What to do with your work-from-home savings

If you’ve saved more than usual this year, where should the money go? On paying off your debts, says Ruth Jackson Kirby.

When you’re stuck at home all the time the opportunities to spend money are vastly reduced. As a result, many of us have been saving more this year. Prior to lockdown the average household saved just under 10% of their income, but this rocketed to 29.1% in the first lockdown, according to the Office for National Statistics.

While many of us have more money in our savings accounts, the banks are not rewarding us. The record-low Bank of England base rate means that the average easy-access savings account pays just 0.23%, according to Moneyfacts. The best possible rate is a paltry 1.65% from AgriBank and you’d have to lock your money up for five years. So, what else could you do with your money?

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.