Financial solutions company Think Money advises people to continue saving to keep their finances in good health and protect against unexpected costs.
Financial solutions company Think Money has advised people to continue saving to keep their finances in good health and protect against unexpected costs, despite high inflation preventing most savings accounts from growing in real terms.
This week, the Office for National Statistics (ONS) revealed that inflation reached 3.7% in December – almost double the Bank of England’s target rate of 2%. According to financial advice website Moneynet, this means that higher-rate taxpayers now need to find a savings account paying 6.17% interest or higher to prevent their deposits from shrinking.
But an expert at Think Money says that regardless of this, savings should continue to play a key part in the finances of anyone who can afford to put money aside.
“Some savers will be discouraged by the news that their savings are ‘shrinking’ in real terms, but to say they are shrinking isn’t quite true. All it means is that the value of the savings is slightly less than it used to be in relation to consumer prices – savers won’t actually be losing any money.
“Making regular contributions will help your savings to grow faster than inflation. It’s also worth noting that any interest-paying savings account is more cost-effective than keeping your money at home or in a current account that doesn’t pay interest at all.
“In a financial emergency, savings could make a big difference to your ability to cope financially. Without, an emergency could lead to real financial problems, and could even land you in debt.
“There will be a lot of people who would like to save but can’t afford to do so because of existing commitments. Some people may find that talking to a money adviser about better budgeting or cutting back on outgoings could help. On the other hand, if existing debts are the problem, a debt solution such as a debt management plan or an IVA [Individual Voluntary Arrangement] might be an option.
“Whatever the reason for their problems, advice from an expert could help people to get their finances back into a position where they can start saving again.”
-ENDS-
Notes to Editors
Think Money is one of the UK’s leading financial solutions providers, delivering a comprehensive range of financial solutions, including loan, insurance and banking solutions.
Think Money defines its mission as ‘To educate, rehabilitate and advise on all aspects of financial management’.
For more information, visit the Think Money website at http://www.thinkmoney.com/.
Think Money debt section: http://www.thinkmoney.com/debt/debt-management/
Think Money banking section: http://www.thinkmoney.com/banking/
Media Contact Information
Name: Melanie Taylor
Website: http://www.thinkmoney.com/
Email: [email protected]
Phone: 0845 056 6480
Address: Pennington House, Carolina Way, South Langworthy Road, Salford Quays
City: Salford
State: Greater Mancheter
ZIP: M50 2ZY
Country: United Kingdom
