Save for the future with your nearest credit union
Building up a savings pot is good for your financial wellbeing because it means you can withstand any sudden shocks that may come your way.
Financial wellbeing is about a sense of security and feeling as though you are in control of your finances because you have enough money to meet your needs. This in turn has a positive effect on your general mental health.
But according to the Money and Pension Service one in eight people in the UK having no savings at all and 22% having less than £100. The Office for National Statistics revealed in 2018 that of the four countries of the UK, Wales was the worst when it came to the level of personal savings.
From a broken-down cooker to a car with a failed MoT, we all need that buffer to support us through the unexpected. A healthy savings account is also good for the fun things – from planning days out and holidays to celebrating a birthday or even planning your wedding.
Covid-19 has taught us that the need to be financially resilient is greater than ever, and its generally recommended an emergency fund be equivalent to about three months’ worth of living expenses in case you find yourself suddenly out of work.
If that sounds like a huge goal, the important thing is to make a start and save what you can.
Putting aside a regular amount of money is the most effective way to create a savings habit and build your financial safety net, and it doesn’t need to be a huge amount, after all, saving just £1 a day adds up to £352 over a year.
Credit unions offer a range of easy ways to save small, regular amounts – whether by direct debit, standing order, to a collection point or if your employer is a payroll partner then you could transfer a set amount every time you get paid.
Once you start saving you’re not just a customer, you’re a member of a successful financial co-operative and have a say on how its run.
Savings accounts can be very flexible and allow members to save various amounts every week, month or whenever they can.
Your savings are safe and secure too, earning a good dividend and helping the community because it is being used to make loans for other members.
Credit unions usually offer a dividend rate rather than an interest rate If the credit union declares a dividend at the end of the financial year (after all running costs are met), each share you hold for that year is eligible for a dividend.
There are no transaction charges and savings are insured at no direct cost to eligible members. If you intend to borrow in the future, your savings will be taken into account.
Remember that when you are in the habit of saving regularly, you will find paying back a loan far easier.
Find out about credit union savings accounts