Bank account: How ‘jam-jar’ accounts could help with budgeting – manage your spending

Bank account: How ‘jam-jar’ accounts could help with budgeting – manage your spending

Bank accounts are usually managed from and interest rate perspective. When it comes to peoples personal financial affairs, consumers are usually advised to move money around to take advantage of the best rates.

However, bank accounts can also just be utilised for budgetary and cost management purposes, as opposed to simply making returns.

The Money Advice Service provides free guidance on how to choose bank accounts and within this advice they highlight the benefits of “jam-jar” accounts.

They detailed that these accounts can also be known as budgeting or rent accounts and they can help with people with their budgets.

A person using these types of accounts can divide their money into them, assigning different pots for different bills such as rent or utilities.

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On top of this, opening multiple accounts could have an impact on credit scores.

Choosing the right type of account for these circumstances is also very important and the Money Advice Service highlighted Go Compare, Moneyfacts, the Money Saving Expert and money Supermarket as good analytic sources.

Some banks and other financial companies may even offer jam-jar accounts which are specifically designed for budgetary planning.

Seeking these accounts out could be worthwhile as they’ll provide the benefits of a jam-jar plan but with the perk of only managing one account.

Published at Sun, 14 Jun 2020 16:39:00 +0000