From switching current accounts to seeking out dividend-paying funds, Moneywise rounds up 50 top tips to boost your income by making your savings work harder for you.
Here are four ways to boost your savings using fixed-interest and property investing. See the our guide 50 ways to boost your savings income for the rest.
26. Use corporate bonds to generate an income
Corporate bonds are loans to companies. In return for your investment, you’re paid a fixed rate of interest. This is linked to the credit rating of the company you’re investing in – the greater the risk of default, the more it will pay. Moneywise recommends buying bond funds rather than purchasing individual bonds: it’s cheaper, you’ll be invested in a greater range of bonds and it will be managed on your behalf. Fidelity’s MoneyBuilder Income fund is recommended in the Moneywise First 50 funds.
27. Step up to strategic bonds
Low interest rates make life difficult for corporate bond fund managers. But strategic bond fund managers can invest in a greater array of fixed-interest investments, making it easier to increase yields for investors. Axa Framlington Managed Income won the Strategic Bond Fund category in the 2017 Moneywise Fund Awards.
28. Consider getting on the buy-to-let ladder
Residential property is a tangible investment for wannabe landlords, offering the tantalising combination of rising income and capital growth. Many investors have made a fortune in property, but it’s not easy; you need to choose the right property in the right location at the right price. Bear in mind that increasing rates of taxes on landlords, as well as the charges associated with letting property, will reduce your income, so always do your maths before you invest.
29. Earn an income from commercial property funds
A cheaper and lower-risk way of investing in property is to invest in commercial property funds that hold a number of properties across a range of sectors, from retail and entertainment to warehouses and industrial spaces. Commercial property funds are popular among income seekers who want better returns than cash and diversification away from shares. Property funds in the Moneywise First 50 Funds for Beginner Investors include Kames Property Income, Picton Property Income and F&C Commercial Property Trust.