We all know that we should be saving money but how often are you putting something aside? Whether you want to build your rainy-day fund or save for a big spend like your dream holiday or luxury kitchen extension, putting money away regularly is key.
However, saving can be a bit of a challenge, especially with the cost of living on the rise. Fortunately, you don’t have to be putting huge amounts into your savings pot to start building those funds. There is a much easier, and more manageable, way to do it and it’s the practice of saving your pennies, via online banking.
How does saving pennies work?
So, what do we mean by saving the pennies? This is a feature with online banking which automatically rounds up your debit card spending to the nearest pound. The spare pennies that are not used for the transaction are added into your savings account instead. This means your savings account will slowly be growing without you even having to think about it!
As an example, say you have popped to the shop to get a few essentials and your shopping comes to £12.45. Your account will round that up and take payment of £13, £12.45 of which will go to the retailer and the remaining 55p will be redirected to your savings – easy!
Most banks have an option to add this savings feature to your current account. For example, TSB Bank call theirs Save the Pennies and Halifax call theirs Save the Change. They all work in pretty much the same way.
With cash spending taking a hit in recent years, we are tapping our cards more regularly than ever so saving the small change every time you use your debit card is an excellent way to grow that savings pot whilst going about your everyday life. You probably won’t even miss those pennies that are stashed away.
Your bank doesn’t offer it? Try an app!
Not all banks will offer this service or your current and savings account may be with different banks. Not to worry, you don’t have to miss out! The good news is you can still take advantage of saving your pennies, there are a number of apps, such as Chip and Plum, that help you automatically save money.
Whether it’s through a round up scheme, automatic saving or weekly challenges, there is likely something to suit everyone out there. It’s worth having a look around to see which option may work best for you.
Other penny saving challenges
There are a number of penny saving challenges out there that you could try. You may just be surprised at how much you can save by simply putting your pennies aside.
For example, one of the most popular penny saving challenges involves you putting pennies into your savings account every day for the whole year. So, on day 1 you save 1p, on day 2 you save 2p and so on until the last day of your saving year when you are putting £3.65 into your savings account. In total you will save £667.95 if you stick with it for an entire year.
Build your savings with help from Face to Face Finance
If you are in the fortunate position where you have a little more than pennies to save, why not get in touch and find out about our investment services?