Saving Accounts: A Great Way to Fund Your Reading Habits

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Disclaimer: this post is not sponsored by any company, bank, or other organisation.

I am sure many of us, especially students or those struggling to make ends meet, have eyed up a particular thing and then been very disheartened by the price tag. For those of working-class positions or backgrounds, this is an all too familiar feeling, and it is not just limited to flashy clothes, new tech products, or video games. In reality, it can apply to any interest or item, even books.

Books, especially freshly printed copies like those in Waterstones and Barnes & Noble, can be quite expensive. A brand-new book can easily cost between £7.99 and £14.99 (sometimes even more for special editions or hard cover issues), which seems like a lot for what is effectively some paper that you’ll look over once or twice in your lifetime.

Even sourcing cheap second-hand books can be a real pain at times, especially if you don’t live local to any charity shops or thrift stores, or get hit with delivery fees from online resellers. That’s why it is important to ensure the accessibility and affordability of books remains reasonable.

This is where a savings account can make a big difference, even with small contributions. Naturally, there are a lot of options, and the range of choices and interest rates can vary depending on your country. Since I reside within the United Kingdom, I’ll mainly be focusing on those from Britain—in particular, I want to focus on Cash ISAs and how they can be ideal for those looking to passively scrounge up some extra cash.

What Is a Cash ISA?

A Cash ISA (Individual Savings Account) is a tax-free way of saving here in Britain. You can deposit up to £20,000 per tax year, and any and all interest cannot be touched by the government whatsoever.

Aside from the tax benefits, Cash ISAs are particularly great because they carry no noteworthy risks, and often possess some of the highest interest rates. Many providers also allow easy deposits and access to your money, allowing for (some) unpunished withdrawals throughout the year. Again, these terms will all depend on who you open a Cash ISA with.

Why a Cash ISA?

If you weren’t already sold on using a Cash ISA, there is one additional benefit provided by some providers: daily compounding interest. This means every couple of weeks the amount of interest you generate per day will increase by another penny or two, depending on how much you are generating interest on.

In the case of Trading 212 (not sponsored), it’s not just generated interest, but tangible money you can immediately withdraw and use (note that T212 is changing to monthly payments instead of daily in January 2025).

Another unique facet of Cash ISA accounts is their usability. Some providers, such as Trading 212 and Plum (again, not sponsored), are even offering debit-like cards that offer cashback and enable people to spend from the ISA accounts or non-invested cash. Other providers also offer round-up on purchases, so you’re always setting aside leftover change across each debit purchase.

Expanding on the matter of higher interest rates: as of the latter months of 2024, most flexible Cash ISAs are offering around 5% AER, which is actually better than many fixed-term savings accounts.

AER does mean a variable rate that can go up or down across the financial year with little notice before changing, but these typically only fluctuate by a few decimal points. Assuming it stays at a flat 5%, and you put in £5,000 on the first day of the tax year, you’ll net a nice £250 come next April. Besides, as stated, AER rates have the potential to briefly or near-permanently increase, unlike a three-year fixed-term saver locked at 3.75% or whatever for all that time.

All of these bonuses mean a simple Cash ISA can be a great way of storing loose or unneeded money, with the benefit of profiting from tucking it away. And, if you are the paranoid sort, basically every Cash ISA account is protected by the FSCS. This means up to £85,000 of your money is protected and entitled to be compensated should your ISA provider go under or make some sort of catastrophic, legally questionable mistake.

Is a Cash ISA the Only Option?

Of course not, it’s just one of the more no-brainer choices, especially for those who may be fortunate enough to put away enough money to hit the typical £500 or £1,000 tax bracket that applies to normal, everyday savings accounts.

Many banks also offer subpar interest rates on their saving accounts, or have specific requirements, like fixed-term contracts or regular deposit requirements that may not suit everybody’s needs or capabilities. Therefore, a Cash ISA seems much more beneficial and flexible to most. There are dozens of providers to choose from, so there is a higher likelihood of finding one that suits your needs.

There are also things like Stocks and Shares ISAs, but you can lose more money than you put in, which somewhat defeats the point of saving. Still, if you want to take the generally moderate-to-low risk in the pursuit of greater rewards, a S&S ISA may be worth looking into.

Is Saving Really Necessary?

Definitely not, but money is a numbers game. Let’s say you always treat yourself to a new book every week, and you pay £8 for that book, that equates to £416 across a year. When you look at it like that, £8 per week really adds up.

However, if you generate £8+ per week, suddenly you are matching or outpacing that loss, and you don’t need to fret so hard about treating yourself to that book you really want to take home and read right away. Even if you only generate £2.50 per week, it still eats up a certain amount of the loss built up through your disposable spending.

My personal advice is to not treat the interest you gain as actual money, but more so an allowance. It is effectively money for free, or money for having money to begin with. Either way, you get it passively, so it is okay to use it up—without having invested it, you wouldn’t have had that money to begin with, so you can treat it like a phantom wallet of sorts. You can treat it like a ‘fun’ allowance.

If I made £500 of interest across a year, but I also spent £500 on something like books or hobbyist things, did I really spend £500? Technically yes, but it was money I would not have had to begin with, so I more so negated a loss I was going to have either way. Alternatively, you could say I granted myself some spending freedom to indulge in my wants and interests, which is something people from poorer backgrounds often struggle to do.

And, as an FYI for students who commute, savings accounts can be a great way of nullifying your daily travel costs!


Naturally, I need to warn everyone that The Steady Read is not a go-to place for financial advice, nor do I—the writer of this post—have any background or meaningful education when it comes to financial matters. But I am speaking from experience, if that counts for anything.

Simply put, savings can net you some additional money, much like pocket money we were given as children. It is important to spend only within your means. Moreover, as rewarding as it can feel to save, try not to get addicted to investing every single penny or worrying about how to minimise every single expense. Neither of those habits are healthy, and you are going to have to spend money, no matter what you do.

If you happen to have an extra few hundred or thousand lying around, whether it be in loose cash or in your current account, definitely consider placing it in a Cash ISA or other savings account. You can even make a challenge to save a small amount per week, which will quickly add up as the years go by.

Assuming you don’t choose something like a Stocks & Shares ISA, which places your money at risk, there isn’t really any notable downside to saving. Just make sure to always, always read the terms and conditions before you sign up to anything.

Best of luck to you with your efforts to make your reading habits more affordable and stress-free!

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