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How to make your savings go further

With savings accounts your money is safe and you’ll get it back with interest. Saving differs from investing in that with investing you have the potential for higher returns, but you do risk losing some of your money.

If you can’t afford or don’t want to risk your money, then saving’s for you and these top tips will have you navigate the savings maze so that you can maximize your interest and tax position.

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1. Pay off your debts.It’s always wise to pay off any personal loan or credit card debts before you start saving, however, you may incur an early redemption charge when paying off a personal loan so it’s worth checking first. The cost of interest on debts is usually much higher than the interest you’ll earn on any savings. Take a look at the current best buy personal loans, best buy credit cards and best buy savings accounts to check how much the interest rates differ.
2. Get a Cash ISA. They work just like a normal savings account, but the interest you earn is tax-free, which is especially valuable if you’re a higher rate taxpayer. You can save up to £3,600 each year in a Cash ISA. Read our Cash ISA guide to find out more, or have a look at the current Cash ISA best buys to check the latest savings rates.
3. Consider a Regular Savings account next. Regular savings accounts typically pay higher rates of interest than standard savings accounts. Take a look at our current best buy regular savings account to check what the latest savings rates are. You can make regular payments into your regular savings account from a current account. Most regular savings accounts let you save up to £250 per month, so they if you have a lump sum to save then they may not be as suitable as a fixed rate bond, notice account or internet savings accounts.
4. Think about using a high interest current account. If you’re drip feeding regular payments from a current account into a regular savings account, then make sure that you’ve chosen a high interest paying current account to earn the maximum amount of interest possible. Take a look at our current best buy current accounts to check what the latest rates are.
5. Consider a fixed rate bond. If you’re happy to tie your money up for a set period of time, you can earn higher rates of interest on a fixed rate savings bond. Take a look at our current best buy fixed rate bonds to check the latest rates on offer. You can also read our Fixed Rate Accounts guide to find out how they work.
6. Don’t forget notice accounts. If you’re happy to tie your money up in a 90, or 180 day notice account, you can earn higher rates of interest. Take a look at our current best buy notice accounts to check the latest rates on offer.You can also read our notice account guide to find out how they work.
7. Internet savings accounts are currently paying higher rates of interest because Financial Institutions don’t have to pay for staff or branches to manage these forms of savings accounts. Take a look at our best buy internet savings accounts to check the latest rates on offer.
8. It can pay to have a specialist savings account. If you’re aged over 50 you can also take advantage of specialist savings accounts for the over 50’s. Take a look at our current best buy over 50’s savings accounts to check the latest rates on offer. You can also read our over 50’s savings account guide to find out how they work.
9. Ditch your underperforming Cash ISA. It’s always sensible to regularly check to make sure that your Cash ISA continues to pay a market leading rate. If it doesn’t then transfer it into a higher paying Cash ISA without loosing your tax-free allowance. Moneyfacts’ latest Cash ISA survey revealed that the difference between the best and worst performing Cash ISAs can cost you as much as £129 in lost interest per year.
10. Go for consistency. It’s still possible to find a good home for your savings and a decent rate of interest without having to continuously chase the best rates and transfer your account to a new provider every few months. Take a look at our Most Consistent Savings Accounts Best Buys to see who the best performing savings accounts are over the last 18 and 36 months.

What to do next:

• Compare Savings Accounts Best Buys
• Read our Savings Accounts Guides