Let's look at some strategies to make your money work harder so that inflation can't eat it all up. Please note that all discussion is with reference to the options available in the retail market in the UK.
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Best Regular Saver Account
If you can put aside some money every month, you must consider regular saver accounts. One of the best such account with an upper cap of £250 per month is the Regular Saver account offered by HSBC. This account requires you to have an HSBC current account first. The interest rate is either 4% or 6% depending on the type of current account you have with HSBC. Even if you don't get the preferential rate of 6%, you shouldn't worry as 4% is higher than the expected inflation rate of 3%.
Cash ISA Account
various options available depending on what you are looking for. Some of these do provide an interest rate greater than 3%.
Bullion by Post, you can easily buy a gold bar in a secure and convenient manner; most authentic sellers will ship next day via Special Delivery.
A tip here is to buy a gold (or even a silver) bar with the maximum weight that you can afford. A 20 gram gold bar, for example, is always cheaper than buying two 10 gram gold bars.
You should, however, consider the downsides such as keeping the bar in a secure place and the money you lose in buying and selling gold (i.e., the overhead associated with converting it into cash). Gold should be an option only if you are interested in an investment of a longer duration (more than 5 years).
If you earn more than £1000, your first step should be to open up a Halifax Reward Current Account. If you can spare some money, you can invest up till £250 per month to get an interest rate of 4%. If you have any more money, consider filling up your Cash ISA limit. And finally, if you are still left with some cash, do consider buying gold.