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With economic ups and downs, it may be hard to get a good return on your savings. Luckily, there are ways to improve your returns beyond the standard rates.
Most people will research banks and accounts that offer the best interest rate for what they need. Once they’ve deposited their money, they usually stop thinking about it. But here are some steps you can take towards managing and saving your money, fast.
It makes sense to start by getting an overview of your financial situation if you're looking for ways to save money.
Do you have any high-interest debts? You may want to look at clearing these, especially credit cards, store cards and overdrafts. Debt consolidation can be a simple way of merging those payments into one.
Also consider creating a budget, to get a picture of where you're spending your money and where you can reduce costs and make savings. Then you can create savings goals. These can help you stay focused, especially if you're saving for a major purchase or event. Decide how much money you want to save and how long it will take you to reach your target.
Seeing all your money in one account can make it easy to overestimate how much you can afford to spend. Instead, you can split it up and deposit it into a few accounts, so you're not as tempted. You could set up a recurring transfer to put away a set amount of savings each month automatically – like paying yourself first. Stay on top of your finances by keeping some money out of sight, out of mind – but not out of reach in the event of an emergency!
Savings accounts can be a good way to store your money, earn interest on it over time, and meet your savings goals. What's more, you’ll earn interest on the interest you've already earned – what's known as compound interest.
With a fixed-rate term deposit savings account you can maximise your interest, but your money is locked away for a while. You have more flexibility with a regular everyday savings account, and some even offer rewards when you increase your balance.
If you're an avid shopper, consider accounts and cards that give you access to exclusive deals at a variety of retailers. Some may be limited-time offers, while others may be available all year round. They're not just limited to shopping either – they may cover a wide range of categories including travel, dining, experiences, wellbeing and even education.
You might also be able to earn more interest for a limited time with an introductory rate – if you're able to catch such an offer. Use comparison websites to see what each bank has to offer and learn about how credit cards work to maximise their benefits.
Some accounts may offer cashback or rewards that you can put towards other things. Look for an account that lets you do just that with your daily expenses, such as groceries or fuel.
Fluctuations in the foreign exchange market could help you to grow your money with minimal effort. You can earn interest on what you save with a foreign currency bonus savings account.
However, if the foreign currency depreciates against your home currency, you might end up making a loss. So it's always a good idea to carefully consider which currencies you should save your money in first and what interest rates you could earn on them. You might also want to time the market so you can get the best exchange rate for your buck.
Once you've got into the habit of saving and have reached your savings goal, there's no need to stop. You will have seen what benefits you can get from saving regularly. You can even open new savings accounts for different savings goals.
If you're struggling to maintain momentum and reach your savings goal, it's important not to give up. Even saving a small amount is better than nothing.
Remember, you should ideally have about 3 months of living costs saved in an emergency fund, in case something unexpected happens.
HSBC Saving Accounts help you to reach your financial goals. Compare accounts, interest rates and features and find the best savings account for your needs.
Receive competitive interest paid monthly and the option to personalise your savings account by goals.
Be one step ahead and give your money a boost with the HSBC Everyday Savings Account. You'll be on your way to success from day 1 with our interest rates. There's also no minimum balance or monthly account fees.
With an HSBC Term Deposit Account, you can set your savings to work with different terms to choose from and competitive interest rates. Choose to save for as little as 1 month or as long as 5 years.
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