5 ways to make your money work harder for you in 2017

There are plenty of options out there for boosting your income and some might surprise you.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The New Year is rapidly approaching, and after a rough (and surprising) 2016, it’s fair to say that many of us are looking forward to a fresh start.  The New Year is also a perfect time to review your financial goals for the 12 months ahead.

With interest rates now at all-time lows it may seem like saving is a futile act. But there are other ways to wake your money up in 2017. Here are five ways you can make your money work harder for you next year.

1. Lisa

The government’s new lifetime savings product the Lisa is on track to be launched next April and this product offers an extremely lucrative opportunity for savers. 

The lifetime ISA will be available to savers between the ages of 18 and 40 who can pay in up to £4,000 a year and will receive a government bonus of 25% (£1,000 maximum). The funds saved within a Lisa can only be used for retirement purposes or a first-time house purchase. Savers can continue to pay into the product up to the age of 50 with a cumulative bonus available of £32,000.

2. Savings accounts

Most savings accounts now offer less than 1% per annum in interest but if you do your research, there are products out there that yield more. 

For example, the TSB current account offers 3% interest on balances up to £1,500. Additionally, First Direct, HSBC and M&S Bank all offer monthly saver accounts with interest rates of 5%.

3. Stocks and shares

Buying equities could be one of the simplest ways to wake your money up next year. Anyone can do it, they’re easy to buy and your money isn’t locked-in if you need to sell. Some of the FTSE 100’s bluest blue chips now offer dividend yields of more than 5% and the index as a whole offers an average yield of just over 3%. There are also plenty of income funds throwing off 4% a year in dividends.

4. The asset sharing economy

It has never been easier to make a bit of extra money by renting out your existing assets such as cars or even your home. easyCar Club allows drivers to rent out their cars for extra cash when they’re not using them. while Airbnb allows homeowners to turn their homes into hotels while they’re not staying at the premises.

5. P2P lending

The UK has one of the largest peer-to-peer lending markets in the world and investors and now spoilt for choice when it comes to deciding who or what they will lend their money to. 

Funding Circle focuses primarily on small business lending, which can offer higher returns but is also riskier. Landbay organises peer-to-peer mortgages offering an expected return of 3.75% secured against property. Meanwhile, RateSetter offers unsecured lending to everyday customers. Peer-to-peer lending does come with a certain degree of risk and isn’t a substitute for savings accounts, so it may not be suitable for all investors.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

£20,000 in savings? Here’s how I’d aim to turn that into passive income of £903 a month

Our writer shares one approach to passive income investing, spotlighting a quality FTSE 100 stock he recently added to his…

Read more »

Investing Articles

Great dividend stocks! Here’s the forecast for Associated British Food shares to 2027

Associated British Foods' shares have dropped in value this year. Does this present a dip-buying opportunity for dividend investors to…

Read more »

Investing Articles

Should I sell my FTSE All-Share index fund and buy a S&P 500 tracker instead?

Harvey Jones is wondering whether now is a good time to invest more money in the S&P 500, after a…

Read more »

Investing Articles

Should I buy dirt-cheap BT shares after the recent pullback?

BT shares were on the up but now they're sliding again after the board trimmed full-year guidance. Now Harvey Jones…

Read more »

Investing Articles

Up 28%, can the easyJet share price keep rising?

The easyJet share price has gained altitude over one year but plunged over five. Is now an attractive time for…

Read more »

British Isles on nautical map
Investing Articles

Should I buy more BAE Systems shares at 1,350p?

BAE Systems shares have had a fantastic run since early 2022, yet still don't appear overvalued. Is it now time…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

7% yield and a cheap valuation! Is this one of the best shares to buy this month?

Christopher Ruane has been looking for cheap shares to buy. This one has a 7% dividend yield, so is it…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

Should I buy National Grid shares for the big dividend before it’s too late?

This year's price weakness has left National Grid shares on what looks like a tempting valuation. I hope it doesn't…

Read more »