Competitive accounts and credit cards 'can make the most of money'

Taking the time to seek out competitive UK accounts can help people make their money work harder for them, it has been suggested.

Those Britons who choose to compare accounts will find they can source products which have competitive rates of interest attached to them as well a host of other perks, one writer claims.

Indeed, Serena Cowdy claims that there are a number of current accounts presently on the market that offer a rate of return "head and shoulders" above that currently attached to saving accounts.

Writing in an article for lovemoney.com, she acknowledges that the Alliance & Leicester Premier Direct Current Account offers an "enormous" six per cent interest rate on balances of up to £2,500.

However, to benefit from this 12-month fixed savings rate, a minimum of £500 must be paid into the UK account every month and all direct debits and standing orders must be transferred to consumers' existing current account. Those looking to compare accounts may also be interested to hear that if their balance exceeds £2,500, the interest rate will fall to 0.1 per cent.

Meanwhile, the Abbey 6% Current Account is almost identical to the Alliance & Leicester Current Account. However, at least £1,000 needs to be paid in on a monthly basis to receive the six per cent interest rate.

The writer also put forwards that using credit cards which offer cashback programmes can help people to earn money. For instance, the American Express Platinum Cashback Credit Card provides five per cent cashback for the first three months, a rate she claims is "easily the best on the market".

But there is a catch that those looking to compare accounts may wish to bear in mind. To receive any cashback, consumers must have to spend at least £3,000 on their card over the course of a year.

She also points towards the OnePulse card provided by Barclaycard which offers five per cent cashback for expenditure on Transport for London services.

However, the use of cashback credit cards should only be used by those with a good credit rating and are confident they can clear off their balance at the end of each month.

Those looking to take advantage of reward programmes could be interested in a previous lovemoney.com piece where Ms Cowdy claimed that using a Tesco credit card will allow consumers to receive five Clubcard points for every £4 spent with the card at a Tesco store.