Plan for direct-financial safety

From pensions to savings accounts you can start to protect your financial future today.

11:39 13 May 2013

While the Labour party is striving to create greater awareness about their agenda, many believe that the only thing which will come of the discourse is more spending.

 

Economies are complex, and a certain amount of spending may be necessary in order to keep it afloat; however, with the future of the economy in a precarious position people may decide to take control of their own financial futures.

 

Since the banking industry is improving, this is a perfect time to revisit loans and savings accounts.

 

• Interest rates—check any debt that you have whether it is for a mortgage or for credit cards. Compare the interest rates and find out if there are penalties involved for switching banks. If you find a way to reduce your percentage of interest it could mean significant savings for you over time, and the possibility of eliminating that debt faster.

 

• Pensions—ensure you are contributing the maximum allowed and if your employer matches contributions up to a certain percentage, try to take full advantage of that. It’s free money that can help you be self-sufficient when you retire.

• Cash ISAs—Cash Independent Savings Accounts also have an annual contribution limit, but the interest rates are better than regular savings accounts so it’s a good idea to use one of these accounts for long-term savings goals.

 

• Stocks and Shares ISAs—these Independent Savings Accounts have an annual contribution limit but if you don’t mind a bit of risk and you want to have greater control over your investments, this a good choice. You risk losing funds, but the possibility of higher returns is also much greater with this.

 

• Regular savings accounts—these will earn interest but usually at a significantly lower rate than the ISAs listed above.  The benefit to this type of account is that the money is easier to access and there is no annual contribution limit.