Saving in a recession
With the Bank of England reducing its base rate to stimulate the economy, interest rates have fallen too. The changing financial landscape is affecting people in different ways, and you may have found that your savings are earning less interest than they used to. On the other hand, if you’ve got a tracker mortgage you could now have more money in your pocket.
In a downturn it’s worth thinking a little differently about savings. We’ve put some practical tips together to help you make your savings work harder, whatever your situation.
You could:
- Build up a cash fund that you can access whenever you need it
- Continue to live off your savings with the help of a tailored financial plan
- Aim for a higher return with longer-term investments
- Reduce your mortgage payments by offsetting your savings against your mortgage.
I'd like to know more about saving with:
A lump sum
- Develop a tailored financial plan for the future
- Supplement your income with interest from your savings
- Invest a lump sum for a period of time
Instant access
- Build up a three-month salary safety net
- Make sure you can still enjoy some of the nicer things in life
- Put a little away every month for that rainy day
Offset mortgages
- You could reduce your mortgage repayments by linking your mortgage to your savings and current accounts
Tracker mortgages
- If your mortgage repayments have fallen, you could put the spare cash to work.