Instead of a vague resolution to ‘save more,’ set yourself specific savings goals and take some time to think about what you want to achieve with your money in 2025.

Understanding your objectives can also help you decide how much to save and which type of savings account suits your needs best.

If you’re looking at saving long-term or considering how to save money for a house, setting achievable goals and having a clear target can help motivate you. Just remember that these don’t always have to be huge financial commitments; a little bit can add up over a few months.

Making a realistic budget can help you to see exactly where your money is going each month, and will help you see where you can make changes. Start by tracking your income and expenses and try to categorize your spending, which will help you to identify areas where you can cut back.

For example, take a closer look at your monthly subscriptions and memberships. If you’re overspending on services you don’t use like the gym or streaming services, cancel any you’re not using regularly enough and the money can go elsewhere.

Budgeting can also make you less likely to borrow money, which will help to prevent you getting into any future debts.

A savings challenge can be a fun and easy way to pick up a new habit, which will benefit you in the long run - plus, there’s lots of different options to suit your lifestyle. Here are our two favourite challenges for 2025 but if you fancy trying some others, check out our top 10 savings challenges.

 

52 Week Savings Challenge

One of the many tried and tested savings challenges includes the 52 week saving challenge, and you could potentially save over £1,300 in one year.

This challenge works by increasing the amount you save by £1 per week. So in the first week you save £1, and this increases each week all the way to £52 in the final week of December. The total you could save would be £1,378, but if you want to try it out for six months, you’d be left with £351 in your savings pot.

 

The 50-30-20 Budget Rule

The 50-30-20 rule is a budgeting method that divides your income into three categories: wants, needs and savings.

By spending 50% of your income on things you need and 30% on anything you want, you’ll be left with the 20% you can put directly into savings. For example if you take home £2,000 a month, you should aim to save £400.

Having only three categories to keep track of will also help you save the time and stress of more complicated budgeting plans, and is a nice balance between planning for enjoyment and essentials.

By implementing some of these strategies, you’ll be able to make some progress towards your savings goals this year. Remember, the key to successful saving is consistency and making small, manageable changes to your financial habits.

If you have some spare cash to put away, be sure to think carefully about where you put your money. If you need to access it easily, this needs to be factored in and you should also research the interest rates available to you.

If you’re looking to put money away into a savings account each month, we have a number of different options that could work for you, including our Regular Saver Accounts.

This type of account is ideal if you’d like to save regularly towards a lump sum without locking your funds away completely. The account allows one withdrawal during the term, preventing you from dipping in and out but allowing you access when you need it most. Plus you only need to deposit a minimum of £1 per month.

Alternatively, to save money tax-free, the Furness 2 Year ISA is a brilliant way to save long term. You agree to put away your savings for two years, but that means you’re guaranteed a fixed rate of interest for that term, which currently stands at 3.90%.

Learn more about our savings accounts here.

As it stands, the Bank of England (BoE) is holding UK interest rates at 4.75%, but will savings interest rates go down in 2025?

According to some predictions, interest rates in the UK are expected to fall in 2025. If we see two further cuts, the BoE base rate will likely fall to around 4% by the end of 2025, potentially falling to a predicted 3.7% in three years’ time. 

We’d always advise keeping an eye on the market and any changes to the Bank of England's policies. Economic conditions can shift, and staying informed will help you make the best decisions for your finances and ensure you continue earning interest. Additionally, you can learn more about how the base rate works and how it can affect savings rate by heading to our savings support hub.