Making your savings work harder
The savings industry in the UK has taken a battering over the last couple of years due to relatively low interest rates and a lack of liquidity in the UK financial markets. As a consequence, many savers in the UK are actually receiving little or, in some cases, no interest on their savings. So how can you make your savings work harder for you?
There are two specific ways in which you can make your savings work harder, one is by allowing banks and building societies to use your money on a longer-term basis in return for an improvement in interest rates. However, you need to be sure that he will not require your savings in the short to medium term because cutting short any savings plan will reduce the benefits to you in the long run.
Another way to make your savings work harder is to pay off any expensive short-term or long-term debt which you may have built up over the years. It is crazy to have money sitting in an account earning interest which is often below 1% while you're paying potentially double digit interest on your credit card debt or other loans you may have outstanding. However, before you look to maximize the power of your savings you should take professional financial advice to ensure you are doing the right thing for yourself and your situation.
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