You are using an older browser version. Please use a supported version for the best MSN experience.

Savers warned they could get more 'generous rates' than they think - are you missing out?

Daily Express logo Daily Express 3/07/2022 Patrick O'Donnell
UP NEXT
UP NEXT

A common savings technique which is used by those looking to safeguard their finances is opening up a private pension. Savers usually put away a small amount each month, or lump sums, with a private pension provider. In return, they will get tax relief on top of the money they are already placing in the pot, giving their savings an extra boost.

Any money placed into the private retirement pot will typically be invested in stock market-linked funds.

However, savers should take note that the value of this can fluctuate depending on the state of the market.

Despite this, safeguarding your money in this way has been proven to grow more than it would in a simple cash savings account over a longer period of time.

Speaking exclusively to Express.co.uk, Nerdwallet spokesperson Connor Campbell shared what savings choices are available for those who are looking for big gains.

READ MORE: 'It's free money!' Britons urged to act now to slash tax by thousands

SAVE 1 © GETTY SAVE 1

While still advocating for private pension pots, Mr Campbell highlighted how everyday easy access accounts may be suited better for people who want access to their savings.

The savings expert said: "If savers are concerned about needing to access their money urgently, they might benefit from exploring numerous traditional instant access savings accounts.

"Comparison websites are a great place to start, as they lay out all the necessary information in a clear, jargon-free manner to help people make an informed decision.

"Britons may find that accounts offer more generous rates than they first thought.

DON'T MISS'Easier than you think!' Britons could secure £1million pension pot [ANALYSIS]PIP: Britons with long Covid or other conditions could get up to £156 [INSIGHT]Frustration as Windrush pensioner, 83, forced to live on £74 per week [VIDEO]

"For example, easy access savings accounts can offer rates as high as 1.56 percent, whilst notice savings accounts can offer up to 1.9 percent.

"Admittedly, these returns might not be overly generous, but such accounts could be well-suited to risk-averse individuals who might need to access funds with immediate effect."

He also outlined how private pension pots could be beneficial in assisting people with their savings woes.

Mr Campbell explained: "Another potential long-term savings option could be to open a private pension.

READ MORE: Triple lock reinstated: How much will you get in state pension boost?

SAVE 2 © EXPRESS.CO.UK SAVE 2

"Indeed, savers can contribute up to 100 percent of their taxable earnings or £3,600 gross a year, whichever is higher, and receive tax relief on said contributions."

However, he noted that savers should weigh up their savings options before opting to invest in a pension pot.

The financial expert said: "However, pension contributors are only able to access their cash when they reach the age of 55 (rising to 57 in 2028).

"So, whilst this can offer a strong mechanism to encourage long-term savings, this might not be ideal, particularly if people need to access money urgently.

"With such a long time to access the funds it's also important to consider that pension legislation and the taxation of them could be different by the time you come to retire."

With inflation at a 40-year high and a likely recession on the horizon, the personal finance expert encourage savers to keep their "options available"

"The current economic climate is far from ideal for savers and can make it very difficult to ensure your savings keep up with the recent cost of living increases," Mr Campbell said.

"However, it is important for Britons to remember that options are available and it is vital that savers commit to conducting thorough research to find the best option to suit their needs.

"In doing so, they can start to regain control of their financial futures."

More from Daily Express

image beaconimage beaconimage beacon