Are you saving up to buy a prized piece of artwork but are disappointed with your current rate of return? Maybe you want to start saving, but don't know where to begin? Saving right now is not exactly easy and many people are either confused or feel they can't afford to save.

The Bank of England has set the base interest rate to an all-time low of just 0.5%. This is to encourage people to spend, which in turn should lower inflation which currently stands at 3%; 1% over the Bank's own inflation target. With an interest rate this low and inflation this high (compared to 2003-2007 levels, i.e. pre-recession) there is no real encouragement for consumers to save. But, there are still profitable accounts out there; you just have to know where to look. So how can you make your money work a little harder?

Although it is a daunting decision, locking your money away for one to two years pays dividends. Banks need your money, so they offer far more attractive rates on accounts that you can't access for some considerable amount of time. These kinds of products are ideal if you are saving up for something in particular and have set yourself a time frame to do so. Alliance & Leicester, for example, offer fixed-rate options for savings which pay up to 3.5% AER if you leave over £10,000 in there for two years. Over the two year period with this amount you can earn around £600 before tax.

Speaking of tax, if you don't want to pay it, and let's face it none of us do, get yourself an ISA. These Individual Savings Accounts are tax free, so you won't have the tax man banging down your door for tax evasion. You can now save up to £10,200 a year in an ISA. This sum can be split between a cash ISA and a stocks and shares ISA, with no more than 50% allowed in the cash portion. You can earn around 3% interest on these accounts and won't have to give up even 1p of your easy-earned interest.

Always shop around for a savings account, no matter what type you choose. Don't just go with your current bank because it is easier to do so. Also, new customers tend to get better rates, so every few years hunt around for new deals. Use comparison websites to set you in the right direction before deciding which avenue to take.