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Setting up a savings pot now could be the right move for you.
Christmas may be many months away, but some are already starting to plan and stress about budgets. If this sounds familiar, you might want to consider a savings pot to help you cover those end-of-year costs.
Done properly, it can be a great way to spread the financial hit of big expenses, without getting into debt.
This simple savings strategy could help you pay for anything from Christmas gifts to a weekend away or special celebration – any expense you might struggle to squeeze into your regular monthly budget.
Here’s our guide to savings pots and how our tools can help get you started.
What’s a savings pot?
A savings pot is simply a designated ‘fund’ that you make a deposit into each month to help pay for a specific expense. It’s an easy way to build up a stash of cash so that when the time comes to pay, you’ve got the money at your fingertips.
You can use a savings pot to help you pay for anything – we’ve mentioned Christmas and treats so far, but you could use one to help you pay for any big expense that’s weighing on your mind.
So that’s anything from giving the front room a bit of a makeover to replacing the washing machine or kitting the kids out for a new school.
So it’s basically a rainy-day account, then?
Savings pots are different to rainy-day or emergency funds. Those are there to help with unexpected expenses – like fixing the car when it breaks down. A savings pot is to help with expenses you know about and have the time to plan for.
How a savings pot can help you
A savings pot can have many benefits. The obvious one is that it can help you pay for something you might not otherwise be able to afford. It also spares you the need to put it on your credit card (and add interest charges to your bill) or raid your emergency savings.
A less obvious benefit is the difference it can make to your financial and emotional wellbeing. When money is on your mind, putting a plan in place can give you a greater sense of control.
You might also feel a bit more comfortable indulging in feel-good treats if you’ve been able to save up for them in advance.
Looking for support with your saving?
For more help hitting your targets, check out our Savings Goal Tool in the NatWest app.
Online Banking available to customers aged 11+ with an eligible NatWest account.
Our App is available to customers aged 11+ using compatible iOS and Android devices. You'll need a UK or international mobile number in specific countries.
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This content is for information purposes only and shouldn’t be regarded as financial advice. While we’ve taken every effort to make sure this information is as accurate as possible, it has not been independently verified.