Increasing the amount of cash you have in your bank account does not have to be complicated. Just by taking a few simple steps, you can quickly improve your financial situation. Here are three areas of your finances that could increase the amount of cash you have in your bank account.
Assess Your Savings Account
Interest rates at the moment are at historical lows, and they have been for some time. These rates, often lower than one percent, make saving challenging, certainly if you rely on your savings to provide a source of income. Unless you have a considerable amount of cash in your bank account, the typical 0.6% interest rate does not offer much of a return.
With interest rates so low, switching to a savings account with a higher interest rate could make a considerable difference to the income you receive from your savings. Goldman Sachs has a savings account of 1.5%. This rate will provide you with a one hundred and fifty percent increase on the 0.6% that you will receive in other savings accounts. The first £1,000 of any income you receive from your savings is tax-free, so switching makes perfect sense for most savers.
Transfer Your Debt
If you have an existing credit card with existing debt, it might be worth transferring your debt through a balance transfer credit card. One of these cards will enable you to move your existing debt to another credit card with a zero percent rate for a certain amount of time. The period that the zero percent interest rate applies for can be for as long as 32 months.
Transferring your debt in this way can enable you to pay down your debt considerably, by using the money you would typically pay in interest to pay off your debt.
For instance, let’s say that you have a credit card with £2,000 of debt on it, and you are paying it back at £100 per month on an interest rate of 18.9%, Over two years you will pay interest of £380. If you transfer to a zero percent interest rate card, the £100 you pay each month will allow you to pay off your debt in 20 months.
You may be subject to fees when you transfer your balance to another credit card, but these fees are typically much lower than you would pay in interest rates if you remained with your current provider.
Switch Your Current Account
Several attractive offers are available for people to switch their current accounts. These offers can be in the form of cashback, vouchers, or other types of incentives to get you to switch depending upon your circumstances.
If you decide that you want to switch your current account, it is a straightforward process. Your new bank will take care of all of the administration involved with the sitch. If you decide to make the switch, it will take up to seven days. All payments, standing orders, and direct debits will be transferred automatically to your new bank account.
There are plenty of reviews online that you can look at to get an idea of the best current accounts for your situation. You will be able to compare different current accounts, and possibly find one of which you were previously unaware.
If anyone were to offer you the opportunity to increase the amount of cash in your bank account, most people would jump at the chance. Hopefully, following these three steps can help you improve the interest you receive on your savings, reduce your credit debt more quickly, and get you better conditions with your current account banking.