Avenues for higher returns
AS a saver, the general rule is that the longer you invest, the higher the returns.
However, there’s little incentive right now to lock away your cash, as you can earn 2.5 per cent on a no-notice account with Furness Building Society and 2.35 per cent with the Post Office, according to Charlotte Nelson from MoneyFacts.co.uk.
“The rate on a one-year fix is only slightly higher at 2.75 per cent from the United Bank UK,” she says.
If you’re looking to get into the savings habit, you could also consider a regular-saver account where you have to put away a regular sum each month.
“Kent Reliance and Norwich & Peterborough building societies are both paying 4 per cent,” said Nelson.
“However, these accounts generally have a penalty if you miss a payment, or even if you make a withdrawal.”
One way you can boost returns on your savings is by lending money through a peer-to-peer website such as Zopa.com or RateSetter.com
The rate on a one-year fix is only slightly higher at 2.75 per cent from the United Bank UK
“However, these products, though very appealing, are not covered by the Financial Services Compensation Service (FSCS),” said Sue Hannums from SavingsChampion.co.uk.