So, how will you make your money work for you?

Investors can increase income without risk by tying money up in a notice account; or buying a guaranteed income bond, maturing in between one and five years, available from insurance companies such as Premium Life or Britannia Life; a five-year National Savings Income Bond, or a Tessa, choosing either a fixed or variable rate.

If you are prepared to risk losing some of the capital, you could choose a high income bond from most insurance companies, although there are initial charges that make early redemption expensive.

For easier access you could buy (and resell) a unit or investment trust with high income or extra income in its title, preferably inside a PEP; government stocks, especially those sold over Post Office counters, permanent interest bearing shares issued by a building society, or income shares in a split-level investment trust (see page 12).