How can I pay for a car, holiday or other high-value item?

Save

First up, look at your budget. Do you have any money left over after you’ve paid for essentials and basics? Consider if there’s anything you can reduce or do without – small buys such as coffees or soft drinks can soon add up.

Next, work out what’s realistic. It can help to have a target in mind or weekly or monthly saving goals but it’s easier to stick to changes which aren’t too difficult. Never going out or having that takeaway – just because you’re saving – can be miserable, so budget for some treats too. Find out more about budgeting by clicking here to see MoneyHelper’s information on their website.

Where to put your savings

Open a savings account

A savings account separates the money you’ve saved from your everyday spending in your current account. Your money can also earn interest, a payment from your bank for holding your money.

There are different kinds of savings accounts. Look at the interest rate and consider how often you want to pay money in or take money out to choose the best account for you.

Some banks offer a round-up option on your current account – you can choose to round up any card spending to the nearest pound and for the difference to go straight into your savings account.

The government protects your savings to a limit, so if your bank fails, you will get your money back.

Find out more about choosing a savings account at Money Saving Expert.

Premium Bonds

Premium Bonds are run by the government and offer a different way to save. Your money doesn’t earn interest but you get the chance to win tax-free prizes every month. Each investment must be at least £25 and you can take your money out at any time.