Best Prepaid Credit Cards for Saving
Research reveals savers are missing out on £12 billion annually due to banks failing to inform customers of poor interest rates or better offers.
If you are keen to save money, try searching for the best prepaid credit card to help with everyday budgeting.
Almost half of the 1,200 savings accounts in the UK pay 0.5 percent interest on savings or less while one in four pays 0.1 percent or less which amounts to £1 a year for every £1,000 saved Which? showed.
Ulster Bank’s Easy Access Savings Account and Newcastle Building Society’s Nova Plus Issue 3 Account was shown to just pay 0.01 percent which is an annual return of 10p for every £1,000 saved.
The research showed few banks provide the interest rates they are providing on regular statements and fail to tell their customers about better accounts.
“Banks are depriving British savers of £12bn a year by keeping us in the dark about the pitiful interest paid on hundreds of savings accounts,” said Peter Vicary-Smith, Which? chief executive.
“Whilst we pressure the banks to be more upfront about their rates, people can take action and potentially add hundreds of pounds a year to their savings by moving their money to a better account.”
Best Prepaid Credit Cards
While it is important to ensure your savings get the best possible interest they can acquire another good way to help families save money in the current climate is to compare prepaid credit cards.
Usually prepaid cards can be obtained for a small fee which is usually reimbursed when funds are loaded onto it, or are free, and many providers offer bonuses including money added to the card when a certain amount has been preloaded.
Prepaid card users are able to budget their monthly income more effectively as they can easily monitor where their money goes and the card does not allow a user to go over the limit. So if you want to set aside money each month to save you know you will not be dipping into this unknowingly.