depending on your bank or building society, you can do this online, or you may need to mail a signed request form. With some providers you won’t be able to withdraw before your notice period is complete. Others may let you withdraw early, but only if you pay an interest charge. The withdrawal notice period varies depending on the institution and can range from anywhere between 7 days to 195 days. Notice accounts generally require a higher minimum opening deposit when compared to easy access accounts, however they tend to offer a higher interest rate. You can also expect that the longer the notice period, the higher the interest rate. Generally, notice account rates tend to be variable, however an added benefit is that notice is reciprocal, i.e. the institution will give you notice before implementing a rate reduction. A notice savings account might be a good choice if you: • Want to save up for a goal with a specific time frame, such as paying for a house deposit or a wedding.• Want to put a barrier between you and your money to avoid impulse spending.• Don’t need instant access to your savings. Fixed term savings accounts Also known as fixed rate bonds or fixed rate accounts, these accounts let you lock your money away for a set period, usually one to five years. You won’t be able to access your money before the end of the agreed term, or if you’re able to, you’ll likely incur an interest charge.In return, for the length of the term, you’ll get a guaranteed interest rate that is generally higher than what you’d get from other savings accounts. This means you’ll be protected if interest rates fall in the future. But you may miss out on potential earnings if interest rates go up. Typically, you’ll need at least £1,000 for a minimum deposit. A fixed term savings account might be a good choice if you: • Have a lump sum that you’re willing to lock away for long-term goals.• Want a fixed interest rate for the term duration and a guaranteed return on your savings.• Don’t want to add money to your savings regularly. Regular savings account Regular savings accounts require you to put away a certain amount of money each month for an agreed period, typically 12 months. Depending on your bank, the monthly commitment can be anywhere between £10 and £500. You could face an interest charge if you miss a deposit or take money out during the agreed term. While regular savings accounts come with strict terms and conditions, they often offer higher interest rates than easy access or notice accounts. They can also help you develop a saving habit and be disciplined with your money, especially if you struggle to save towards a specific goal. A regular savings account might be a good choice if you: • Have a reliable source of income for the monthly deposit.• Want a higher interest rate.• Want to save a specified amount each month.• Don’t need emergency access to your funds. Savings and tax treatment While you may need to pay tax on interest earned on your savings in the UK, there are several tax-free allowances you could take advantage of. Personal allowance This is the set amount of income you can earn tax-free each financial year. For the 2025/2026 tax year, the personal allowance is £12,570. You can use your personal allowance to shelter interest on your savings from tax if you haven’t used it up on your wages, pension, or other income. Your allowance depends on the income tax band you fall into: • If you’re a basic rate (20%) taxpayer, your allowance is £1,000.• If you’re a higher rate (40%) taxpayer, your allowance is £500.• If you’re an additional rate (45%) taxpayer, you won’t have a personal savings allowance. Alternatively, you can use individual savings accounts (ISAs) to protect your savings from tax. Individual savings accounts With ISAs, you don’t have to pay tax on the interest you earn. However, there is a limit on how much you can deposit into an ISA each tax year, known as your ISA allowance, which is currently £20,000. Note that if you don’t use all of your allowance before the end of the tax year, you can’t carry over any unused allowance to the next year. Your ISA allowance resets on April 6th each year. An ISA might be a good choice if you: • Want to earn tax-free interest on your savings.• Want to save for long-term goals, such as retirement or your first home.• Want to deposit your money however you like, in a one-off lump sum or monthly payments, as long as you don’t go over the yearly ISA allowance. Final thoughts… If you’re thinking about opening a new savings account, consider your goals, how much you have to get started, and how often you need to access your funds. Once you’ve picked the account that best suits your situation, look around for offers from different institutions. While a higher interest rate is attractive, you should also pay attention to the quality of customer service. Since each savings account has its own terms and conditions, make sure to read and understand them before you apply. Watch out for hidden fees and charges. Last but not least, review your savings account once or twice a year to see whether it’s still the right place to grow your money. If you decide to switch accounts, remember to check for any additional charges. Jon Sweeting – Product Manager (Savings)