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Top insights & articles on income, saving, spending, investing & protection


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What are the latest banking security measures to protect my money?

  • Strong passwords: Use a unique and complex password for your online banking.
  • Two-factor authentication: Enable this security feature to add an extra layer of protection.
  • Beware of scams: Be cautious of phishing emails or suspicious phone calls asking for your banking details.
  • Regularly monitor your accounts: Check your transactions frequently for any unauthorised activity.
  • Update your security software: Keep your computer and mobile devices protected with up-to-date security software.
  • Contact your bank immediately: If you suspect fraudulent activity on your account, contact your bank immediately.

How can I avoid bank fees and charges?

  • Stay within your overdraft limit: Avoid going into an unarranged overdraft.  
  • Pay your bills on time: Avoid late payment charges.
  • Choose a fee-free account: Some banks offer current accounts with no monthly fees.  
  • Maintain a minimum balance: Some accounts require a minimum balance to avoid fees.
  • Use your bank's ATMs: Avoid charges for using other banks' ATMs.  
  • Go paperless: Opt for online statements and communications to avoid paper statement fees.

Should I switch banks to take advantage of better interest rates or benefits?

Switching banks can be a good way to save money and access better features. Consider switching if:  

  • You're unhappy with your current bank's service or fees.
  • You can get a better interest rate on your savings or a more attractive overdraft offer.
  • Another bank offers benefits that align with your needs (e.g., cashback, rewards).

Current Account Switching Service: The Current Account Switching Service (CASS) makes switching easy and hassle-free.

It automatically transfers your direct debits and standing orders to your new account within 7 working days.  

What are the different types of overdrafts and how do they work?

An overdraft allows you to spend more money than you have in your current account, effectively borrowing from the bank.  

  • Arranged overdraft: Agreed upon with your bank, with a set limit and interest rate.  
  • Unarranged overdraft: Exceeding your arranged overdraft limit or going overdrawn without an agreement. These usually have higher fees and interest rates.
  • Fee-free overdraft: Some banks offer a set amount that you can borrow interest-free.
  • Student overdraft: Designed for students, often with interest-free periods or lower interest rates.

How they work:

  • You'll be charged interest on the amount you borrow.  
  • Some banks charge a daily or monthly fee for using an overdraft.  
  • Unarranged overdrafts can incur hefty charges and impact your credit score.

Important: Use overdrafts responsibly and avoid relying on them for long-term borrowing.

How can I choose the right bank or building society?

Consider these factors when choosing a bank or building society:

  • Interest rates: Compare interest rates on current and savings accounts.
  • Fees and charges: Check for monthly fees, overdraft charges, and transaction fees.
  • Online and mobile banking: Evaluate the user-friendliness and features of their online and mobile platforms.
  • Branch access: If you prefer in-person banking, consider the availability and convenience of branches.
  • Customer service: Look for a bank with good customer service reviews and accessible support channels.
  • Additional benefits: Some banks offer perks like cashback, rewards, or travel insurance.  
  • Ethical considerations: If ethical banking is important to you, research the bank's environmental and social policies.

What type of bank account is best for my needs (current account, savings account)?

Current Account

  • Best for: Managing day-to-day finances, receiving salary, paying bills, making purchases, withdrawing cash.  
  • Features: Debit card, online and mobile banking, overdraft facility (sometimes), potential for cashback or rewards.  
  • Considerations: Usually offer low or no interest on balances, may have monthly fees or charges.

Savings Account

  • Best for: Setting money aside for short-term or long-term goals, earning interest on your savings.  
  • Features: Variable or fixed interest rates, different access levels (instant access, notice accounts, fixed-term), online or branch access.
  • Considerations: May have limited transaction capabilities, interest rates can fluctuate, some accounts may have minimum deposit requirements.

Which is best for you?

  • Both! Most people need both a current account for managing daily finances and a savings account for growing their money.
  • Consider your priorities: If you need easy access to your money, a current account with a linked savings account is a good option. If you want to maximise interest earnings, explore different types of savings accounts.

What are the best ways to save for short-term goals (e.g., holiday, new car)?

  • Set a specific goal and timeline: Determine how much you need to save and by when.
  • Break down your goal: Calculate how much you need to save each month to reach your target.
  • Create a separate savings account: Keep your short-term savings separate from your emergency fund.
  • Consider a regular savings account: Some accounts offer higher interest rates for regular deposits.
  • Explore other savings options: If your goal is further in the future, consider a fixed-term savings account or a notice account for potentially higher returns.

How can I build an emergency fund to cover unexpected costs?

  • Set a savings goal: Aim for 3-6 months of living expenses in your emergency fund.
  • Automate your savings: Set up a regular transfer to your emergency fund each month.
  • Use a dedicated account: Keep your emergency fund in a separate savings account to avoid dipping into it for non-emergency expenses.
  • Increase savings gradually: Start with a small amount and gradually increase your contributions as you can afford it.
  • Consider a high-yield savings account: Maximise your interest earnings by choosing an account with a competitive interest rate.

What are the most effective ways to cut expenses without sacrificing my lifestyle?

  • Track your spending: Identify areas where you can reduce unnecessary expenses.
  • Negotiate bills: Contact your service providers to negotiate lower rates for utilities, internet, and insurance.
  • Reduce food costs: Plan your meals, cook at home more often, and minimise food waste.
  • Shop around for deals: Compare prices before making purchases, utilise coupons and discounts, and consider buying second-hand.
  • Cut back on subscriptions: Evaluate your subscriptions and cancel any you don't use regularly.
  • Use public transport or cycle: Reduce reliance on your car to save on fuel and parking costs.
  • Find free or low-cost entertainment: Explore free activities in your community, borrow books from the library, and take advantage of free online resources.

How much of my income should I aim to save each month?

A common rule of thumb is the 50/30/20 budget:

  • 50% on needs (essential expenses)
  • 30% on wants (non-essential spending)
  • 20% on savings and debt repayment

However, the ideal savings amount depends on your individual circumstances, financial goals, and income level. Aim for a savings rate that allows you to comfortably meet your needs, make progress towards your goals, and build a financial safety net.

How can I create a realistic budget that I can stick to?

Creating a realistic budget requires a clear understanding of your income and expenses. Here's a step-by-step approach:

  • Track your spending: Monitor your expenses for a month or two to identify where your money goes. Use a budgeting app, spreadsheet, or notebook to record every transaction.
  • Categorise your expenses: Divide your spending into categories like housing, food, transportation, entertainment, and debt payments.
  • Identify essential vs. non-essential spending: Differentiate between needs and wants. Prioritise essential expenses like rent, utilities, and groceries.
  • Set realistic spending limits: Allocate a specific amount for each category based on your income and spending habits.
  • Build in flexibility: Include a buffer for unexpected expenses or occasional treats.
  • Review and adjust regularly: Your budget should evolve with your circumstances. Review it monthly or quarterly and make adjustments as needed.