Alternate Ways to Improve your Finances
In the current economic climate, saving money is incredibly difficult. Recently, the Bank of England announced that interest rates will be held at an historic low, and some even predict that they could fall even further before they rise again. As a result, traditional savings accounts are now no longer necessarily the best option if you’re looking to save. In this post, we look at some great alternative options.
As you may possibly expect, the options that provide the highest potential benefit also provide the highest level of risk. This means that although you could gain a lot of money, you could also lose it too.
Forex trading is a great example of this. Here, you trade foreign currency, essentially making money from the exchange rate. It’s the most liquid market in the world, used by millions of traders across the globe daily. What’s more, you can do it from home using a forex platform from someone like FXPro.
However, although you can make money if the markets move with you, you can lose it if they move away from you. As such, you must acknowledge the risks associated with it and educate yourself to try to negate them.
If you’re saving for something specific then you could use a specialist savings account to maximise your benefits and negate problematic interest rates.
For example, if you’re saving for a house, you could open a Help to Buy ISA. This way, when you save, the government also contribute, boosting the savings to make and providing a greater return on your savings than using a regular ISA or savings account.
These are the UK’s largest saving product, with over 21m people saving around £600 billion. However, they’re a little old fashioned. They used to be incredibly popular as they were tax free, but now ISAs are, too.
By holding a premium bond, you can win up to £1,000,000 in a raffle. However, because billions are held, the chances are incredibly low. However, it is risk free saving.
To conclude, traditional savings accounts are still a good option as they provide risk free saving. However, your return on investment remains quite low. By selecting a higher risk option, you can get a greater return, but you have to remember that there’s a chance to lose money as well. As a result, you have to choose the option that’s best for your circumstances, and never risk any money you cannot afford to lose.