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The Guardian
16 hours ago
- Business
- The Guardian
Zopa launches current account with cashback and 7.1% on savings
The battle for bank customers intensified this week, with a new player entering the UK current account market and offering cashback on bills and access to a savings account paying 7.1%. Digital bank Zopa is hoping the perks – which also include in-credit interest and fee-free spending abroad – will tempt switchers to its first day-to-day account. The company has been around since 2005, when it launched as a 'peer-to-peer' lending platform, linking savers seeking better returns with individuals looking for loans. It later shut down the peer-to-peer operation – and is now a fully fledged digital bank. Zopa's free-to-open current account is called Biscuit – a name that allows it to make puns about how you can 'watch your dough rise'. You have to open it in the Zopa app, which takes minutes, says the company. The account has no monthly fee and comes with a contactless Visa debit card. Zopa points out that, unlike many other fintech companies, it holds a full UK banking licence, with deposits protected up to £85,000 by the Financial Services Compensation Scheme. While Biscuit may not be right for everyone, it has some decent features including no overseas card spending fees, and 2% AER (1.98% gross) interest on current account balances, with no limit on what you can earn. The rate is fixed for 12 months and variable after that. It will pay 2% cashback a month on any direct debits paid from the account, up to a maximum direct debit value of £1,500 a year, with this rate guaranteed for 12 months. The digital bank also offers access to a regular saver account, paying 7.1% AER (6.87% gross), into which you can pay in up to £300 a month. Assuming this rate stays the same for the next 12 months, you could earn up to £137 a year. You can get in touch with the bank via in-app chat or over the phone, and it says customers can link external accounts to manage their money and make payments from one place. There are downsides, though. Zopa is for people who are happy to use an app-based account. If you need branch access, look elsewhere. Also, you cannot pay cash or cheques into the account. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion It does not currently offer an arranged overdraft and is not compatible with the banking industry's current account switching service, which aims to make switching your current account from one bank to another simple and stress-free. Andrew Hagger, a personal finance expert and founder of the website MoneyComms says: 'On the face of it, this looks like a good deal … It's always good to have some fresh competition in the banking market.' Hagger says other challenger banks such as Starling offered in-credit interest, only for it to be later withdrawn. 'Hopefully this won't end up being axed after the initial 12-month fixed rate offer,' he adds.
Yahoo
2 days ago
- Business
- Yahoo
Barclays stuns credit card users with startling June 27 crackdown
Barclays stuns credit card users with startling June 27 crackdown originally appeared on TheStreet. Beginning June 27, the banking giant Barclays is going to block all crypto purchases made with credit cards. A note on the U.K. bank's official website mentions that users won't be able to make crypto transactions with a Barclaycard. There are certain risks related to cryptocurrencies as the sudden decline in the prices of crypto assets could lead to customers falling into debt and failing to repay borrowed funds, the bank said. It also cited a lack of protection for crypto assets in case a purchase goes wrong as the reason behind the latest move. Crypto is not covered by the Financial Ombudsman Service and Financial Services Compensation Scheme, the bank the U.S. where traditional institutions such as Wall Street banks are embracing crypto, the U.K. has seen a stricter approach to crypto trading and investing. Back in 2018, Britain's biggest bank, Lloyds, imposed a similar ban on crypto purchases made with credit cards. JPMorgan's British retail bank, Chase, similarly banned such purchases in 2023, citing a hike in crypto scams and frauds. Now, another leading bank in the U.K. has taken the same step. However, the concerns of the banks regarding crypto aren't unfounded. The total crypto market cap fell as much as 25% year-to-date around early April as President Donald Trump introduced global tariff hikes. Though the market has since recovered to early January levels to stand at $3.28 trillion, it reflects the general volatility associated with crypto markets. However, the proponents of crypto adoption argue volatility isn't unique to crypto assets, as nearly all the assets that banks deal with also witness volatile price movements. While banks cite volatility and consumer protection as reasons for restricting crypto access, those holding crypto are increasingly turning to secure self-custody solutions such as Ledger's hardware wallets to safeguard their digital assets without relying on traditional financial intermediaries. Barclays stuns credit card users with startling June 27 crackdown first appeared on TheStreet on Jun 25, 2025 This story was originally reported by TheStreet on Jun 25, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-06-2025
- Business
- Yahoo
Best Junior cash Isas: Today's latest rates
The earlier you start saving for the future, the better, as the old adage goes. That is just as true for your children or grandchildren – and a Junior Isa can provide a good option. Of course, newborns and young children can't have a bank account of their own, but you can give them a head start financially by opening a savings account on their behalf. There are a few different ways to save for children, including savings accounts, bonds or Isas, and they all have different benefits and downsides. This guide will explain what a Junior Isa is – including how these accounts work, their main benefits are and which are currently some of the best: How we determine the best rates The best Junior cash Isas What is a Junior cash Isa? How many Junior Isas can I open? Junior cash Isa FAQs The Best Buy tables show the best savings rates widely available in the market. This means certain accounts are excluded, including those that are available only to local or existing customers. The data in the tables is provided by Savings Data Limited and is compiled using automated tracker tools and updates from savings providers. Savings Data Limited then manually checks the information and enters it into a database that feeds the live tables, which update daily. The savings accounts featured are protected by the Financial Services Compensation Scheme. The information in this article is intended for information purposes and should not be taken as endorsement or advice. Use the table below to explore your options for a Junior cash Isa. For more options to set up a nest egg for your children, don't miss our guide to the best children's savings accounts. If you want to continue helping your child to save after they've reached 18, check our guide to the best cash Isas, and best Lifetime Isas. A Junior Isa is a type of savings account that allows you to put away money for the long-term for a child, and – depending on whether you opt for a cash or investment account – any savings interest or growth is free from tax. Similar to an adult Isa, the amount you can save each year is capped. The limit for an adult Isa is £20,000, but the limit for a Junior Isa is much lower, at £9,000. Be aware this limit applies per tax year and not calendar year, so you will need to calculate your savings from April 6 to April 5. You can open a Junior Isa if your child is under 18 and lives in the UK. There are two types of Junior Isa available: cash, which will earn interest like a normal savings account, and stocks and shares, which allows you to invest the money. Parents or guardians will be responsible for the money in the account but it will not belong to them – it belongs to the child. The child can take control of the account when they turn 16, but the money cannot be withdrawn until they turn 18. Rachel Springall, finance expert at said: 'Savers can choose a cash interest option or stocks and shares, where the latter over the longer term is likely to outperform interest rates. 'Anyone who still has their cash saved in a Child Trust Fund would be wise to transfer it to a Junior Isa, because you can not hold both at the same time for a child. However, you can have a Junior cash Isa and Junior stocks and shares Isa, so long as the overall pot keeps within the annual limit of £9,000 across both as a total. 'Stocks and shares Junior Isas may be a more attractive alternative for savers who are prepared for a little risk and could outperform cash returns. As with any fund, growth is never a guarantee. 'As an alternative to Junior Isas, there are a few children's savings accounts which could be useful for parents to consider, but some do have certain eligibility criteria to meet. Some accounts only have a 12-month fixed term, where others are more flexible. This means parents need to take some time to navigate all the accounts to ensure it suits their needs.' You cannot open more than two Junior Isas for your child; one Junior cash Isa and one Junior stocks and shares Isa can be open at the same time, but no more. You can switch between the two types or transfer from one provider to another, but it's important to do so carefully to ensure you don't lose the tax-free status on the money. As savings accounts go, Junior cash Isas are a pretty good way to put money away for your child. There are a few downsides, however. The money is locked away until they are 18, meaning if they have financial difficulties, or simply want to put the money towards something else before that time, they won't be able to access the cash. Parents can't access the money they've paid in either. They are also restricted from investing the money, meaning that inflation could eat away at the value of the pot if it doesn't pay enough interest. Our inflation calculator demonstrates the effect inflation could have on your savings. Some parents may also consider it a downside that the child will have full control of the money when they turn 18. You can give advice about what they should do with it, but ultimately the choice is theirs. No, a Junior Isa can only be opened by parents or guardians on behalf of their child (if a grandparent is the child's legal guardian, then they will be able to open the account). However, anyone can pay into a Junior Isa on behalf of the child, and so they are a simple way of allowing the whole family – including grandparents – to save on a child's behalf. While it is no longer possible to open a Child Trust Fund, some children born at a certain time may still have one. They operate in a broadly similar way to a Junior Isa, in that they both allow either cash or stocks and shares, mature at 18, and have the same £9,000 annual limit, although a Child Trust Fund limit resets on the child's birthday. While a Junior Isa automatically becomes an adult Isa when the child turns 18, the child will need to choose how to access their matured trust fund. If you want to open a Junior Isa for your child with a trust fund, it might be a good idea to transfer the fund into the Isa. This would make it easier to stay on top of your contribution limits. No, parents cannot withdraw the money from a Junior Isa. The money belongs to the child. The only exception is if the child who owns the account dies or is declared terminally ill. The other type of Junior Isa operates in much the same way as the cash version. The only difference is you are able to invest the money saved within the account and any returns are free from tax. What you can invest in will differ between providers. Also be aware that, as with all investments, the value of your money can go down as well as up and so you should be comfortable investing for the long term. Given that the money cannot be accessed until your child turns 18 a Junior Isa is well suited to investing. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Yahoo
02-06-2025
- Business
- Yahoo
Best Junior cash Isas: Today's latest rates
The earlier you start saving for the future, the better, as the old adage goes. That is just as true for your children or grandchildren – and a Junior Isa can provide a good option. Of course, newborns and young children can't have a bank account of their own, but you can give them a head start financially by opening a savings account on their behalf. There are a few different ways to save for children, including savings accounts, bonds or Isas, and they all have different benefits and downsides. This guide will explain what a Junior Isa is – including how these accounts work, their main benefits are and which are currently some of the best: How we determine the best rates The best Junior cash Isas What is a Junior cash Isa? How many Junior Isas can I open? Junior cash Isa FAQs The Best Buy tables show the best savings rates widely available in the market. This means certain accounts are excluded, including those that are available only to local or existing customers. The data in the tables is provided by Savings Data Limited and is compiled using automated tracker tools and updates from savings providers. Savings Data Limited then manually checks the information and enters it into a database that feeds the live tables, which update daily. The savings accounts featured are protected by the Financial Services Compensation Scheme. The information in this article is intended for information purposes and should not be taken as endorsement or advice. Use the table below to explore your options for a Junior cash Isa. For more options to set up a nest egg for your children, don't miss our guide to the best children's savings accounts. If you want to continue helping your child to save after they've reached 18, check our guide to the best cash Isas, and best Lifetime Isas. A Junior Isa is a type of savings account that allows you to put away money for the long-term for a child, and – depending on whether you opt for a cash or investment account – any savings interest or growth is free from tax. Similar to an adult Isa, the amount you can save each year is capped. The limit for an adult Isa is £20,000, but the limit for a Junior Isa is much lower, at £9,000. Be aware this limit applies per tax year and not calendar year, so you will need to calculate your savings from April 6 to April 5. You can open a Junior Isa if your child is under 18 and lives in the UK. There are two types of Junior Isa available: cash, which will earn interest like a normal savings account, and stocks and shares, which allows you to invest the money. Parents or guardians will be responsible for the money in the account but it will not belong to them – it belongs to the child. The child can take control of the account when they turn 16, but the money cannot be withdrawn until they turn 18. Rachel Springall, finance expert at said: 'Savers can choose a cash interest option or stocks and shares, where the latter over the longer term is likely to outperform interest rates. 'Anyone who still has their cash saved in a Child Trust Fund would be wise to transfer it to a Junior Isa, because you can not hold both at the same time for a child. However, you can have a Junior cash Isa and Junior stocks and shares Isa, so long as the overall pot keeps within the annual limit of £9,000 across both as a total. 'Stocks and shares Junior Isas may be a more attractive alternative for savers who are prepared for a little risk and could outperform cash returns. As with any fund, growth is never a guarantee. 'As an alternative to Junior Isas, there are a few children's savings accounts which could be useful for parents to consider, but some do have certain eligibility criteria to meet. Some accounts only have a 12-month fixed term, where others are more flexible. This means parents need to take some time to navigate all the accounts to ensure it suits their needs.' You cannot open more than two Junior Isas for your child; one Junior cash Isa and one Junior stocks and shares Isa can be open at the same time, but no more. You can switch between the two types or transfer from one provider to another, but it's important to do so carefully to ensure you don't lose the tax-free status on the money. As savings accounts go, Junior cash Isas are a pretty good way to put money away for your child. There are a few downsides, however. The money is locked away until they are 18, meaning if they have financial difficulties, or simply want to put the money towards something else before that time, they won't be able to access the cash. Parents can't access the money they've paid in either. They are also restricted from investing the money, meaning that inflation could eat away at the value of the pot if it doesn't pay enough interest. Our inflation calculator demonstrates the effect inflation could have on your savings. Some parents may also consider it a downside that the child will have full control of the money when they turn 18. You can give advice about what they should do with it, but ultimately the choice is theirs. No, a Junior Isa can only be opened by parents or guardians on behalf of their child (if a grandparent is the child's legal guardian, then they will be able to open the account). However, anyone can pay into a Junior Isa on behalf of the child, and so they are a simple way of allowing the whole family – including grandparents – to save on a child's behalf. While it is no longer possible to open a Child Trust Fund, some children born at a certain time may still have one. They operate in a broadly similar way to a Junior Isa, in that they both allow either cash or stocks and shares, mature at 18, and have the same £9,000 annual limit, although a Child Trust Fund limit resets on the child's birthday. While a Junior Isa automatically becomes an adult Isa when the child turns 18, the child will need to choose how to access their matured trust fund. If you want to open a Junior Isa for your child with a trust fund, it might be a good idea to transfer the fund into the Isa. This would make it easier to stay on top of your contribution limits. No, parents cannot withdraw the money from a Junior Isa. The money belongs to the child. The only exception is if the child who owns the account dies or is declared terminally ill. The other type of Junior Isa operates in much the same way as the cash version. The only difference is you are able to invest the money saved within the account and any returns are free from tax. What you can invest in will differ between providers. Also be aware that, as with all investments, the value of your money can go down as well as up and so you should be comfortable investing for the long term. Given that the money cannot be accessed until your child turns 18 a Junior Isa is well suited to investing. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-06-2025
- Business
- Yahoo
Best cash Isas: Today's latest rates
A cash Isa is similar to a savings account, but with a crucial difference – you don't pay tax on the interest you earn. It is one of four types of adult individual savings accounts (Isas) – the others are stocks and shares Isas, innovative finance Isas and lifetime Isas. You can save up to £20,000 per tax year, which is known as the Isa allowance. Your Isa allowance is renewed at the start of the tax year on April 6, and you cannot carry over any unused allowance from the previous year – if you don't use it, you lose it. You can either deposit this sum into one account or spread it across several, and you can transfer your Isa savings between providers if you want to take advantage of a better rate elsewhere. In this guide, Telegraph Money explains how cash Isas work, covering: How we determine the best rates The best cash Isas Expert opinion: Things to consider when choosing a cash Isa Why choose a cash Isa? Cash Isa FAQs The Best Buy tables below show the best savings rates widely available in the market. This means certain accounts are excluded, including those that are available only to local or existing customers. The data in these tables is provided by Savings Data Limited and is compiled using automated tracker tools and updates from savings providers. Savings Data Limited then manually checks the information and enters it into a database that feeds the live tables, which update daily. The savings accounts shown are protected by the Financial Services Compensation Scheme. The information in this article is intended for information purposes and should not be taken as endorsement or advice. Find the best cash Isa for you using the tables below. These accounts usually allow you to make as many deposits and withdrawals as you like – but this flexibility can come with lower rates. For the savings equivalent, you can see our guide to the best easy-access savings accounts. Accounts in the table below show the best Isa rates on the market for accounts that offer a variable rate of interest. While this could increase at any time – which can be valuable when rates are on an upward trend – it could also decrease. These accounts require you to give a certain amount of notice to your provider when you want to make a withdrawal, indicating the number of days you must wait until your money is released. You can usually make as many withdrawals as you like – but be sure to check the account terms first. If this way of saving suits you, make sure you check our guide to the best notice accounts. These types of Isas require you to lock your money away for a specified period of time. The rate of interest is guaranteed throughout this period, which can give you peace of mind should other rates take a tumble. For the savings account equivalent, which you might want to use if you've used up your Isa allowance, see our guide to the best fixed-rate bonds. For Isas suitable for children, see our guide to the best Junior cash Isas. And, if you're saving to buy a home or fund your retirement, don't miss our guide to the best lifetime Isas. Choosing the best cash Isa for you can be tricky, depending on why you're saving and how you want to save – but there should be options to suit everyone. Caitlyn Eastell, of analyst Moneyfactscompare, said: 'For savers that are more tax savvy, cash Isas may be the ideal option as you receive a £20,000 Isa allowance each year and can pay into multiple Isas within the same period providing this limit is not exceeded. Isas aren't too dissimilar to their traditional savings counterparts with easy access, notice, fixed and regular accounts being an option. 'It is worth considering that for the variable rate options, interest could increase or decrease over time, and those Isas that are fixed for an agreed term will either not allow earlier access or may deduct a certain amount of interest.' Cash Isas can also be an effective way of saving for the longer term. Mark Hicks, of Hargreaves Lansdown, said: 'Cash Isas have certainly seen a resurgence of late. Looking at what may be coming in Labour's Budget, and the rhetoric around higher taxes, cash Isas should be the first port of call for all savers at the moment. 'If you've got £20,000 or less, definitely go for a cash Isa first and ensure your money is protected from tax. If you're fortunate enough to have more than £20,000 to save in an Isa, then you can look at other saving accounts as well.' Cash Isas are beneficial for many savers as they offer an easy way to make sure your returns remain free from tax. Their popularity took a dip when the personal savings allowance (PSA) was introduced in 2016, as it means some savers can earn up to £1,000 in tax-free savings interest each tax year. When interest rates are low, only those with large savings pots or high incomes come into the scope of paying tax on savings interest. However, savings rates have been high for some time; until recently it was not uncommon to be earning 5pc. Someone with a £1,000 PSA could face a savings tax bill with £20,000 in savings – a problem that doesn't occur with a cash Isa. What's more, your growth is protected as it compounds for years into the future, which has helped some savers become Isa millionaires. The main issue that comes with a cash Isa is the £20,000 Isa limit on how much you can pay into it each tax year. If you want to move a large savings deposit in order to protect your returns from tax, it may need to be moved gradually over several years. In some cases, interest rates offered by cash Isas can be lower than their savings equivalent. Providers are well aware of the extra tax benefit Isas offer, and know they don't have to be as competitive with rates. It's important to shop around and find the most competitive rate you can – the tax-free benefits of an Isa will often outweigh the loss of a little interest. There is no limit to the number of cash Isas you can have – but it's a good idea not to have so many that you lose track of them. You can hold cash Isas you've paid into in past tax years, and – now that Isa rules have changed – you can also open and pay into as many as you like in the same tax year. The key thing is to make sure you don't pay in more than £20,000 across all Isas in the same tax year. Yes, you can combine Isas into one account – but in order to do this without affecting the tax status of the money, or your Isa allowance, you must move the cash via an Isa transfer. There are quite a few rules to bear in mind – you can find out more in our comprehensive guide to Isa transfers. This depends on the rate you're earning and the rate of inflation. At the time of writing, lots of cash Isas can beat inflation, but you increasingly need to shop around for them as rates continue to slide. It's a good idea to keep an eye on what's happening with inflation versus the best Isa rates so you can gauge whether or not you have a competitive deal. Our inflation calculator shows the effect rising prices can have on your savings. It's never too late to put money in an Isa to benefit from its tax-free status. However, you may miss the end of the tax year if you leave it too late to make a deposit. The annual Isa allowance resets at the start of a tax year on April 6, which means the 2025-26 allowance recently renewed. You can put all of this into one account, or split it among several. Mr Hicks said: 'Isas were typically seasonal, with a big spike in demand around the end of the tax year. They are much less timely now and every year the cash Isa season gets longer and longer.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
