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.
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.
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.
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.