In the run up to Christmas you may be wondering how you can give your savings a boost, particularly if you’ve overindulged and spent a lot on this month’s festivities.
The good news is that you can give yourself your very own little Christmas bonus by adopting these nifty tricks which can be a gift to your pocket now and even in the future:
- Find lost pensions: It’s easy to lose track of old pensions, particularly if you’ve changed employers. Pension schemes can also change through closure, mergers or it’s possible for them to also be renamed. Give your future self a boost by using the government’s pension tracing service.
- Give yourself an extra boost by making use of tax efficient savings vehicles such as your pension and ISAs. It’s become more important than ever to do this because, in the Autumn budget, Chancellor Jeremy Hunt said the government will reduce the capital gains tax allowance dramatically, which will have a big impact on your future tax burdens. From April 2023 your Capital Gains Tax (CGT) allowance will be reduced from £12,300 to £6,000, and then again in April 2023 from £6,000 to £3,000. Three thousand pounds is very low so make sure you use your pension and ISA where you can because in future years you will start paying tax on your gains where you would otherwise not have done.
- Another way to boost your savings is through taking up incentives offered by financial services institutions. Banks often offer incentives to switch your accounts. But before you do so, make sure you’re getting the best deal for you and not just switching because you think something is a good deal now.
- Finally, you could also benefit from Moneyfarm’s own refer a friend scheme, which offers a reduction on fees. If you refer a friend who goes on to invest money with Moneyfarm you can get up to £5,000 managed for free for six months because you’ll pay no fees. What’s more, that person you referred to our services gets the same deal if they open an account with us. Ahead of Christmas, this is a good way to give yourself a present as well as someone else.
As you can see there are a few ways you can give yourself a little Christmas bonus and protect your money from future tax changes. Remember, by investing the money you’ve gained through Moneyfarm you can give yourself another boost through compound interest.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
