Saving Grace: Live for Today with One Eye on Tomorrow

Everyone loves a bargain. Whether it’s a ‘two for one’ deal, a one-day sale or a special online discount, retailers know how to grab shoppers’ attention and encourage them to part with their hard-earned cash. The downside for consumers is that it persuades them to make impulse buys and acquire stuff they simply don’t need, which is particularly true with online shopping, where a click of a few buttons certainly doesn’t feel like money is being spent.

Indeed, it’s little wonder that an estimated third of all Britons are unable to save, with the ‘live for today’ attitude that is currently prevailing throughout much of society. However, saving isn’t difficult, even for those who like to spend. The accumulative effect of putting a little money away each month over a number of years can help create a tasty little nest-egg, and in the age of the internet it’s never been easier to stash the cash.

Savings accounts may have somewhat of a reputation for being inflexible, difficult to manage and usually requiring a significant initial deposit running into hundreds or even thousands of pounds. Nothing could be further from the truth today though.

For those who really want to force themselves to save, then there are of course limited access accounts available, allowing perhaps one or two withdrawals a year. Some even require a notice period for withdrawing cash, which can be good deterrents for people wanting to curb their spending.

However, such accounts aren’t for everyone. Easy access savings accounts can be set up on the internet, offering round-the-clock online access, including the ability to view statements and even make deposits or withdrawals. It’s a good idea to set up a standing order so that a set amount is transferred in from a current account on pay-day, so that the saving process is automated and effortless.

Everyone in the UK is entitled to open one Individual Savings Account (ISA) each year. Generally speaking, these offer higher rates of interest than other savings accounts. One of the key benefits to saving money in a cash ISA is that no tax is paid on any of the interest received.

It’s important to be aware of the limits on these accounts too. A maximum of £3,600 can be deposited each year and from 6th October 2009, this figure rises to £5,100 for those born on or before the 5th of April 1960. A cash ISA can be opened with £1, which is great for those who don’t have a great deal of money to start off with.

Furthermore, for those who have used their full cash ISA entitlement for the year, there are stocks and shares ISAs too, which will rise to a limit of £10,200 for over 50s from April 2010, which is great news.

So saving doesn’t need to be a hassle. A small amount o