Latest news with #Springall
Daily Mirror
16 hours ago
- Business
- Daily Mirror
Brits should try this budget hack to save more money this summer
It can be difficult to balance having a social life alongside trying to maintain saving goals, especially during the summer months - but financial experts insist it is possible if you follow these tips As summer rapidly approaches, balancing a social life while trying to maintain savings goals can be quite challenging. New data from MoneyPlus has revealed that Generation X (ages 45-60) are particularly feeling the financial pinch, with over half even cancelling holidays due to their financial situation, or resorting to buy now, pay later schemes to stay afloat. However, this struggle between saving and spending isn't exclusive to just this age group, as it can affect everyone. Yet, finance expert at Moneyfacts, Rachel Springall, assures that "it is possible to both save and have a sociable summer." Springall explains: "It is down to consumers to budget and be conscious of any essential bills whilst also juggling their aspiring saving goals." Don't neglect your saving pot MoneyPlus discovered that 60% of people surveyed felt pressured to spend a lot on big events and milestones – which may be amplified during summer. Springall warns: "The cost of the summer can escalate quickly if someone does not make efforts to budget. It's unwise to neglect building a saving pot at this time and it is true that consumers could be a bit apathetic this time of year to save. However, putting a little bit of cash aside each month could really make a difference in the months ahead." With the warmer months approaching, Springall and Santander financial advisor Mark Weston are offering practical tips on managing savings while still making the most of the summer holidays. Automate your saving habits Springall advises: "During this time, the arrival of app-based savings providers can be useful for those who want to automate their savings habits. There are apps available, such as Plum, which can connect to a customer's bank account and work out their weekly savings amount. This is incredibly handy for those with busy lives and may forget to make a manual payment each month into their savings pot." Help us improve our content by completing the survey below. We'd love to hear from you! Know your finances According to Weston, staying on top of your spending and planning ahead increases your chances of having more financial freedom and flexibility. "Having a clear idea of your expenses and budget is a great start," Weston says. "Using budgeting tools is a good way of getting a handle of what you're actually spending and what you can afford to spend." He advises: "Making sure you understand where your spending has come from and also having a budget plan for the whole year, with summer in particular, can help for planning ahead." Springall adds: "Using a budget app like Emma, could be useful on the go. It monitors spending and can help build a pot towards different goals, like holidays, an MOT or even Christmas." Use a regular savings accounts Springall suggests that these types of savings accounts are perfect for gradually accumulating funds as they encourage positive saving habits. "However, consumers will need to work out if they are the right choice for them as some can be restrictive and might not be suitable for larger deposits," she advises. "Regular savings accounts can also revert to a flexible account after the term ends, which might not pay a good rate, so savers must make a diary note to reinvest if they are still building funds toward their future goal." Be prepared for unexpected expenses Weston particularly urges parents to have savings set aside for unforeseen costs. "If you know that your normal monthly disposable income is a bit tighter due to children being home more rather than being in school, it is good to have savings put away so it is still possible to socialise and do things with them in the summer." Combat financial inertia Springall encourages consumers to overcome any indifference and reassess how to make their money work harder. "Consumers need to shake any apathy they may have and take a step back to decide how their money could work harder for them during this time period also. "Consumers ready to get started would be wise to explore the latest top rate tables and read up on some tips and guides to help them on their savings journeys."
The Independent
02-05-2025
- Business
- The Independent
Why everyone should open an ISA, according to financial experts
Navigating the world of personal finance can often feel overwhelming. However, Individual Savings Accounts (ISAs) offer a straightforward way to save and grow your money tax-free. With a surge in popularity, evidenced by the £3.5 billion deposited into cash ISAs this February alone (according to Bank of England data), understanding the nuances of these accounts is more crucial than ever. We spoke with finance experts to demystify ISAs, outlining who they're for and the advantages of each type. What is an ISA? Can you have more than one ISA? Rachel Springall, finance expert at MoneyFacts explains that an ISA offers savers the possibility to put away money that doesn't get taxed. You can have multiple ISAs. 'That draws people to ISAs as they can invest up to £20,000 a year which is tax free. If you do withdraw that money however, it will become taxable,' Springall says. 'Therefore if people want to move around their ISA, they will need to transfer it to another one. Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, emphasises that it's important people are thinking about making their savings and investments tax efficient to ensure they can hold on to as much of their earnings as possible. She also adds it is worth noting that if the full allowance of an ISA isn't used within the 12 month period, you then lose it and a fresh one starts for the next year. Although Springall says that ISAs can encourage saving habits, they may not be for everyone. 'It is important to remember that ISAs were introduced 25 years ago and they aren't the suitable choice for everyone. It really depends on who you are, how old you are and what you're saving for,' Springall adds. General cash ISAs 'Cash ISAs are saving accounts where you don't pay tax,' Haine explains. 'Similar to a regular savings account, you can have an easy access or fixed-rate option where cash can be locked away for a set period. You can open one through your bank or your investment platform. I would advise people to shop around for the best rate they want and then allow your cash savings to grow over time. 'Generally these are better for those who are saving money for a short-term time horizon or who need access to the money faster.' 'A stocks and shares ISA allows savers to invest in shares, funds, investment trusts and bonds with no tax on any gains or income from assets held in the account,' Haine explains. 'They are best for those with a time horizon of five years or more because as we've seen recently, financial markets, especially equities, can be very volatile over the short term. Over the long term however, they've historically delivered much higher returns than cash over a period of five years or more.' 'With this ISA, a DIY investor could choose their own investments, and can spend time selecting the assets that they want that match their attitude to risk and manage their performance,' she adds. She adds that some investment platforms also offer ready-made portfolios or off-the-peg investment portfolios – typically tailored to different levels of risk. This then allows investors to choose if they want to put their money in a ready-made portfolio. Junior ISAs ' Children are eligible for an ISA too and with a junior ISA they have an allowance of £9,000 every tax year,' Haine says. 'This is often a popular way for parents or grandparents to build up tax-efficient savings and investments for a chid. This money can be held in cash or investments. Lifetime ISAs 'A lifetime ISA is specifically designed for meeting two goals – either to help purchase the first home or to save towards retirement. Importantly, the lifetime ISA has a maximum that you can contribute per tax year which is up to £4,000,' says Haine. 'These are available for people age between 18 and 39 and the government will then top up their contribution by up to 25% – meaning that's a free cash bonus effectively. 'When it comes to lifetime ISAs however, the pot must either go towards the purchase of your first property – which is capped at £450,000 in value or it must be held until the individual turns 60 to be used for their retirement.' 'An innovative ISA typically enables savers to engage in peer-to-peer lending – people can lend up to £20,000 to borrowers and businesses without getting their money taxed. These are typically for people who like to take on a little bit more risk,' Haine says.
The Independent
02-05-2025
- Business
- The Independent
What is an ISA and which one should you open?
There has been a rise in people opening Individual Savings Accounts (ISAs) as a means to save and also make tax-free money over the years. According to the Bank of England, in February alone, £3.5 billion was ploughed into cash ISAs for example. However, for many, finances and understanding what exactly these savings accounts are and how they work, can be overwhelming. Whether this is the first time saving and investing or if the number of options are overwhelming in general, it can be quite difficult to wrap your head around. We have put together a guide about all things ISAs to make the process a little bit easier for people – and their finances. What is an ISA? Rachel Springall, finance expert at MoneyFacts explains that an ISA offers savers the possibility to put away money that doesn't get taxed. 'That draws people to ISAs as they can invest up to £20,000 a year which is tax free. If you do withdraw that money however, it will become taxable,' Springall says. 'Therefore if people want to move around their ISA, they will need to transfer it to another one. Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, emphasises that it's important people are thinking about making their savings and investments tax efficient to ensure they can hold on to as much of their earnings as possible. She also adds it is worth noting that if the full allowance of an ISA isn't used within the 12 month period, you then lose it and a fresh one starts for the next year. Although Springall says that ISAs can encourage saving habits, they may not be for everyone. 'It is important to remember that ISAs were introduced 25 years ago and they aren't the suitable choice for everyone. It really depends on who you are, how old you are and what you're saving for,' Springall adds. General cash ISAs 'Cash ISAs are saving accounts where you don't pay tax,' Haine explains. 'Similar to a regular savings account, you can have an easy access or fixed-rate option where cash can be locked away for a set period. You can open one through your bank or your investment platform. I would advise people to shop around for the best rate they want and then allow your cash savings to grow over time. 'Generally these are better for those who are saving money for a short-term time horizon or who need access to the money faster.' Stocks and shares ISAs 'A stocks and shares ISA allows savers to invest in shares, funds, investment trusts and bonds with no tax on any gains or income from assets held in the account,' Haine explains. 'They are best for those with a time horizon of five years or more because as we've seen recently, financial markets, especially equities, can be very volatile over the short term. Over the long term however, they've historically delivered much higher returns than cash over a period of five years or more.' 'With this ISA, a DIY investor could choose their own investments, and can spend time selecting the assets that they want that match their attitude to risk and manage their performance,' she adds. She adds that some investment platforms also offer ready-made portfolios or off-the-peg investment portfolios – typically tailored to different levels of risk. This then allows investors to choose if they want to put their money in a ready-made portfolio. Junior ISAs ' Children are eligible for an ISA too and with a junior ISA they have an allowance of £9,000 every tax year,' Haine says. 'This is often a popular way for parents or grandparents to build up tax-efficient savings and investments for a chid. This money can be held in cash or investments. Lifetime ISAs 'A lifetime ISA is specifically designed for meeting two goals – either to help purchase the first home or to save towards retirement. Importantly, the lifetime ISA has a maximum that you can contribute per tax year which is up to £4,000,' says Haine. 'These are available for people age between 18 and 39 and the government will then top up their contribution by up to 25% – meaning that's a free cash bonus effectively. 'When it comes to lifetime ISAs however, the pot must either go towards the purchase of your first property – which is capped at £450,000 in value or it must be held until the individual turns 60 to be used for their retirement.' Innovative ISAs 'An innovative ISA typically enables savers to engage in peer-to-peer lending – people can lend up to £20,000 to borrowers and businesses without getting their money taxed. These are typically for people who like to take on a little bit more risk,' Haine says.
The Independent
01-05-2025
- Business
- The Independent
Many people ‘stuck in financial habits' as experts suggest ways to boost budgets
Many people are stuck in a financial rut which could be holding them back from getting better deals, research suggests. More than half (51%) of people surveyed said they stick with their current financial habits or savings plans, even though there may be more suitable alternatives. But only 38% said they are satisfied with their current habits. When looking at what is behind money inertia, just over a fifth (22%) worry they will regret making a wrong decision, and one in six (15%) feel overwhelmed by the choices available, according to Spring, a new savings app. One in seven (13%) find comparing financial options tricky. The same proportion (13%) find it difficult to understand how switching would help them over the long term, according to the survey carried out by Censuswide among more than 5,000 people across the UK in December 2024 and January 2025. The Spring app was launched by Paragon Bank and uses 'open banking' technology to connect to a customer's existing current account. This enables customers to see their current account and the balance in the Spring app. Derek Sprawling, managing director of savings at Spring, said: 'It is clear that people up and down the country are putting their financial wellness to the bottom of their admin list, even though it is simple to earn significantly better returns.' Here are some tips from Mr Sprawling for building stronger financial habits: 1. Start with a budget. List monthly expenses, including fixed costs such as a mortgage and phone bills, and variable costs such as entertainment. This helps ensure spending and saving habits align with your priorities. 2. Make short and long-term financial goals. Having clear goals keep people motivated and helps to build a plan to achieve them. Creating different savings pots for each goal can help keep savings on track. 3. Review where you keep your money. Check the interest rates on existing savings accounts and see if you could do better elsewhere. Meanwhile, Rachel Springall, a finance expert at suggested that loyalty cards can help free up some extra cash. She added: 'A word of warning though: loyalty points can expire, and it will be up to consumers to keep track of these and exchange them for any rewards or vouchers.' Ms Springall also suggested that 0% balance transfer cards could help reduce the costs of some debts, adding: 'Borrowers could even find a deal that doesn't charge a transfer fee.' People could also take up banks' cash incentives to switch their current account. Mr Springall cautioned: 'As with any current account it's important consumers assess the overall package of any deal before they commit, such as any fees or incentives. However, a free cash boost may be the ultimate sweetener for cash-strapped consumers who want to avoid dipping into their overdraft.' Here are the percentages of people across UK regions and nations who would be likely to stick with their current financial habits even though a better alternative may be available, followed by the percentages of people who are satisfied with their current habits, according to the survey for app Spring: East Midlands, 46%, 37% East of England, 53%, 41% London, 54%, 33% North East, 51%, 33% North West, 50%, 38% Northern Ireland, 54%, 38% Scotland, 51%, 43% South East, 50%, 40% South West, 52%, 42% Wales, 52%, 42% West Midlands, 50%, 35% Yorkshire and the Humber, 47%, 41%
Yahoo
01-05-2025
- Business
- Yahoo
Many people ‘stuck in financial habits' as experts suggest ways to boost budgets
Many people are stuck in a financial rut which could be holding them back from getting better deals, research suggests. More than half (51%) of people surveyed said they stick with their current financial habits or savings plans, even though there may be more suitable alternatives. But only 38% said they are satisfied with their current habits. When looking at what is behind money inertia, just over a fifth (22%) worry they will regret making a wrong decision, and one in six (15%) feel overwhelmed by the choices available, according to Spring, a new savings app. One in seven (13%) find comparing financial options tricky. The same proportion (13%) find it difficult to understand how switching would help them over the long term, according to the survey carried out by Censuswide among more than 5,000 people across the UK in December 2024 and January 2025. The Spring app was launched by Paragon Bank and uses 'open banking' technology to connect to a customer's existing current account. This enables customers to see their current account and the balance in the Spring app. Derek Sprawling, managing director of savings at Spring, said: 'It is clear that people up and down the country are putting their financial wellness to the bottom of their admin list, even though it is simple to earn significantly better returns.' Here are some tips from Mr Sprawling for building stronger financial habits: 1. Start with a budget. List monthly expenses, including fixed costs such as a mortgage and phone bills, and variable costs such as entertainment. This helps ensure spending and saving habits align with your priorities. 2. Make short and long-term financial goals. Having clear goals keep people motivated and helps to build a plan to achieve them. Creating different savings pots for each goal can help keep savings on track. 3. Review where you keep your money. Check the interest rates on existing savings accounts and see if you could do better elsewhere. Meanwhile, Rachel Springall, a finance expert at suggested that loyalty cards can help free up some extra cash. She added: 'A word of warning though: loyalty points can expire, and it will be up to consumers to keep track of these and exchange them for any rewards or vouchers.' Ms Springall also suggested that 0% balance transfer cards could help reduce the costs of some debts, adding: 'Borrowers could even find a deal that doesn't charge a transfer fee.' People could also take up banks' cash incentives to switch their current account. Mr Springall cautioned: 'As with any current account it's important consumers assess the overall package of any deal before they commit, such as any fees or incentives. However, a free cash boost may be the ultimate sweetener for cash-strapped consumers who want to avoid dipping into their overdraft.' Here are the percentages of people across UK regions and nations who would be likely to stick with their current financial habits even though a better alternative may be available, followed by the percentages of people who are satisfied with their current habits, according to the survey for app Spring: East Midlands, 46%, 37% East of England, 53%, 41% London, 54%, 33% North East, 51%, 33% North West, 50%, 38% Northern Ireland, 54%, 38% Scotland, 51%, 43% South East, 50%, 40% South West, 52%, 42% Wales, 52%, 42% West Midlands, 50%, 35% Yorkshire and the Humber, 47%, 41% Sign in to access your portfolio
