Keeping your savings separate from your spending
It can be tempting to dip into your savings as they grow.
Make sure you:
- Keep your emergency fund separate from other accounts
- Only use the money in a true emergency
Open a separate bank or savings account
You could open a basic bank account. These have:
- No overdraft facility
- None of the extras you get with a current account
They give you somewhere ‘safe’ to store your savings.
You will also get:
- Access to internet banking
- A contactless debit card
- The option to set up Direct Debits
You may be able to open a savings account with your current bank account. This earns interest on savings.
Make sure you use an 'instant access' savings account.
- You do not want your money locked into a savings account or invested
- You need to get your money fast in an emergency
Speak to your local credit union
Many people choose a credit union for a savings account.
Your employer may let you pay into a credit union account from your wages.
This helps stop you spending money meant for emergencies.
Save your coins in a lockbox
Having your savings to hand can be reassuring. You can:
- Access them whenever you want
- See your progress based on how full your jar becomes over time
If you want to get your children involved with saving money, you could:
- Decorate the jars
- Try some fun saving challenges
Use the Help to Save scheme
If you get Working Tax Credit or Universal Credit, you may be able to open a Help to Save account.
This is a government-funded scheme that:
- Helps people on low incomes
- Boosts your savings by 50p for every £1 saved
Read more about the Help to Save Scheme to find out if it applies to you.
Pay priority debts before saving for your emergency fund
Make sure you cover your priority debts. before you start saving.
Priority debts include:
- Mortgage or rent
- Child maintenance
- Council tax
You should also pay high interest debts like loans or credit cards.