How To Get Free Money From Your Savings
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How To Get Free Money From Your Savings
What would you say if your Bank handed you an at least £200 for doing pretty much nothing every year? You wouldn't believe it was possible would you? But in this case it is, so let us show you how you can make a bit of extra money using your savings account, without having to hardly do a thing!
Saving money is about more than just storing it up for a rainy day. Play the banking system correctly and you can make your spare cash a source of income that'll bring a bit of sunshine to your accounts.
The best way to start saving is to open a mini cash-ISA. These often pay a good rate of interest, and the best news is that you're not taxed on it, provided you don't deposit more than £3600 per year. This is your tax-free limit.
Organise to have any savings you already have in other accounts transfered to your new ISA, providing its less than the £3600 tax-free limit, and begin saving whatever else you can.
Once you've used up your tax free limit on your ISA, you will need to switch your monthly savings to a regular saver account, as these pay a high rate of interest provided you commit to paying in a minimum amount every month.
Then at the beginning of each new tax year, take a lump sum from your regular saver and dump it in your ISA. If this doesn't max out your tax-free allowance, start paying regularly into your ISA again until you hit your limit.
If you can deposit the maximum of £3600 at the beginning of the tax year, at an interest rate of 6%, you'll have £3816 by the end of the same year - that's a profit of £216 that you can spend how you like, for doing absolutely nothing!