What is revenge saving and could it help you build up a pot of cash?

In this episode of the This is Money Podcast, the hosts Georgie Frost, Simon Lambert, and Lee Boyce discuss a recent financial trend known as 'revenge saving', which has emerged from social media and emphasizes saving money, particularly after a period of spending during the pandemic. The concept is described as 'extreme saving', where individuals, inspired by past savings habits developed during lockdown, consciously choose to save more money rather than spend it. Lee explains that this mindset also incorporates savings challenges that can help people build good savings habits, even during tough economic times marked by high inflation.

The discussion also covers a government savings scheme called Help to Save, which has helped over half a million low-income customers save money with additional bonuses from the government. This scheme allows individuals on universal credit to save up to £50 a month, receiving a £25 top-up, thereby encouraging active savings behavior. The extension of the scheme until 2027 is seen as beneficial for those struggling financially.

Another segment highlights current account options, particularly one from Santander offering a 6% interest rate, though with a £17 monthly fee. The hosts debate whether such accounts are worth the cost, especially when bonuses and cashback opportunities are considered. The episode ends with a troubling new power for HMRC, which allows them to raid bank accounts directly for unpaid taxes, alarming the hosts and signaling a significant shift in how tax enforcement might occur in the future. Overall, the episode promotes the importance of establishing a savings culture while navigating new financial challenges.