Make Your Bank Work for You
First of all, shopping around for the bank account, or any other financial product, which offers you the best rates and benefits is a must. Sometimes the best deals are to be found in unlikely places. Supermarkets can offer accounts with competitive rates of interest as well as other benefits that probably aren’t available from your high street bank. The in-store reward points are just one of these additional benefits.
At one popular British supermarket, you have the option of paying into your savings account at the checkout. So, if the discounts in your weekly shop add up to a fiver, you have the option to transfer that fiver right into your savings. OK, it’s not going to change your life right away but little and often is the best way to do it.
If you like that idea, you’ll love this one. A high street bank is making it even easier to add to your savings little and often, by rounding up purchases to the nearest pound whenever you use your debit card. Naturally, this relies on you having both your current account and savings account with the same bank, which means you probably won’t get the most competitive rate on the market.
When it comes to getting your bank to work for you, setting up a ‘sweeping’ facility is a particularly good way to effortlessly add to your savings. The process of sweeping takes any spare funds that are left in your account each month and ‘sweeps’ it into your savings account. The crux of the issue is finding a savings account with as high a rate of interest as possible.
This is all very good for those with the funds to move around but what if you want your bank to help you to earn a bit of extra cash? We’re not just talking about interest on any savings you might have. A cash-back credit card will reward you for settling your outstanding balance at the end of each month. There are a few credit cards on the market that offer this service so shop around for the best deal.
If you’re dubious about signing up for a cash-back credit card, £100 cash in your hand will no-doubt be a more attractive prospect. There are a couple of current accounts on the market that will reward you with £100 when you open an account. Well, in order to qualify for the cash reward, there will be a minimum deposit amount when you open the account. This will vary from bank to bank so, as ever, it will pay to shop around. You can then take this free money and pay it into your savings account.
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