Latest news with #RachelSpringall
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The Independent
22-07-2025
- Business
- The Independent
How much should you be saving each month at 30, 40 and 50 years old?
SPONSORED BY TRADING 212 The Independent Money channel is brought to you by Trading 212. Building a savings pot can help provide an important safety net to cover unexpected expenses or even for key money milestones. A savings pot can come to the rescue if you need cash to cover emergencies such as home repairs or you could use it to work towards a goal such as a holiday or a dream car. It can be hard to know how much you should save though as everyone will have different goals and there are different factors at play such as your income and even your age. One common savings mantra is the 50/30/20 rule, where you spend half your salary on expenses, 30 per cent on wants and put 20 per cent in savings. Rachel Springall, finance expert at said: 'Everyone will have their own goals and aspirations when it comes to their savings pots which will change as people progress through their adult lives.' The right amount to save depends on your stage of life and what gives you peace of mind, says Philly Ponniah, chartered wealth manager at Philly Financial. 'Factors like job security, dependents, insurance, and access to other savings all play a role,' she explained. 'As with all personal finance, it's personal, the right safety net is the one that helps you feel financially secure.' There are a various ways to save, from high-interest easy access accounts that let you withdraw your funds when you need them, to cash ISAs where your returns are tax-free. However you put money aside, here is how much you should save based on your age. How much should you save in your 30s? By the time you reach age 30, you will most likely have finished studying and may have a student loan to repay, while you could also have left your childhood home and be balancing paying rent and saving for a deposit to buy your first property. There may even be plans to get married. That is a lot to put money aside for. The median salary for someone age 30 to 39 is £39,988, according to the Office for National Statistics (ONS), which would mean saving £7,997.60 annually or £666.47 on a monthly basis based on putting aside 20 per cent. However, Springall said: 'Typically, those in their 30s should be saving slightly more than 20 per cent, aiming for 25 per cent of their disposable income. They must also ensure they are contributing a fair portion of their salary into their pension and be sure to have some cash stashed away to have a holiday or pay for any hobbies to take care of their wellbeing.' How much should you save in your 40s? ONS figures suggest those in their 40s typically earn £42,796 per year. That would mean putting aside £8,559.20 a year or £713.27 per month. But by the time you reach your 40s, you may have even more financial challenges such as paying a mortgage, running your own business and even bringing up a family or caring for older family members. Springall added: 'It's no wonder then if some have forgotten to put a little bit of cash to one side. 'The general budgeting rule applies here, where 20 per cent of any disposable salary saved to cover costs, and ensure pension provisions are not neglected when other life events take centre stage. Those feeling the strain would be wise to set up a pot that's quick to access, in case of emergencies.' How much should you save in your 50s? In an ideal world, someone in their 50s would be close to paying off their mortgage, which should free up some savings and mean more money can be put towards retirement in hopefully the near future. ONS data suggests that median salaries drop once people are in their 50s, as some may slow down at work later into the decade. The typical salary for someone age 50 to 59 is £40,456 so putting aside 20 per cent would mean saving £8,091.20 per year or £674.27 a month. Springall suggests the lack of other financial commitments can hopefully free up a decent portion of someone's net income at this age but it would be wise to start thinking about funding your retirement. She said: 'People are working longer, and living longer, so that means they need to put even more money away into their pension to fund their retirement. 'The first question someone should ask is whether they will be able to retire 'comfortably' or not. If no, then they must prioritise building their savings, or relinquish assets to cover the cost of care and comforts. This is where advice is critical.'
Daily Mail
17-07-2025
- Business
- Daily Mail
Why savers should fix NOW as easy-access rates hit two-year low
Savers are being urged by experts to potentially lock away their savings now to secure top rates ahead of a likely Bank of England base rate cut next month. Easy-access rates have plummeted to a two-year low, according to rates scrutineer Moneyfacts Compare. The average easy-access rate now stands at 2.68 per cent, the lowest level since July 2023 when it was 2.41 per cent. Meanwhile the average easy-access Isa rate is 2.92 per cent, its lowest level since August 2023 when it was 2.86 per cent. Atom Bank, offering the top easy-access rate today, cut its rate to 4.6 per cent from 4.75. per cent. Many easy-access accounts and Isa access Isas pay north of 4 per cent, but some are artificially inflated by bonus rates with disappear after three to 12 months. Rachel Springall, finance expert at Moneyfacts Compare says: 'The downward momentum is an inevitable turn of events, with providers adjusting their rates following four cuts to the base rate since last summer.' Fixed-rate accounts on the other hand are holding strong, with one and two-year bonds seeing the biggest rate hikes in 11 months, according to Moneyfacts Compare. The top one-year fixed bond rose by the largest amount since August 2024 to 4.55 per cent. GB Bank now offers a 4.58 per cent one-year fixed rate bond while the best two-year bond pays 4.45 per cent and is offered by DF Capital. The Bank of England will vote on whether to cut or hold the base rate on 7 August with markets pricing in a cut. Andrew Hagger, personal finance expert and founder of MoneyComms says: 'A rate cut of 0.25 basis points is still pretty much a certainty even with the economic data published this week.' In general, savings rates rise when the base rate is rising, and fall when it is falling. Easy-access rates are usually the first to be slashed when the base rate is cut as savings providers react to the cut, while cuts to fixed-rate bonds tend to move more slowly. 'Easy-access deals will take a hit - maybe not falling by a full 0.25 per cent in all cases' says Hagger. 'However, with fixed-rate bonds the next cut has probably already been priced in - in most cases,' he adds. For this reason Hagger says: 'If you've got some spare cash that you don't need for a year or two then locking some away in a fixed-rate bond makes sense as fixed rates are unlikely to increase from their current levels.' A saver stashing £10,000 in the top one-year fix offered by GB Bank would earn £458 at the end of the term. While a saver putting £10,000 in DF capital's two-year fixed-rate bond would earn £927 at the end of the two year term. For savers who want to lock their savings away in a tax-free Isa to avoid paying tax on their savings interest, Vanquis Bank has a one-year fixed rate Isa paying 4.3 per cent while United Trust Bank has a two-year fixed-rate Isa paying 4.25 per cent.
Daily Record
24-06-2025
- Business
- Daily Record
New Zopa current account offers cashback and impressive 7.1% interest on savings
People can deposit up to £300 per month to take advantage of the market leading savings rate. Digital bank Zopa has entered the current account market, enabling customers to earn 2 per cent interest on balances as well as cashback on purchases and an impressive 7.10 per cent interest on a linked savings account. The new account, called Biscuit, offers 2.00 per cent AER (annual equivalent rate) interest on balances. Customers can also earn 7.10 per cent interest on a regular saver account, depositing up to £300 per month. After 12 months the regular savings account becomes an easy access savings account - with a current rate of 3.50 per cent - but customers can then open another regular saver, the bank said. People can also earn 2.00 per cent cashback on bills on up to £1,500 of direct debits per year. Merve Ferrero, chief strategy officer at Zopa Bank, said Biscuit aims to deliver 'great value across everyday spending and saving'. A survey commissioned by Zopa indicated that nearly a quarter (24%) of people chase cashback offers while nearly a fifth (19%) have multiple bank accounts and financial products in a bid to find value, sidestep fees or to be rewarded for their loyalty. A third (33%) of people surveyed said they prefer the bulk of their bills and significant outgoings to leave their account on or close to payday, so they know how much money they have left to spend. One in eight (12%) people have some 'no spend' days during the week and more than a third (37%) use mobile banking to stay on top of their finances. The research was carried out by OnePoll, among 2,000 people across Great Britain who are in employment, in June. Commenting on the launch, Rachel Springall, a finance expert at said: 'It is exciting to see another challenger bank launch a current account into the fray for consumers hoping to make their money work harder for them. Digital banks are offering some lucrative benefits and are a refreshing alternative to the major higher street banks. 'The perks of traditional current accounts do tend to vary depending on how a customer uses it.' She said the Zopa account 'may be suited to consumers who don't want the hassle of opening a variety of accounts to cover different needs'. Ms Springall said it is vital that customers work out how much they will fully earn from any account.
Yahoo
23-06-2025
- Business
- Yahoo
Zopa enters current account market offering cashback and 7.10% savings interest
Digital bank Zopa has entered the current account market, enabling customers to earn 2% interest on balances as well as cashback and 7.10% interest on a linked savings account. The new account, called Biscuit, offers 2.00% AER (annual equivalent rate) interest on balances. Customers can also earn 7.10% interest on a regular saver account, depositing up to £300 per month. After 12 months the regular savings account becomes an easy access savings account (with a current rate of 3.50%) but customers can then open another regular saver, the bank said. People can also earn 2.00% cashback on bills on up to £1,500 of direct debits per year. Merve Ferrero, chief strategy officer at Zopa Bank, said Biscuit aims to deliver 'great value across everyday spending and saving'. A survey commissioned by Zopa indicated that nearly a quarter (24%) of people chase cashback offers while nearly a fifth (19%) have multiple bank accounts and financial products in a bid to find value, sidestep fees or to be rewarded for their loyalty. A third (33%) of people surveyed said they prefer the bulk of their bills and significant outgoings to leave their account on or close to payday, so they know how much money they have left to spend. One in eight (12%) people have some 'no spend' days during the week and more than a third (37%) use mobile banking to stay on top of their finances. The research was carried out by OnePoll, among 2,000 people across Britain who are in employment, in June. Rachel Springall, a finance expert at said: 'It is exciting to see another challenger bank launch a current account into the fray for consumers hoping to make their money work harder for them. Digital banks are offering some lucrative benefits and are a refreshing alternative to the major higher street banks. 'The perks of traditional current accounts do tend to vary depending on how a customer uses it.' She said the Zopa account 'may be suited to consumers who don't want the hassle of opening a variety of accounts to cover different needs'. Ms Springall said it is vital that customers work out how much they will fully earn from any account. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Record
20-06-2025
- Business
- Daily Record
Finance expert warns savers ‘loyalty does not pay' after Bank of England holds base rate
Now is the time to check how much your savings are earning and switch to a better returns rate. Savers are being warned not to pay the price for leaving money sitting in pots with poor returns after the Bank of England base rate remained on hold at 4.25 per cent on Thursday. Average savings rates have been on a downward path in recent weeks, but there was a ray of light for savers as some providers unveiled new products on Thursday. Rachel Springall, a finance expert at said: 'Loyalty does not pay so it comes down to savers to proactively review rates and switch their account if they are getting a poor return on their hard-earned cash. 'It is vital that savers look beyond the high street banks and instead take notice of the many challenger banks and mutuals competing in the savings arena.' She added: 'The biggest high street banks pay an average of 1.56 per cent across easy access accounts, but even this pitiful return is being eaten away by inflation, which sits above its 2 per cent target. 'It may be convenient to leave pots with such prominent brands, but it's costing savings in better returns available elsewhere.' According to Moneyfacts, the average easy access savings rate on offer across the market fell from 2.79 per cent at the start of May to 2.72 per cent at the start of June, based on someone having a £10,000 deposit. The average easy access Isa rate fell from 3.03 per cent to 2.98 per cent over the period. Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners said: 'With interest rates still offering savers a decent return, it's never been more important to keep an eye on the personal savings allowance (PSA) – a threshold that's remained the same since 2016. 'Under the PSA, basic rate taxpayers can receive up to £1,000 of interest tax-free, while for higher rate taxpayers this is limited to just £500. Additional rate taxpayers get no PSA at all. 'Higher-rate taxpayers are particularly at risk of breaching the PSA, especially if they've secured one of the market's top-paying accounts. 'To sidestep an unexpected tax bill, savers should consider a more tax-efficient approach. Making full use of the £20,000 Isa allowance and boosting pension contributions can help shelter returns from the taxman, while also supporting long-term wealth goals.' On Thursday, Yorkshire Building Society announced it had refreshed its range of fixed-rate saving options, including a one-year fixed-rate bond at 4.00% AER (annual equivalent rate), a 4.05% two-year fixed-rate bond, a 3.80% three-year fixed-rate bond, and a 3.70% five-year fixed-rate bond. It is also offering a 3.75% one-year fixed-rate cash Isa and a 3.80% three-year fixed-rate cash Isa. Harry Walker, senior savings manager at Yorkshire Building Society, said: 'With interest rate movements making it harder for savers to plan ahead, we're proud to offer fixed-rate options that combine strong returns with peace of mind.' Another mutual, Skipton Building Society, has launched a 'bonus saver' easy access account, at 4.50%, which includes a 1.70% fixed bonus for the first 12 months. The launch follows the introduction of Skipton's new cash Isa base rate tracker last week. The tracker is linked to the Bank of England base rate, currently offering savers a rate of 4.10%. The rate of interest is guaranteed to track 0.15 percentage points below the Bank of England base rate for 12 months from the first payment into the account. The base rate hold on Thursday may disappoint some mortgage holders looking to switch to a new deal. According to figures from UK Finance, around 1.6 million fixed-rate homeowner mortgage deals will end or have already ended in 2025. The Bank of England has said interest rates 'remain on a gradual downward path,' despite being left on hold on Thursday. Nicholas Mendes, mortgage technical manager at John Charcol, said: 'Markets still expect a cut or two later this year, possibly as soon as August,' although: 'The rate path is still anything but settled. 'Borrowers would be wise not to wait passively. If your current fixed deal is due to end this year, it's worth reviewing your options early, as some lenders allow new deals to be secured up to six months in advance.' Jenny Ross, Which? Money editor, said: 'Anyone concerned about meeting their payments should speak to their lender as soon as possible – they're obliged to help.'
