YOUR MONEY: Make 'rainy day' fund a bit brighter.(Business)

Byline: MONEY MATTERS BY RICHARD SCHWARTZ OF THE RICHARD SCHWARTZ PARTNERSHIP

QUESTION: Not receiving the full increase in bank interest rates on my deposit account when they recently went up has opened my eyes to the fact that some banks and building societies seem to treat their savers more fairly than others.

I have always kept a "float" of money that I can get hold of quickly, but I now realise I should be more choosy where this money is invested.

How can I find out who offers the best deposit account rates?

IF, Ballymena

ANSWER: You are wise to keep a "rainy day fund" available because you never know when you might need some money quickly.

However, even with the recent rise in rates, it's important to make every penny count and, as you have realised, deposit account rates can vary dramatically, so it is definitely worth shopping around to find the best rates.

To improve the return on your money it may be worth keeping a smaller "float" in an immediate access account, and have the rest on 30 or more days' withdrawal, where the interest rate should be a little better.

You could also consider internet, telephone or postal accounts which often give a slightly better rate than over-the-counter accounts.

Now the new tax year has started, don't forget cash mini ISA's where you can invest up to pounds 3,000.

Some will give you instant access and, again, rates can be that little bit better than ordinary deposit accounts.

Even when you've found a competitive interest rate, don't be afraid to continue shopping around.

And, if you find a better rate, move your money once any penalty period, if any, has expired.

To help guide you to some of the best rates around at the moment, there is a free guide on best rate deposit accounts and Cash ISAs available by ringing 028 90 472 228.

* Disclaimer: Richard Schwartz is an Independent Financial Advisor with the Richard Schwartz Partnership, an appointed representative of Berkeley Independent Advisers Ltd, which is authorised and regulated by the Financial Services Authority. Answers given are for general guidance only, specific advice should taken on any of the suggestions made. All information is based on our understanding of current tax practices, which are subject to change. The value of shares and investments can go down as well as up and are not usually guaranteed. Past performance is not necessarily a guide to the future. The questions used are compiled from a range of enquiries and do not necessarily represent the precise questions of identified correspondence.