Amanda asks:

After my divorce I have been left with a pot of £33,000 from a property sale (I currently live in private rented accommodation).  I put £3,000 into Northern Rock ISA, due to mature in 2012 with a guaranteed interest rate that increases every year.  The remaining sum of £30,000 is in an Investec High 5 account on which I get a small monthly return which helps towards monthly expenditure.  Would it be wiser for me to leave a smaller sum of money in the Investec Account and move, say, £10,000 around? I would like it to go into accounts which would give me a monthly return. I am 47 years of age, work in the NHS so have a pension there and I have another final salary pension from a previous employer.

To keep your money in cash savings you must try to ensure that, after taking tax into account, the interest rate keeps pace with inflation. You need to try to actively manage your savings accounts and - once a year - review the interest rate you are getting compared to the best on the market. Check out SavvyWoman's Top Deals on savings provided by Moneyfacts to find the current best buys.

Most accounts pay slightly less interest if you want it to be paid to you monthly, so check the small print. Try to use your annual cash ISA allowance, which increases to £5,100 for everyone from April 6th 2010. This will ensure that you earn tax-free interest on your savings and most ISA accounts allow the interest to be paid on a regular basis.

For amounts over the cash ISA allowance, consider internet-based accounts or accounts that pay a bonus for the first 12-18 months, but make sure you move the money once the bonus period ends to avoid a really low interest rate.

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