Nationwide, Santander, NatWest and Lloyds customers can get £250 with simple swap

UK households with major names like Nationwide, Santander, NatWest and Lloyds can make a significant change to enhance their bank balances. One financial expert has highlighted that a common error made by Brits is leaving their savings in an account offering a poor return rate.

This results in them missing out on additional income that could be earned through interest on their savings. As we entered the new tax year in April, savings specialists have provided advice on how households can optimise their money management.

Fiona Peake, a personal finance expert at Ocean Finance, says customers of the big banks and building societies should make sure they shop around for better rates.

Someone depositing £5,000 into a 5% AER account and leaving it there would generate £250 in a year, claims Peake, who says "Whether you're saving £50 or £5,000, the key is to start.

"Investing early gives you the greatest benefit as your money is protected from tax and has more potential to grow. If you're still using a standard savings account paying low interest, switching that money into a cash ISA could protect your returns from tax, especially if you're close to or over your personal savings allowance."

She added: "There are cash ISAs, stocks and shares ISAs, Lifetime ISAs, and even Innovative Finance ISAs. Each has different benefits depending on whether you're saving, investing, or buying a home, so it's worth checking what's right for your goals.

"Keeping track of ISA contributions across different accounts can be tricky, but it's important you don't accidentally exceed your £20,000 limit or you'll face a fine. If you've put £4,000 into a Lifetime ISA, you'll only have £16,000 left for others."

Savers could boost their pots by thousands of pounds more by their full stocks and shares allowance at the start of the year instead of waiting until the end, new data shows. An analysis from wealth management firm St James's Place found that making annual £20,000 investments in global equities at the beginning of each tax year would have turned a £200,000 total investment into £338,333 over a decade, .

By contrast, delaying those same investments until the end of each year would have yielded just £306,476 - a difference of £31,857. The figures, which are based on the MSCI World Index, highlight the financial advantage of investing as early as possible in the financial year.