6 things I would never do as a savings expert in 2026

If you’re setting a money resolution for 2026, you’re in good company. Almost two thirds of people plan to do the same, according to a Hargreaves Lansdown survey – and saving is the top goal.

But the promises we make in January should include what we won’t do, as well as what we will. I’ve written about savings for years, but I’ve still fallen into some of the same traps that cost people money.

With that in mind, here are six things I won’t be doing with my savings in 2026.

1. I avoid sticking to high street banks 

One of the biggest mistakes you can make when looking for the best home for your savings is limiting your search to the high street. The familiarity of a household name may feel safe, but breaking out of your comfort zone and choosing a smaller, lesser-known provider could leave you better off.

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High street providers have struggled to compete with smaller challenger banks for years now, and data from Moneyfacts shows the gap in rates is widest on instant-access products. 

For example, if you invested £10,000 in a high street account paying 1.15% AER – the average high street rate – you could expect to earn £115 in interest over a year. But if that balance was invested in the top account for larger deposits, you'd earn 4.48% AER and your annual interest income would increase to £448. That's a difference of more than £300.

If you're nervous about saving with a bank or platform you've never heard of, there are some checks you can perform to ensure your money is protected. 

A good starting point is to find out whether the bank or platform is covered by the Financial Services Compensation Scheme (FSCS). This protects up to £120,000 of a saver's pot if the bank or platform goes bust. Challenger banks must abide by the same rules and regulations as other banks, but not all are FSCS-protected. 

• Find out more: best savings accounts.

2. I don’t let my savings sit dormant 

Rates can change so fast that it can be hard to keep up, but neglecting your savings can cost you.

That's especially true when it comes to deposits in fixed accounts. Unless you tell your bank or building society what to do with the money when the bond matures, your provider may automatically move your cash into a lower-paying or notice account, or return it to your current account, where it earns little or no interest.

Some headline rates also include temporary bonuses that expire after a few months. Chase's Saver, for instance, pays 4.5% AER, including a 12-month 2% bonus, but it drops to 2.5% afterwards. 

Make a note of when your term or bonus rate ends, then switch as soon as possible. You could also consider a savings platform that lets you open and switch between multiple accounts with a single login, without having to fill out a new application each time. 

Some deals available on savings platforms are exclusive, and some platforms will alert you when a better rate becomes available. But watch out for those that charge a fee. This is sometimes taken as a cut of the interest rate before it’s displayed, or deducted as a percentage of your balance.

• Find out more: how to switch your savings account.

3. I limit how much I keep in easy-access accounts 

Instant-access accounts are useful if you want flexibility, but their variable rates can rise or fall at any time.

If you’ve built up a sizeable cash pot, it may make sense to move some of it into fixed-term bonds, which guarantee your rate for the length of the term.

If you really want to save like a pro, you could try the 'staircase strategy'. This involves keeping some flexible funds in an easy-access account and spreading the rest across several fixed-rate accounts that mature at different times.

For example, a lump sum could be spread evenly across one, two, three, four or five-year fixed-term savings accounts.

But these pots don't have to be equal amounts, and you should split your money based on what you feel comfortable with. The important thing is to check the best rates on offer for different accounts (including easy access).

The staircase strategy means you won’t miss out if rates rise, and your longer-term savings won’t suffer if interest rates unexpectedly drop. 

• Find out more: what are the different types of savings accounts?

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4. I won’t overlook longer-term fixes 

Locking money away can feel daunting, which is why many savers stick to one-year fixes or shorter terms. But while short-term rates can sometimes look more attractive, longer-term bonds lasting two to five years can offer better value over time.

Savings rates have been steadily falling across the board, and the main advantage of fixing for several years is certainty: your savings are protected from further rate cuts for longer. 

Most providers stop at five-year terms, but Moneyfacts data shows a few banks now offer bonds lasting up to seven years. But think carefully before you commit to such a long time. While rates are falling now, a lot can change in a few years. 

For example, on 1 February 2021, the average one-year fix paid just 0.46% AER and longer-term bonds 0.68%. Those who opened long-term fixed accounts before rates skyrocketed are still stuck with low returns and unable to switch to better deals. The same could happen if you tie in now and rates rise again.

If you've got savings that you won't need for at least five years, you may earn a better return by investing instead.

• Find out more: best stocks and share Isa 2025.

5. I make sure I’m not paying unnecessary tax 

There's a limit to how much interest you can earn on your money before you face a tax bill. Basic-rate taxpayers can currently earn up to £1,000 in interest tax-free, higher-rate taxpayers £500 and additional-rate taxpayers get no allowance. 

So if you have a large sum to reinvest, opening a cash Isa can currently help you shield up to £20,000 a year from the claws of HMRC. From 2027, however, the amount you can hold in cash will fall to £12,000 for savers under 65. To use the full £20,000 Isa allowance, the remaining £8,000 would need to be invested in a stocks and shares Isa. 

Premium bonds are another popular way to save without a tax burden. You can hold up to £50,000 in an account with National Savings & Investments and could win up to £1m in the monthly prize draw. The downside is that the chances of winning any cash prize are slim – just 22,000 to 1 – and you won't earn any interest on your investment.

Changes announced in the Autumn Budget mean it's more important than ever to seek out tax-free savings options. For example, from 2027, income tax on savings interest will increase by two percentage points for both basic and higher-rate taxpayers. 

Plus, a freeze on income tax thresholds until 2031 means more people will find themselves pushed into higher tax bands. 

• Find out more: tax on savings explained.

6. I steer clear of having interest paid monthly 

Some accounts let you choose whether interest is paid monthly or added to your savings pot.

Taking the interest as income can be useful if you need regular cash, but it usually comes with a slightly lower rate. You’ll also miss out on compounding, where interest earns interest over time and helps your savings grow faster.

If you don’t need the income, letting interest roll up within your account can make a noticeable difference to your returns over the long term.