Money savings tip: Mrs Mummypenny's monthly trick for pensions, mortgage and holidays

SAVING money is a key priority for all those looking to improve their finances. Saving for short-term goals, like holidays, or for long-term essentials such as pensions, is key.

Mrs Mummypenny and savings

Savings tip: Mrs Mummypenny’s monthly savings tip for holidays, pensions and mortgage (Image: GETTY/MRS MUMMYPENNY)

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Savings are a part of any sensible finance strategy. However, it can be confusing and sometimes difficult to keep on top of them.

A monthly budget

Savings tip: Financial expert Mrs Mummypenny, a chartered accountant, shares her knowledge (Image: GETTY)

Lynn said: “I have my money that sits in my current account and then every time I receive some money I move money off into my savings pots, which are in the bank account.

“It sort of moves the money so you can’t spend it.”

A number of banks provide these kinds of pot with online banking, including TSB.

Starling bank also offers the option.

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Mrs Mummypenny went on: “So, I have a savings pot for the family holiday.

“I’ve got a savings pot for pension contributions, I’ve got a pot for a mortgage. I just move money into them each month.”

The expert also uses a clever roundup function when it comes to her savings.

“I’ve also got the round-up function going on as well.

Chartered accountant Lynn Beattie aka Mrs Mummypenny

Savings tip: She explained she makes use of the pots option in her online banking (Image: MRS MUMMYPENNY)

“So, whenever I buy things up to £10 it saves round-up amount as well.”

This means Lynn automatically saves money everything she buys something, without thinking about it.

A number of banks have the option to do this too.

These include Starling bank and Monzo. Additionally, Halifax and Lloyds offer the option on some of their accounts.

Infographic explaining how ISAs work

Savings: How do ISAs (individual savings accounts) work? (Image: EXPRESS.CO.UK)

They round up your purchases to the nearest pound and add the difference to a savings account.

It can also be done with Tandem and Revolut, two challenger banks.

For longer-term savings, Mrs Mummypenny did her own experiment to discover the options providing the best returns on your savings.

“I thought I’m going to actually experiment with this myself, with £1000 pounds in four different places and see actually how it grows over time.”

She shared the results after a year with Express.co.uk.

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