Young redhead man holding piggy bank stressed with hand on head

Stumped by Savings

Sometimes I have a little cash leftover each month which I’m saving in case I need it later down the line. I know there are savings accounts available where I can deposit my cash, but I don’t know anything about them. Is my money safe in these? Which are the best to go for? Scott R, Swansea

Penny says: Dear Scott,

Well done on having a few pounds left each month, sounds like you have done most of the hard budgeting work, it is so tough just to make ends meet for most of us. There are so many choices on savings accounts – easy access, regular savers, ISA’s, supermarket savers, hamper schemes and the local credit union, to mention just a few.

Deciding on where to stash your cash for the best really depends on what you want to do with it, think about whether you want to be able to access it or lock it away to avoid temptation and how important interest is. I see that you are worried about keeping your money safe, and most savings accounts are covered by the FSCS (Financial Services Compensation Scheme) this is like a guarantee from the government should the company you save with get into trouble – check out Martin Lewis’s savings pages for more details.

One place you might think about is your local credit union, check here to find out where they are and if you have one. Although your credit union savings accounts don’t pay interest, your money will be put to good use supporting your community, and once have been saving with them for a little time you will be able to access  their low cost loans if you should ever need to,and some even offer free life insurance on their savings and loans.

Although, putting money aside for emergencies is always a cheaper option than borrowing even at the modest interest levels of the local credit union. Your local credit union will have a variety of accounts that you can choose from such as Christmas savers (where you money is locked away until Oct or Nov), childrens savers and easy access accounts and all covered by the FSCS for your peace of mind.

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