Interest rates are at an all time low at the moment so where do you put your money if you cannot find high interest bank accounts. Even when interest rates are higher many bank and building societies make current accounts and saving accounts appear more appealing by offering introductory bonuses.
If you are looking for higher returns on your capital you are going to have to invest your money for a longer period. Many banks offering the best rates all have stipulations such as introductory bonuses, restricted access and limited deposit amounts. This means after the bonus rate ends you will be back to the standard minimal interest rates. Having to move your account again and again can be a hassle. If you have a less than perfect credit score then you want to find bank accounts for bad credit scores.
If you are willing to lock away your money for a fixed period usually anywhere from 1 to 5 years you can get a much higher interest rate on your money. High interest bank accounts offered by most of the major UK banks have accounts where you can deposit a fixed amount or pay in a certain amount monthly in return for a preferential rate.
There are alternatives such as direct lending sites like Zopa, this is where you lend money directly to borrowers. Zopa takes care of collecting your interest and repayments for you. You can get up to 15 percent returns but you have to lend your money for a 3 or 5 year period. You can reduce your risk by lending only a small amount to each person. If you have 500 pounds to lend rather than lending it all to one person you can lend 10 pounds to 50 different people. It sounds more complicated than it is because they take care of all the complicated work for you.
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