February 13th 2024.
Have you ever thought about keeping some of your savings secret from your partner? It may seem counterintuitive, especially when you're in a loving relationship and sharing everything comes naturally. But when it comes to your money, it could actually be a wise move to maintain some financial independence.
Pooling your money into joint accounts may seem like a good idea, especially when it comes to shared expenses like bills and holidays. However, it's not always the best choice to put all your cash into one account. By keeping some money in your own account, you have the freedom to spend it as you wish without having to ask for permission or justify your purchases.
Of course, it's important to discuss this with your partner beforehand, especially if you have different approaches to money. While many believe that complete transparency is essential for a healthy relationship, there's a strong argument for keeping some savings secret, even if it goes against the idea of trust.
In fact, a study found that one in three people in their 30s and in a serious relationship have a "get-out" fund. This may sound strange, but it's actually a safety net in case things don't work out. It gives you the freedom to leave a relationship without worrying about immediate financial concerns, such as finding a new place to live or buying a new car.
But it's not just for relationships – this fund can also come in handy for leaving toxic work environments. It's not about not trusting your partner with money, but rather having a backup plan in case things go south.
When it comes to emergency funds, the most important thing is to have easy access to the money when you need it. Therefore, it's best to keep it in an easy access savings account, even if the interest rates may not be as high as other types of accounts. If the base rate is cut multiple times, as predicted, the interest rates on these accounts may also decrease. In that case, it's a good idea to shop around for higher paying alternatives.
There are a few current accounts that offer higher interest rates, but you may need to open a current account first if you don't already have one. Some of the top paying easy access savings accounts available to anyone include Cahoot's Sunny Day Saver with a 5.2% AER variable rate on up to £3,000, Coventry's Triple Access Saver with a 5.15% AER variable rate, Leeds Building Society's Limited Issue Online with a 5.1% AER variable rate, and Zopa's Smart ISA with a 5.08% AER variable rate.
For more information on these and other savings options, you can visit the Be Clever With Your Cash website or follow Andy, an award-winning blogger and podcaster, on Instagram and YouTube. Keep your finances in check and your relationship strong by discussing and setting joint savings goals with your partner.
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