Setting money aside in a savings account has long been a tough challenge for many thousands of families across the UK, with the parlous state of the UK and European economies of late making matters all the more uncertain for many. One way in which you can give yourself a much better chance to get ahead in the savings game though is to set up an automated transfer and to not give yourself the option of spending cash that you’d better off setting aside.
Evidence suggests that automated transfers are a genuinely reliable and effective way to encourage people of all ages to save in a way that offers valuable financial stability and very often regular savings accounts deliver above average rates of return. So setting up a standing order via a regular savings account can prove to be a win-win situation for those in a position to do so.
First Direct carried out some research on the subject recently and established that only six percent of people who set up a Direct Debit to transfer funds automatically to their savings accounts each month decided to cancel the payments within a year of initiating them. So it would seem as if the first step is the most difficult when it comes to regular saving.
“With numerous pressures on our household finances and a lot of payments to juggle and keep on top of, it can be difficult to remember to set aside the money to save, which is why a regular, automated savings habit can be the best habit to get into for those who are able,” said Bruno Genovese, head of savings at First Direct.
“Regular saver accounts with fixed terms and rates are perfect for medium term savers that have a special event or a holiday on the horizon and are able to lock their money away. These accounts provide exceptional returns, as they offer some of the strongest interest rates on the market,” he added.
The study by First Direct also noted some interesting differences between the sexes in the context of automated saving. The findings suggest that a larger proportion of British men than women apparently switch money by standing order to their savings accounts each month and the amounts involved tend to be higher among men than women.
