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Should you keep all your money in the bank?

Working out where to put your cash is a job in itself because if you can make your money work for you, you’ll have more to play with. Should you leave your savings in the bank, put them into a savings account or do something else with them? With low interest rates, perhaps it’s time to be a little more creative with your cash.
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Your situation

Two things determine where you should put your cash – your financial situation and your goals. If you’re okay for cash and can get by without all of your savings, put your money into a longer term investment. Of course, your present situation dictates where you should put your cash. If you might need access to your funds at short notice, you won’t want the cash locked up in bricks and mortar.

Saving for the long term

When saving for the long term set out your goals. How much do you want to save and when will you need the cash by? Are you saving for a large purchase, like the deposit on a house, or are you putting cash away to provide for an early retirement? Whatever your saving goals leaving your cash in the bank doesn’t make any sense.

High interest savings account

When you need access to your cash at short notice the best place to have your money is a savings account. Your current bank will be able to provide you with one but you really should take a look at a comparison site to determine which savings account is best for you.

Investing

For a longer term option, why not invest some cash? Putting your funds into a cash ISA is a great way of saving as this type of account is tax free. The rules attached to this type of savings account mean that you only need wait 15 days if you want to reclaim the cash held within it, so it’s pretty flexible.

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