Students: How to be savings savvy
Share This Article:
When you borrow money from the bank or Student Loan Company, you pay for the privilege through interest rates and fees. When you keep money in a savings account, the bank pays you, also through interest. As well as earning money on your money, savings give you funds you can have fun with, put you in charge of your spending and, if you’re not hostage to the interest and charges on loans and credit, can even bring down the cost of buying. The sock drawer There’s nothing wrong with squirreling money away in your sock drawer — but once you get a decent amount you could be losing out on potential interest from the bank. Plus, if anything happens to your drawer (catastrophic sock emergency, say) you’ll lose out entirely, while banks protect anything up to £85k. Savings accounts There are loads of savings accounts out there — the trick is finding one with a decent interest rate. Some accounts come with higher introductory rates for a few months, after which time they revert to something pitiful. Others lock your money away for a set period, during which time you can’t withdraw your money without losing your interest rate. Shop around: see moneysavingexpert.com. Premium bonds
- Article continues below...
- More stories you may like...
- This online tool tells you how likely you are to pass your driving test
- How to make studying as a young carer more manageable
- What to do when you need to call 999 but can't speak
You might also like...
People who read this also read...
CONTRIBUTOR OF THE MONTH