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There are many reasons why it’s important to manage your savings? Here are just a few of them.
Read our Principles of Savings page to understand how we do this, and read on to understand why.
Most Banks and Building Societies Do Not Treat Savers Fairly
Most Banks and building societies continually reduce the amount of interest they pay to their long term savers. They also make it difficult to obtain the necessary information on any new savings accounts they may have on offer.
They do this to maximise the profit they make. Leaving your savings with any single savings provider for a long period of time will therefore, most likely, COST YOU MONEY!
Make More Money!
Maximising the returns on your savings is the most obvious thing to do. Leaving savings in the same account for over 12 months will be damaging to your overall, long term, financial wealth.
We believe that no matter what savings accounts you require, you should make sure you utilise those that pay the highest rates of interest.
If not, you could be receiving a ‘dormant’ rate of interest, which could be as low as 0.10% gross AER.
Control your Financial Wealth
No savings provider will help you to manage all of your savings. They will provide you with some information if you ask, but they will not offer you any pro-active advice. The reason for this is simple – once they have your savings, any interest they pay comes straight out of their profits!
If you want to maximise your interest rate return, you have to have a plan, be pro-active and take control!
Inflation
People often talk about the effects inflation can have on devaluing the real value of capital. If inflation is at a higher level than the level of interest you are earning, you will be losing money in ‘real’ terms. But if you are only receiving ‘dormant’ rates of interest, you will be lagging even further behind inflation.
The only sensible solution is to maximise your returns, and let the rest look after itself.
Over Loyalty
Most people naturally remain loyal to a ‘preferred’ bank or building society.
The most likely outcome of this behaviour is that it ‘costs you money’!, This could quite easily amount to hundreds or even thousands of POUNDS!
To obtain the best rates of interest you have to review the whole of the market, have a plan and utilise the best accounts that are available.
Investment Markets and Volatility
A strong savings strategy and philosophy will underpin a planned and well managed investment portfolio. Maximising your savings returns will help you to manage your investment portfolio with even more confidence.
Savings Providers
Just like most other organisations, when savings providers have your money, they have to use it to ensure they trade effectively and provide you with your interest rate return. Any interest paid to you therefore comes out of this profit and is the reason why they eventually reduce the rates of interest paid to longer term savers.
The only solution to prevent this is to adhere to our 6 Principles of Effective Cash Management.
Greater control
Maximising the interest rate returns on your savings and the level of FSCS protection puts you in complete control of your finances. With our help, you will be in complete control of your savings portfolio.
Not managing your savings allows your savings provider to keep control and to maximise their returns, rather than you maximising yours.
De-Risk your Savings
Planning your finances, for both the short and the long term, requires you to:
‘Risk’ relates to savings, just as it relates to longer term investment planning, but in different ways. Getting the balance right between your savings and your investments reduces your exposure to risk and maximises the impact and value of any gains.
We therefore recommend that all our customers pro-actively manage their savings!. Our support just makes it easier and more effective.
Confidence
Please contact us if you are interested in finding out more about our Effective Cash Management service.
We will show you how we can help you to maximise your interest rate returns and your level of FSCS protection.
Knowing your money is getting the highest rates of interest, combined with the best level of FSCS protection, will give you the confidence you are maximising the value you receive from your savings.
For more information please call Rowena Griffiths on 0203 301 1248.
