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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 Fixed-rate bonds We have seen some bonds withdrawn from the market this week, but overall there has been little movement in the best rates available.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."
Telegraph
18-03-2025
- Business
- Telegraph
‘We're giving away our pensions to keep Rachel Reeves's hands off them'
Are you taking early retirement rather than filling up your pension pot because of changes at the Budget? Let us know at money@ For years, sensible savers have followed an easy mantra to cut their family's inheritance tax bill: spend the pension last. Most pensions currently sit outside your estate, so they are usually free from any inheritance tax on your death. This means that for many, living off Isas, other savings or rental income in retirement, and leaving that tax-efficient pot untouched, has been the crux of savvy estate planning. But Chancellor Rachel Reeves's Budget upended this. From April 2027, pensions will be included in your estate and, if over the inheritance tax threshold, will be taxed at a rate of up to 40pc. The Government estimates the change will initially drag more than 10,000 estates a year into paying the levy, and force about 40,000 estates to pay more tax. The change has thrown traditional financial planning rules out the window. And, to avoid their beneficiaries feeling the full sting of the taxman, many are starting to give away cash from their pension while they are still alive. 'It's at the top of the agenda for some of my clients, many of whom are thinking about taking their tax-free cash and giving it away now,' said Philippa Vick, an adviser from The Private Office. 'There will definitely be a rise in gifting sooner and, as the changes come into effect, it will be increasingly sensible to withdraw money from your pension. If you have children who need the money, it could even be worth thinking about doing it now if you have the means.' This is the case for Graham Tong, a retired accountant, and his wife Michele, a former teacher. The couple, from Coulsdon in Surrey, currently live off their state pensions, Michele's defined benefit teacher's pension and other savings. They both have additional voluntary contribution (AVC) pots that have remained untouched for inheritance tax purposes. Their one son will inherit everything, but since Labour's budget, they are speeding up the process of passing on their wealth. 'Leaving the pension pots untouched was a feasible, tax-efficient way of doing it for us, but that obviously all changed with the Budget last year,' says Graham, 69. 'The change definitely brought our financial plan back into sharp focus, so we've started gifting sooner and will continue to do so as far as we can.' After the Budget, Michele, 75, took out a large sum of tax-free cash from her AVC and gave it to their son. They had previously helped him on the property ladder and passed on smaller amounts when he had big costs, such as renovations, as part of handing down their wealth. Their hope is that they will survive the seven years in order to make the gifts inheritance tax-free. Graham is also now planning to take an income from his pension pot and give away part of it each month. This is to make the most of the regular gifting tax allowance, where regular gifts can be exempt from inheritance tax if done correctly. 'Any money that we now generate from our pension funds will be surplus income,' says Graham. 'How much is still up for debate, as we want to make sure it does not impact our liquidity, but we will do our best.' The Tongs are also looking into paying school fees for their grandchildren and already regularly treat their son and his family to holidays. 'At the end of the day, it's all about taking as much financial pressure off our son and helping our grandchildren as much as we can,' says Graham. 'There's a bit of a balancing act as there's no crystal ball, and you don't know what is around the corner in terms of our health, but I will take steps to mitigate what I give the Government in order to help my son, grandchildren and daughter-in-law enjoy the life they have.' More than half of us are doing something similar. A poll by Interactive Investor, the investment platform, found that 54pc of British adults are changing their plans due to the Budget. About a fifth now plan to give away more money from their pot. Inheritance tax is paid on estates worth more than £325,000, unless a family home is being passed to a direct descendant (children or grandchildren) when most estates will get a further £175,000 free from inheritance tax. Anything above this threshold is taxed at 40pc (unless you leave at least 10pc of the net value of your estate to charity, when the rate falls to 36pc). Your spouse or civil partner can inherit your entire estate tax-free and keep any unused allowance, so in most cases, a couple can pass on £1m free from inheritance tax. Despite this seemingly generous sum, rising house and asset prices have dragged more and more families into the death tax net. The Office for Budget Responsibility now predicts that inheritance tax will be payable on one in 10 deaths by 2029-30, double the proportion that paid it in 2023-24. The most common way to pass on wealth without paying inheritance tax is the seven-year rule, which crudely means that any gift is tax-free if you live for at least seven years after you give it. Until the seven years have passed, these gifts are classed as 'potentially exempt transfers'. After four years, the rate of tax due gets less on a sliding scale. You can also 'gift from income', as Graham plans to. You can give someone regular gifts from surplus income – providing it does not hinder your own standard of living, and it won't form part of your estate. It has to be from income, so you cannot sell assets, and you must meet all of your regular expenditure first. If you plan to do this, keep records for HMRC. There are also gift allowances, so you can give up to £3,000 each tax year and an additional £250 to as many people as you like. Weddings and civil partnerships have their own rules: £5,000 to a child, £2,500 to a grandchild or great-grandchild, and £1,000 to everyone else. Ian Cook, from the financial advice firm Quilter, says that he had already advised some clients to start giving away money from their pension now. But, he says, things may change. 'I'm telling most clients to stay put but to be aware that things may be very different soon. People will need to come to terms with the fact that they may now want to take money out of their pension now to either spend or give as a gift, and accept paying a bit of tax on it – better you pay 20pc income tax in your lifetime than your beneficiaries pay 40pc on your death.' And while your plans for your pension could change as the tax goalposts are moved, remember that you may need the money yourself. Your living costs may be higher than anticipated, you may live longer than expected or you may have to pay for care costs. It's worth speaking to a financial adviser or creating a cash flow model yourself to ensure that any gifting or spending does not leave you with a shortfall later down the line. Bill Newton is one of those waiting keenly for more details about the changes to pensions and inheritance tax before making his move, but knows he will have to change his plans to avoid landing his children with a large tax bill. Before the Budget, he was funding his lifestyle through his defined benefit pension and investment growth from his self-invested personal pension (Sipp) with the hope of passing down the capital tax-efficiently. 'I've been looking at alternatives. I could spend it, but when you get to my age having lived a frugal life and trying to build something for my heirs, I don't feel minded to splurge it,' said Newton, 76, from Stratford-on-Avon. 'I could put something into a trust, but I'm concerned about the costs involved, and I've looked into life insurance to cover the liability but it was proving difficult due to health conditions.' Newton said giving money away was already a big part of their financial plan, with house deposits for their children and Junior Isa contributions for their grandchildren. He is unsure of his next step but knows he needs to act in the next year or so. 'It has certainly thrown a spanner in the works,' he says. 'My view is that you've worked for this, and it should be retained as a way to pass on wealth. It seems a bit disingenuous to be changing the rules when it's money that has been accumulated – you've not been profligate, you should retain the ability to pass it on.'
The Guardian
18-03-2025
- Business
- The Guardian
Isas: six steps to take before the April allowance deadline
The maximum you can put away each tax year in any adult Isa is £20,000. That limit does not include any interest or other returns earned on your money. It covers all types of Isa you may hold: any cash, stocks and shares, innovative (containing peer-to-peer investments), lifetime or help-to-buy Isas. Lifetime Isas have their own £4,000 annual cap within the £20,000 – if you have used it all, you will have £16,000 left. Help-to-buy Isas are no longer open to new applicants, but you can pay into an existing one until November 2029, and can put in up to £200 a month (£2,400 a year). Junior Isas are available to under-18s and have an annual limit of £9,000. Look at what you have put in since 6 April 2024. The difference between that and £20,000 is how much you have left to use before the end of 5 April 2025. This will be easy if you have kept a record of your savings and investments – otherwise you will need to track down the information. Remember, you may not have paperwork for everything as so many providers now promote going paperless, so search your email inbox as well as your filing cabinet. The quickest and easiest way to use more of your allowance is to put money into an existing account – you will not need to provide any ID to the provider. If it is an account you set up in the current tax year, it should be straightforward – unless it is a fixed-rate cash Isa, which does not allow extra payments. If it is an Isa from a previous tax year and you have not paid into it during this one, you may need to contact your provider before you can put in new money. Although the rules have changed so that banks and building societies no longer have to insist on this, many still do. Nationwide building society, for example, asks savers to complete a renewal form before allowing new payments – this can be done in a branch, on the phone or online, and takes just a couple of minutes. You can start using the Isa again straight away. This tax year, for the first time, you can have more than one of the same type of Isa, so even if you have paid into an account this tax year, it is still worth checking whether it is a good deal. For cash Isas, the best-buy tables change constantly, with the top offers being determined by which providers are after your business at any particular time. Check websites such as The Private Office and Moneyfacts for up-to-date lists of the best deals. Investment Isas offer returns based on the performance of the funds they contain, but the provider's charges will have an impact, too. Look for providers that offer access to the funds you want to put your money into, or a set portfolio of funds that appeals to you, and then compare their costs. If you have already opened an investment Isa this year, Sarah Coles, a personal finance expert at the investment platform Hargreaves Lansdown, says there are a limited number of reasons to open a second. Some people may have money in a stocks and shares Isa, with high exit fees that they cannot move, but want to open a second account for future investments, she says. 'Alternatively, they may want an investment option that's only available from one provider, and another that's exclusive to a different provider. Meanwhile, some will want to test a new provider and its administration before moving the rest of their portfolio over.' For very last-minute applications, it is worth seeing whether your current account provider – or any other financial company you have a relationship with – is offering a good deal as, again, this could be more straightforward than starting from scratch. You may be able to set it up with just a couple of mouse clicks or a phone call. The main high-street banks do not typically offer the most generous interest rates on cash Isas, but you could open an account with one and then transfer to a better-paying account when you have had time to shop around. If you already have a cash Isa, not all providers will let you open a second Isa with them during the same tax year, even though the rules on this have changed. You can protect your money from future tax bills, and give yourself time to think about where to invest it, by moving it into the 'holding account' or 'cash account' of a stocks and shares Isa provider. 'If you're rushing to open an Isa ahead of the end of the tax year, it's not necessarily the ideal time to be thinking carefully about your investment strategy,' says Coles. 'If you already know where you want to invest, or you have decided to opt for a ready-made investment, you can snap it up straight away. However, if you have yet to go through this process, it's a great idea to divide the decision to open an Isa to protect your allowance, and the choice of where to invest.' Many stocks and shares Isa providers offer a holding account or cash account for money that you plan to use to make new investments. Once your money is in there, you can choose to drip-feed it into investments over a period of time. 'This has the added benefit of ensuring you won't invest your annual allowance at what turns out to be a less-than-ideal moment, and are spreading the timing risk,' says Coles. This may not be the thing to do if you think it will take you a while to get round to investing, though, as you could face a charge from the Isa provider. Aviva, for instance, will charge you on your investments, with a fee of up to 0.4% applied to any cash you are holding ready to put into stocks and shares. Some other providers, including Barclays, will not. Coles says: 'If you want to hold cash for a longer period, there's nothing stopping you getting a cash Isa … and switching into stocks and shares when you're ready.' While you are in the process of checking on your investments, take a look at what is happening to Isas you set up in previous tax years. If they are cash Isas, they may no longer be earning a market-leading rate, or, if you often pay in at this stage during the tax year, you may be about to come off a good fixed-rate. Not all of the best Isa deals accept transfers in, but there are some reasonable interest rates on offer. According to Moneyfacts, at the time of writing, one of the best one-year fixed-rate cash Isa deals was offered by OakNorth Bank, paying 4.45% and allowing transfers in from existing cash Isas, but not any other type. Some Isa providers will allow you to transfer from a stocks and shares Isa to a cash Isa. You can now, in theory, transfer part of your Isa, rather than having to move all of the money at the same time. Lots of providers will let you move part of an Isa from a previous tax year but will insist you move the whole thing if it was opened in the current one.
Khaleej Times
11-02-2025
- Business
- Khaleej Times
Seed Group announces strategic partnership with Commenda to expedite cross-border expansion for UAE businesses
Seed Group, a company of The Private Office of Sheikh Saeed bin Ahmed Al Maktoum, has announced a strategic partnership with Commenda, a global leader in cross-border business solutions. This collaboration aims to enhance the ease of business compliance and expansion in Dubai and the wider UAE market by leveraging Commenda's innovative technology and Seed Group's strategic influence. Commenda is a multinational compliance management firm based in the US that specialises in streamlining business setup processes for global clients as they expand and scale their operations. The company offers services such as incorporation, corporate tax management, accounting and audit preparation, VAT and sales tax compliance, as well as international tax and transfer pricing. It operates in 12 major markets, including Singapore, Ireland, the UK, India, the US, and, most recently, the UAE. With its user-friendly platform, Commenda supports hundreds of cross-border companies in tracking and managing their compliance and tax requirements. Seed Group is a corporate institution based in Dubai that has been instrumental in forging strategic partnerships with global companies for over two decades. Affiliated with Dubai's royal family as a company under The Private Office of Sheikh Saeed bin Ahmed Al Maktoum, Seed Group is well-positioned to accelerate market entry and strengthen the presence of its partners in the broader MENA region. For Commenda, partnering with the Group elevates its access to the lucrative business field and furthers its mission to mitigate regulatory complexities for its clients. 'Commenda is a great addition to Seed Group's portfolio, as their mission aligns closely with ours — leveraging technology to drive innovation and business growth,' said Hisham Al Gurg, CEO of Seed Group and The Private Office of Sheikh Saeed bin Ahmed Al Maktoum. 'Their solutions address critical issues faced by over 250 cross-border businesses by offering valuable tools such as real-time compliance monitoring and incorporation support in key global markets. By enhancing operational efficiency and ensuring regulatory adherence, Commenda empowers businesses to seamlessly expand into Dubai and the broader MENA region.' Spencer Schneier, co-founder and CEO of Commenda, said: 'Commenda could not be more excited to be here in Dubai working with the Seed Group. The UAE is a massively strategic market for us that we treat with extreme seriousness. We want to be part of the Dubai Dream and help businesses expanding both in and out of Dubai to leverage its tremendous business environment and regional innovative dominance.' With Commenda's innovative compliance solutions and Seed Group's regional impact, the UAE's business field will benefit from greater access to pre-vetted accountants, legal experts, and high-level government entities.
