UK Savings Week: 5 things to check now to boost your pot

It's UK Savings Week from 18 to 24 September, so it's the perfect chance to review your nest eggs.

The annual event was started by the Building Societies Association (BSA) and aims to raise awareness of the importance of saving.

Here, Which? takes you through a few simple actions you could take the time to do this week that could boost your saings.

1. Check what rate your savings are earning 

Research from the BSA found that more than a third of UK savers never compare the rate on their savings accounts, which could mean many are missing out on rising rates.

Moneyfacts data shows that the average rate offered on an easy-access account, for example, was almost 3.07% AER on 15 September – its highest point since November 2008. While savers willing to lock their money into cash Isas or bonds lasting for a year or more can take advantage of average rates above 5%.

With so many different types of accounts to choose from, it can be difficult to decide which deal is best for you. But it usually boils down to two important questions: how likely are you to need access to your money and how long are you prepared to lock it away for?

Easy access products are great for savers who want to withdraw money whenever they want and don't have a huge lump sum to open an account with, but rates tend to be much lower than fixed bonds. 

• Find out more: best savings accounts.

2. Check how savings in a current account are doing

The BSA found that more than a third of consumers hold most of their savings in a current account, which offers little or no interest.

If you want to keep money in a current account, the Nationwide Building Society FlexDirect account pays 5% AER on balances up to £1,500 in the first year (0.25% after that). It requires a minimum of £1,000 to be paid in each month – you could fulfil this by getting your wages paid into this account if you earn at least £12,000 per year after tax and other payments. 

The Virgin Money M Plus current account, on the other hand, doesn't have any restrictions and offers 2.02% AER interest on balances up to £1,000. It also unlocks access to its linked savings account, paying 3.03% on up to £25,000. 

• Find out more: best high-interest bank accounts.

3. Check for missing money

If you're a young adult, you could be missing out on savings held in child trust funds (CTFs). 

Almost 430,000 18 to 21-year-olds have yet to claim money sitting in CFTs worth an average of £2,000, according to HMRC. That's a tidy sum for a school leaver who may be starting university this autumn, an apprenticeship or even their first job.

CTFs were set up for every child born between 1 September 2002 and 2 January 2011. Children can access the cash once they turn 18, but because these accounts were set up automatically, many have been forgotten and are lying dormant. 

If you know where a CTF is being held, you can contact the provider directly. Otherwise, you can ask HMRC to find the CTF provider by filling in an online form.

• Find out more: how to find lost bank and savings accounts.

4. Check if you can use round-ups or earn cashback

These features offer an easy way to save little and often without even realising you're doing it. 

Round-ups are offered by most banks and allow customers to push cash away by skimming the change off the top of your debit card transactions, rounding up to the nearest pound and placing the remaining pennies elsewhere, such as a savings account. For example, if you spent £2.75, your account would be debited with £3 and 25p would be added to your nominated savings pot.

Many major banks and building societies now offer tailored cashback schemes that pay up to 15% when you spend with your debit card in-store and online. Halifax, for example, offers Cashback Extras and Lloyds Bank has Everyday Offers. You just need to activate the offers.

If you struggle to save, these features are a good way to ensure that a little money gets put aside without requiring much sacrifice. But if you have ambitious savings goals, it's unlikely to be the best way to achieve them.

• Find out more: best bank accounts for cashback.

5. Check if your savings could be taxed

With savings interest rates rising, and the tax-free Personal Savings Allowance remaining constant, more savers are going to end up paying tax.

Basic-rate taxpayers can earn up to £1,000 in savings interest per tax year without paying tax, or £500 if you're a higher-rate taxpayer. Additional-rate taxpayers don't get an allowance.

If you're nearing the threshold, it's worth looking into how you can avoid a tax bill. For example, saving into an Isa or premium bonds.

• Find out more: why having £8,000 of savings could earn you a tax bill.