How to make the most interest on your savings

Being active with your cash management is a simple, but effective way to attract the best interest rates on your savings account and to help you mitigate the effect of inflation.

By staying on top of your savings account, you will see the greatest rewards by maximising how much interest you can earn.

How much interest can you earn from a savings account?

It does depend on the type of account you choose but as a general rule, easy access accounts will pay less than fixed term accounts which do not allow access to your money until maturity And the longer the term the better the rate.

Interest rates are very low at the moment, but that doesn’t mean that you should settle for any account. Some providers are far more competitive than others, so shop around and perhaps try a provider you are less familiar with.  This includes Sharia accounts, as these providers often have the best rates on the market and apply ethical principles - so the money isn’t used to invest in businesses that engage in ‘unethical activities’ such as alcohol, tobacco, gambling or pornography.

If you leave your cash to languish in your high street bank, you could earn virtually nothing. For example, HSBC’s Flexible Saver and Lloyds Bank’s Easy Saver are both paying just 0.10% gross/AER, whereas the Marcus Online Savings Account is paying 1.35% AER. On a balance of £50,000 that is the difference of earning £50 a year (before tax) or £675.