Savings - Short Term

Your results suggest it could be really useful for your to focus on short term savings right now. Therefore, you could use your Child Trust Fund for this!

The Coronavirus has significantly impacted the economy and research shows those with an 'emergency savings pot' have the best chances of navigating difficult financial periods like this.

Your CTF could make up all or most of this savings pot!

A good size emergency savings pot is usually 3 months worth of rent + bills (so about £1,500 - £2,000 depending on where you live). After you've passed this goal, you could save for some of your longer goals... e.g a house, car, holiday.

So... Where Should I Move My Money?

If you're building an emergency savings pot, an 'Easy Access Savings Account' may be the best option. A good place for checking the best 'Easy Access Savings Account' for you is the money.co.uk website

At the moment, the best interest rates on savings account are available through 'Regular Savings Account'. These are bank accounts which are paired with a normal everyday bank account that you have where you have to save a certain amount of money a month.

To maximize your interest, you could move your CTF into an 'Easy Access Savings Account' and then 'drip feed' it into a 'Regular Savings Account' or any bank account you have with higher interest.

That way you'll get double the interest!

For more information on what 'drip feeding' is, and the best 'Regular Savings Accounts' available at the moment, visit: Money Saving Expert - Best Savings Accounts