Having a target to aim for can make you more disciplined about saving, so start by working out how much you need to save to meet your goal and how many months have to achieve this sum.
Here, we take a look at the some of the best accounts to help you to meet your savings goals this year, including accounts which allow you regular access to your cash and those which involve tying your money up for a bit longer.
Easy access accounts
If you aren't certain when exactly you will need access to your money, then your best bet is to go for an easy access savings account.
However, often these have restrictions, so you will need to find out how many penalty-free withdrawals you can make.
Nationwide Building Society's MySave Online Plus account, for example, pays 3.12% annual interest before tax on a minimum investment of £1,000, but you can only make one penalty-free withdrawal a year from this account.
This rate includes a bonus of 1.58% which is only payable for the first year, so you may want to move your money at the end of this period.
Alternatively, if you need a bit more flexibility, the Santander eSaver Issue 4 account pays 3.10% annual interest before tax. This account can be opened with just £1 and you can make withdrawals whenever you want.
However, this rate includes a steep 2.60% bonus which is only payable for the first 12 months, so you will need to move your money once this disappears.
Regular savings accounts
Some of the best interest rates currently available are paid by regular savings accounts, although you do usually have to have a linked account to qualify.
For example, the market-leading account of this kind is the HSBC Regular Saver account, which allows monthly payments of between £25 and £250 and pays a preferential rate of 8% provided you are an existing HSBC Premier, HSBC Advance, HSBC Graduate (Advance) or HSBC Passport customer.
If you have an HSBC Bank Account, Bank Account Pay Monthly and Graduate Bank Account customers, you will earn a lower rate of 4%. As with most Regular Saver accounts you cannot make any withdrawals within the 12-month term.
If you were to pay in £3,000 over the year, then you would earn an impressive £133.23 in interest. For savers who don't have an HSBC account, then West Bromwich Building Society's Regular Saver Adult account pays 4.10% annual interest if you pay in at least £10 a month. The maximum you can pay in each month is £250.
You can't make any withdrawals during the one year term of the account, but you can miss up to two calendar monthly payments.
If your savings goal is Christmas next year, then Principality Building Society pays a generous 5% annual interest provided you pay in between £20 and £300 a month.
You must make 12 consecutive payments into the account and you can't make any withdrawals until Christmas next year.
Cash ISAs
Alongside an easy access account, you should also look to save into a Cash ISA as you won't pay tax on the interest earned. The annual Cash ISA limit is £5,340 this tax year, but remember that if you use the allowance in full and then withdraw money you cannot then pay it back in during the same tax year.
ING Direct, for example, pays a guaranteed rate of 3.00% tax-free for 12 months on a minimum investment of £1, but this account does not accept transfers from other providers.
Nationwide Building Society's Online ISA Issue 2 pays an impressive 3.10% annual interest tax-free, but you need a hefty lump sum of £25,000 to qualify for this rate and you must already be a Nationwide customer
Deposits of £1,000 or more earn a lower rate of 2.75%. This account accepts transfers from existing Isas.
Fixed rate bonds
If you have already built up some savings but want to them to earn as much interest as possible over the next year, then it may be worth considering a fixed rate bond.
These generally do not allow you access to your savings during the fixed rate term, and as a result often pay higher rates of interest than easy access accounts.
For example, the AA's one year Fixed Rate Savings account pays a generous 3.60% annual interest before tax on a minimum investment of £1. If you had a lump sum of £3,000 to invest in this account, then you could earn £108 in interest before tax.
Other short-term fixed rate bonds paying competitive rates of interest include Allied Irish Bank Savings Direct's one year Fixed Rate Bond which pays 3.50% annual interest before tax on a minimum investment of £1,000, and Nationwide Building Society's six month fixed Rate e-Bond which pays 2.41% on a minimum investment of £1.
To be eligible for this account you must be an existing FlexAccount customer or apply for the FlexAccount during the application process.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.
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