MSE’s Money Tips 5.2% ISA, Fight rent rises?, Lloyds warning, 3x FREE £175, iPhone 15 £32/mth, easy-to-get 2% cashbac

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From: MSE's Money Tips - Tuesday Jun 11, 2024 07:04 pm
MoneySavingExpert's Money Tips Email
Shift debt to 28mths 0%, a MONTH's dog food £3.60, 65 free festivals, £5 off Hobbycraft
                                                           
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 11 June 2024 | View in browser
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Lots of scam ads litter social media and even newspaper websites - some of these lie that we or Martin promote Bitcoin, binary trading etc. See Fake ads warning.
 
 
 

New. Top 5.2% easy-access cash ISA pays more than top savings - highest we remember since 2008
Even if you don't pay tax on savings, it's still the highest easy-access rate

Let's not overcomplicate it, a cash ISA is just a savings account you can put up to £20,000 in per tax year and the interest is NEVER taxed. Once in, it stays tax-free year after year if you don't withdraw it. Just like normal savings, they can be easy-access, notice accounts or fixed - that's because they are normal savings, just inside a tax wrapper.

The top cash ISAs normally pay less than top normal savings, but currently your money really looks nicer in an easy-access cash ISA, because the top payer beats even the top open-to-all easy-access normal savings. So even if you don't pay tax on savings - as you earn under the Personal Savings Allowance (eg, basic 20% rate taxpayers can earn £1,000/yr savings interest without paying tax) - it's still worth looking at as the interest's higher. Though the top product requires some explanation...

New. Top rate by far, 5.2% easy-access cash ISA. The new variable rate Trading 212 5.2% cash ISA* (min £1) is easily the top-paying easy-access ISA (and beats the top normal savings too). You can save new money into it, and it normally allows you to transfer cash from existing ISAs in too - though there's so much demand currently it's pausing that (but you can open it now, and transfer across to it later). As with any ISA transfer, you mustn't withdraw the cash to do it, ask Trading 212 to transfer it in for you. Now to delve a little deeper...

- What is Trading 212? Its name sounds a bit odd, but it's an international share trading platform that's likely offering a loss-leading high-rate cash ISA to build market share (when firms have done this in the past, they tend to keep rates high for a year or more, then gradually lower them, so monitor and if it does drop, transfer elsewhere). Do be aware, like most finance firms, it may want to cross-sell its other products (though it says it doesn't plan to). Don't do that unless you've done your research. And it's a new(ish) firm to us, so we don't have much customer service feedback yet (do let us know).

- The savings have the UK £85,000 savings safety protection... yet as it isn't a bank in its own right, the normal Financial Services Compensation Scheme (FSCS) savings safety protection works differently. Your money's held in a 'client money account' via the UK arms of Barclays, JPMorgan and/or NatWest - and kept separate from Trading 212's own money. These are all fully UK regulated (we have all this in writing from the FSCS), so that ensures your money's protected.
A mock-up of a mobile phone screen showing our 'Which banks are linked?' tool. Text appearing on the tool reads: "Find out if your bank shares its savings protection." The image then shows an option to type in your bank or building society's name or to see a full list of them. A red button reads: "Find linked banks." Image links to a section in our 'savings safety' guide, titled 'What counts as a financial institution?' You can access the tool from this section.
Yet be aware if you've money with those or their subsidiaries (use our Which banks are linked? tool to check), then the total protection is £85,000 per institution, so this could push you over that. Trading 212 said it aims to split money evenly between its three partner banks & plans to update its app so you can see how your savings are distributed.

Best of the rest: If Trading 212 isn't for you, these are the top variable-rate easy-access cash ISAs. For new money & transfers, Charter Savings Bank's 4.97% (min £5,000) and Kent Reliance's 4.86% (min £1,000). For new money only, app-only Plum pays 5.17% for 12 months (min £100) BUT only allows three withdrawals a year without penalty. See our Top cash ISAs guide for more.

 Top one-year cash ISA fixes. Normally with fixes you have to lock your money away, yet cash ISA providers aren't allowed to do that, so you can close all these, but you pay an interest penalty to do so (so they're best for those who are unlikely to need the cash). Castle Trust Bank's 4.87% (min £1,000), or if you've a Virgin Money current account there's Virgin's 5.05% (no min). Worth noting, if you are definitely locking money away and don't pay tax on savings, the top fixed normal savings rates beat cash ISAs.

Can you boost interest further? Some specialised options in our Savings section pay even more:
- 50% bonus for many on Universal Credit or Tax Credits. See Help to Save.
- 25% bonus for first-time buyers aged 18 to 39. See Top Lifetime ISAs.
- Earn up to 8% if you can save monthly. See Regular savings.
- Prefer to invest? Higher returns, but more risk. See Stocks & shares ISAs.
 
Warning: Lloyds, Halifax, Bank of Scotland customer? Your overdraft may be upped to 50%. Lloyds news

A month's 'tailored' dog food £3.60 (normally £36) via 90% off code. MSE Blagged. A fraction of what most pay just for off the shelf tins in a supermarket. You can cancel after the month if you want. Newbies only. Tails

Need extra cash? Grab it from a bank! Three pay you a FREE £175 & more to switch. Last week our get paid to switch bank email was huge, as the three top payers all now give a FREE £175... Top all-rounder: Santander Edge* also has 7% linked savings & 1% bills cashback for £3/mth. No. 1 service & fee-free: First Direct's* rated 91% 'great' & has 0% overdraft. Perky account: Club Lloyds gives extras such as 1yr's Disney+. See them fully compared in last week's email.

Ending. 2% cashback on spending till 31 Oct on free, easy-to-get prepaid card. The free, app-operated HyperJar* prepaid Mastercard is openable by anyone (there's no credit check, as you just preload money on it to spend). Currently, newbies who order a free physical card, then spend either on that or its virtual card by Fri 21 Jun, can earn up to a HUGE £200/mth cashback till 31 Oct, so it's lucrative for big purchases. You get...

- 2% cashback on spending via Google Pay or Apple Pay.
- 1% cashback on other spending.
- There are cashback exclusions, including car dealers, investments, bills, foreign currency (see full list).

It's a strong deal for those who struggle to get other cashback cards, and/or have big spending planned in that time. As it's a prepaid card you get chargeback spending protection, so you should be covered if you pay for something & it isn't delivered, though it isn't as strong as Section 75 credit card protection. Full info & alternatives in top cashback cards.

Hobbycraft £5 off £15 spend code. In stores or online. See Hobbycraft £5 off.

Top 5.1% easy-access savings. App-only bank Chase* (part of giant JPMorgan) is paying 5.1% (on up to £1m) to new customers (& existing ones with under £50,000 saved on 2 May), easily the best open-to-all account, though currently beaten by the top cash ISA. Just open its free current account (it only does an ID check, not a credit check & you needn't switch to it) to access the savings. It also gives 1% spending cashback & has a top debit card for overseas. More info: Top savings.

65 FREE summer festivals and carnivals, find those near you. With our Free festivals guide.

New. Cheapest iPhone 15 (the latest) we've seen '£32/mth'. Newbies to iD Mobile (uses Three's signal) can get an iPhone 15 (128GB) on a 24mth contract with 100GB/mth data via Carphone Warehouse. You pay £49 upfront, then £30/mth (this'll rise each April by inflation + 3.9%), and you can CLAIM (don't forget) a £20 Amazon or Currys voucher. All in, it's £749 over the 2yr contract (equivalent to £32/mth), while just the handset from Apple is £799. PS: The retailer's responsible for the handset, iD Mobile for the contract. Find other cheap handsets/Sims: Cheap Mobile Finder.

'I saved £160/yr using your car insurance tool three weeks before renewal.' Our success of the week comes from Helen: "My motor policy renewal quote increased by £230 this year. I used your Compare+ Car Insurance tool to compare prices three weeks before renewal and managed to reduce my insurance costs by £159. Despite trying to haggle with my original insurers, who've given great customer service this year, I couldn't save half that amount so I've moved. Thank you. It's nice to feel someone's on my side for a change." If we've helped you save (on this, or owt else), send us your successes.

Tonight (Tue) ITV 8pm. THE MARTIN LEWIS MONEY SHOW LIVE SUMMER SPECIAL
Under 73? Turn £800 or less into £5,400 or more | Act now to slash the cost of summer hols abroad. Over to Martin: "An important but mixed bag tonight. The clock's ticking for you to boost your state pension, with the gain lasting decades. It's the single most lucrative subject I've done. Plus as it's a summer special, tips & best buys for anyone who's booked a trip abroad this summer, from cheap euros to passport checks, insurance and more. Got a question? Tweet using #MartinLewis or email the team at martinlewis@itv.com. Do watch (or catch up via ITVX).

 
 
 
 

The credit card best balance transfer battle is beefing up
New. Shift existing card debt to 28mths INTEREST-FREE, & importantly all accepted get the full time plus a lower fee

It's big money: 'I saved nearly £1,000/yr interest transferring to a new 0% card'

After months with no new top balance transfer cards, the market has sprung to life. If you pay interest and can't afford to clear your existing credit card debt, you can't afford not to check if you can get a 0% balance transfer. A balance transfer is where you get a new card, which pays off the debt on your existing card(s) for you, so you owe it instead, but interest-free. This way, more of your repayments clear the actual debt, rather than just cover the interest.

As Trevor emailed us on Wednesday: "Hi Martin & co. I was paying £300 for two credit cards, costing me £76/mth interest. I took out the Virgin Money deal with £5,299 credit, and transferred both card balances to it for a £164 fee. With 28mths 0%, I'll have it all paid off in 15mths, saving me a bankroll. Bangin'! Thanks for all the advice, keep it coming." [A saving of nearly £1,000/yr in interest.] Now two key tips first before the best buys...

A mock-up of a mobile phone screen showing our Credit Card Eligibility Calculator, which shows that the user has been 100% pre-approved, and will "get this exact offer if the info you gave is correct, subject to ID checks". Image links to the calculator itself, with '0% balance transfer' selected as the type of card to be displayed.1. Applying hits your credit file - use an eligibility calc instead. Our 0% eligibility calc shows your acceptance odds for top cards, so you can home in on those most likely to accept you before applying, to minimise the credit file impact. This is especially important for POOR CREDIT SCORERS - plus we include specific cards that may accept you.

2. Go for the LOWEST FEE available within a 0% time long enough to clear your debt. Generally, the longer the balance transfer, the bigger the fee. So if you can clear your debt quicker, go for a shorter deal to minimise fees. Unsure? Play safe & go long.

Tesco Bank
Link goes via eligibility or apply direct* - 29mths 0%
- 3.49% fee
- 24.9% rep APR after
Longest 0%. Our eligibility calc can also show if you're pre-approved, meaning you'll definitely be accepted (subject to ID & fraud checks).  New. Virgin Money
Link goes via eligibility or apply direct* - 28mths 0%
- 3.25% fee
- 24.9% rep APR after Long 0%, lower fee. It's just extended the length of this card by a month. As the fee is slightly lower, and it has a just slightly shorter 0%, it's a good alternative worth considering. Virgin Money
Link goes via eligibility or apply direct*
- 20mths 0%
- 2% fee
- 24.9% rep APR after
Lower fee version if you can repay in 20mths. If you're sure you can clear what you owe in that time, this wins. NatWest
Link goes via eligibility or apply direct* - 13mths 0%
- NO fee
- 24.9% rep APR after Longest NO-FEE 0%. This is the winner for those who can pay off quickly as there's no cost at all. Similar cards are offered by its sister banks RBS* and Ulster.
Top-pick newbies' 0% balance transfers (ordered by length)
For once, ALL the cards below give all accepted customers the full 0% length, none are up-to cards

ALWAYS follow the Balance Transfer Golden Rules:
a) Never miss the minimum monthly repayment, or you could lose the 0% deal and it'll cost far more.
b) Aim to clear the card (or balance-transfer again) before the 0% ends, or the rate rockets to the higher APR.
c) Don't spend or withdraw cash. It usually isn't at the cheap rate & withdrawals may hit your ability to access credit.
d) If you don't transfer at application, you've usually only 60 to 90 days to get the 0%. Do check your card's terms.

Quick balance transfer FAQs (click links for Martin's answers)
Q. Is it worth applying if my eligibility odds are low? | Q. What if my credit limit isn't big enough? | Q. Can I shift debt to existing cards too? | Q. Should I try to pay off my biggest debt first? SPOILER: NO.
Full help and info, including options for poorer credit scorers, in Best balance transfers.

 
TWO NEW PODCASTS: 1) Banks are paying switchers big bucks, all questions answered + cheap wedding tips + do you pay tax on the state pension? 2) Renters' rights - can you challenge a rent rise? This week, there's both the normal The Martin Lewis Podcast and, as already discussed above, its strange new cousin The Not The Martin Lewis Podcast. Listen via BBC Sounds | Spotify | Apple or wherever you like to get your Martin fix.

Free West End theatre ticket for kids with a paying grown-up, for Wicked, Mrs. Doubtfire, Shrek & more. The annual 'Kids Week' promo on 50+ shows has launched, for July to Sept performances. Full info in kids' theatre tix.

Are you a parent who pays for childcare? Please fill in this quick survey to help our campaigning.

Last-minute Father's Day deals, including 33% off Scribbler cards and free gift cheques. If you're celebrating, it's this Sunday (16 June). See our Father's Day round-up.

Are you one of 500,000+ providing 20hrs+ week of care for low/no pay? Unpaid carers are the nation's unsung heroes, looking after their loved ones, saving the NHS money, and often leading hard lives themselves because of it. As it's Carers Week, here's a reminder of the rather paltry, but still worthwhile, help available. Check whether you're missing out on Carer's Allowance worth £4,000/yr or Carer's Credit, which could boost your state pension by £1,000s.

The MSE app is two - join the 1.4 million who've downloaded it. It's MSE, but appified. Download free via Apple App Store or Google Play Store.
 
 
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AT A GLANCE BEST BUYS
 
 

THIS WEEK'S POLL

Are you a renter - and how much does it cost you? Average monthly rental costs are up 9.4% across the UK, so this week we want to know whether you rent and how much your rent costs as a proportion of your income. Take your monthly income (this could be from your salary or pension, as well as any benefits) and let us know roughly what percentage of this is spent on your rent on a monthly basis. Vote in this week's poll.

Almost 40% of MoneySavers have never switched bank account. Last week, we asked when you last switched your bank account - more than 3,500 of you responded. Just under one in 10 (8%) have switched in the past three months, with the keenest switchers aged under 35. Two in five (38%) say they've never switched - but with lots of free cash switching incentives on offer right now, what's stopping you? See full bank switch poll results.
 
 
 
 

MONEY MORAL DILEMMA

My friends cancelled our reunion at short notice - should they pay for my hotel? Last year, a group of friends I'd lost touch with arranged a get-together with me. We decided to do it again this year, agreed the dates and location, and said we'd book our own accommodation. Three weeks before, however, they pulled out - I'm extremely sad for the lost friendships and because no one had told me earlier. I'm now left with an expensive hotel booking I don't need and can't cancel. Should I ask the rest of the group to foot my bill? Enter the Money Moral Maze: Should I ask my friends to pay for my hotel? | Suggest a Money Moral Dilemma (MMD) | View past MMDs
 
 
 
 

MARTIN'S APPEARANCES (TUE 11 JUN ONWARDS)

Wed 12 Jun - Ask Martin Lewis, BBC Radio 5 Live, 1pm
Tue 18 Jun - This Morning, phone-in, ITV1, 10.20am
 

PADDING OUT WITH PULSES, STRETCHING OUT ROASTS - CHEAP WAYS TO FEED A FAMILY OF SIX

That's all for this week, but before we go... MSE Forumites are a helpful bunch, and over the last week they've been assisting a family of six to find ways of spending less on their weekly food shop. One savvy MoneySaver recommends making more mince-based meals - cottage pies, bolognese, chilli - and bulking them out with cheap tinned beans and pulses. A big Sunday roast can be expensive, but can reappear during the week as a 'leftover' curry, stew or casserole, then as a stir-fry, omelette filling or even pizza topping. Plenty advocated for a breadmaker, with one saying their first machine paid for itself in months, providing a ready source of pizza dough as well as the obvious loaves and rolls. Another used to have a 'new thing night' once a week to introduce their kids to something unfamiliar (and economical to prepare) - but this was always paired with a favourite pudding to sweeten the deal. If you've any top tips, let us know in our Food shop for a family of six MSE Forum thread.

We hope you save some money,
The MSE team
 
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What you need to know

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We don't as a general policy investigate the solvency of companies mentioned, how likely they are to go bust, but there is a risk any company can struggle and it's rarely made public until it's too late (see the Section 75 guide for protection tips).

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Who is Martin Lewis?
Martin Lewis CBE is the founder and executive chair of MSE, as well as the founder of the MMHPI charity. He's an ultra-focused MoneySaving journalist and consumer campaigner with his own prime-time ITV programme The Martin Lewis Money Show, Radio 5 Live Wednesday show Ask Martin Lewis and weekly slot on This Morning, among others. More info: See Martin Lewis' biography.

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