As you’ll know, we’re here to help customers with real life. As part of that, we think it’s really important for them to get into good savings habits - and you can help them with this.
We believe that, with a few small changes, anyone can increase their ability to save, and a fresh new year is the perfect time to do it.
YBS carried out some research in 2019 with 2,000 people and found that:
So, encouraging more people to save can only be a good thing.
This blog should:
Our January Savings Challenge
It can be hard to make a start with saving if you’re not used to putting money aside.
Here are some tips, to give your customers some ideas on where they could be making quick savings every day, without really noticing. Encourage them to think about why they might want to save - for something special, a nice holiday, or to cover unexpected bills. This will help to motivate them to start saving in the first place, and then to keep going:
Giving finances the once-over – A good place to start is for them to do a thorough review of their regular income and outgoings. What are the essentials and what could they do with less of? After the essentials, they can work out what’s left each month and see if they could cut back on any of those ‘luxuries’ to start saving.
I’d forgotten about that one – Checking direct debits. Are they still paying for a gym membership they’re no longer using? Have they compared their utilities prices recently? Maybe they could make savings with the essentials by just switching providers for gas and electricity or broadband.
If they find a saving, they could set up a regular transfer to a savings account for the amount saved.
Swap or drop – how about making instead of buying lunch each day? Or drop just a couple of shop-bought coffees a week to save over £250 a year.
A little saving can make a big difference - even £50 a month, or the equivalent of one social night out, would add up to £600 over the course of the year.
How much could your customer save regularly?
Do they know about our budget calculator? Why not encourage them to take a look at it in their own time.
Our infographic attached here, sums up how a little can go a long way - feel free to print it out for customers.
Matching your customer’s needs to our savings range
Whether your customer decides to save for something specific, or just wants to put something aside for the future or a rainy day, it’s always a good idea to set up a new savings account where they can watch the cash build up. This will also help avoid the temptation of dipping into it.
Naming the account (like ‘Holiday’ or ‘New Bathroom’) is also a good idea to help stay focused if there is a specific goal in mind.
Another good idea is to set up a standing order, so that money is taken out automatically on pay day, or at the end of the month.
Here’s an overview of our account types and what kind of saver they suit, to get you started with your customer conversations, and help them recognise what kind of savings account they need.
Regular saving
What is it: A straightforward type of account that allows you to save regularly. Terms of the account require you to put away some money each month (the amount could vary from month to month with a min and max limit).
Who is it good for: savers who are able to put a little money away each month without making regular withdrawals, and those who don’t have much of a savings pot currently and are looking to build one.
Our budget calculator, mentioned above, could also help them to check how much they might be able to save each month.
Did you know?
According to the Money Advice Service, saving regularly could mean saving more than you would do otherwise. What’s more, this can also help you get into the habit of saving on a regular basis.
Easy access saving
What is it: a savings account that gives you complete access to your funds – the lower interest rate will reflect this.
Who is it good for: savers who need the reassurance of being able to access their funds whenever they might need to, which can be a real benefit for those who’d prefer not to tie up their cash.
Limited Access Saving
What is it: a savings account that gives a bit more flexibility in accessing your money by allowing you to access it once, or several times, a year. This includes notice accounts, where you need to give notice in advance (the amount of notice required can vary) that you’d like to make a withdrawal.
Who is it good for: customers who may only need access to their money a few times a year in an emergency, but don’t need to have regular access. This account usually pays more interest than an Easy Access Account which allows regular withdrawals.
Tax free saving
What is it: A Cash ISA is a savings account where you don’t pay tax on the interest.
Who is it good for: savers who want to benefit from their ISA allowance and not pay tax on any interest earned by their savings.
Please note, if they already have a Cash ISA elsewhere, they can transfer it to us or another provider, although they should check whether any transfer charges apply.
See Dave’s Monthly Digest in February for more on ISAs
Longer term saving
What is it: You put your money away for a longer period of time, in return for a better interest rate.
Who is it good for: savers with a lump sum, who don’t need to access their savings for 1, 2, 3 years or longer.
Saving for children
What is it: An account purely designed for someone under 16. This could be a regular saving account, or an instant or easy access account.
Who is it good for: These are accounts to help save money towards a child’s future, as well as educate them and encourage them to get into good savings habits. Some of the features include easy withdrawals or ATM cards.
Online savings accounts
What is it: a savings account to be opened and managed online. It can be any of the types of accounts covered above.
Who is it good for: those who are short of time or struggle to get to a branch/agency to manage their money.
Remember – all our customers should be encouraged to register for online services as it gives them increased flexibility and choice for managing their money 24 hours a day.
Looking after Our Savers with Our Savings Pledges
Finally, don’t forget our 2020 Savings Pledges show our commitment to our savings customers, and are worth building into any savings conversation.
How can I use this blog?
Here are some ideas to make the most of it:
Look out for more savings content in the February edition of Dave’s Monthly Digest.
References:
*YBS media centre, savings research May 2019.