Have you saved money during lockdown? Here’s what you need to know…

Coronavirus and its effects have impacted our finances in various ways. When we surveyed Financial Wellness Group customers in April, two thirds of you told us your income has dropped temporarily because of coronavirus. Nationally, figures suggest that between a quarter and a third of families have struggled to pay their bills over the last few weeks, most likely because someone in the household has been furloughed at 80% of their usual wage or has otherwise lost income.

But there have been fewer opportunities to spend money over the last few months – on going out, using the car or public transport, going to the gym, or paying for TV sports channels. For some people, this – plus overtime pay in some cases – has allowed them to save quite a chunk of money. Almost a quarter of Financial Wellness Group customers told us that you were naturally spending less during lockdown.

If you’re in that group, we’ve got another short survey for you, on whether lockdown has taught you anything about your spending habits that might help you keep saving money in the future.

But in the meantime, here’s our advice on how to get the most out of the money you’ve been able to save.

Find a savings account that’s flexible

None of us are quite sure what’s going to happen in the next few months, so it’s a good idea to put that extra cash somewhere you can get hold of it again quickly if and when you need it. That means it’s best to avoid inflexible ways to save, like regular savings accounts. Instead, have a look around for a current account or an instant access savings account with a competitive rate of interest (bear in mind interest rates are very low at the moment). You can find more information about how to save on the Money Advice Service website.

Start saving for Christmas

It’ll be here before you know it! Putting some extra funds away now can help you get through the most expensive time of the year without falling behind on bills or borrowing more. Check out our blog on the best ways to save for the festive season.

Save while improving your credit score

To help rebuild your credit score while you save, you could also try LOQBOX. This is a savings account which reports your regular deposits (a minimum of £20 per month) to the credit reference agencies as repayments on a loan, thus improving your credit score.

Put the money towards your debts

Depending on how much you’ve been able to save and where you are in your Debt Management Plan, it might be possible to pay your debts off sooner – speak to a Personal Finance Manager and they can discuss your options with you.

 

We’re posting regular updates for customers on our website so please keep checking for more information.

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