Cut out the banks and earn 13pc a year on your savings, tax-free, inside an Isa run by a large, reputable firm such as Hargreaves Lansdown.
After five years of rock-bottom interest rates that sort of offer might sound too good to be true. It’s not. This sort of return is provided by a number of socalled peer-to-peer lenders, which act as middlemen who connect savers directly with borrowers. Rates are more generous because there is no bank slicing off a hefty margin for a profit.
There’s also no bank there guaranteeing the return of your capital either.
Better returns, yes, and also more risk. Which is the way it usually works.