Tips on how to earn most from your savings

Want some real challenge? Save some money and earn from it.

07:58 01 September 2013

Trying to convince yourself to save some money from your income is hard enough, but more so if you see the very low returns it gets from just letting it stay idle in the bank.  The interest rate will never match the inflation and getting your money to work for you in this manner may be next to impossible.

The following are some tips which may bring you closer to more acceptable returns from your savings:

Tax Protection
Do not forget to cash in on your annual tax-free ISA allowance.  The ISA allowance for this year is £11,520 and £5,760 is qualified for cash ISA.

Pay The Right Taxes But Not More
Non-taxpayers should fill out the R85 form so there will be no tax deduction from interest from savings.  Being deducted 20 per cent is no joke if you are not supposed to be taxed.  Ask the advice of the deposit taker on the procedure.

Look For The Best Savings Facility For Your Money
Do not be content to put your money on the first facility that you see.  There could be better offers so do not hesitate to check them out.

Monitor Your Investments
Decide if it will be wise to just renew an expiring investment or transfer your money to another investment.  To do this, you have to monitor your investment periods and see that if there are better offers you will be able to take advantage of it as soon as your investment matures.

Pay Off All Interest-Bearing Debts First
The interest charges slapped on loans will always be greater than what you can earn from your savings.  So the first logical step to saving is paying off your loans and getting free from paying interest charges.