Jessica Lindsay
Published November 26, 2025 12:16pm
Updated November 26, 2025 12:46pm
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The financial guru is urging people to rethink their document disposal habits (Picture: Getty)
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When decluttering, you may be tempted to chuck that pile of papers you’ve kept ‘just in case’… but don’t consign them to the bin just yet.
In the latest edition of his newsletter, the Money Saving Expert (MSE) founder recommends hanging onto financial documents for longer than you might think; at least six years in some cases.
The ‘conventional wisdom’ is to keep bank, credit card and other paperwork for this long, because it’s believed that’s how far HMRC can ask you to go back if you’re being investigated for tax purposes.
This timeframe applies most to limited companies rather than individuals doing self assessments, who normally only need documentation for around 22 months after the end of the financial year.
But beyond tax, it’s a good idea to retain certain records, as they could prove vital one day — something those who reclaimed mis-sold PPI and packaged bank accounts will attest to.
‘Evidence of systemic mis-selling often takes years to work through the system – if it’s related to a pension it could be many decades,’ Martin explained back in a 2013 blog post.
A well-stocked filing cabinet could really pay off (Picture: Getty)
‘It’s impossible now to say what you may need the paperwork for in a few years’ time. Therefore for safety, keeping old documents as long as you can – even for now-closed products – is a reasonable precaution.
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Previous Page Next PageThe personal finance guru was proven right then, and is now highlighting the issue due to the recent car finance scandal, where regulators are proposing a mass redress scheme for unfairly-sold policies taken out from April 2007.
According to Martin, ‘the likelihood is that the further back you go… your chances of success [with a claim] increase greatly if you have kept some form of paperwork, either the finance document itself, an old credit report with it on, or bank statements showing repayments.’
Comment now Do you think keeping financial records for years is practical or unnecessary?Comment NowThis is because the vast majority of companies will get rid of customer documents for a maximum of about six years — especially if an account is closed.
‘For complaints to firms or the Ombudsman, the usual rule is six years from when it happened, or three years from when you realised something was wrong,’ Martin continues.
‘Yet these rules stretch when there’s widespread mis-selling, and regulators often allow much older cases. The real barrier isn’t time – it’s evidence.’
The most important documents to keep
You don’t need to hoard every single bank statement for decades on end, but to make sure you don’t chuck something important that a claim eventually hinges on, he suggests holding on to these documents for as long as possible:
- Applications and agreements for loans, credit cards, mortgages, car finance and HP etc.
- A couple of bank statements a year showing interest, fees or add-ons. And before switching or closing accounts, make sure you download key statements and agreements.
- Opening or upgrade paperwork for financial products like packaged bank accounts and savings.
- Booking confirmations for flights or costly travel.
- Costly purchases – keep a record of who you paid and when, and keep the receipt and any warranty or guarantee.
This should be sufficient proof of what you bought and how much you paid.
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Just make sure you store them somewhere safe, and back up so you have both physical and digital copies you can access if required.
‘You never know what scandals may be revealed in the future,’ Martin adds. ‘A small folder (or a few digital scans) may just be worth £1,000s to you down the line.’
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