Saving options for you

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The fashion is to spend, so if you want to go against the grain and save some cash you''re facing some rather large obstacles. Back in January when we were all making New Year''s resolutions to quit smoking, do more exercise and save instead of spend, the media claimed we were turning into a nation of savers. But now, as per usual, we are less resolute about our resolutions, now that we are four months or so into 2010.

If we choose to believe mainstream media now we can hang our heads in shame because we didn''t even manage to make it through the first quarter as savers. In February, total lending rose by ?2.1 billion and the total personal debt at the end of the month stood at ?1,464 billion. Individuals now owe more than the country produces in an entire year.

Credit cards, finance deals, overdrafts and other unsecured personal loans have pushed the average personal debt up to a huge ?4,658 per person. Thanks to interest and of course our insatiable appetite for spending, this debt is rising by 44p a day.

On this debt, we then pay a massive ?2,716 in interest, meaning you are paying a lot more for that TV, car and ipod than its market value and according to PwC, the average household will need to spend approximately 15% of its salary just on servicing this interest.

Instead of becoming another number in the red, don''t think ''I can have this now and pay for it later'' using the bank''s money, plan ahead; save now to spend your money later. If something is expensive then don''t pay more than you have to for it just in interest.

Despite low interest rates and above target level inflation, you can still make money from saving. There are several savings accounts on the market that will reward you for regular deposits and if you can leave you money locked away in a bank for two to five years you will get an eye-pleasing interest rate too.

Always viewed as attractive ways to save because of their tax-free status, ISAs have recently received a boost. The latest budget upped the ISA limit to ?10,200, meaning more potential tax-free profit for you.

The other option is a bond. There are a few decent fixed-rate bonds on the market at the moment offering up to 3.5% interest if your money can stay put for two years. These are perfect if you want to save but are to temped by spending; you won''t be able to withdraw the money whenever you want and the interest is paid annually. If this doesn''t get you saving, what will?

Article Source: http://depositarticles.com/

Christel Sachleben is a financial expert and acclaimed writer, with many years of experience in the finance industry. They recommend Santander for savings accounts.

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