MSE’s Money Tips Fix energy?, Amazon 40%, Martin's wallet workout, 264Mb broadband £18/mth, savings trap warning, 31m

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From: MSE's Money Tips - Tuesday Mar 28, 2023 07:05 pm
MoneySavingExpert's Money Tips Email
Plus... Urgent tax reclaim deadline, 40% off Aldi code, FREE £50, cheep pet cover
                                                           
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 29 March 2023 | View in browser
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Weekly Money Tips
        
Banking & Savings Household Bills Deals Insurance Cards & Loans Mortgages Income Reclaim
 
 
 
DON'T believe the fake 'Martin Lewis' or 'MSE' ads
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.
 
 
 

How to max your savings returns...
Warning. Higher-interest fixes (hurrah) mean many now risk a tax trap if you pick the wrong interest option

Fixed-rate savings, where you lock money away, are by far the highest-paying route for lump sums, with the longest fixes now paying as much as 4.6%. That's great news, but you need to be wary about the interest option you pick, as it can mean unnecessary tax. Let's start with a simple table of top savings...

Top variable easy access (deposit & withdraw when you want) Top fixed savings (lock money away without access) App-only: Chip 3.4% AER (min £1)
Online access: Family Building Society 3.26% AER (min £100) & Shawbrook Bank 3.26% AER (min £1,000)
Big names: Sainsbury's 3.07% AER* (min £1,000) and Nationwide 2.5% AER* (min £1), though max three penalty-free withdrawals a year
Only if you've their current account: Barclays 5.12% AER up to £5,000, Nationwide 5% AER up to £1,500, Santander Edge 4% AER up to £4,000 Rates change quickly, so check top fixes - all link via there.
Top interest paid at maturity 1yr & 2yr fix: OakNorth 4.48% AER & 4.52% AER (both min £1)
Top interest paid monthly 1yr & 2yr fix: 
1yr: Shawbrook Bank 4.44% AER (min £1,000)
2yr: Vanquis 4.5% AER (min £1,000) Top easy access cash ISAs: 
Cynergy Bank 3.2% AER (min £1) & Santander 3.2% AER (min £500), account switches to 0.6% ISA Saver after 12 months
Top flexible ISA: Paragon Bank 3.2% AER (min £1), max three penalty-free withdrawals a year
Top cash ISA fixes:
1yr: Santander 4.15% AER (min £500) + £50 voucher if transferring an external ISA with £10k+
2yr: Virgin Money 4.26% AER (min £1)

How and where your interest is paid matters. Fixed savings interest is paid out 'at maturity' (meaning when the account ends), annually, or more frequently. The rate's usually the same whichever, but there are pros and cons which crucially depend on where the interest is paid to...

- Interest paid into another account (usually with monthly interest): The benefit is you can access it, spend it, and use it as income before the end of the term. Yet here you miss out on interest on interest, or 'compounding'.

- Interest paid into the fix itself (usually annual or maturity interest): You get the benefit of compound interest as it's calculated daily, but can't access the interest income earlier. This also has a tax impact...

Interest paid into the fix itself or at maturity can be a tax trap. It's the moment you can access the interest that crystallises it for tax purposes, so it all counts as interest income for that tax year (so even interest paid annually into a fix, as you can't access it, means it's counted that you got it all at maturity).

So for a long, say, three-year fix, you can be taxed as if you earned a lot of interest all at once. Under the personal savings allowance (PSA), basic (20%) taxpayers can earn £1,000 A YEAR of interest tax-free, while higher (40%) taxpayers can earn £500/yr (top 45% taxpayers don't get a PSA).

So by getting all your interest in one go, you may bust that year's PSA, meaning you pay tax you wouldn't have done if the interest was paid more frequently. In fact, it'd take just £7,000 in the top three-year fix paid at maturity to bust the £1,000 limit - half that for a higher-rate taxpayer. So you may want to opt for an account that pays (accessible) interest more frequently.

For those nearing retirement, if you'll be a lower-rate taxpayer in future, using 'pay at maturity' can be a useful tool to delay the payment, so it comes when you're at a lower tax rate. As, of course, a cash ISA can be - as none of the interest from that is taxable and it doesn't count toward the PSA.

Some can boost interest further. Specialised accounts can pay even more if you qualify:

- 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 7% on smaller amounts if you save monthly. See Regular savings.
- Prefer to invest? Higher returns, but more risk. See Stocks & shares ISAs.
 
Fixed-rate energy deals are back - but should you do it? The first energy fix in over a year has launched, but it's not available to everyone, and are they worth it anyway? Read Martin's Ovo one-year fix analysis. Also: New £301 'benefits' cost of living payments start on 25 April - are you eligible? See Cost of living support.

Ends 11.59pm Wed. Amazon up to 40% off sale - what's hot, what's not. Lasts about 48 hours. So far, we've seen Samsung earphones £69 (was £139), Shark cordless vacuum £193 (was £350). See our full Amazon sale analysis.

Martin: 'Urgent tax reclaims if you're either married | Had a PPI payout (even years ago) | Wear a uniform | Are employed.' To get max gain, you need to do this by 5 April. Martin's must-see tax-year-end video

Ends Thu. Cheapest ever superfast 264Mb Virgin broadband & line '£18.40/mth'. MSE Blagged. Newbies can get this Virgin Media 264Mb broadband & line deal (available to 55% of the country) for £23.95/mth, with no price rises until next spring. As it comes with an automatic £100 bill credit, you'll pay nowt for four months, unless you make calls - so it's equiv to £18.40/mth over the 18mth contract. Can't get Virgin in your area? Use our Broadband comparison for the top deals.

MSE's epic Easter egg taste test - can cheap choc beat the posh stuff? With 100 taste testers (our biggest yet), and eggs ranging from £1.25 to £12, we see if it's worth giving the cheaper ones a crack. Easter egg taste test

Aldi 40% off outdoor items code - includes garden furniture, pizza ovens and more. Online only. Stock can be limited, so go quick. Aldi

Invest £50, get a FREE £50 back. 1,900 left. This frankly ridiculous Wealthify deal came back last week, and there's still a few left. Newbies putting £50+ into Wealthify's robo-investments get £50 cashback after a year. So invest £50, wait, and then you get your money back, so whatever the investment's worth in a year is a win. Even if they flop, at worst you break even. Full details, pros and cons in Robo-investing cashback.

'Use it or lose it.' Only a week left to fill up your 2022/23 ISA, JISA and LISA allowance. See Martin's ISA 'use it or lose it' warning. Not everyone should do it, but if you should, go quick.

How to beat April's 17% mobile and 14% broadband price hikes. This and more in the new The Martin Lewis Podcast - listen through BBC Sounds, Spotify, Apple and more.
 
 
 
 

Pet insurance going cheep, and meow, and woof...
Hot deals comparison sites miss (including £70 Amazon)

As if the food, treats and fun little novelty outfits didn't cost enough, pet insurance can add serious cash to the upkeep of your furry, scaly or feathered companions. Yet there's no NHS for pets, and with medical costs high - removing something from a dog's stomach can cost £1,200, and a small cat wound £500 - you could face tough decisions without cover. Our full Cheap pet insurance guide has a menagerie of tips to reduce costs, but here's a brief walkies through...

CAT OR DOG: Combine comparison sites, then check hot deals they miss. Like most types of insurance, prices are bespoke, so the key is to get as many quotes as possible in the shortest time.

MSE's Cheap pet insurance guide.Step 1. Combine comparison sites. Try as many as you've time for, as they search different insurers and sometimes have different prices for them, and most let you get multi-pet quotes. Try MoneySupermarket*, Compare The Market* (single pet quotes only), Gocompare and then Confused.com*.

Step 2. Check deals that aren't on comparison sites. As well as big providers such as Direct Line* and Petplan* which don't appear on comparisons, some promos are missed too. We've listed the deals comparisons don't list (some because we've blagged exclusive extras).

So check them individually and compare them to the winners from comparison sites, factoring in the promos and the level of cover to see which wins. Some of deals include the following (though we don't have huge feedback on all the providers)...

- Waggel* through this special link gets a £70 Amazon voucher per pet on your policy after 90 days.
- Ends Fri. Asda Money* pays a £70 Asda voucher per pet after 90 days.
- Ends Thu. ManyPets* offers a £65 Amazon voucher with a cat or dog policy, sent within 60 days.
- And if there's time, check cashback sites too to see if you can get cashback on the comparison's winner.

HORSES, PARROTS, RABBITS, REPTILES AND OTHER PETS: Comparisons don't usually work. It's a little trickier, as you'll need to manually compare quotes directly with specialist insurers.

- For horses and ponies: Try SEIB, Petplan Equine* and NFU Mutual.
- For rabbits, budgies, guinea pigs, parrots, lizards and more: Try Exotic Direct* (+ Sainsbury's & Petplan* for rabbits).

BEWARE switching insurance if your pet has a pre-existing condition. Most new policies won't cover any past issues, whether you've claimed for them or not. Yet if you stay with your old insurer, you're likely to pay more to cover that condition in future. So it's usually a choice between switching to a cheaper policy with no cover for the specific condition, or sticking and likely paying more. Full help in pre-existing problems.

Top pet insurance NEED-TO-KNOWS...

1) It generally covers big issues (broken bones and cancer), not check-ups. See what's covered.
2) Need cover but can't afford it? If you're on certain benefits, charities such as the PDSA may help with vet bills.
3) Cats are seen as free spirits, dogs aren't. You're liable for your dog's behaviour if it causes damage or injury to other people or property. So always check third-party cover (as a minimum, get it standalone from Dogs Trust).
4) Could you self-insure? For smaller animals, you could put cash in savings to cover fees. See self-insuring help.
5) Don't forget routine jabs. If you don't keep up to date, it may invalidate your insurance.
6) Always check the policy is right for you. It's not easy, as insurance is about protection from the unknown, but do check the policy details, what's excluded, and that the firm's regulated by the Financial Conduct Authority.
7) If your claim's unfairly rejected, take it to the Financial Ombudsman. Once you've complained to the firm, you've then a right to go to the free independent Financial Ombudsman Service for it to adjudicate.
 
Passport Office strikes start next Monday - your rights if applications are delayed. Home Office guidance to allow 10 weeks hasn't changed, but delays could derail holidays. Your passport strike rights

Ends Thu. Longest balance transfer deal 31mths 0% (3.49% fee). A balance transfer's where you get a new card that clears old cards for you, so you owe it instead, but at 0% interest. MBNA's up to 31mth 0% card (3.49% fee)* ends Thursday, though NatWest's 30mth 0%* has a lower (2.99%) fee and isn't an 'up to' - all accepted get the full 0%. Check if you'll be accepted: Our 0% eligibility calculator shows your personal chances for most top cards. Golden rules: Repay at least the monthly minimum, clear the card before the 0% period ends, or they jump to the 22.9% and 23.9% rep APRs. Full help in Top balance transfers.

Base rate up (again) to 4.25% - what it means for your mortgage and savings. Let's be honest, you're likely used to the impact after 11 successive rises. But just to be sure, you can read our full analysis in Base rate hike.

Spring sales: Next 50% off, Asos up to 70% off, Ikea up to 50% off and more. See our full sales round-up.

'I saved £200 on my car insurance using your tips.' Our success of the week comes from Deborah, who emailed: "I was quoted £453 to renew my car insurance (compared to £351 last year). I used the comparison strategies [through MSE Compare+] you suggested and got the same cover for around £250. Next year I will try for quotes earlier, in the sweet spot, rather than putting it off. Thanks MSE." If we've helped you save (on this, or owt else), please send us your successes.
 
 
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AT A GLANCE BEST BUYS
 

THIS WEEK'S POLL

Do you carry a wallet or purse? This week's Money Tips email leads on Martin's Wallet Workout - but in this digital age, how many of us still carry a wallet or purse? Let us know in this week's poll.

Almost 90% of MoneySavers have some form of ISA. Last week, we asked how many of you have an ISA, and more than 4,500 responded. The majority do have an ISA, with stocks & shares and fixed-rate ISAs the most common, followed by easy-access cash ISAs. There was a clear age divide, with those aged 50+ much more likely to have an ISA than younger responders. See the full results.
 
 
 
 

MONEY MORAL DILEMMA

I bought a second-hand smart TV - should I use the previous owner's streaming services? I recently bought a second-hand smart TV from a charity shop. When I got it home and connected it to the internet, I found I am able to access the previous owner's film and TV streaming services, including those that are paid for. I don't have the budget to subscribe to these myself, and I work nights, so provided I only use them a little bit during the day when the previous owner's unlikely to want to, would it be wrong to do so? [MSE note: It's usually against the T&Cs, but we'll leave you to decide on the morals of this.] Enter the Money Moral Maze: I bought a second-hand TV - should I use the previous owner's streaming services? | Suggest a Money Moral Dilemma
 
 
 
 

MARTIN'S APPEARANCES (WED 29 MAR ONWARDS)

Wed 29 Mar - Good Morning Britain, ITV1, 6am
Wed 29 Mar - Ask Martin Lewis, BBC Radio 5 Live, 1pm

MSE TEAM APPEARANCES (SUBJECT TBC)

Tue 4 Apr - BBC Radio Cambridgeshire, Mid-morning with Amir Suleman, from 10.45am
 

NAN'S 50-YEAR-OLD CARDIGAN & A DRESS FROM THE '40s... WHAT'S THE OLDEST CLOTHING YOU WEAR?

That's all for this week, but before we go... our MSE Forumites have been celebrating the joys of durable clothing as they compare their oldest outfits. Some of the most impressive examples include a jumper bought in 1975, a 30-year-old scarf, a black lace dress from the 1940s, and a 34-year-old cashmere coat. Many mentioned clothes they'd inherited from their late parents or grandparents, with a 1970s lambskin coat and a more than 50-year-old cardigan that's been passed down through three generations the highlights. And special mention goes to the Forumite who made a cotton blouse when they were 18 that they still wear today - aged 65. Add yours in the What's the oldest item of clothing you still wear? MSE Forum discussion.

We hope you save some money,
The MSE team
 
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