According to a study carried out by the Abbey National recently a number of UK people are dipping into their savings in order to pay their ongoing bills.
The Abbey National was looking specifically at money held in ISAs and, having seen around GBP6 billion taken out of them asked customers what the money had been used for. Just over 30 percent of people said it was to cover day to day expenses, the most popular answer provided.
Although it can seem easy to use savings to cover costs the issue comes a little later said an Abbey National spokesman. If a cash ISA had the maximum put into it then any withdrawals cannot be made up later, leaving the account holder with a reduced return through interest.
According to a parenting and relationship specialist young people in England, Wales and Scotland should learn how to save money, in a step to help them learn the value of money.Helping children learn and understand how to save money themselves is a great way for them to learn. By letting them contribute to purchases made by the family for items such as toys or treats, it can demonstrate how to handle money and learn the responsibility that goes with it. In today’s society it is becoming more difficult to manage money as most purchases are made with a debt or credit card. But children need to see real money transactions being made and the importance of dealing in cash transactions.Savings accounts can be a great way for young people to learn about how to save their money. There are many types of savings accounts that children can open, so that they can experience how to save and how it all works. See our savings accounts comparison table for more information or our guides and tips pages.
The Nationwide Building Society has introduced half a dozen new investment bonds, with interest rates ranging from 6.5 to 6.7 percent.
The bonds cover investment periods of between 6 months and three years, therefore providing real options to suit different investors. Two of the new Nationwide Building Society bonds are e-bonds and are applicable to new FlexAccount customers while another one is valid only for customers who have been with the Nationwide for at least 3 years.
A spokesman from the Nationwide Building Society felt that the six month bonds offered an excellent return over such a short period of time and that the longer period bonds would prove excellent investment options for those happy to put their money to work for up to three years.
