Published on: 30 May 2018
If you’re already hooked on regular saving and want to try to boost your income, we’ve got some tips to make your money work harder. From switching current accounts to dabbling in investments, we’ve got the tips for you.
Smarten your current account
Most of us use our current account to ‘dock’ our money before we spend it or move it into a savings account.
But did you know that some current accounts will boost your balance with cashback on your spending? They may also pay a decent rate of interest, but check how much the monthly fees are to see if they’re worth your while.
Once you have one of these accounts you may have access to preferential rates on the bank’s regular saving accounts – so double the boost!
Get extra help from an ISA
Whether saving for your first home, to boost your retirement, or just saving for the longer term there’s an ISA for you.
Every penny held (and earned) in an ISA account is not liable for tax, so it’s all yours.
Cash ISA rates are creeping up, but if you’re saving for the longer term you could try a Stocks & Shares ISA.
You can split your annual ISA allowance across cash and shares ISAs.
Try bonds for an extra boost
Bonds, also known as fixed term savings, are really fixed term loans from you to the provider (the bond issuer) usually in return for a higher interest rate than you may get from traditional deposit accounts. If you have £1,000 or more in cash that you can tie up for at least six months or the term of the bond, then this might be for you.
Corporate bonds are loans to companies; the rate of interest they pay is linked to the credit rating of the company you’re investing in – the greater the risk of default, the more it will pay.
Buying bond funds rather than individual bonds is cheaper and you’ll be invested in a greater range of bonds which will be managed on your behalf. See Fixed interest securities, gilts and corporate bonds on the Money Advice Service’s website for more information.
Don’t overpay tax
As a member of the Armed Forces your tax and National Insurance is deducted at source from your pay so make sure your JPA record is up to date and ensure that your HR office knows about any changes in circumstances. This will help your pay office to make the correct calculations.
You may be due a tax refund if you've been using your own vehicle or public transport to travel between temporary postings of under 24 months, even outside the UK.
You might even be able to claim for Mess Dress. See Claim a tax refund on Gov.uk. If you need help claiming back tax RIFT can help, but there is a charge.
Other ways of increasing your income
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