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The importance of having savings cannot be underestimated. Indeed, regardless of how much you can afford to put aside, they are vital for safeguarding against your financial future. In fact, not only can they help in times of emergency, like being made redundant, but they can also contribute towards purchasing the things you cannot afford on your monthly salary.

Although many believe the current financial climate is not conducive to saving, if you look around, there are actually some great deals to be found. This is particularly true for longer term savings and investments.

So, what can you do to make the most of the money you have?

According to financial experts, one of the best ways to save cash is to avoid paying tax on it. Therefore, it is definitely worthwhile checking out the range of ISAs - tax free, individual savings accounts – on offer. Many offer reasonable interest rates and you also have instant access to your money.

However, the longer you can go without touching your savings, the better. Consequently, if you can afford to deposit a certain amount of money into an account for a set time period, you can expect to receive higher rates of interest, and thus a higher return on your cash.

There are many different types of longer term savings accounts to choose from, dependent on your circumstances. For example, a notice account will reward you with a competitive interest rate in return for advance notification on any withdrawals. Generally speaking, the longer the notice period you can provide your bank with, the better the interest you will earn.

Alternatively, a fixed rate savings account is good for those who have a larger amount of money to deposit. With this type of account, your cash is locked away for a fixed period of time, agreed by yourself and the bank. The advantage lies in the fact that you can be assured that the interest rate will not drop from that agreed.

Banking offshore is another great way to make the most of your savings and many people now enjoy the benefits offered by offshore banking. For instance, most offshore accounts allow you to deposit a range of different currencies; you gain tax neutrality and interest is accrued without having income tax deducted. Although you will still have to declare the interest as income, the account can roll-up payments, thus ultimately producing a bigger final payout.

Whichever savings account you opt for, it is important to bear in mind that you need to make your money work for you. Therefore, make sure you find one to suit your individual circumstances.