From switching current accounts to seeking out dividend-paying funds, Moneywise rounds up 50 top tips to boost your income by making your savings work harder for you.
Here are eight ways to boost your cash savings. See the our guide 50 ways to boost your savings income for the rest.
1. Shop around for the best rates on savings accounts
It’s hard to get excited about savings rates, but with all of us needing somewhere to keep a ‘rainy day’ fund, it’s important to make sure you get the best deal and switch accounts when rates slide or better deals become available. At the time of writing, Shawbrook Bank paid a market-leading 1.25% on its easy-access Cash Isa.
2. Profit from Cash Isas
Although the personal savings allowance means basic-rate taxpayers can earn £1,000 from savings tax free (£500 for higher-rate taxpayers and nothing for additional-rate taxpayers), don’t rule out Cash Isas. They could spare you a future tax bill if your savings grow or you earn more than the tax-free threshold. The more you are earning and saving, the greater the argument for sticking with Isas. In 2018/19, the Isa allowance is £20,000. See this week’s best Cash Isa rates.
3. Cash in on home saver perks
If you are saving for a deposit on your first home, a Help to Buy Isa will boost your savings by 25%. That’s a £50 bonus for every £200 you save, up to a maximum bonus of £3,000. New kid on the Isa block, the Lifetime Isa (Lisa) pays a bonus of 25% on savings up to a maximum bonus of £32,000, so long as that money goes towards a first home, or your retirement. However, Lisas are only available to 18 to 39-year-olds.
4. Ditch the lottery for Premium Bonds
While nobody would recommend you keep all your savings in Premium Bonds as you don’t earn any interest, they can still be a fun way to diversify your savings portfolio. You can win between £25 and £1 million in monthly draws, and while the odds of winning anything are 24,500 to one for every £1 bond, your money is protected and you aren’t giving it up as you would if you bought a lottery ticket.
5. Seek out old savings plans
There’s £850 million lying unclaimed in lost bank accounts, according to the Money Advice Service. However, even if you no longer have the account details or the provider has merged or closed, you can still be reunited with lost cash. Contact My Lost Account on 020 3934 0329 or Mylostaccount.org.uk. All you need to do is enter your personal details and any account information you might have – you should get a response within 12 weeks.
6. Get cash back on your current account
For most of us, our current account is just a ‘dock’ for our money before we spend it or move it elsewhere. However, some accounts will boost your balance. The Santander 123 account pays 1% cashback on water and council tax bills, 2% on gas and electricity and 3% on mobile, landline, broadband and phone packages. It also pays 1.49% on balances up to £20,000, making it a good savings account too – though a £5 monthly fee applies. For more current account rewards, visit the Moneywise guide to the best current accounts.
7. Use a regular savings account
Good current accounts also offer access to great savings deals. Customers of banks such as First Direct, HSBC, Nationwide and M&S Bank can all earn 5% if they commit to a year of saving. Monthly contributions are capped – typically at £250, but First Direct lets its customers save up to £300 a month. See this week’s best savings accounts: Moneywise.co.uk/saving-banking/ savings-cash-isas/best-savingsrates-week.
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