Government bonds Online (Gilts)

Gilts involve lending money to the Government. This is generally seen as a safe investment option as the Government is unlikely to be unable to pay your money back.

Index-linked savings certificates

Another offering from National Savings & Investments, these are effectively 3 or 5 year bonds paying interest of a full percentage point above the retail prices index. All returns are tax-free and are guaranteed by the UK Treasury.

Zopa.com

Zopa.com is a popular peer-to-peer lending website puts people with money to invest in touch with borrowers who need a personal loan.

As a lender, the interest rate that you obtain on your cash varies depending on the category of borrower you lend to – A* being the lowest risk, offering the lowest returns, and Y offering the highest returns – and whether you lend for three or five years. The longer you are prepared to lock away your money, the higher the return, ranging from an average of 7 per cent for the lowest-risk three-year loan to as much as 12 per cent for high-risk five-year loans.

Corporate bonds

Corporate bonds offer the most attractive risk/reward characteristics of any asset class, however investors should remember that corporate bonds are much riskier than cash, due to the possibility of companies going bust and defaulting on payments.

2. 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.

3. Cash ISA. They work just like a normal savings account, but the interest you earn is tax-free. You can save up to £3,600 each year in a Cash ISA.

4. Switch your low interest Cash ISA. Transfer it into a higher paying Cash ISA without loosing your tax-free allowance.

5. Regular Savings account. Regular savings accounts typically pay higher rates of interest than standard savings accounts. You can make regular payments into your regular savings account from a current account. Most regular savings accounts let you save up to £300 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.

6. 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.

7. 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.

8. 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.

declutter your house

Declutter your home and you declutter your life. And nowdays it’s just so easy to make money from your old stuff that it makes more and more sense to get rid of things that you no longer need and free up some cash for new stuff.

How to convert stuff into cash

There are loads of places that you can sell stuff online and what’s more the audience is massive.

ebay.co.uk
GumTree.com
CraigsList.co.uk