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Wales Online
12-05-2025
- Business
- Wales Online
All the Nationwide customers who will be affected by June bank account changes
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info Nationwide has announced a raft of changes to bank accounts affecting millions of customers from June. Many Nationwide members with savings accounts will see changes from next month impacting their cash. Britain's biggest building society is slashing rates on a number of its savings accounts. READ MORE: The Nationwide customers who will qualify for new £100 bonus payments Get our best money saving tips and hacks by signing up to our newsletter This will hit returns made by customers on their savings. The announcement comes after the Bank of England's cut to the base rate in February and will come as a blow to savers. Rates will be lowered by between 0.1% and 0.25%. Money experts say Nationwide customers may now want to shift their money to another bank offering better interest rates. A number of accounts will be affected including the Reward Single Access ISA, the Reward ISA and Flex ISA. Other regular savings accounts and instant access will also be hit such as the Help to Buy, Continue to Save, Single Access Saver and Limited Access Saver. Antonia Medlicott, of financial education specialists, Investing Insiders, said: 'One thing is certain - savers relying on cash ISAs will experience diminishing returns as providers respond with cuts of their own. "One exception will be those who have locked in fixed rates, which could be a consideration for anyone looking to secure higher returns before these reductions occur." Tom Riley, Nationwide's director of retail products, said: "We have worked hard to limit the impact of the recent rate cut on our savers and have taken the decision to hold off from making changes for as long as possible. "Following these changes, our savings range will remain competitive and continue to pay more than the market average, giving savers every reason to put their money with Nationwide."
Business Mayor
28-04-2025
- Business
- Business Mayor
Cash ISA update as savers are told to take urgent action
Cash ISA savers have been urged to take one action as an important deadline approaches. Those who have a Cash ISA are being urged by money experts to act before May 1 in order not to miss out when new changes come into effect. The Bank of England is anticipated to cut rates at the next Monetary Policy Committee meeting, which takes place on May 8, which is expected to trigger a fall in Cash ISA interest rates. Now, savers are being urged to lock away their money as soon as possible to accounts with higher interest rates to make sure they are getting the most out of their money. Founder and managing director at financial education specialists Investing Insiders has urged people to place their money into a fixed Cash ISA, which are protected against base rate reductions. Savers who tranfer their money to these accounts now will ensure that they enjoy the current interest rates for a year. Medlicott said: 'With Cash ISAs currently offering up to nearly five per cent in interest on deposits and some offering even more with introductory rates, savers can gain peace of mind over the returns they will receive and some great rates. 'However, most of the top-paying accounts offer 'variable' rates, meaning they can go up and down as the Bank of England rate fluctuates. You will generally get easier access to the cash held in these accounts.' She added: 'Fixed rate savings accounts typically require you to lock your money away for a set period of time, but offer certainty over interest rates, no matter what the Bank of England does.' Reports of Government plans to reduce the Cash ISA limit have been shared by money expert Martin Lewis, placing more urgency on savers to secure their benefits ASAP. Chancellor of the Exchequer Rachel Reeves is rumoured to be considering cutting the current ISA limit of £20,000 to as low as £4,000. Lewis said: 'Rachel Reeves, has been evaluating cutting the cash ISA allowance. That's not a rumour. I know it for fact. And it's being talked about in political and policy circles. What we don't know is if anything has been decided and if it has, what has been decided. 'So, as a very basic concept, a cash ISA is just a savings account where the interest is never taxed and you can put in up to £20,000 per tax year – and we've just had the start of a new tax year on 6 April. Once the money is in a cash ISA, it stays tax-free year after year. 'Now, the rumour is, what's being considered, is cutting the cash ISA limit from the current £20,000 down to as low as just £4,000. And most people think if there is to be an announcement on it, it would be in the Autumn Budget coming later this year – though nothing is certain.' READ SOURCE
Wales Online
27-04-2025
- Business
- Wales Online
People with a cash ISA given warning as savers told 'act before Thursday'
People with a cash ISA given warning as savers told 'act before Thursday' The best Cash ISA interest rates are set to fall if and when the Bank of England cuts rates next month as expected - meaning savers are urged to act now Financial gurus are sounding the alarm for those with Cash ISAs (Image: (Image: Getty) ) Financial gurus are sounding the alarm for those with Cash ISAs, advising swift action before May kicks off as top rates are expected to disappear. The spotlight is on Cash ISAs amid intense debate and rumours that Chancellor Rachel Reeves might slash the Cash ISA deposit ceiling from £20,000 down to possibly £4,000 – a move confirmed to be under discussion by money saving expert Martin Lewis. With finance experts pressing savers to act before Thursday, May 1, there is a rush to secure the best Cash ISA interest rates before they likely drop following a predicted Bank of England rate cut next month. Antonia Medlicott, the founder and managing director at Investing Insiders, a financial education firm, warns that the current attractive rates won't stick around for long. Article continues below She advises transferring funds to a fixed Cash ISA soon to safeguard against potential base rate cuts. For money-saving tips, sign up to our Money newsletter here Medlicott remarked: "With Cash ISAs currently offering up to nearly 5% in interest on deposits and some offering even more with introductory rates, savers can gain peace of mind over the returns they will receive and some great rates.", reports the Express. She also noted: "However, most of the top-paying accounts offer 'variable' rates, meaning they can go up and down as the Bank of England rate fluctuates. You will generally get easier access to the cash held in these accounts." Antonia, a financial expert, has advised savers to consider fixed rate accounts and long-term ISAs in anticipation of a Bank of England rate cut expected in May. She explained: "Fixed rate savings accounts typically require you to lock your money away for a set period of time, but offer certainty over interest rates, no matter what the Bank of England does." She also suggested that moving spare cash from low-interest accounts into an ISA can protect it from tax on interest, dividends and capital gains. For those concerned about potential changes to Cash ISAs, Antonia revealed that stocks and shares ISAs generally perform better. She stated: "Only 21% of the adult population use investment ISAs compared to 40% who use a cash ISA. Many people avoid investing because they simply don't feel they have the knowledge and education to approach it." She further added: "Investing is well suited to those who can put their funds away for at least five years, and if you can afford to look more long-term, investing offers greater potential gains. Article continues below Historically, those who have put their faith in the markets have enjoyed far greater returns than those who used savings accounts instead." Get daily breaking news updates on your phone by joining our WhatsApp community here . We occasionally treat members to special offers, promotions and ads from us and our partners. See our Privacy Notice
Business Mayor
26-04-2025
- Business
- Business Mayor
Cash ISA expert explains 'five-year' rule all savers should know
Brits are being urged to consider alternatives to cash ISAs by one expert who said a simple 'five-year' rule could help their money earn a better interest rate. Many providers are urging savers to lock in their money to take advantage of cash ISA rates before they reduce and before expected reforms are made by the Chancellor Rachel Reeves. Antonia Medlicott, founder and managing director at financial education specialists, Investing Insiders said savers should consider using their £20,000 allowance to invest in a stocks and shares ISAs as these types of ISA tend to peform much better over the long term. Medlicott said: 'Only 21% of the adult population use investment ISAs compared to 40% who use a cash ISA. Many people avoid investing because they simply don't feel they have the knowledge and education to approach it.' She explained that investing is better suited to those who can put their funds away for at least five years, and who can afford to look more long-term. She added: 'Historically, those who have put their faith in the markets have enjoyed far greater returns than those who used savings accounts instead.' Baroness Helena Morrissey, a Conservative peer, who at one point was in charge of over £840bn of people's savings while head of personal investing at Legal & General, said savers in cash ISAS had missed out on over £6.6bn by putting their money in safer, but less profitable cash ISA accounts. Medlicott said savers who did not want to invest their cash and were happy with a cash ISA needed to act quickly. She said: 'With cash ISAs currently offering up to nearly 5% in interest on deposits and some offering even more with introductory rates, savers can gain peace of mind over the returns they will receive and some great rates.' 'However, most of the top-paying accounts offer 'variable' rates, meaning they can go up and down as the Bank of England rate fluctuates. You will generally get easier access to the cash held in these accounts.' The Bank of England is expected to cut rates in May, so savers should look at fixed rate accounts and long-term ISAs to secure a higher rate before it is too late. 'Fixed rate savings accounts typically require you to lock your money away for a set period of time, but offer certainty over interest rates, no matter what the Bank of England does.' She added: 'If you have spare cash sitting in a low-interest account, moving it into an ISA protects it from tax on interest, dividends, and capital gains.' ISA savings are: Free of capital gains tax (CGT) – CGT is tax you pay when you sell an investment, such as a property or shares. Free of bond interest. Not all stocks and shares Isa invest in bonds but if they do you will not pay any tax. No tax on dividends. Any dividend payments you get on shares invested within an Isa are not taxed, as with CGT there is an allowance which is currently £500. Each person can save up to £20,000 a year into an Isa, a Junior Isa – the version of an Isa for under 18s comes with a different allowance. You can save £9,000 into a JISA and this amount is not included in the adult £20,000 allowance. The tax year runs from the 6th of April to the 5 April each year. When the new tax year starts, your ISA allowance resets, this means you can't roll over any unused allowance to the next tax year. What is a stocks and shares ISA A stocks and shares ISA, also called an investment Isa, allows you to invest in the stock market tax free. When you open this type of Isa the provider will buy and sell stock market assets on your behalf. Most stocks and shares Isas will invest in baskets of shares, known as funds. If the Isa invests in open ended investment funds, it means you are buying into units rather than shares; the shares are split into units. You can use your Isa allowance to buy shares in investment companies, these are companies directly listed on the stock market that invest in other companies, so you still get the benefit of diversifying your portfolio. Two of the best known investment trusts are the Scottish Mortgage Trust run by Baillie Gifford and the JPMorgan Global Growth & Income. Some Isa providers offer exchange-traded funds, or ETFs, which can invest in different asset classes, regions, and markets, and have a similar structure to open-ended investment funds but have a larger spread of investments. You can also use your Isa allowance to invest in individual shares, this is an option for more sophisticated investors who are familiar with the ups and downs of the world's stock markets. Be aware that the orginial amount of money you save may be at risk if you invest it so always take advice or do your homework first. READ SOURCE
