The 50/30/20 rule means savers can ensure they are maximising their cash as the Cost of Living crisis continues.

Nationwide has urged anyone with savings to ensure they are committing to a little-known rule. The 50/30/20 rule means savers can ensure they are maximising their cash as the Cost of Living crisis continues.

Bola Sol, money expert at Nationwide Building Society, said: “Many people across the UK will be thinking about how best to save (and stretch!) their cash, whether it’s a financial spring clean, saving for a big occasion or navigating changes from the recent Spring Budget and increased energy price cap.”

“Each month, spend 50% on your needs, 30% on wants, and then put 20% aside for savings or debt repayment,” Bola said. “That 20% is where your ISA can shine.

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“Whether it’s a flexible cash ISA for emergency savings or a Fixed Rate ISA for longer-term goals, using your ISA allowance before the deadline helps grow your money tax-free.”

Sol said: “When it comes to choosing an ISA, it’s important to align the product with your short or long-term goals and consider the accessibility options. Many offer different terms and returns, so why not utilise an account comparison tool.

“If you’re looking for flexibility, a Cash ISA can be useful for short-term savings, but if you’re building for the future and comfortable locking money away, a fixed rate ISA may offer better returns over time.”

Sol said: “Interest rates on ISAs vary depending on the type and term. Fixed-rate ISAs typically offer higher returns, but your funds might be locked in for a set period.

“On the other hand, although easy-access ISAs provide greater flexibility, they typically come with lower interest rates, meaning they’re not always the best option for accumulating earnings on your savings long term.”

Nationwide’s spending data, which is based on all debit and credit card transactions by Nationwide customers, reveals how the UK’s spending habits have undergone a significant shift, ditching home-focused habits to a renewed enthusiasm for experiences and reclaiming life outside their homes.