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From: MSE's Money Tips - Tuesday Nov 28, 2023 07:16 pm
| 28 November 2023 | View in browser |
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| Since the Bank of England held its base rate in Aug, we've seen fixed rates come off their peak, as they're set based on the view of interest rates over the fixed period, and that's got lower. This is evidenced by the fact one-year fixes have recently out-paid longer deals (though today a three-year one has sneaked in that's higher), as the markets think we may see rates drop in  The rates below are correct at the time of sending the email, but they change rapidly so for safety, check the latest top fixes Plus if we do see UK rates drop again, fixes have the benefit of certainty, while easy-access rates can drop. As for how long to fix, you earn most with shorter fixes. Yet if you're risk-averse, there's an argument that says if rates do come down, you may want to grab a longer fix now as you get certainty for longer. - Basic (20%) taxpayers can earn first £1,000/yr of interest tax-free. - Higher (40%) taxpayers can earn first £500/yr of interest tax-free. - Top (45%) taxpayers don't get a PSA. That's the INTEREST you can earn, so as interest rates have gone up, the amount you have saved before you earn enough to pay tax has dropped. At one point, you needed around £250,000, now...
Cash ISA interest is always untaxed. Cash ISA interest doesn't count towards your PSA. You can put £20,000 in each tax year (which ends each 5 April), and then once in, it stays tax-free year after year (see cash ISAs explained). So you can see how some who have maxed it each year can have over £100,000 in there. However, usually cash ISAs PAY LESS than normal savings, so they're only a winner for those who earn enough to bust the PSA limit (or are close to doing so). Smaller savers should stick with normal savings, but if you've got more, ISAs usually win, so fill your boots here first. Locked in to a poorly paying fixed cash ISA? Cash ISAs, even fixes, can't lock you in - they must allow you to withdraw money, though they can charge an interest penalty for doing so. Many who locked in a year or more ago are on terrible rates and should pay the penalty to move. As Rita emailed: PS: In the Autumn Statement the Chancellor announced a few changes and improvements to ISAs starting next April. Yet I want to be plain, for many, over the longer run, investing is the right call. For an introduction, see Stocks & shares ISAs, but you'll need more specialised websites for help on what to invest in. (1) Metro Bank: On Monday it agreed a £925m refinancing deal after worries about its finances - that will hopefully sort it. That's likely why it's top in a number of categories, as it wants to bring in deposits. The key point is ALL money up to £85,000 per person in there is protected under savings safety rules. If you've more, as always, it's worth questioning if you should be spreading it elsewhere. | ||||
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- You can easily keep your number. Text '
- Unlock your phone for free. If your phone's locked to a network, see how to unlock it.
- Don't want to switch? Haggle. Mobile firms are among the easiest to haggle with.
- Can you get cashback on top? Cashback sites may undercut deals elsewhere. Do check it's like for like though.
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The rise is all on what you pay for each unit of energy, so higher-use homes will be the worst hit. The standing charge is virtually unchanged (down under 1p/mth) so it'll still cost a nightmarish £300+/yr even if you use nowt - see my 'Why are standing charges so high & what can be done?'
Will Govt do the 'all-homes' subsidy again this year? Almost certainly not, as rates are lower, and partly I suspect as it didn't get much political credit last year (ie, bills were lower than they would've been but still far higher than previous years, so few were cock-a-hoop).
- Existing E.on Next customers: look at its E.on Next Pledge tariff.
- Existing Octopus customers: look at its Agile & Tracker tariffs to see if they're suitable.
- New & existing elec-only Fuse customers: look at its rates freeze so you pay the same as now until 31 March '24.
- Existing Shell customers: a quick way to get £50.
Want E.on/Octopus deals? You could first switch to either's standard tariff & then to these tariffs (if they're still around).
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| No-fee 0%: £175 to switch + TOP service: Top one-year fix: | Cheapest £7,500 to £15,000: Fast fibre (55Mb+) with 'OK' service: Sky Broadband £19.45/mth Superfast fibre (100Mb+) with 'OK' service: Sky Broadband £22.45/mth 4GB to 9GB data: 10GB to 30GB data: 31GB+ data: |
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