Money expert says ‘don’t wait for Reeves’ and save £4,000 now | Personal Finance | Finance
During Tuesday’s spring statement, Chancellor Rachel Reeves informed the Commons: “By the next election, after accounting for inflation, people are forecast to be £1,000 a year better off per year.”
TotallyMoney CEO Alastair Douglas is encouraging people to take control of their own finances by implementing a few straightforward adjustments to their money management.
Financial expert’s tips to save £4,000
Save £1,931 by transferring your credit card balance
Mr Douglas used what he described as a typical scenario to demonstrate his initial point regarding credit cards.
He said: “Half of people are currently paying interest on their monthly credit card balance and could save hundreds, if not thousands, by using a balance transfer. You can currently get up to 38 months interest-free, and on the average balance of £3,002 that’s a saving of £1,931.”
This illustration was calculated using the average TotallyMoney customer’s interest-bearing balance of £3,002 transferred to the market-leading TSB 38-month offer with a 3.49% fee; 47.8% of credit card balances bear interest, according to UK Finance.
Switch energy providers and save £917 Mr Douglas said: “Switching energy providers is easy and you could save up to £917. Use a comparison site and consider smaller or newer providers as they may offer better deals. Most take place within five working days, all your plugs and pipes stay the same, and nobody needs to visit your home to make the switch – so it might be easier than you think.”
Move banks and receive up to £500
Mr Douglas advised: “Eight banks will pay you to switch current accounts, and you can get up to £200 for moving your money, or £500 if you’re a high earner. You’ll usually need to jump through a few hoops to secure the cash – and these often include moving Direct Debits, depositing cash, and logging into the banking app. Using the Current Account Switch Service means your balance, regular payments and income will be automatically transferred.”
Transfer your savings to earn an additional £651
Mr Douglas suggested: “The Big Five high street banks pay little more than 1% on their easy access savings accounts, meaning you’re not only earning very little in interest, but that your spending power is weakening with inflation at 3.00%. With some banks paying more than 4.00%, you could earn an extra £651 in the first year.”
This was calculated using an average savings balance of £19,214 using the Bank of England savings calculator with a rate of 1.20% (£232) vs 4.50% (£883) for a £651 per year difference.
Ensure our latest headlines always appear at the top of your Google Search by making us a Preferred Source. Click here to activate or add us as your Preferred Source in your Google search settings.
