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Nationwide savings accounts: How to save in a recession

27 April 2009 / by Rachael Stiles
Nationwide has warned that despite the difficult economic climate making it difficult for people to put money aside, it is more important than ever to prepare for the unexpected and offers simple advice on how to achieve this.

Research conducted earlier this year for Nationwide revealed that about a quarter of British adults do not put any money into savings accounts, but Nationwide urges them to save for both the short and long term.

"Saving towards a holiday or car can be rewarding as you get to benefit from the fruits of your labour," said Andy McQueen, director of nationwide savings accounts and mortgages, "but it is equally important to save for the unexpected."

"Getting into a savings habit needn’t be as hard as you think," he continued, "the trick is to find a method of saving that suits you and your lifestyle and stick to it. That way, it becomes a habit, rather than a chore."

Mr McQueen recommends a number of methods of saving for those who are struggling to put cash aside, such as putting any left over money from their current account into a savings account on pay day.

Or, would-be savers could pay in a set amount each month as soon as they get paid so that it doesn't get spent throughout the month, or for those who get spooked by large amounts leaving their account, Mr McQueen suggests the 'drip feed' approach, whereby savers pay in a smaller amount each week.

For those who would save if they could only remember, he recommends setting up a standing order so that it happens automatically each month. Even Brits who are feeling the pinch of the recession on their finances should do their best to put aside what ever they can, Mr McQueen urges, as every penny counts.

"Whichever method of saving you choose make sure you do it," he said. "A few pounds here and there will soon start to build up and the peace of mind you have from knowing it’s there in an emergency will more than outweigh the effort. And don’t forget, if you’ve got an online account it’s easy to save regularly – and easy to watch your savings grow."

Apply online for the Nationwide e Saver or compare savings accounts

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