SAVINGS

With interest rates on the up, here’s how you can make your cash savings work a little bit harder for you

- Andy Webb

FOR A LONG period recently, savings rates were so poor they were almost not worth bothering about (almost). And that might have meant you've neglected them, leaving them languishing in accounts that pay very little, if anything at all.

But this year has seen some massive hikes on what you can earn on your cash. Even though they’re still way below the rate of inflation, the successive Bank of England base rate increases mean it’s now possible to get decent returns.

These steps will help you get the best possible savings rate and earn some much needed extra cash.

Find the best rates

The first step is to look at what you’re getting right now. If you’ve not moved your money for a while then it’s likely you are on a poor rate. Even though some banks might have automatically increased their rates for existing customers, don’t assume you can’t beat them.

Compare what you're currently earning to what’s available elsewhere. To find the best alternatives, I use the Moneyfacts website, and also provide updates on Be Clever With Your Cash.

Choose the right type of account

There are a number of different types of account so you need to decide which type best suits you. The most common are easy access savings accounts. These will usually pay less than other options, but you can withdraw your money whenever you want.