A finance expert has revealed the 10 things every saver should be doing to make the most of rising interest rates.
With the Bank of England regularly increasing the base rate, which now sits at 5.25 percent, interest rates are currently the highest they have been since Feb 2008.
And while this is bad news for borrowers, especially those with a mortgage, there are steps all savers can take to make their money work harder and help offset extra costs.
However, a survey commissioned by Moneybox found many are missing opportunities to maximise the value of their hard-earned savings, despite 79 percent considering themselves to be confident savers.
Brian Byrnes, head of personal finance for the savings app, is now urging all savers to make the most of all available opportunities to boost their savings and grow their money overtime.
He said: “While older people will remember navigating prolonged periods of high-interest rates in the 1980s and early 1990s, over the last 15 years a whole generation of savers grew accustomed to managing their finances under very different economic conditions.
“As the market has changed so significantly in the last 12 months, learning how to make the most of a rising high-interest environment is critical to achieving your financial goals as quickly as possible.
“It will also help you plan your future finances with greater confidence.”
Some of the tips include matching specific savings accounts with certain savings goals to maximise how much interest you can earn.
Interest rates offered on savings accounts vary significantly depending on the provider, how flexible the product is, and how easily you can access your savings.
However, easy-access saving accounts will generally offer a lower interest rate than notice accounts or fixed-term saving accounts.
But a Cash ISA is different from other savings accounts because any interest earned is tax-free, making it an ideal choice for anyone saving for mid to longer-term goals and important life events like getting married or raising a family.
Other tips include considering investing in government bonds, which often see falling prices as the interest rates rise and so may offer great value, and a reminder not to try and time markets when it comes to investing.
Even when saving interest rates are high, it is historically proven to be the best way to offset the impact of inflation over time.
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