Emergency Savers Could Benefit from Prepaid Cards
A worrying 30 percent of British adults have less than five days average pay in savings, leaving them extremely vulnerable if they were to be hit by unemployment.
Saving for a rainy day can be hard when juggling income with bills, however, a good way to ensure you leave some money untouched each month is to compare prepaid cards online.
The survey by HSBC highlighted the need for the British population to increase their savings with only an average of £249 being set aside compared to the recommended £4,683.
“By putting away a small sum each month Britons can help themselves build up an emergency savings pot as provision for any eventuality,” said Richard E Brown, HSBC head of savings.
“These findings demonstrate a worrying lack of preparation amongst UK residents.”
Skipton Building Society has this week launched a new savings range to allow customers to focus on specific saving targets.
The range will require customers to define exactly what they are saving for, whether it is a holiday, a wedding, or tuition fees, from which they will then be asked to choose from 12 accounts.
All the accounts offer 2.25 percent AER and are available online, with customers able to take out more than one account for different saving targets.
“We know that 31 percent of people find it easier to stay committed to saving if they are saving for specific things and our ‘My Savings’ range delivers exactly that,” commented Kris Brester, Skipton head of products.
How can a prepaid credit card help?
Many banks offer prepaid credit cards which consumers may find an easier method of saving and gaining better control of their spending over other forms of credit.
Like store gift cards, with a prepaid credit card funds are transferred onto it so the card holder can monitor their targeted limit of spending for that month enabling them to keep some income aside for a rainy day.
Compare prepaid credit cards online to find a deal that suits your financial needs.