Hatch a plan for your nest egg

But with that prospect now seeming a long way off, it's time to shop around.

In February 2008, the average no-notice savings account paid out 4.04%. Today that is down at a paltry 0.9%. The picture is little better on tax-free ISAs. Four years ago, the average product paid out interest at 5.3%; now the average rate has more than halved to 2.6%.

In the past, when funding markets have dried up, banks have used savings offers to lure in more cash to spend on mortgages. But the depressed market for home loans means there has been no need to do so.

In fact, despite the lack of movements on rates, some providers have become stingier in recent weeks. NS&I, the Government-backed savings body, sliced the rate on its Direct Saver Account from 1.75% to 1.5%.

In the current environment, the first step is to pay down any debt, because personal loans and mortgages will demand higher interest than savings accounts are paying out. The next move is to use up ISA allowances. Top rates come from Cheshire Building Society, offering 3.06%, and the AA, at 3.05%.

Next, it's worth considering a one- or two-year fixed bond, particularly as a route to beat inflation. That is forecast to fall to 2% by the end of this year, at which point basic-rate taxpayers would need to earn interest at 2.5% to keep the value of their nest eggs.

For higher-rate taxpayers, the number to beat is 3.4%. No instant-access accounts offer that, but the top one-year bonds pay 3.6%, from the AA. Over two years, Yorkshire Bank and FirstSave (part of Nigerian bank FNB, which is authorised by the FSA and included in its £85,000 savings guarantee) both pay 4%. "You might also want to keep some back for the next tranche of [tax-free] NS&I index-linked savings certificates, which are expected to become available again in April or May," says Mel Kenny, independent financial adviser at Radcliffe & Newlands.

They are far less flexible but pensions are still a compelling tax-free saving vehicle. For every £1000 invested, the Government adds £250, while higher rate taxpayers can claim up to a further £250 in tax relief and additional rate taxpayers up to a further £375. The lion's share of the money is not available until retirement. But from the age of 55, a quarter of the fund can be withdrawn as tax-free cash, with the rest used to provide a taxable income.

For those who are willing to take on more risk, the stock market may appeal. Over the past decade, a FTSE All Share tracker fund grew from £25,000 to £39,347, providing above-inflation growth of £5210. While the past is no guide to the future, Danny Cox of Hargreaves Lansdown points to the Barclays Equity Gilt Study 2011, which looks at more than 100 years of data. It suggests a 75% probability that the stock market will outperform cash over five years, rising to 90% over 10 years and 99% over 18. "This is why stock market investing is for the longer term and not for money you might need in the short term," Cox says.

Cheaper power to the people

Which? today launches a collective energy-switching initiative in conjunction with online campaigner 38 Degrees.

The two say that if people join The Big Switch, they can use their collective power to cut their energy bills and help shake up the market. "This is a completely new way to buy energy as a group," said Richard Lloyd of Which? "The bigger the group, the stronger our bargaining power will be."

Direct debits? They fit the bill
If you've missed a bill payment lately, you're not alone. Moneysupermarket reckons eight million people have done so, with credit cards the most missed bill.

However, you could not only be letting yourself in for late payment charges but also for damage to your credit profile, pushing up the cost of borrowing next time you apply.

"Setting up a direct debit for the most vital bills is a must for those who forget to pay on their deadline," advises Kevin Mountford of Moneysupermarket.

Tip: Move fast on headline-grabbing mortgage and savings deals if you are ready to take action. Norwich & Peterborough yesterday withdrEw its 10-year mortgage, fixed at 3.99%, after a rush of demand