'I've saved £9k in three years with clever tool - it's a gamechanger'

British households are missing out on a potential £15billion in collective interest every year because they aren’t getting the best rates, according to research from Plum. But there's no excuse as there are now financial that can do the leg work for you.

When Rahim Hassanali first started looking for an app that would help him save, he says it was 'like navigating a minefield' before stumbling upon one which looked much more user-friendly. Rahim says his app makes saving money so much easier and that it's been a 'game changer' enabling him to save £3,000 a year with very little effort.

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"My favourite feature of Plum's is the saving tool called The Brain which has been a game changer for me. It's a clever tool that takes the guesswork out of saving.

You can set automated rules, like putting money aside on payday or letting Plum decide small amounts to save each week, so that you barely notice. And the best part is that I stay in control. Whether I want to take a chilled, normal, or eager approach, Plum adapts to my financial situation and goals effortlessly."

According to Plum’s analysis of Bank of England data, more than £300billion is lying dormant in non-interest accounts with 15 per cent of household cash savings currently sitting idle in easy access and flexible accounts where no interest is being earned.

Rahim says Plum is perfect for people who want an effortless way to build their savings without constantly thinking about it. And it can help you make the most of your new allowance, which begins on April 5 and allows you £20,000 in tax-free savings.

If you’re a 20% basic rate taxpayer, you can earn £1,000 in savings interest every tax year before you have to pay tax on what you've earned, or for 40% higher rate taxpayers, the personal savings allowance is £500.

You would only pay tax on savings interest earned above these amounts. Additional 45% rate taxpayers don't get any personal savings allowance. If you're worried you could breach these thresholds, one way to shield your savings is to use an ISA account.

You can put up to £20,000 each tax year into an ISA without paying any tax on the interest you make on your savings.

There are also ISAs for children called Junior ISAs - and the good news is, any money you save into one of these accounts for your child, won't affect your own yearly £20,000 ISA limit.

You can save up to £9,000 into a Junior ISA each tax year, and each child has their own Junior ISA limit. You can open a Junior ISA for your child if they are under the age of 18 - once they turn 18, the Junior ISA automatically turns into an adult ISA.

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