Piggy bank vs real bank – where do your savings go?
Having a piggy bank or money box is probably the first way you saved money as a child. But do you still use one to save? More than seven in ten (73%) of adults have a piggy bank at home and 60% raid it for cash to get them out of a sticky situation. But is it the best way to store your money?
The research from TopCashback also showed people currently have more than £250 in cash savings at home and dip into it once a month. Interestingly, 31% say they only save in one particular denomination – such as a jar full of £2 coins, for example.
In fact, there could be a bit of a role reversal going on – as Virgin Money reports 23% of parents said their children have more money deposited in ISAs and savings accounts than they do.
ARE PIGGY BANKS THE ANSWER ?
So, are our porcelain pals the answer? There are plenty of people that say they use them, for everything from takeaways to the ice cream van.
But having cash languishing in your home isn’t necessarily the best place to keep it. After all, don’t you want your money to work for you as hard as you work for it?
One way you could do this, which was told to us by cash-savvy reader Shirley Miller, was “I save every day of the calendar year. So, January 1 is one pence, and then I’ve built it up from there. January 31 is 31p, February 1 is 32p, and so on. I add it up weekly. Now, in March, I have over £40 – at the end of the year this will be over £600! It gets more expensive as the year goes by, but I’m giving it a go.”
If you put the money from this in a bank account every month, you could have a nice nest egg by the time the end of the year comes around – even if you start now.
There are plenty of savings accounts where you can safely put your money and watch it earn interest.
Comparison websites are a good starting point for anyone trying to find a savings account tailored to their needs.
Remember to use more than one comparison site, because they will give you different results.
There are hundreds of different accounts you could use – but there are actually only a few different types of account so you don’t need to feel overwhelmed. It completely depends how often you want to access your money – generally you get a better interest rate if you put money away for longer, but that might not always work for you.