Latest news with #AnnaBowes
Sky News
7 days ago
- Business
- Sky News
Savings Guide: ISAs take 'battering' - but best five-year bond launched for months
There are plenty of savings accounts to choose from, ranging from easy access to fixed-rate bonds. Savers now have more options to beat inflation. For this week's savings guide, Anna Bowes, personal finance expert from The Private Office, reviews the best options on the market... Easy access The top easy access rate on offer is still 5% AER - that's through the Chase saver, with a boosted rate of 2.25% for 12 months. Its underlying rate is variable, so if we see the base interest rate cut over the next few months, this could well fall. Elsewhere, Atom Bank has reduced its Reward Saver Account from 4.75% to 4.60%. The new rate is still competitive, although the access is extremely restricted. Make more than one withdrawal a year, and the rate will fall to 2.5%. Cahoot's Simple Saver is still offering the top unrestricted easy access account that doesn't require you to open a current account with them too, paying 4.55% AER. But after 12 months, any remaining funds in this account will be transferred to a Cahoot Savings Account, which currently pays only 1.20% AER. For those who want a straightforward, easy access account, the Family Building Society could be your top choice, even though it's no longer in our top five. It's paying 4.52% AER and you can only withdraw up to £25,000 a day. Fixed-rate bonds The best one-year fixed rate on offer is still with financial app provider Prosper, via Al Rayan bank, which has a bond paying 4.6%. This is a Sharia-compliant account, which means that rather than an interest rate, the rate offered is an Expected Profit Rate (EPR) - so it is not guaranteed. That said, Al Rayan has always paid out the EPRs and if the worst should happen and it drops the rate, it would offer penalty-free access to the bond, paying the original promoted EPR up to that point. Most importantly, the funds deposited are fully protected by the Financial Services Compensation Scheme (FSCS). GB Bank is still offering the top traditional fixed-rate bond but the rate has dropped slightly to 4.53%, from 4.58%. The five-year table has seen the most activity this week, with the top rates now higher than they were a week ago. Chetwood Bank launched a new bond paying 4.5%, taking it to the top of the table, pushing DF Capital into second place. But Birmingham Bank wanted in on the action and launched a market-leading account paying 4.51%, which is the highest rate we've seen since the beginning of May. Fixed-rate cash ISAs The top one-year ISA is slightly higher than a week ago, after the introduction of a one-year cash ISA from Tembo paying 4.27%. The top two-year ISA rates have taken the biggest battering, with Vanquis dropping the rate it's offering from 4.23% to 4.18%. United Trust Bank has also dropped its rate from 4.20% to 4.16%. Easy access cash ISAs The freeze on activity in the easy access cash ISA table has continued, and all of our top five are the same as they have been since early July this year.
Sky News
02-07-2025
- Business
- Sky News
Should you get a Lifetime ISA? Here are two key issues to consider
Why you can trust Sky News A lot has been reported on possible changes to ISAs in future recently. For the Savings Guide this week, Anna Bowes, savings expert from The Private Office, makes sense of the controversy surrounding Lifetime ISAs. ISAs are all over the news at the moment, as Chancellor Rachel Reeves is expected to launch a broad review. One aspect that could benefit from an overhaul is the Lifetime ISA (LISA). The idea of the LISA is great - to help people buy their first home or save for retirement, offering a tempting 25% government bonus on every deposit. But as with many financial products, the devil is in the detail, and a recent report from the Treasury Select Committee has highlighted how complicated and at times unfair the LISA can be. If you're between 18 and 39, you can open a LISA and put in up to £4,000 a year until the day before you turn 50. The government will top up any deposit with a 25% bonus. That's up to £1,000 extra each year, far more generous than most other savings schemes. If you're saving to buy your first home or for later life, it can make a real difference. A major concern, however, is how inflexible the LISA can be. If you need to access before the age of 60, for anything other than buying your first home, you'll be hit with a 25% penalty. That might sound like you're just giving back the bonus - but you're actually losing part of your own savings too. It works out as an effective 6.25% loss on the money you put in, which is a nasty surprise if you suddenly need to dip into your account. Then there's the issue of the property price cap. The £450,000 limit was set in 2017 and hasn't moved since. In many parts of the country, particularly London and the South East, this doesn't stretch far enough, which means buyers risk being penalised for using their own LISA savings if the property comes in even a few pounds over the cap. That's not just frustrating, it feels unjust, especially in a market in which house prices have continued to rise while the cap has not. According to recent figures, more people are withdrawing cash early than using it to buy a home. In the previous tax year, almost 100,000 people were hit with the withdrawal charge, while fewer than 57,000 used it to step onto the property ladder. None of this is to say the Lifetime ISA is a bad idea; it's just not as simple or user-friendly as it ought to be. Used correctly, it can be an excellent tool. But too many savers are falling foul of the rules. The government now has an opportunity to fix the flaws, and savers deserve a product that rewards careful planning - not one that catches them out. Until then, anyone considering a LISA should tread carefully. It's a good product, but only if you're sure you won't need that money unexpectedly. As always, the key is knowing the rules before you sign on the dotted line.
Sky News
05-06-2025
- Business
- Sky News
Regular savings rates fall - and you need to keep your eye on the small print
For this week's guide, Anna Bowes, personal finance expert from The Private Office, looks at where rates are falling... Savings rates have resisted the Bank of England's base rate cut in recent weeks, but the top rates on offer have now begun to fall - and the terms and conditions for some of them have changed. Atom Bank's Instant Saver Reward account, for example, is offering the top rate at 4.75% AER, but if you make a withdrawal, the rate falls to 2.5% for the month that follows. "It's important to double-check the small print, as many of the top rate accounts have either restricted access to the cash, which means that if you make some or too many withdrawals, you could earn less interest than you were expecting - or there may be a short-term bonus," Bowes says. Here are the best rates available... Fixed-rate bonds The fixed-rate bond market looks different, with rates across all terms increasing slightly as markets expect no changes to be made to the base rate for a while. While the new rates are only marginally higher, it does mean that savers have more inflation-beating options to choose from. "Choosing a longer-term bond could be a way of hedging against any further base rate cuts that are still expected to happen over the next year or so," Bowes adds. Here's a look at the best rates available. All of these accounts can be opened online and can't be accessed during the term... Easy access cash ISAs Unlike fixed-rate cash ISAs, which haven't changed over the past week, competition is fierce among easy access cash ISA providers. Yet a few rates have been cut this week, which may indicate the start of a lull. The top easy access ISA is 4.85% with Plum, while a week ago Chip was offering 4.99% on its Chip Cash ISA. Those who opened the account before this latest rate cut will still continue to earn the higher rate - for the time being at least. "Currently it would appear that the best paying cash ISA on the market is the Moneybox Cash ISA, paying 5.46%. But this rate includes a bonus of 1.51% for just three months, after which the rate will fall to 3.95% - this account also restricts the number of penalty free withdrawals," Bowes explains. "The advice would be to check the interest you are earning on your savings and switch, where possible, if you can improve your returns - but watch out for any tricks that might catch you out." Here are the best rates on the market...
Sky News
28-05-2025
- Business
- Sky News
Savings Guide: Rates are staying higher - so what are your best options?
For this week's guide, Anna Bowes, personal finance expert from The Private Office, explores why savings rates are holding up better than expected. Despite the Bank of England cutting the base rate this month, savings rates are proving to be resistant against any drops. In fact, the top easy access rate is higher than the best rate that was on offer before the Bank's decision. "Although many economists still seem to think that there could be two base rate cuts this year, the markets seem to think there will be only one, which could be a key reason that certainly the best rates on offer are holding up well," Bowes says. Topping this week's table is the financial app Chip, which is paying 4.77% on the current issue of its easy access saver. "This account is only available via an app, it may not be for everyone - and the rate will fall by 2.10% if more than four withdrawals are made per year," Bowes says. "The rate also includes a 12-month bonus of 1.47%. This is a good illustration of the need to read all the terms and conditions so that you earn the interest you expect to." Here's a look at the top rates available... Fixed-rate bonds We have seen some bonds withdrawn from the market this week, but overall there has been little movement in the best rates available. The top one-year bond is paying 4.44%, while the top two-year bond is paying 4.42%. Perhaps the most encouraging are the top three-year and five-year bonds, which are paying 4.43%. Here are the top paying bonds... Fixed-rate ISAs The top one-year and two-year fixed cash ISA rates have remained the same over the past week, but the top five-year rate has increased slightly. The top rate of 4.16% offered by Secure Trust Bank was pipped by UBL UK with an ISA paying 4.17%. Over three years, unfortunately Ford Money withdrew its ISA paying 4.2%, leaving two providers, UBL UK and United Trust Bank both offering 4.17%. "If interest rates do fall going forwards, if you've locked in at these longer-term rates, you may well still be congratulating yourself in the future - for grabbing top tax-free rates while you can," Bowes says. Here are the best ISAs on the market... Easy access cash ISAs Competition has hotted up in this part of the savings market in the past week, but no provider has launched a rate to beat those seen at the beginning of May. Chip, which held the top spot last week, saw its competitor Plum and Moneybox come for its title by launching new ISAs paying 4.85%, but it retaliated by upping its rate to match them. Plum responded with a 4.98% rate, but Chip pipped it to the post by coming back with an ISA offering 4.99% for new customers. "Once again though, the devil is also in the detail. Both of these providers are financial apps rather than banks themselves. With Plum, your cash could be deposited with a trio of banks - Citibank, Lloyds and QNB, whilst Chip uses Clearbank Ltd," Bowes points out. Here's a look at the other accounts making it into our top table...
Sky News
14-05-2025
- Business
- Sky News
Savings Guide: Best rates this week - with notable casualty of base rate cut
For this week's guide, Anna Bowes, savings expert from The Private Office, looks at options for locking your cash away, or accessing it anytime... We had been expecting to see saving accounts rates fall after the Bank of England cut the base rate to 4.25% last week. While that was the case for a lot of fixed-rate bonds, the same can't be said for easy access accounts, where we saw rates remain pretty stable and, in some cases, rise. Easy access accounts The West Brom Building Society increased the rate it is paying on its Four Access Saver (Issue 2) - from 4.4% to 4.65%. But Bowes says there was a notable casualty, with Chip closing the previous version of its easy access saver, which was paying 4.76%, replacing it with its latest issue paying just 3.25%. "This has seen it fall way down the ranks, although those who opened an account before the latest rate cut will continue to enjoy the previous rate - for the time being at least," she says. She warns that further falls could also be on the way. "It's vital to keep an eye on the interest rates you are earning on your existing savings accounts and switch them if they're no longer competitive," she adds. "As we've mentioned before, it's also important to read all the terms and conditions of any new savings account that you open. "They often have short-term bonuses or restricted access, which may mean that you don't earn as much interest as you were expecting, or you cannot access the money when you need it." Fixed-rate bonds While we saw some stability across easy access accounts, it was a different picture for the top fixed-term bond rates. "Rates were starting to fall before the base rate cut - and it's continued over the past week or so, albeit still at a trickle rather than a torrent," Bowes says. "Competition between providers is keeping things elevated." We saw a new provider enter the market this week. Conister Bank introduced a stable of fixed-rate bonds, including its one-year bond which tops the best buy table, paying 4.52% on balances from £5,000. Fixed-rate ISAs Bowes says: "It's the same story with the top fixed cash ISA rates - they are coming down too and there have been some slightly sharper cuts to the top two-year and three-year rates." They dropped by 0.13% and 0.15% respectively, to 4.17% and 4.15%. "Once again, while disappointing if interest rates continue to fall going forward, if you've locked in at these rates you may well still be congratulating yourself in the future - for grabbing top tax-free rates while you can," she adds. Easy access cash ISAs Both Plum and Moneybox have withdrawn their previously table-topping accounts, replacing them with accounts paying quite considerably lower rates of 4.80% and 4.81% respectively - down from 5.05% and 5.06%. But they remain at the top of the chart. "Once again as with the easy access accounts, a number of the top rates are being offered by financial apps rather than banks (Moneybox, Plum and Tembo) so you need to check which banks each of these financial app providers have partnered with, so that you know where your money is," says Bowes. "As mentioned above, there may also be accounts that have restricted access whereby the rate drops if you make more than the allotted number of account of withdrawals and there could be bonuses that last for short periods before the rate you are earning drops sharply."
