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How to earn up to 10% interest on your savings - 18 February 2009

Last month the Bank of England cut interest rates to an all time low of 1%. This will result in many UK savers having reduced interest income. Here at Voucher Kingdom we want to offer you the best advice and tips in helping you save money.

This week we've looked as some ways you can get interest rates as high as 10% on your savings.

Bye bye interest

Long gone are the days where you could stick your hard earned cash into the bank and expect a decent interest rate. These days banks are far more sophisticated in understanding their market and this has resulted in the boom of a number of 'value-added' products and saving accounts. The idea is to get you through the door with an attractive saving rate and hope that you will buy other products from them. The average interest rate for UK bank accounts was just 0.9% at the end of January 09. Everyone is expecting interest rates to remain at their current low level for the foreseeable future so how can you get good interest rates?

Regular savers

Regular savers accounts allow you to save a set sum each month and withdrawals are not normally permitted. Interest is paid on a gross basis (before tax).

A number of the key high street banks offer great returns on their regular savers.

• HSBC offers up to 10% interest for savings up to £250 a month.
• Barclays offers 6% interest on their monthly saver account up to £250 a month.
• Halifax pays 5% interest on their regular saver account up to £500 a month
• First Direct pays 7% interest on their regular saver up to £300 a month
• Lloyds pays 2.555 on their monthly saver up to £250 a month
  

Make sure you only save what you can afford to do so comfortable. Most if not all of these accounts do not allow withdrawals during the saving period and therefore you should make sure that you are happy to leave your nest egg untouched for a the term of the savings.

Remember to read the terms and conditions for each of these bank accounts and seek advise from an Independent Financial Advisor should you have any questions. This article does not constitute a recommendation for any products or service.

Can I use discount codes?

At Voucher Kingdom we know you love your voucher codes but at present the banks haven't adopted the marketing technique of using voucher codes to encourage savers. Watch this space though, as where the high street leads, the banks tend to follow.

Voucher Kingdom seeks to offer you the best tips and advice on saving money as well as great value discount codes and voucher codes.