Latest news with #RachelSpringall
BBC News
2 days ago
- Business
- BBC News
What the Bank of England interest rate cut means for you
The Bank of England has cut UK interest rates from 4.25% to 4%, the lowest level since March Bank of England interest rate can affect mortgage rates and interest rates on savings, as well as the speed at which prices change and how the jobs market what that all means for you. What the rate cut means if you have a mortgage The Bank of England's interest rate is what the central bank charges other banks that want to borrow then influences what interest rates those banks charge their customers for loans such as the rate cut will affect mortgage repayments depends on the type of mortgage households have, and some could feel the difference quite those with a standard variable rate mortgage of £250,000 over 25 years, repayments will fall by £40 a month, according to financial information company most people with home loans have either a five-year or two-year fixed term mortgage. According to Moneyfacts, those interest rates have continued to fall, reaching 5.01% for five-year loans and 5% for two-year loans this will be little comfort to people coming off low five-year rates of below 3% soon, but welcome news for those re-fixing two-year rates which had been above 6% in August 2023. What the rate cut means for your savings While lower interest rates are good news for households with home loans, it is a different story for those with Springall, a finance expert at Moneyfacts, said the average savings rate is currently 3.5%, which is 0.42% lower than this time last year and is expected to keep falling. She said the average easy access ISA rate had also fallen by 0.46% over the year."Savings rates are getting worse and any base rate reductions will spell further misery for savers," Ms Springall said. How does it affect prices? The Bank of England's main job is to ensure the UK has a stable financial system. One aspect of that is ensuring that prices for goods and services used by households and businesses do not rise too Bank has a target to keep that increase in prices – known as inflation – at 2%.If there is strong demand for goods and services, or a shortage of those things, prices can rise too fast. On the flip side, if there is weak demand, or an excess of goods or services, prices might not rise very quickly at Bank uses interest rates to try to keep inflation level. By lowering the interest rate, it encourages people with savings to spend their money rather than save it for later, while increasing interest rates makes saving money more attractive, reducing spending in the is currently 3.6% well above the Bank's target rate - thanks in part to increased food prices. According to its latest forecasts, the Bank expects inflation to increase slightly, reaching 4% by Bank of England governor Andrew Baily acknowledged the decision to cut rates was "finely balanced", despite this higher level of inflation, one issue affecting the Bank's decision was the jobs market. Will it affect jobs? Another aspect of the Bank's remit to ensure the UK has a stable economy is monitoring the health of the jobs inflation affects business decisions, as it can increase operating in turn can have an impact on hiring decisions, and recent figures show that the number of job vacancies has fallen, while the jobless rate has told the Bank that increases in National Insurance Contributions and the national living wage had added up to 2% to price rises, and they expected labour costs "to continue to push up food prices" through the rest of the order to mitigate those costs, businesses said they were having to cut Bank said that a loosening in the jobs market would put some downward pressure on prices, helping to bring inflation down.
South Wales Argus
3 days ago
- Business
- South Wales Argus
Best student freebies from railcards to TV and Deliveroo
As freshers start to get their results and head to UCAS to confirm their first or insurance offers, or go through clearing, there's plenty to consider. While it may be tempting to look at the best freebies, it pays to look at the full account and its small print, say experts. 'Students may be enticed by the free perks on a student account, but it is essential they compare the whole bundle alongside the 0% overdraft in the first instance," says Rachel Springall, Finance Expert at "The most generous overdrafts come from NatWest, HSBC and Nationwide Building Society, which could be a lifeline for students who need to borrow during their years of study. However, taking on some part-time work in between their studies to have a bit of disposable income is wise, because an overdraft will need to be paid back. 'The upfront freebies include a mixture of upfront cash and cost-saving vouchers, discount cards for travel and eating out." Those students who will travel far from home to study might find the free Railcard from Santander a great choice, and could save them a decent sum over the years, but customers can earn cashback through Santander Boosts. If students are hoping to save some money on eating out or through takeaways, then NatWest's tastecard could be a handy perk, along with its generous overdraft, plus they will give students £85 in free cash. "Battling it out this year to entice students are the new free perks from Lloyds Bank, offering not only £100 in free cash, but also Deliveroo vouchers, worth £90," adds Rachel. "Not to go unnoticed, Nationwide Building Society has a generous overdraft and offers Just Eat vouchers worth £120 and £100 in free cash. It is worth pointing out with all these perks that they are only really good value if used frequently. 'It can seem daunting to sign up to years of study, and this might be the first time students have been far away from home. Money management is then essential to get right, as it can be a little too easy to build up debts to cover necessities." Using a mobile banking app and any budgeting tools is a great way to keep on top of the finances, as is taking advantage of any cost-saving perks or student exclusive offers. "Students do not need to suffer in silence over money stresses, they could book a call with their bank or approach their university for support and tips," adds Rachel. "These avenues could make all the difference to students who might drop out of university, with Experian reporting last year that 78% of students said money worries were causing them significant stress and 46% were too anxious to check their bank balance altogether. "Students need ongoing support to help them thrive during their education.' Which student bank accounts offer the best deals and freebies? Lloyds Bank's student account freebies have intensified compared to a year ago, as students can now get £100 from the start of August until the end of October. In addition, it is offering six months of Deliveroo vouchers, worth £90, subject to meeting a set number of eligible account transactions each month. Nationwide Building Society is once again offering Just Eat vouchers worth £120 and £100 free cash, as it did this time last year. Barclays Bank is not offering any specific free upfront sweeteners for students right now, but students can sign up to Blue Rewards for £5pm, and get an Apple TV subscription as part of the perks. The package from HSBC hasn't been enhanced, but it still offers discounts and exclusive offers through HSBC Home & Away. NatWest's student account bundles in a free tastecard, as it did last year, but its cashback of £85 is lower than the £100 given a year ago. Santander has once again renewed its Railcard offer (worth £30 for one year or £70 for three years) and customers can sign up to Santander Boosts to earn cashback. TSB continues to offer a generous credit interest rate of 5% AER/4.89% gross. The most generous overdraft tariffs are with NatWest, HSBC and Nationwide Building Society, which were also on offer a year ago. With tuition fees for full-time students rising to £9,535 a year from this year, some students are also looking at using cash more carefully, as Ross Borkett, Banking Director at Post Office explains: 'With tuition fees rising, it's important for students in England and Wales to stay in control of their finances. "Cash is a simple, effective way to budget, helping to set limits and avoid the temptation to overspend, especially when digital payments make it easy to lose track of costs. "Ahead of the new academic year, we encourage students to explore how combining cash with digital tools, such as budgeting apps, can offer the best of both worlds.' It's also worth claiming everything you're entitled to, including Disabled Students' Allowance, which many students miss out on, because they don't know about it, say Compare the Market. Recommended reading: What is the Disabled Students' Allowance? Disabled Students' Allowance (or DSA) is a grant which gives students in the UK extra financial support while studying an undergraduate, postgraduate, or doctorate degree. This aid is available in England, Scotland, Wales, and Northern Ireland, and is not included as part of your maintenance loan or tuition fee. That means when your program of study is over, any money you received from the DSA does not have to be paid back. The exception to this rule is if you leave your course early, where you'll have to return any money you haven't spent yet. As part of the DSA, you might also be eligible to apply for a new computer (outside of financial support). You will need to pay towards the first £200 of this cost, with the rest covered by the DSA scheme. For Wales, England, and Northern Ireland, the 2023-24 caps are clear: £26,291 per year if you're from England £33,146 per year if you're from Wales £25,000 per year if you're from Northern Ireland Things are a little more complicated in Scotland, where the exact costs are categorised and broken down in the following way: £1,725 per year for general costs £5,160 across your whole course for 'large items' of specialist equipment £20,520 per year for non-medical personal help Remember, these are the most you can get in each country, not what you should expect to receive.
Rhyl Journal
3 days ago
- Business
- Rhyl Journal
Best student freebies from railcards to TV and Deliveroo
As freshers start to get their results and head to UCAS to confirm their first or insurance offers, or go through clearing, there's plenty to consider. While it may be tempting to look at the best freebies, it pays to look at the full account and its small print, say experts. 'Students may be enticed by the free perks on a student account, but it is essential they compare the whole bundle alongside the 0% overdraft in the first instance," says Rachel Springall, Finance Expert at "The most generous overdrafts come from NatWest, HSBC and Nationwide Building Society, which could be a lifeline for students who need to borrow during their years of study. However, taking on some part-time work in between their studies to have a bit of disposable income is wise, because an overdraft will need to be paid back. 'The upfront freebies include a mixture of upfront cash and cost-saving vouchers, discount cards for travel and eating out." Those students who will travel far from home to study might find the free Railcard from Santander a great choice, and could save them a decent sum over the years, but customers can earn cashback through Santander Boosts. If students are hoping to save some money on eating out or through takeaways, then NatWest's tastecard could be a handy perk, along with its generous overdraft, plus they will give students £85 in free cash. "Battling it out this year to entice students are the new free perks from Lloyds Bank, offering not only £100 in free cash, but also Deliveroo vouchers, worth £90," adds Rachel. "Not to go unnoticed, Nationwide Building Society has a generous overdraft and offers Just Eat vouchers worth £120 and £100 in free cash. It is worth pointing out with all these perks that they are only really good value if used frequently. 'It can seem daunting to sign up to years of study, and this might be the first time students have been far away from home. Money management is then essential to get right, as it can be a little too easy to build up debts to cover necessities." Using a mobile banking app and any budgeting tools is a great way to keep on top of the finances, as is taking advantage of any cost-saving perks or student exclusive offers. "Students do not need to suffer in silence over money stresses, they could book a call with their bank or approach their university for support and tips," adds Rachel. "These avenues could make all the difference to students who might drop out of university, with Experian reporting last year that 78% of students said money worries were causing them significant stress and 46% were too anxious to check their bank balance altogether. "Students need ongoing support to help them thrive during their education.' With tuition fees for full-time students rising to £9,535 a year from this year, some students are also looking at using cash more carefully, as Ross Borkett, Banking Director at Post Office explains: 'With tuition fees rising, it's important for students in England and Wales to stay in control of their finances. "Cash is a simple, effective way to budget, helping to set limits and avoid the temptation to overspend, especially when digital payments make it easy to lose track of costs. "Ahead of the new academic year, we encourage students to explore how combining cash with digital tools, such as budgeting apps, can offer the best of both worlds.' It's also worth claiming everything you're entitled to, including Disabled Students' Allowance, which many students miss out on, because they don't know about it, say Compare the Market. Recommended reading: Disabled Students' Allowance (or DSA) is a grant which gives students in the UK extra financial support while studying an undergraduate, postgraduate, or doctorate degree. This aid is available in England, Scotland, Wales, and Northern Ireland, and is not included as part of your maintenance loan or tuition fee. That means when your program of study is over, any money you received from the DSA does not have to be paid back. The exception to this rule is if you leave your course early, where you'll have to return any money you haven't spent yet. As part of the DSA, you might also be eligible to apply for a new computer (outside of financial support). You will need to pay towards the first £200 of this cost, with the rest covered by the DSA scheme. For Wales, England, and Northern Ireland, the 2023-24 caps are clear: £26,291 per year if you're from England £33,146 per year if you're from Wales £25,000 per year if you're from Northern Ireland Things are a little more complicated in Scotland, where the exact costs are categorised and broken down in the following way: £1,725 per year for general costs £5,160 across your whole course for 'large items' of specialist equipment £20,520 per year for non-medical personal help Remember, these are the most you can get in each country, not what you should expect to receive.
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The Independent
22-07-2025
- Business
- The Independent
How much should you be saving each month at 30, 40 and 50 years old?
SPONSORED BY TRADING 212 The Independent Money channel is brought to you by Trading 212. Building a savings pot can help provide an important safety net to cover unexpected expenses or even for key money milestones. A savings pot can come to the rescue if you need cash to cover emergencies such as home repairs or you could use it to work towards a goal such as a holiday or a dream car. It can be hard to know how much you should save though as everyone will have different goals and there are different factors at play such as your income and even your age. One common savings mantra is the 50/30/20 rule, where you spend half your salary on expenses, 30 per cent on wants and put 20 per cent in savings. Rachel Springall, finance expert at said: 'Everyone will have their own goals and aspirations when it comes to their savings pots which will change as people progress through their adult lives.' The right amount to save depends on your stage of life and what gives you peace of mind, says Philly Ponniah, chartered wealth manager at Philly Financial. 'Factors like job security, dependents, insurance, and access to other savings all play a role,' she explained. 'As with all personal finance, it's personal, the right safety net is the one that helps you feel financially secure.' There are a various ways to save, from high-interest easy access accounts that let you withdraw your funds when you need them, to cash ISAs where your returns are tax-free. However you put money aside, here is how much you should save based on your age. How much should you save in your 30s? By the time you reach age 30, you will most likely have finished studying and may have a student loan to repay, while you could also have left your childhood home and be balancing paying rent and saving for a deposit to buy your first property. There may even be plans to get married. That is a lot to put money aside for. The median salary for someone age 30 to 39 is £39,988, according to the Office for National Statistics (ONS), which would mean saving £7,997.60 annually or £666.47 on a monthly basis based on putting aside 20 per cent. However, Springall said: 'Typically, those in their 30s should be saving slightly more than 20 per cent, aiming for 25 per cent of their disposable income. They must also ensure they are contributing a fair portion of their salary into their pension and be sure to have some cash stashed away to have a holiday or pay for any hobbies to take care of their wellbeing.' How much should you save in your 40s? ONS figures suggest those in their 40s typically earn £42,796 per year. That would mean putting aside £8,559.20 a year or £713.27 per month. But by the time you reach your 40s, you may have even more financial challenges such as paying a mortgage, running your own business and even bringing up a family or caring for older family members. Springall added: 'It's no wonder then if some have forgotten to put a little bit of cash to one side. 'The general budgeting rule applies here, where 20 per cent of any disposable salary saved to cover costs, and ensure pension provisions are not neglected when other life events take centre stage. Those feeling the strain would be wise to set up a pot that's quick to access, in case of emergencies.' How much should you save in your 50s? In an ideal world, someone in their 50s would be close to paying off their mortgage, which should free up some savings and mean more money can be put towards retirement in hopefully the near future. ONS data suggests that median salaries drop once people are in their 50s, as some may slow down at work later into the decade. The typical salary for someone age 50 to 59 is £40,456 so putting aside 20 per cent would mean saving £8,091.20 per year or £674.27 a month. Springall suggests the lack of other financial commitments can hopefully free up a decent portion of someone's net income at this age but it would be wise to start thinking about funding your retirement. She said: 'People are working longer, and living longer, so that means they need to put even more money away into their pension to fund their retirement. 'The first question someone should ask is whether they will be able to retire 'comfortably' or not. If no, then they must prioritise building their savings, or relinquish assets to cover the cost of care and comforts. This is where advice is critical.'
Daily Mail
17-07-2025
- Business
- Daily Mail
Why savers should fix NOW as easy-access rates hit two-year low
Savers are being urged by experts to potentially lock away their savings now to secure top rates ahead of a likely Bank of England base rate cut next month. Easy-access rates have plummeted to a two-year low, according to rates scrutineer Moneyfacts Compare. The average easy-access rate now stands at 2.68 per cent, the lowest level since July 2023 when it was 2.41 per cent. Meanwhile the average easy-access Isa rate is 2.92 per cent, its lowest level since August 2023 when it was 2.86 per cent. Atom Bank, offering the top easy-access rate today, cut its rate to 4.6 per cent from 4.75. per cent. Many easy-access accounts and Isa access Isas pay north of 4 per cent, but some are artificially inflated by bonus rates with disappear after three to 12 months. Rachel Springall, finance expert at Moneyfacts Compare says: 'The downward momentum is an inevitable turn of events, with providers adjusting their rates following four cuts to the base rate since last summer.' Fixed-rate accounts on the other hand are holding strong, with one and two-year bonds seeing the biggest rate hikes in 11 months, according to Moneyfacts Compare. The top one-year fixed bond rose by the largest amount since August 2024 to 4.55 per cent. GB Bank now offers a 4.58 per cent one-year fixed rate bond while the best two-year bond pays 4.45 per cent and is offered by DF Capital. The Bank of England will vote on whether to cut or hold the base rate on 7 August with markets pricing in a cut. Andrew Hagger, personal finance expert and founder of MoneyComms says: 'A rate cut of 0.25 basis points is still pretty much a certainty even with the economic data published this week.' In general, savings rates rise when the base rate is rising, and fall when it is falling. Easy-access rates are usually the first to be slashed when the base rate is cut as savings providers react to the cut, while cuts to fixed-rate bonds tend to move more slowly. 'Easy-access deals will take a hit - maybe not falling by a full 0.25 per cent in all cases' says Hagger. 'However, with fixed-rate bonds the next cut has probably already been priced in - in most cases,' he adds. For this reason Hagger says: 'If you've got some spare cash that you don't need for a year or two then locking some away in a fixed-rate bond makes sense as fixed rates are unlikely to increase from their current levels.' A saver stashing £10,000 in the top one-year fix offered by GB Bank would earn £458 at the end of the term. While a saver putting £10,000 in DF capital's two-year fixed-rate bond would earn £927 at the end of the two year term. For savers who want to lock their savings away in a tax-free Isa to avoid paying tax on their savings interest, Vanquis Bank has a one-year fixed rate Isa paying 4.3 per cent while United Trust Bank has a two-year fixed-rate Isa paying 4.25 per cent.
