Many thousands have savings. Those savings are often either residing in high interest savings accounts, ISA’s, bonds, investments, or similar. However, very few consider this one question; are those savings in your best interest?
Is that savings account or investment the right one for you? Could you get a better return on your savings elsewhere? Many choose to stick to existing banks and providers as regards savings, or allow their savings to remain the same over decades. For many, the familiarity and the ease of remaining with the same financial institution far out ways any hypothetical gain in their savings.
However, in many areas of life (car insurance, for example) it is often best to shop around. A little bit of work examining and comparing the relevant markets and providers can often unearth a much better deal than what you have currently. For savings, it is exactly the same; do not be afraid to examine other banks, to consider alternative savings options.
Indeed, these days comparison sites such as Money Supermarket, Compare the Market, and Go Compare (aside from very annoying adverts), also provide rapid comparisons of financial institutions and all aspects of financial services. Take time to check with alternative providers, in case there is a deal more suited to your needs, or benefits you more. Above all, do not be afraid, if appropriate, to come out of a long standing financial savings service (ISA, bonds, etc) when the contract allows, and to transfer your savings elsewhere. Your bank will put pressure on you to stay (it is not in their business interests for you to leave, after all) – but exercise your consumer rights and judgement and do just that.
Firstly, though, it is necessary to consider long term plans. What are those savings and investments for? Are they being invested for children or grandchildren (requiring a long term investment and return), or are they for a specific purchase, for example? Is buying a house being considered or planned for? Different long and short term financial goals will require different types of investment. With that in mind, the consumer is better able to search for the savings solution that works best for their needs.
With a little bit of planning, and with a bit of research, it is surprising how those savings in the bank can be better invested to generate a better return for the average saver. It is rarely wise to be complacent or comfortable as regards savings; it is far better to every once a while work out whether that ISA or investment is still providing the best return for your investment.
