One of the most tax efficient ways to invest your money, as the interest you accrue on your savings is safe from the tax man. The catch, you can only invest up to £3,600 in the 12 months to 5th April 2010, rising to £5,100 thereafter.
Cashback Credit Cards
These give you cashback just for using your credit card to make purchases, and as long as you repay the balance in full each month before the due date, then there is no interest to pay. In addition, the use of a credit card to make purchases gives added protection, which is particularly useful when making purchases online.
Interest Free Credit Cards
A number of credit cards also offer interest free balance transfers and purchases for an initial period. For those with maxed out credit cards, interest free balance transfers can save £100’s in interest costs.
Current Account Mortgages and Offset Mortgages
These types of mortgages allow you to combine your current account with your mortgage, in such a way that you can save a significant amount of interest over the mortgage term, and ultimately clear your mortgage more quickly.
High Interest Current Accounts and Savings Accounts
For those with relatively high balances in their current account, it is worthwhile looking for current accounts which give a competitive interest rate on the balance, or an instant access savings account, where you can transfer the excess balance to earn a high rate of interest, safe in the knowledge that the money is instantly available when required.
Interest Free Overdrafts
For those living in, or close to, their overdraft, then it is worthwhile looking for a current account which offers an interest free overdraft.