Happy New (tax-free) Tax Year – we’ll help you make your savings work harder.

Saving when interest rates are low can seem like a waste of time. But there are a number of steps you can take to give your savings a worthwhile boost.

A good place to start is by checking how much interest your savings account is currently earning and switching to a more competitive deal.

It’ll take just 7 minutes to find a more rewarding home for your money with MoneySuperMarket, and in return, your savings could earn as much as £132 a year in interest.

Remember, in the 2018/19 tax year, starting on  April 6, the Personal Savings Allowance means basic rate taxpayers can earn £1,000 of savings interest without paying tax on it, while for higher rate taxpayers up to £500 of savings interest is tax-free.

Say, for example, you’re currently earning 0.38% AER on your savings. On a balance of £12,000, you’d earn £45.60 in interest in 12 months. But by switching to the Skipton Building Society eSaver paying 1.10% AER (variable), you’d earn £132 in interest a year.

What’s more, the Personal Savings Allowance means you no longer have to pay tax on the interest you earn in any savings account (within the limits mentioned above). This includes interest earned in current accounts, credit union accounts and peer-to-peer lending.

And that means there’s even more reason to switch to a better deal.


Get the right account for you with our savings decision tree

With so many accounts to choose from, our decision tree will help you make the right choice.

Find the right savings account for you

Do you have a lump sum to save?

Is this more than £20,000?*

Can you afford to pay in £500 or more each month?

Do you need access to your cash?

Consider an easy access account, including easy access cash ISAs**

These accounts typically pay a variable rate of interest but allow you to access your money at any time (check for withdrawal restrictions)

Easy Access Accounts
Compare ISAs

**You can save up to £20,000 in an ISA in the 2018/2019 tax year. Note that from April 6, 2016 basic rate taxpayers can earn £1,000 of interest in any savings account without paying tax on it. Higher rate taxpayers can earn £500.

Consider a fixed rate bond, including fixed rate cash ISAs**

These accounts typically require you to lock your money away for a year or more in return for a higher interest rate

Compare now

**You can save up to £20,000 in an ISA in the 2018/2019 tax year. Note that from April 6, 2016 basic rate taxpayers can earn £1,000 of interest in any savings account without paying tax on it. Higher rate taxpayers can earn £500.

Consider a high interest current account

Many pay competitive rates of interest on balances up to a certain amount (you’ll usually have to pay in a set amount each month and have two or more direct debits set up)

Compare now

Consider a regular savings account

These allow you to pay in a set amount each month and typically pay a fixed rate of interest for 12 months

Compare now

You could also try a high interest current account

You'll usually have to pay in a set amount each month and have two or more direct debits set up

Compare now

Making your savings go further

If you’re looking for even more ways to give your savings a boost, here are some suggestions:

1. Don’t forget this tax year’s ISA allowance


Given the new tax changes don’t come into effect until April 6, it’s worth making the most of this tax year’s cash ISA allowance of £15,240.

Interest earned in a cash ISA is tax-free and you have until April 5 to use up this year’s allowance. 

You’ll get a brand new ISA allowance of £15,240 in the new tax year.

Remember - any tax-free interest you earn on an ISA won’t count against your Personal Savings Allowance of £1,000 (basic rate) or £500 (higher rate tax payers).

Find an ISA here.

2. Earn more with a current account


Current accounts can be a really competitive home for your money. Many pay higher rates of interest than the top savings accounts – in fact, you could earn as much as 5% AER.

Just be aware interest is usually only paid on balances up to a set amount and terms and conditions will apply.

Find a current account here.

3. Consider peer-to-peer


Peer-to-peer lending websites work by enabling savers to lend directly to borrowers. By cutting out the need for banks or building societies, the returns on offer tend to be higher than they would be with conventional savings accounts.

However, although peer-to-peer lending is regulated by the Financial Conduct Authority, your money is NOT protected by the Financial Services Compensation Scheme. There is a risk you may lose some or all of your initial investment.

Find out more.

*Before tax. Based on an average savings value of £12,000 in Skipton Building Society eSaver paying 1.10% AER – February 2016

The average session duration for sessions on the saving channel that click off to a provider’s site is 7 minutes and 24 Seconds. MSM Data Feb 2016.