How Much Can I Save?
So you can save as much as you want but I always recommend that you make saving feel comfortable and not like a punishment.
In your first year of saving I normally recommend that you save only 10% of your monthly income. This will mean you will have “Stacking Proof”. You can see your savings growing and the interest rolling in.
After your first year you should be pretty much used to saving, so try to save 20% of your monthly income from this point forward.
So in a nutshell:
- Year 1 – 10% of your monthly income
- Year 2 onward – 20% of your monthly income
Can I Take My Money Out Whenever I Want?
This is a really good question and pretty much depends on the type of Savings Account that you’ve chosen to go for!
If you need the flexibility to access your savings whenever you want then an Instant Access or Easy Access Savings Account will be perfect for you.
If you’re happy to leave your savings untouched for a while you should try to use a Fixed Term Account or Notice Savings Account, these normally pay a slightly higher interest rate. So you earn more money from your money by not touching it.
Is My Money Trapped In a Savings Account?
No, not at all. I usually recommend that you save 10% to 20% of the money you make every month. Then you can decide if you put your savings into an Easy Access Account so you can always access your money whenever you need it or lock it away in a Notice Savings Account.
How Many Savings Accounts Can I Open?
You can have as many savings accounts as you like, but there are a few rules to the number of ISA accounts that you can have.
So, every tax year you can only have:
I’ve Got Bad Credit, Can I Open a Savings Account?
Yeah for sure! Your credit history isn’t checked when you try to open a Savings Account.