Premium Bonds, high-interest current accounts, energy deals, and other expert tips to make the most of your money

Tax hikes and soaring bills are now the norm. We need to up our game when it comes to managing our money if we're to keep above the rising tide.

Making your money work harder doesn’t always mean stashing away thousands of pounds each month.

Sometimes, it's simply about using your existing financial products more creatively.

In this article, we look at eight ways to squeeze the most value out of your finances when times are tough.

1. High-interest bank account? Move Direct Debits to month end

In-credit current accounts can be a brilliant way to earn a passive return on your cash, allowing you to earn up to 5% on your bank balance.

But something many people miss is how interest is calculated – often on a daily basis.

What that means is, if all your major bills are paid on the first day of the month, your bank balance may be fairly low right from the off  – especially given the current cost of living crisis! 

Consider shifting major outlays and Direct Debits to just before your next payday. This way, you can keep a higher balance in the account for longer.

The best high-interest current accounts

2. Big purchase? DON'T pay up front

Imagine you’ve saved up for a big expense – say, £5,000 for a kitchen renovation.

Rather than handing over the cash immediately, try paying for it with a 0% purchase credit card instead.

These products allow you to spread the cost of large expenses by avoiding interest for up to two years.

This will allow you to keep your hard-earned savings in a high-interest savings account for much longer, potentially earning you £100s in extra interest.

You can then pay off your credit card in full just before the 0% purchase period ends.

The obvious point to make here is that you will need to make the minimum repayments on your debt each month, so you may want to opt for a savings account that allows for regular access if you can't afford to cover these costs elsewhere.

Take a look at the top 0% purchase cards currently available

3. Don’t sleepwalk on your energy deal

Despite the upcoming drop in the Energy Price Cap, gas and electricity bills are a key concern for most UK households.

If you’re on your supplier’s Standard Variable Tariff, you are at the mercy of any changes to the Energy Price Cap, which tend to occur every three months.

With this in mind, it might be worth fixing your tariff if a competitive deal becomes available.

At present, Outfox the Market offers 18% less than the current Price Cap, with E.on Next providing 14.8% lower.

Save up to £250 by shopping around for a cheaper energy deal with Uswitch (opens in new page)

4. Ditch Premium Bonds if you hold less than £1,000

These products can be a fun way to save, thanks to the appeal of lottery-style tax-free prizes.

However, Premium Bonds can be a double-edged sword.

If you don’t pay in a decent amount each month, your odds of winning can be minimal.

In fact, MoneySavingExpert founder Martin Lewis recently claimed that savers with under £1,000 are unlikely to see any wins in a typical year.

If your bond pot is small, you should consider whether your cash could be better off in a high-paying savings account.

Best Premium Bond alternatives 2025

5. Don't use your Clubcard points on groceries

Although Clubcard points are easy to earn, many of us fall into the trap of simply spending them on our next grocery shop.

However, you can trade Clubcard vouchers for double their face value with the retailer’s reward partners.

For example, you can swap £5 of vouchers for £10 at Pizza Express.

Likewise, you can use £10 in rewards for £20 off a hotel stay via Hotels.com.

How to boost your Tesco Clubcard points haul

6. Don't stick with the same bank for long

With banks constantly vying for our business, you can bag switching bonuses of between £100 and £200 by opening a new account.

However, you’ll usually need to meet a couple of criteria to qualify, such as setting up a certain number of Direct Debits.

Remember to check the terms carefully and avoid switching from an account that’s tied to benefits you actually use, such as insurance or cashback.

Check out our roundup of the latest bank switching bonuses to see if any take your fancy.

7. Try to beat inflation

Even if you’ve got money tucked away, it’s only really working for you if it’s keeping pace with the cost-of-living crisis – or ideally beating it.

That's getting increasingly difficult as inflation is on the rise once more.

So, don’t leave large sums languishing in accounts paying miserly rates of interest.

The top easy-access savings accounts currently offer almost 5%, with fixed-term accounts paying up to 4.5%. Get your money moving.

Manage all your savings accounts in one place with Raisin, the simple savings service

8. Use cashback cards

If you’d like to get paid for everyday spending, you should consider a cashback credit card.

At present, American Express offers a market-leading 5% for five months, up to £125.

However, you’ll usually need to follow a few rules to make these cards work for you.

For example, you should always clear the balance in full each month to avoid interest charges.

Likewise, it can be helpful to set up a Direct Debit to pay off your debt automatically.

Final thought

It’s easy to assume that making the most of your money requires drastic changes or risky investments.

But in reality, a handful of simple tweaks can make a meaningful difference.

Keep an eye on new product offers, review your money habits regularly, and remember: sometimes the most profitable decisions are hiding in plain sight.