When we think of places to keep money, we automatically gravitate towards banks, the natural place to go, surely? But not necessarily so. We look at other options for storing your cash.
“Out of sight, out of mind, perhaps?
Although the money will be nicely hidden, whether you hide it under the bed or plan to rip up the floorboards, it may not be the safest option. Your money would be at risk if you had a break-in or even a fire. Yes you have quick access, but it is not something i would ever advise. A similar option is somewhere in your home that no one would ever look – perhaps in a tin or behind a floorboard.
I keep all coins 10p and under in value in a savings jar. This is not much of a security risk, but it adds up, and when i need a bit of money i take it to a machine that i then exchange for a supermarket shop,t hat feels free, even if it is not really!
If you must keep substantial money at home, then you must at least ensure it is safe.
You have the added security of pass codes to access the money, and most home safes can be bolted to the floor.
Other valuables, on the other hand, may need to be kept safe. A safety deposit box can be rented from a private company, although many institutions also offer them.
If your mortgage was a tracker, the interest rate may have dropped, but you could still be paying more interest than you’re earning now with any savings.
Instead of saving large sums of money, you may use any excess cash to help pay off your mortgage faster.
If you have any personal debt, now is a good moment to get rid of it. You will be wasting money each month on interest payments if you have a savings account with a 0.5 percent interest rate but are paying over 20% on your credit card.
You could look at different investing choices instead of storing your money in a bank. Whether you enjoy art or prefer to invest in gold, silver, or even wine, the goal is to buy something for a lower price and then sell it for a higher price.
If you have a substantial sum of money set aside, you could try your hand at lending. You don’t lend directly to the borrower, but rather through peer-to-peer lending platforms. There is no middleman to split profits with because no bank or building society is engaged.
Peer to peer lending is becoming more popular, with some companies claiming that you may make over 5% on your investment. Plus, this isn’t only for the wealthy; some of the sites accept investments as low as £10. However, you should be aware that the FSCS does not protect your funds.
You could buy Premium Bonds, or invest in a business. Some options are of course risky, but come with higher rewards if successful.