Making money online - paid to design

Did you know that anyone can become a product designer? Whether it's printed t-shirts, bags, hats, keyrings, mugs, or postcards, there are companies who will pay you royalties for your designs. If you are a dab hand at photography or art, you could be making money with your designs.

Making money online - paid surveys

We live in the information age, and there is no greater currency. Organizations and businesses will pay for all kinds of information, but what's typically important to them is customer attitudes towards products: this might be in relation to the product itself, or some element of it such as the packaging or planned advertising.

Customer surveys are big business, and they can have enormous impact on a product's success. 

Money for gold

The value of gold is higher than ever before, so there's never been a better time to rummage through your jewellery box. The market, however, is saturated with companies grasping for your gold, and some of the more unscrupulous of these will take advantage of the unwary.

This guide looks at how to track down your gold, and how to sell it for the best possible price. 

Making money online - product reviews

With the recent surge in online shopping, it's becoming increasingly likely that a customer will never actually see a product in the flesh before making a purchase. As a result, more and more people are turning to independent product reviews to help them to make the right buying choices.

Product reviews are big business, and they can have enormous impact on a product's success. 

Savings interest 101

This article takes a basic and introductory look at savings interest. We’ll be looking at interest on loans and credit cards a little later.

What is Interest?
Interest is a sum of money that is earned on amounts held in banks and other financial institutions. It is expressed as a percentage of the overall savings figure. For example: if your account’s ‘interest rate’ is 3%, then you would receive 3 pounds for every 100 pounds you have in that account. That may not sound like a lot, but the more you save the more you earn. Getting the best rate of savings interest is about making your money to work for you.

There are two general types of interest: simple interest and compound interest.

• Simple interest is applied only to the original figure. 
• Compound interest is applied both to the original figure AND the interest that has accrued - in other words, interest on top of interest.
  

Interest is paid because banks and other financial institutions invest and lend the money that you hold with them. The ‘interest’ they pay to you for letting them do this is only a fraction of the profit they make. It is, however, virtually free of risk (for amounts below 85,000 at least).

Interest is subject to income tax unless you are tax exempt. Even if you are tax exempt, forms will need to be obtained from your bank for your account to reflect this.


Getting the Best Deal
Most current accounts pay very little interest. Online savings accounts and ISAs generally pay a little more. However, the highest rates of interest are only available from bonds.

The general rule is that the higher the rate of interest, the more numerous or onerous the catches. For example: high interest current accounts require a deposit of at least 1000 pounds per month, online savers provide limited access to your cash when you’re out and about, and most bonds require you to lock your money away for years and charge hefty fines if you withdraw before the end of the agreed period (before it ‘matures’). Finding the right interest rate is, therefore, something of a balancing act: you want the highest rate of interest possible with the fewest restrictions. 

The most common restrictions are on withdrawals, which can sometimes include interest penalties for early withdrawals. However, some accounts also restrict the number of deposits you can make as well, meaning that to get the best rates of interest you may be led to lock away more of your money than you can reasonably afford to.

Millions of people all over the country are ignorant of the often pitiful interest rates that they are receiving from their current accounts and savings accounts. Many still believe that loyalty pays, but this is no longer the case. If your bank isn’t doing you any favours, it’s time to ditch it in favour of a new account. It is now easier than ever to find the right account for you given the number of comparison websites that are popping up all over the place.


Perks
A lot of accounts feature a bonus interest period for new customers (often for the first 3, 6 or 12 months). If you elect to open such an account, it’s worth making a note on your calendar of the date when the bonus will end.

Some banks and financial institutions reward new customers with one-off cash incentives (some of which can be over 100 pounds) for opening an account and transferring direct debits to it. If such an offer catches your eye, it is very important to make sure that you will be able to satisfy the offer's criteria, and that the interest rate isn't so low/charges aren't so high as to make the cash incentive irrelevant.

Be aware that some accounts are set to pay interest into a separate elected account. This means that interest on these accounts cannot be compounded (see above).

Conclusion

Never sign up for anything without knowing what you're getting yourself into, and you should always be alert around deals that seem too good to be true. It can take time to shop around. For many this can seem like a daunting process, but it is well worth the effort.

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Opening a lot of different bank accounts can be injurious to your credit rating. Once you have left one account, be sure to close it. A long-standing bank account can also support your credit rating, so it is worth keeping at least one old account open, even if it’s left holding only a small amount.