Making the Most Out of Your Savings

For many partners or married couples saving is a fundamental part of living as they look to get themselves on the property ladder, save up for a new car or go on a dream holiday. A number of banks and building societies offer a good range of savings products that with the right investment can give the investor a great return and additional source of income.

As well as selecting the right savings product to maximise savings income, partners or married couples should take full advantage of tax allowances. Tax allowances enable every person to have income earning assets up to a certain value that are income tax free. The figure is currently around £5,000 and by spreading out assets couples can ensure that either no tax or as little as possible tax will be claimed from their savings income.

For example, a man with £10,000 invested can avoid paying income tax on his assets by having half of the money invested in his spouses name so that the investment does not apply for income tax. Another great way to maximise potential income from savings is to go for a product with the least payment dates. Savings products usually give an option of having interest paid monthly, quarterly or annually with the highest interest rate being offered for the product with the lowest payment dates. So for any saver who can afford to live without their saving income for a whole year, this can be a great way to earn extra from their savings.