Make your wages do the hard work, and save a packet

Brits could boost their wages by being financially savvy in 2012, according to analysis from MoneySupermarket.com. Someone with a monthly income of £1,500 (post tax) could earn an additional £450 in interest and cash back this year by simply leaving their money in a market leading current or savings account for the entire month and using a cash back credit card for their monthly spending, paying it off in full at the end of the month.

For example, using the Santander Preferred current account, offering five per cent AER for customers in credit, would earn someone an extra £75 in interest over the year, if they left £1,500 in the account for the month.

By leaving £1,500 in the current account, and putting all your expenditure on the Amex Platinum cash back card- which pays 2.5 per cent cash back in the first three months up to a total of £100, and a subsequent 1.25 per cent after that- could earn £243.75 cash back over the year, taking into account an annual fee of £25. However, consumers must make sure they pay off the card in full each month otherwise the interest charges would offset the cash back benefit. Adding this to the money earned keeping money in Santander Preferred current account, would earn an additional £318.75 in twelve months.

Meanwhile, those looking to switch their main account to the Santander Preferred current account could benefit from an additional financial boost, with Santander currently offering new customers £100 cash back when switching to the account. What's more, consumers can also take advantage of a £30 Amazon Gift Certificate when opening the account exclusively through MoneySupermarket.com earning the equivalent of an extra £130.

Kevin Mountford, head of banking at MoneySupermarket.com, said: "At a time when interest rates are relatively low, savvy consumers can help boost the earning potential of their money by taking advantage of the various offers available on the market, sometimes to the tune of hundreds of pounds. However, in order to benefit from these deals you need to be disciplined, otherwise you can leave yourself out of pocket.

"Using a cash back reward card and a high interest current or savings account is a clever way of making your wages do the overtime so you don't have to. Keeping money in a current account and putting everyday expenditure on a cash back card, but then paying the card off in full at the end of the month can help generate additional income. However, I would advise anyone thinking of doing this to ensure they are aware of the full terms and conditions when doing so. For example, not paying in the minimum amount to a current account or making a late or missing a payment on a credit card balance would lead to interest being charged, effectively cancelling out any cash back benefit you have earned."