As we move further into 2025, you may be thinking about what lays in store for the year ahead.
Getting a jump start on your financial plans can help you extract the most of your savings potential throughout the year, ensuring your money is working as hard as it can.
Here, we’ll explain how to maximise savings this year, from auditing your accounts to exploring different providers.
Savings interest rates can change throughout the year, so it’s possible that your current rate isn’t giving the largest possible return. Exploring options like Aldermore's Double Access Savings Account could give you the flexibility and returns you need.
Savings rates are heavily influenced by the external economic environment and the Bank of England's base rate – when the base rate changes, we typically see savings rates change too. However, increased competition in the banking sector can also influence savings interest rates. As one provider raises their rates, others may follow suit in order to remain competitive.
Be sure to check the current interest rate that your provider is offering, and shop around to compare with others. You might find that switching providers allows you to access more competitive rates and better savings features. Remember, even though going from 1% to 2% might not seem like a lot, it can mean a significant boost, depending on the size of your savings/investments.
When it comes to finances, it can be all too easy to become complacent with where you keep your savings. Staying with the same provider for years can be beneficial for familiarity reasons, but it can also blind you to other providers that offer more features or different rates.
While doing this, be sure to look out for reviews and ratings from existing customers on websites like Trustpilot. After all, nothing is more useful than first-hand experience.
Another thing to consider with saving is the kinds of accounts you have open. For example, if you have a large amount of money to save and expect to exceed your personal savings allowance, you might be looking to maximise your tax efficiency and might benefit from a range of savings accounts as opposed to just one.
With a traditional savings account, account holders are required to pay tax on any interest they receive that exceeds £1,000 for every tax year (for basic rate income taxpayers; those paying higher tax will have lower tax-free thresholds).
Those with large sums to save might reach this threshold quite quickly. Therefore, you may be better off investigating other account types, like cash ISAs (including easy access ISAs, fixed-rate ISAs and limited access ISAs), which offer tax-free interest on your savings up to £20,000.
Ultimately, the choice comes down to your saving habits. If you have a natural knack for saving money and can go long periods without dipping into your savings, you might be drawn towards products like limited access savings accounts.
These accounts grant higher interest rates to those who access them the least. Like our double access savings account, for example. With it, savers can make up to two withdrawals each year while earning higher interest. Anything more than this will cause the interest rate to decrease. Other than that, the account functions like any other type of savings account, albeit with a minimum opening balance requirement of £1,000.
Limited access accounts, like Aldermore’s Double Access Savings Account, reward savers for keeping their money aside, while also allowing them to account for unexpected costs that crop up occasionally. This way, you can enjoy higher returns without fully locking your funds away. These could be emergencies such as house repairs, or more joyful instances such as the birth of grandchildren.
Prepare for the future, whatever it holds, with Aldermore. Our savings accounts enable you to make your money stretch further, so you can use it to cover the good and the bad. For more information on our savings products, browse our personal savings page, today.