While we often hear a lot about the low interest rate environment and how fabulous it is for home owners, those who don’t own property are often left out in the cold.
Indeed, the low rate environment does nothing to help savers, with the interest paid on savings accounts now next to nothing.
If you are a saver and would like to make your money work harder for you in the current low rate environment, then listen up. There are a few simple steps you can take to improve your financial situation.
Many lenders are currently offering great financial incentives for savers. These incentives include: no monthly deposit fees, unlimited deposit amounts, free transfers and money-back guarantees. So, if you have kept your finances with the same lender since your first job, it might be a good idea to have a look around and consider switching to another bank. Do your research to find out which lenders are offering the highest savings rates and the best customer incentives.
Look into a term deposit
Depending on your current financial situation, your savings might be best placed in a term deposit account as opposed to a standard savings account. With a term deposit account, you will invest a certain amount of money into your preferred financial institution for a fixed period of time, with a fixed interest rate for your return at the end. Term deposits provide you with certainty around the return on your investment.
Create a budget – and stick to it!
Take control of your finances by creating a set budget for the upcoming month. When creating a budget, it helps to factor in regular expenses such as going out, transport and rent, as well as any bills and debts. Also consider what additional expenses could be reduced, as these will help make a difference to your savings. At the end of the month, have a look at your plan and, if necessary, reassess your spending.
For more information on how to make low interest rates work for you, contact us today!