Cheapest Ways to Save and Borrow Money in 2025 – Quick Tips

If you’re watching every pound, you need to know where the real bargains hide. From high‑interest savings accounts that barely cost a fee to loans that won’t eat up your repayment with sky‑high rates, this guide shows you the cheapest options on the market right now.

Cheapest Savings Accounts

Putting cash in a traditional current account usually means you earn next to nothing. The real winners are high‑interest savings accounts and offset accounts, especially those offered by online banks that have lower overheads. For example, several Australian banks now top the market with rates above 4% APY and no monthly fees. Look for accounts that offer:

• Zero account‑keeping charges
• Free transfers and ATM use
• Bonus interest for regular deposits

One popular tip is to split your money: keep a small amount for everyday spending in a low‑fee current account, and stash the rest in a high‑interest savings or offset account. This way you earn interest while still having cash on tap.

If you’re an expat or non‑UK resident, you can even open a UK ISA – the tax‑free savings wrapper – provided you meet the eligibility rules. An ISA can give you up to £20,000 of tax‑free growth each year, which can be a smart move if you plan to stay in the UK for a while.

Lowest‑Cost Loans and Credit

Borrowing doesn’t have to mean paying a fortune in interest. The cheapest loans usually fall into three buckets:

• Bad‑credit friendly loans – Lenders that specialise in quick approval for low credit scores often charge higher rates, but some have promotional 0% financing that can be a genuine bargain if you repay fast.
• Zero‑percent financing – Many car dealers and retailers offer 0% finance for a set period. It won’t hurt your credit score, but watch out for hidden fees and make sure you can clear the balance before the promo ends.
• Personal loans under £5,000 – For smaller amounts, peer‑to‑peer platforms and credit unions can give you rates as low as 5% APR, even with a less‑than‑perfect credit rating.

Before you sign, run a quick check on these three things:

1. Annual Percentage Rate (APR) – the real cost of borrowing.
2. Fees – application, early repayment, and hidden charges can turn a “cheap” loan into an expensive one.
3. Repayment flexibility – can you adjust payments if your cash flow changes?

Another trick is to negotiate. If you’ve already been approved for a loan, call the lender and ask for a lower rate. Many will match a competitor’s offer or give you a small discount just to keep your business.

Finally, keep an eye on the 3‑day rule for stock trades if you dabble in investing. It can save you a few extra pounds on transaction costs, especially when you’re moving money between a high‑interest savings account and a brokerage.

Bottom line: the cheapest ways to grow and borrow money involve using fee‑free accounts, chasing high‑interest savings offers, and hunting for low‑APR loans that match your credit profile. Stay alert, compare rates regularly, and don’t let hidden fees sneak up on you. Your wallet will thank you.