Latest news with #financialapps
Sky News
13 hours ago
- Business
- Sky News
Savings Guide: More options than ever for savers to beat inflation - and good news about top easy access ISA
From easy access to fixed rate bonds, there are lots of savings accounts to choose from. Savers now have more options than ever to beat inflation. For this week's Savings Guide, Anna Bowes, expert from The Private Office, reviews the best account options on the market in June. Easy access There has not been a lot of change to the easy access table, apart from the addition of a new financial app provider, Snoop. Like other fintech providers such as Chip, Moneybox, Tembo, Plum, and Sidekick, Snoop offers savings and investment services. These companies are not banks themselves, but they partner with fully authorised and regulated banks. This means that funds placed in their savings accounts are protected by the Financial Services Compensation Scheme (FSCS). However, it's important to remember that the FSCS protection limit of £85,000 applies per person, per bank. So if you already hold money with one of these underlying partner banks - either directly or through another financial app - you'll need to consider your total balance across all accounts. If you exceed the £85,000 limit, any amount over that may not be protected. Of the top five accounts listed in the table, Chase and Atom are also app-only, but unlike the fintechs above, these are authorised and regulated banks in their own right. For those who would prefer not to use an app-only provider, Cahoot's Simple Saver offers a straightforward, unrestricted, easy access account with an interest rate of 4.55% AER. However, note that after 12 months, any remaining funds in this account will be transferred to a Cahoot Savings Account, which currently pays only 1.20% AER. Fixed-term bonds The Bank of England's decision to keep the base rate on hold at 4.25% last week has given savers another reprieve - and the good news is that fixed-term bond rates have not only remained steady, but we've actually seen some improvements. Of the top five one-year fixed-term bonds, four are new and improved since the base rate decision last Thursday - and the top rate on offer has jumped up to 4.55% AER, from 4.50% a week before. It's not quite as impressive in the two-year table, but the top rate has edged up from 4.42% to 4.45% AER. However, we have also seen one provider cutting the rate it is offering very slightly, leaving the new rate high enough to keep it in the best buy tables. The longer-term tables have seen very little activity, which makes sense - although there was no base rate cut this time around, the trajectory is very much downwards, so providers don't want to be paying out more than they need to over the longer term. While the new, better rates are only marginally higher, it does mean that savers have more options than ever to choose from that still beat inflation - especially if we see inflation fall in the next few months and years. Fixed-term cash ISAs It's a similar picture for fixed-term ISAs - in fact, in some cases, it's even better. We've seen some rate hikes among the top longer-term accounts. And, just like with the one-year bonds, there have been multiple improvements. All of the top five fixed-term cash ISAs are now paying more than they were a week ago. The average has improved from 4.26% to 4.30% following a little battle between Cynergy, Castle Trust and Hodge. Cynergy is currently the winner, paying 4.35% tax free/AER. If you are looking to fix for two years, the top rates are still slightly lower, as the markets are expecting rates to fall in the next few months and years, but there have been a few increases in the meantime. The top rate available over this term is now 4.25% with both Cynergy Bank and United Trust Bank, with Vanquis falling slightly behind them, paying 4.22%. Over in the three-year table, the top rates are all exactly the same as in the two-year table, so if you want to hedge against further cuts by locking in for a bit longer, you're not missing out by doing so. Finally, in the five-year table, the average among the top five is 4.22%, which is the same as both the three-year and two-year terms, as the rates are very similar. However, the top five-year rate is very slightly less at 4.23% with the Nottingham Building Society. What term you choose all depends on what you think will happen to interest rates over the next few years. In the meantime, once again, there are plenty of inflation-beating accounts to choose from for those who have not yet used this year's ISA allowance or who are looking to switch from a poorer-paying ISA account. Easy access cash ISAs Competition has been more muted among the easy access cash ISA providers and we have seen a few rates being cut over the last few days. That said, the top easy access ISA with Plum increased the rate for new customers from 4.85% to 4.88% - an unexpected move as it was already paying quite a bit more than the rest of the field. For those who do not want to choose a financial-app-only fintech provider, the top rate is now a little less, as Vida Savings has reduced rates. The new best Easy Access ISA is with Kent Reliance, paying 4.46%. This is a refreshingly straightforward account, as there are no restrictions on the number of withdrawals you can make, and there is no short-term bonus to watch out for. It can be opened online or even in a branch if you live close to one. As ever, check all the terms and conditions to make sure you choose the best account to meet your needs.
CBS News
16-06-2025
- Business
- CBS News
What happens if you can't pay back a cash advance app?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. A cash advance could cost a lot more than you bargained for if you can't repay what's owed. Getty Images In today's tight financial climate, it's not uncommon to come up short between paychecks. Inflation may have eased somewhat, but the cost of living is still high, and for many, that means turning to cash advance apps that let you borrow money over the shorter term to bridge the gap. These apps can be appealing because they promise fast, hassle-free access to money without the high fees of traditional payday loans. But what happens if you hit a financial snag and can't repay the money on time? It's a more common problem than you might think. After all, many cash advance app users rely on this type of borrowing not just every once in a while, but regularly, to stay afloat while covering things like groceries, housing costs and other basic living necessities, according to recent data. But when one financial emergency leads to another, what started as a small advance can quickly turn into a source of stress. And, despite their user-friendly marketing, cash advance apps can still have serious consequences if you fall behind on your payments. But what really happens in these cases, and what you can do if you're stuck? Find out how to get help with your debt problems now. What happens if you can't pay back a cash advance app? Cash advance apps generally connect directly to your bank account and automatically withdraw repayment on your next payday. If there aren't enough funds in your account when they try to collect, a few things can happen — and none of them are great. Your bank account might get overdrawn. Even though many apps promise "no overdraft fees," that doesn't always hold true. If your account has insufficient funds when the app tries to pull the repayment, your bank might charge you a fee. And if the app attempts multiple withdrawals, you could get hit with multiple fees, quickly compounding the problem. You could lose access to the app. If your repayment fails, many apps will suspend your access to further advances until your balance is repaid. For people who rely on these apps for short-term survival, losing access can make a bad situation worse. It might be sent to collections. While cash advance apps typically don't report to credit bureaus, they may eventually send your unpaid balance to a collection agency. That collection activity could damage your credit indirectly if it escalates, and it can lead to repeated calls or messages from debt collectors. Your app may try to withdraw the money again — repeatedly. Some users report that apps will attempt to withdraw funds multiple times, even in small increments, to recover what's owed. That can drain a low-balance account or cause further overdraft fees if your bank allows the transactions to go through. You might be subject to legal action (although it's rare). In most cases, the amount borrowed through these apps is small, and the apps won't take legal action. But if your balance gets passed to a collections firm, there's always a chance that a lawsuit could eventually follow, especially if the amount owed grows due to fees or multiple failed payments. Chat with a debt relief expert about getting your finances back on track. What to do if you can't repay a cash advance If you've taken out a cash advance and know you can't repay it on time, it's important to act quickly, before the app takes automatic action. Here's what to do: Pause the auto-repayment (if possible). Some apps allow you to delay or reschedule your repayment, especially if you notify them in advance. While not all platforms offer this option, it's worth checking the app settings or reaching out to customer support. Contact the app's customer service. Be proactive and transparent. Let them know your situation and ask if there's a way to delay the withdrawal or repay in installments. You may be able to avoid a collections referral if you communicate early. Unlink your bank account — carefully. If repeated withdrawals are overdrawing your account, some users consider unlinking or changing bank accounts to stop the drain, though this could be a violation of the app's terms of service. Just know that doing this doesn't erase the debt, and the app may still pursue collection. Create a repayment plan. Once your financial situation stabilizes, prioritize repaying the balance. Even if the amount is small, leaving it unpaid could make it harder to use similar services in the future, and if the debt is sold to collections, it could snowball. Look into alternative assistance. If you're consistently short on cash, consider more sustainable support options, like talking to a credit counselor or taking advantage of a debt relief solution you qualify for. Apps can be helpful in a pinch, but they're not a long-term solution, and if compounding debt is adding to the financial issues you're facing, it's important to find a solution before things get worse. The bottom line Cash advance apps are designed to make borrowing easy, but in some cases, they may be making it too easy. And, if repayment becomes a problem, these apps aren't always as forgiving as they appear. From overdraft fees to account freezes and possible collections, the fallout can be stressful. If you're in a tight spot and can't repay an advance, communication is key. Reach out to the app, explore your options and consider stepping back to assess whether these services are helping or hurting your financial stability in the long run.
