The cost of living crisis is putting pressure on household finances, but simple errors could be costing you thousands without you realising. Reviewing your bank statements every three to six months can help identify unnecessary payments or overspending, such as unused subscriptions or excessive spending on takeaways.
If you have savings, ensure they are not in a low-interest account. Top easy-access accounts include Chase at 1.5%, Cynergy Bank and Zopa at 1.2%. For limited savings, Virgin Money M Plus pays 2.02% up to £1,000, and Nationwide FlexDirect offers 2% up to £1,500. Fixed-rate options include Charter Savings Bank and Kent Reliance at 2.05% for one year (minimum £1,000), SmartSave Bank at 2.37% for two years (minimum £10,000), and PCF Bank at 2.41% for five years (minimum £1,000).
Credit card debt can be costly. Consider transferring balances to a 0% interest card, such as Virgin Money's 34-month offer with a 2.7% fee. Shorter deals with lower fees may also suit your needs. Use an eligibility calculator before applying to avoid damaging your credit score, and avoid new spending on these cards.
First-time buyers can benefit from schemes like the Lifetime ISA (LISA), which provides a 25% government bonus on up to £4,000 saved per year (maximum £1,000 bonus). The Help to Buy equity loan scheme allows a 5% deposit with a government loan of up to 20% of the property price.
