Latest news with #NationalSavings&Investments
Daily Mirror
2 days ago
- Business
- Daily Mirror
5 benefits that could be stopped if you save too much money
How much you have in certain savings and assets can determine how much you get from these benefits, or if you're eligible for it at all Eligibility for certain DWP benefits can depend on your savings. These are referred to as means-tested benefits, which are only paid to people that have less than a specific amount of capital. Means-tested benefits and savings limits: Universal Credit - £16,000 Pension Credit - £10,000 Council Tax Support - dependent on each individual council Income-related Employment and Support Allowance - £16,000 Housing Benefit - £16,000 The exact amount you have in savings will influence how much you receive from these five benefits and whether you're eligible for payments at all. However, it's not just cash that contributes towards this limit. Experts from Money Helper explained that the DWP will examine your entire financial situation, as well as your partner's in some cases, but not your child's. This includes cash in any bank or building society accounts, regardless of whether it earns interest. National Savings & Investments savings accounts, Premium Bonds, stocks and shares, inheritance, and the value of any property you own that isn't your main home all contribute towards your savings threshold. If you are currently drawing from your pension, this pot might also be considered as savings. Certain lump-sum payments are also viewed as savings in relation to means-tested benefits. This includes redundancy pay and compensation payouts. However, some special compensations have been specifically excluded from these calculations, such as the payments made through the Infected Blood Compensation Scheme. And some items and assets are 'disregarded' by the DWP. More information can be found on the website. Disregarded savings and assets: Personal possessions like jewellery, furniture, and cars Pension pots you haven't taken money from yet Pre-paid funeral plans Life insurance policies that haven't been cashed in Insurance claims if it's being used to replace or repair something You are not allowed to deliberately reduce your savings amount simply to qualify for benefits or secure a higher rate. This practice is known as deprivation of assets and includes giving money away, transferring property ownership, or purchasing exempt items like cars. This won't include spending your savings on essentials such as food or settling debts. Should you be suspected of deliberately depleting your assets to claim benefits, the DWP will probably examine precisely when and how you disposed of your savings or assets. According to Money Helper: "The DWP will look at the evidence to decide if they consider it to be deliberate. If, at the time, you wouldn't have been able to predict needing benefits, it might not count as deprivation of assets. You might be asked to provide paperwork and receipts to back up the date, and the reasons for getting rid of savings or assets." However, if it is determined that you intentionally spent money solely to qualify for additional benefits, your application will be assessed as if you still had all of the money. This is referred to as notional capital and will impact your eligibility.
Telegraph
30-04-2025
- Business
- Telegraph
Two in three premium bond savers have never won a penny
Two thirds of savers with Premium Bonds have never won a prize, as experts warn their chances of making any money are 'minuscule'. More than £125.9bn is held in Premium Bonds, which are administered by National Savings & Investments (NS&I) and guaranteed by the Treasury. Prizes are awarded in a monthly lottery, with two savers winning £1m every month. But unlike interest-paying savings accounts, there are no guaranteed returns on Premium Bonds – and those with small holdings are much less likely to win. More than 14.3 million savers have not won a prize since 1994, data shared with investment platform AJ Bell under Freedom of Information rules revealed. Just five million of the 22.5 million holders won a prize between March 2024 and February this year, with 80pc of those who won winning more than one prize. The average winner held £23,397, whereas the average holder had just £5,406 in the account. It comes as the effective prize rate has dropped following interest rate cuts by the Bank of England in an effort to stimulate the economy. From this month, the effective prize rate on the nation's favourite saving product dropped from 4pc to 3.8pc, having fallen from 4.4pc last year. The chances of winning a prize remained the same, but the number of prizes dropped overall, with those winning £100,000 falling from 82 to 78, and those getting £50,000 decreasing from 164 to 157. In comparison, the best savings accounts available are paying as much as 5.07pc with Trading 212, or 4.76pc with Chip. Both the average one-year fixed-rate savings account and one-year fixed-rate cash Isa are paying more than 4.12pc, according to financial analysts Moneyfacts. After reaching a peak of 5.25pc in August 2023, the Bank Rate dropped to 5pc last summer. The rate fell again to 4.5pc in February, with three further cuts expected this year. Charlene Young, pensions and savings expert at AJ Bell, said: 'The chance of winning any of the top prizes (from £5,000 all the way up to £1m) remains miniscule. 'There's a chance even the average holding won't win a prize, meaning savers might be better off considering other options with their cash rather than leaving it to chance in a Premium Bonds account, particularly over the long term.' An NS&I spokesman said: 'Premium Bonds remain one of the nation's favourite savings products and are a flexible and fun way to save. They offer the excitement of potentially winning tax-free prizes every month, the safety and security of the 100pc government guarantee, and easy access to withdrawals. 'Every Premium Bond has a separate and equal chance of winning a prize each month, however the more bonds you buy, the better your chances of winning. 'Each month we pay out millions of prizes ranging from £25 to £1m. In our most recent draw, there were more than 5.9 million prizes worth over £412m.'
