Advice Please: Earning Interest

That pretty much depends on what interest you want and how much risk are you willing to take.

If 1-2% in a year is enough for you, put your money into bank and forget about it.

If you don't like risk and agree to make 13-14% in a year, share market is for you. Go buy some google shares

If you want an increadibly high interest go look for a HYIP to invest in.

I invest in some of those making around 20% monthly, but the risk is very high, you can lose your money very fast.

Having studied actuarial studies and finance for the past 3 years, i can tell you that theres no such thing as earning "good interest" on assets if you arent prepared to take some risk. The market is very efficient and you will never be rewarded with good interest on any asset unless you are willing to bare some risk.

If your in the UK, I just changed my ISA from 3.8% to 5%.
An ISA is an account where you can save certain amounts, £3000, £10,000 each year with no tax taken out.

I work in the investment industry and what james is stating above is essentially true. In order to get a higher return, you need to take a higher risk. It really depends on how high a risk you want to take, how long you want to invest your money or have access to it. Basically you will make little interest in anything with little risk that is say insured by the FDIC. If you take a little more risk say a money market fund where you can have almost instant access to it, you also earn very little - interest rates are very low.

It also depends on what you are saving your money for - it is long term, short term? For the average individual, financial planners typically suggest what is called dollar cost averaging. Pretty much you decide how much monthly or perhaps quarterly you want to put away. Say you do the typical lowest - $50 a month. You select a mutual fund depending on your amount of risk and depending on when you want your money invested(long, mid or short term). You then put in $50 a month. Your risk is lower as each month the value either increasing or decreasing so you average out the risks of the ups and downs. Also, your investment is diversifed rather than investing say in one stock - you are invested in a pool of stocks. Overall, for some one with limited knowledge of investments and limited amounts of money, this sort of investment works best. It is not guaranteed that you will increase your value, however, overall you tend to earn more than simply putting your money in a "safe" vehicle.