Is it Worth Switching to a High Interest Current Account?

There are many banks and building societies now offering current accounts which have higher interest rates than savings accounts. This may seem rather odd and you may wonder whether it is worth switching. The reason that banks offer this is because they want your business. They can make money out of you in other ways and hope that you will switch to them and use other services that you will have to pay for.

If you have an overdraft or get overdrawn from time to time, then you should be really careful about switching. You need to take a look at the interest rate on overdrafts as well as charges, for both authorised and unauthorised and see how they compare to what you are being charged now. Bear in mind that the amount of overdraft they offer you may be smaller than what you currently have so this may mean there is a higher risk that you go into an unauthorised overdraft and that could cost you a significant amount of money. If you get overdrawn regularly then it is much more sensible to find a current account with a cheaper overdraft interest rate rather than a good interest rate on the money you are holding in the account.

It can be so easy to be tempted in by a high interest rate like this but not consider the consequences. It is worth remembering that the bank is there to make a profit and so it is highly likely that they will charge more for overdrafts on this sort of account to make back the money that they are crediting accounts with. This means that if you do go overdrawn, not only will you be missing out on getting paid the interest you earn when you hold money in the account but you may also be paying more in interest or charges on your debt. It is therefore well worth giving it some serious thought.

Switching banks may seem like a lot of effort and you may feel that you are not prepared to do it. Some people do it regularly, chasing the best interest rates. As there is now legislation in places which ensure that banks help you when you are switching things should go smoothly and most people do tend to find this. You can look for feedback online if you are concerned.

It is worth checking the small print before you do switch though. Some banks will only pay interest on a small amount of money, perhaps the first few thousand you have in the account and then nothing on amounts over that. Although it will still get you more than you will get in a current account that pays no interest, you will not be able to use it like a savings account and pile lots of money in there and hope to gain lots of interest. It is more likely that you will get about £5-£10 a month. This however, is still better than nothing and many people think that it is worthwhile and will switch. As interest rates go up, it may mean that these rates will also go up, but that will depend on the specific bank and whether they feel that it will be worth their while to do this.

Making this decision will really depend on just a few factors. You will need to decide whether the amount of extra money that you can make is worth it, in your opinion. You will only have to go through the hassle of switching once and you could gain some money each month for doing it. However, if you often use your overdraft then it may not be worthwhile and you will need to calculate whether you feel it will still be financially savvy to do so. You also need to think about your loyalty to your current bank and whether you feel happy changing to another. This is the thing which holds many people back so it is wise to chat to friends and family and look online to find out more about the place you are considering switching to so that you can find out more. You may be able to gather enough information to trust that they are a bank that you would like to deal with or you may feel that you would rather stick with the one you are with or choose another one entirely.

Is Making Small Savings Really Worthwhile?

There are many people that would like to have a bit more money. With interest rates set to rise and prices always seeming to go up with little prospects of pay rises, then having some extra money is something that most people would really like. They are big steps that you can take in order to achieve this such as getting a better paid job, downsizing or setting up a business, but most people just want to make a few changes which will help. However, they may wonder whether making small savings will make a significant difference.

It really depends on how many small savings you are making because they can all add up to make a significant amount over the course of a year. So if you look at everything that you spend money on and manage to reduce how much you spend on each of those things then you could save a lot of money.

It is wise thought to start with the things that cost you the most money. Look at your bank statement and you will be able to find out what that is and start from there. It is likely to be your rent or mortgage. You will only be able to reduce your rent if you move to a cheaper home, so that may not be an option for you. However, if you are paying a mortgage then it may be possible for you to switch lenders and save money. You will need to calculate this carefully though as there are costs associated with switching and so you will need to make sure that you will be saving enough to make it worth paying out what you need to.

Utlities are also a good way to save money. If you switch supplier then you could find that you will save some money each month. Even if you want an ethical supplier you could still save money by switching as there are a number of them. Saving money on utilities is not just achieved by finding a cheaper company though, reducing your usage can also help. So turning off lights in rooms that you do not use, reducing the heating, turning off electronics when you are not using them and things like this can all help to reduce the costs of your bills.

Television, telephone, mobile and broadband packages can be really expensive and so it is well worth seeing whether you can get a better deal. There is a fair bit of competition and good deals for new customers often available. It is also worth thinking about whether you use everything in the current packages that you have as you may be able to slim them down and save money.

Changing brands can help to save some money as well. Perhaps shopping in a cheaper supermarket, switching to own brands and changing to cheaper foods could be a way to save some money. With other items that you buy such as toiletries and cleaning products you may also save money this way as well as with clothing and accessories.

If you make lots of small savings like this then it really can make a difference. It may mean that you will not go overdrawn, have some money left to pay towards credit card debt or be able to put some money into a savings account. All of these little steps can add up to you becoming debt free and having a nest egg. Even if you save just a few pounds a month this will add up. If you can start to pay off debts, even little by little, it can make a really big difference. Every time you pay a bit off, your interest charged will be less and that will give you a bit extra to pay off. You can start to whittle it down more and more and it can help you to become debt free. Even the smallest of savings will save you money in the long term. The same happens when you are saving as if you put the money into a savings account you will be paid interest and that will help your savings increase in value even if it is just by a small bit.

Tips on Increasing your Income

It can be great when we have a bit of extra money to spend. There are all sorts of things that we think that we could have if we had some extra, perhaps a holiday, a trip somewhere, eating out, some new clothes, to pay off some debt or to put some into savings. However, in order to have this extra money we have to normally increase our income. It can sometimes seem that this is impossible or at least really difficult, but there may be things that you can try that you had not thought of before.

The first place to concentrate on is your current job. Asking for a pay rise or some overtime can really help to increase your income. This might feel difficult to do as you may not want to ask at work about it, but it is unlikely that you will get into trouble for asking. If you think there is no chance that you will get anywhere with this then it could be worth considering changing your job to one that pays better. Again this is not an easy option, but it is worth taking a look to see what opportunities are available as you may be surprised at the options out there.

You may also want to consider getting a second job. You may be able to find work in the evenings and weekends to top up your income. Weekend jobs may be difficult to come by as it is likely that young people will be used for these as they are cheaper to employ, but it may still be worth looking as some companies may prefer to pay more for experience.

Working from home can be a good option for some people. Although the income is less likely to be regular and likely to be lower, it can be more relaxing and possible to work at the same time as caring for family. There are lots of choices such as freelance work, running a business or doing online surveys. The pay differs greatly between them and it is good to think hard about which to try out. You can find all sorts of freelance work online and the great thing about it is that you so not have to take on large jobs and you can stop whenever you like. This means that if you only have a bit to save up, you will just be able to do a few jobs and then you can stop. You can also pick and choose jobs, just taking those that you really want to do or the ones that pay enough. Running a business is harder work as you will need to spend a lot of time setting it up and promoting it before you can expect to draw an income. However, it will all depend on what you choose to do and whether you choose a niche that has high demand and is very profitable for you. Things like online surveys do not pay as much but take a lot less time and commitment. There are many sites out there that you can join up to and you can just honestly answer questions and get paid. There are other easy ways to earn online as well such as free lotteries, being paid to watch adverts and to do searches.

If you have a hobby then it could be good to see whether you can think of a way to monetise it. You may be able to make things that you can sell or be able to teach people to do what you do. You could start up a social media page, blog or website to give help and share ideas with others and sell advertising on the page.

Selling things can be a good way to generate some income. If you have children you can sell their clothes, shoes and toys as they grow out of them and this could generate some extra money. You could either give it to them or spend it on things for them or put it in the housekeeping. There are many places you can sell things like this such as auction websites, social media groups and in local newspapers.