Pension money tips: How a 78-year-old got ‘three times’ more interest from his phone

Moneybox advises on saving money for retirement

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Online and mobile banking has become a huge part of how people manage their money these days. RCI Bank found that 78 percent of the nation log on weekly to view their bank balance, with 47 percent looking at their savings and 25 percent checking their investments.

Clifford Belton, 78, has made the most of the tools available to him, receiving more generous interest rates and improving the wealth of him and his family.

Mr Belton, who is from Bristol, acts as a carer for his disabled sister, and manages her money as well as his own, with their father leaving them a large sum of money for her care.

He uses fixed term savings accounts to gain interest on his money, and swaps providers regularly for the best return for his family. Apps have made him more aware of his spending, helping him feel in control when he needs to quickly move money around.

Mr Belton spoke exclusively to and explained his simple yet effective method for maximising returns on his family’s savings through higher interest rates.

READ MORE: Pound plummets against euro as Bank of England stuns experts with interest rate decision

He said: “I split it in half, putting one half in a one-year locked account to get the best available interest rate, and with the other, I shift it from account to account by going to my bank fairly often and asking if they have got another account that I can put some money in and get a better interest rate.

“I can do most of this on my mobile phone, which is very handy, or I drop into the bank and see what is the best rate they can do for a year or two. Then I’ll try shifting money from one account to another. I find it quite entertaining to do this.

“On the whole, I’m getting about three times as much interest as I would if I just let it sit in the account I originally opened. I often get notes from the bank offering new accounts which could improve interest rates. It’s worth investigating, I do this all the time.”

Mr Belton has been able to easily manage his finances online and via mobile banking apps, which he says have been a big help.

Pensioners warned ‘don’t hold your breath’ despite Triple Lock victory [REACTION]
Winter fuel payments start date – When you could expect the cash [INSIGHT]
Martin Lewis issues warning on solar panels – ‘rewards fallen rapidly!’ [WARNING]

He said: “I can do everything I want to do on my mobile, and I don’t really find any problem with that. It does mean you need to know what you can do with your app, you need to look into the app, even go into the bank and ask if they can give you some explanations of what you can do.

“Every time I go in and talk to them, I find something else I can do on the app, which I didn’t know I could do before. But most of my banking is quite easily done, either online or through the app on the phone. If you’re reasonably au fait with mobile phones, you shouldn’t have any problem.”

With inflation on the rise and eating into the benefits that interest provides, it is more important than ever to get the best possible rates. Mr Belton believes people with less money must take extra care and get the most from their savings.

He said: “I’m concerned a bit about inflation. I expect probably for the next two or three years, things are going to be very much up and down, and you’ve got to be very aware of what’s happening.

“If you’ve got lots of money, you’re not in too much of a problem. But if you haven’t got a lot of money, you really need to look after it very well. I think you need to look and see what’s happening with inflation, with prices. You have to buy and invest accordingly.

“The banks are helpful, but you got to ask. Generally, they are quite free with the information they’ll give you, but you need to have some sort of an idea of what you want before you go in there.”

Mr Belton has also found that there are not many viable options for someone handling the money of someone they care for, with set-up costs rendering interest rates useless.

He said: “Some banks do an account especially for this kind of situation, but it’s usually quite expensive to set up. The set-up fee is probably more than the interest would earn in four or five years.

“If you’re in this sort of situation, it’s a matter of just looking around. Try different banks, most of them are very happy to get your business if they can, and quite a few of them will give you £100 if you join. That’s more interest than you’ll earn in quite a while.”

He also offered advice for people looking to save for retirement, stressing that starting early and having discipline are the keys to success.

Mr Belton said: “Start saving seriously as early as possible. You have to set yourself targets and don’t think you can live the life of luxury immediately, that’s going to come later. Once you’ve got the deposit down or got the car you want, you can then think about some of the luxuries, but you’ve got to really work hard to get that initial start.”

Tafari Smith, Head of Savings at RCI Bank said: “Clearly the ease and accessibility of banking on the go means more people are able to regularly engage with their money – enabling people to feel on top of their finances and in some cases even save more.”

Source: Read Full Article