Banking and saving - new draft

A lot of people have a standard bank account that they might have opened when starting their first job. Have you thought about looking into a bank account recently that suits you? There is a range of information and tools to help you decide if bank and savings accounts are right for you.

Bank accounts

Banks, building societies and credit unions provide services to help you manage your money. There are different types of accounts to suit different needs. It's worth thinking about whether it's important you have access to a local branch you can visit. Or if you'd prefer the convenience of online and telephone banking.

The Moneyhelper website has a range of tools you can access for support, including:

The link below can also offer help and support around banking and savings;

Money Saving Expert - banking and saving guides

Savings

Saving is often something that people would like to do but life can often get in the way. Saving even a small amount will soon add up and can give you a buffer that could come in handy when dealing with the unexpected. Moneyhelper has a useful guide on how to get into the savings habit that gives some information on why, how and where to save.

You might wonder if it's worth saving because of changes to interest rates which could mean you don't earn much, if any, interest but it's still worth doing your research to find a saving option that works for you. Using a savings calculator can give you an idea of how much you can save within a certain amount of time or even how long it will take to save up a certain amount if you're planning a holiday or home improvements.

Saving explained

There are many options out there when it comes to saving. Moneyhelper have compiled a range of guides about different ways to save.

Banks offer various types of savings accounts and you can even link some to your bank account to round up any transactions to the nearest pound. For example, if you spend £8.54 while you're out shopping, your bank will round this transaction up to £9 and put the 46p straight into your savings account.

There are also government-backed saving accounts where the government will give you a bonus - usually a percentage of how much you've saved over a set period. The Help to Save account is specifically for people on a low income who are eligible for Universal Credit or Working Tax Credit and savers get a bonus of 50p for every £1 they save over four years.

The Lifetime ISA (LISA) is available to everyone over the age of 18 but below 40 and offers a 25% bonus from the government on top of what you save. There are conditions on how the LISA is used.

Credit unions offer savings accounts and membership will also give you access to other services and products offered such as loans. We have partnered with Moneywise Credit Union to bring affordable credit and secure savings to Sunderland residents. Find out more at www.sunderland.gov.uk/credit-unions.

If you find that saving money is just another thing to think about, have you considered automatic savings apps? This type of app works by you allowing access to your bank accounts using open banking to work out what you can afford to save and then moves the money into your savings account automatically.

Saving versus borrowing

While it's never a bad thing to save, it's also worth looking at any outstanding loans, credit cards or even overdrafts as you could be paying more each month in fees, interest and charges than you're saving. Once these debts are paid off, that will leave more of your monthly budget to save. Moneyhelper has a useful guide about saving versus borrowing with further information.