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MARTIN'S QUICK BRIEFING
Child Trust Funds Scrapped!
Warning Switch Now! When products are defunct, rates plummet
The Chancellor's just announced his £6bn spending cull, and Labour's Child Trust Funds policy, which gave every child at least £500, is a victim.
It also allowed parents to save tax-free alongside it, yet often didn't deliver its aim to get parents saving towards a 'college fund'. I suspect, the main mistake was full control went to the child at 18, prompting worries about rebellious future teens.
- What are Child Trust Funds (CTFs)? They're a tax-free way to save or invest for your child where you can put up to £1,200 a year in. The big boon is the state also adds a £250 voucher (£500 for low income families) at birth and again aged seven, ie, min. free £500.
- When'll it be scrapped? From 1 August, the Govt plans to ditch the payment for 7yr olds, and slash it to £50 for newborns (£100 for low earners). From 1 Jan 2011, all Govt. top-ups stop. See: CTF payments axed
- What happens to existing CTFs? They'll remain tax free, and you'll still be able to put £1,200 a year in them.
- What'll happen to rates? While money can still be added to them, CTFs are likely to become a bit part pretty quickly. I doubt banks will scrap to fight for new business, meaning rates'll plummet.
- Get up to 3% NOW - on new and existing CTFs! Many say CTFs already pay pretty poor amounts, yet you can transfer to a new deal (ask the new provider to shift it for you). The top payer's Yorkshire BS at 3% AER with a year-long 0.7% bonus though it's branch only. Alternatively Chorley BS pays 2.9% AER in branch or by post, see the Best Buy Child Trust Funds guide.
- What about investment CTFs? We don't cover investments, as only a crystal ball gives the right answer. But, basically, with stocks & shares CTFs, you're reliant on an investment manager & market performance. Not a bad thing, as long as you're aware of the risks (ie. upside big growth, downside lost cash)
While you're at it, check out the Best Buy Children's Savings guide. |
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| The Ones Not To Miss |
New! Premium Bond Calculator - How lucky are you?
Predict winnings (if any) & compare to saving. Under £1,400 & you'll likely win NOWT
Over 22 million people have £40bn in Premium Bonds yet, for most, even though they're tax-free, you're far better off with normal savings. Probability Calculator: Forget emotion, use our now supercharged, unique MSE PremiumBondCalculator.com to discover what you're likely to win and compare it with top savings. New luck test: We've also added a new function, where you tell it what you've won and it analyses how lucky you've been. Don't you just win the 1.5% interest rate? No. That way, on £100 you'd expect to win £1.50, yet as the smallest prize is £25, it's impossible. The calc shows 19 in 20 people with this amount over a year win nothing (one wins £25+). In fact, with average luck, anyone with up to £1,400 in Bonds wins NOWT. Compare Bonds to Savings: Someone with £5,000 in bonds only has an 8% chance of beating Barclays top 3.1% cash ISA, and just 15% of beating the Halifax Web Saver* top 2.6% clean savings even after basic rate tax. How's it worked out? It's all about the bond distribution. Beneath this easy to use calculator is an algorithm so complex we talked a scientist who usually calculates the star interactions into it. Try the New Tool: Premium Bond Calc Related: Premium Bonds: Any good?, Top Savings, Top Cash ISA
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£5(ish) Europe flights. Ends midnight Thurs 27 May
Over 40 June destinations from UK airports for £5 e/w (inc. some charges). Eg, Malaga, Venice, Barcelona
Speedily find £5 Flights, then beat the add-on charges with the Fee Fighting guide. Related: Cheap Flights, Cheap Hotels
TWO free c. £15 audiobooks, eg, 'Girl with Dragon Tattoo'. Free trial at Amazon-owned Audible.co.uk for downloadable audiobooks, with up to 40,000 to choose from. See the Deals Note: Free Audiobooks
New! Rent out your car for up to £35/day
Boost your income - rent out your parking space and spare room too
There's a brand new addition to the 'rent it out for cash' family... Rent out your car! If you don't use your car all the time, you can rent it out by the hour or day via clever new site WhipCar, which also takes care of the insurance. It's an easy way to boost your pocket. Rent out your driveway: Parking spaces in urban centres (especially London) can command £200/mth, so if you're based near a big city there might be easy money on your doorstep. Dedicated websites like Parkatmyhouse* and Yourparkingspace make it easy to find potential tenants, even if you need the spot on certain days (see rent out your parking space guide). Get a lodger: Take somebody in under the 'rent a room' scheme and you won't have to pay tax on the first £4,250 made each year (though you can't then claim expenses), plus as a landlord you can ask for a deposit and a month in advance, which means ready cash comes in quickly. Full details & scores more ways to make money in the Updated Guides: Boost Your Income Related: Comping For Cash
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Last Chance! Best-buy Barclays 3.1% cash ISA ends Tues
Inc. 1% bonus lasting a year for new customers, after Tues it won't give a bonus so it'll only be 2.1%
You can save £5,100 in a Barclays Golden ISA, but no transfers. Full pros & cons: Best-Buy Cash ISAs, Top ISA Transfers
Free £3 pint of bitter or bottle of cider in Young's pubs. Just register & click for a voucher to use before 12 June. See the Deals List: Restaurant Deals and please be DrinkAware
New! Top 6.7% for LIFE balance transfer & loan equivalent
Massive triple best buy! Shift existing card debts at 6.7% or get loan at half market's cheapest
The new 6.7% APR MBNA Rewards Amex* card's blown the top off three different credit card markets for longer term deals, though, like all plastic, you'll get credit scored. Top Balance Transfer: New customers get 6.7% APR fixed until all the debt shifted to it is repaid fees-free (within the first 60 days). Though, if you can repay more quickly, the toughish-to-get Clydesdale offers 16 mths 0% with a 3% fee, while, for a lower 2.9% fee, Natwest* is 15 mths 0% (both up to 16.9% after). FULL info in best balance transfers guide. Top
Loan Equivalent: If you need to borrow, the MBNA card* has a rare feature that lets you pay cash into your bank account at the 6.7% rate, letting you effectively use it as a loan. This is half the rate of the market's cheapest loan (13.9% for under £3,000). If you're going to do this, read the full cheap plastic loans guide for full step-by-step info. Top for
Spending: Credit cards are dangerous for undisciplined spending; always plan and budget what you'll borrow & how you'll repay. MBNA lets you spend on it 6.7% long term, alternatively Tesco* & Virgin* are both 0% for a year, with either Clubcard points or a year's 0% balance transfer (2.98% fee), but jump up as high as 18.9% APR after; see top spending cards. Is the MBNA rate fixed? While fixed for balance transfers and loans, for spending it's not, so there's a chance it could rise after a year, though rate jacking rules mean you can refuse that. Related: Credit Scoring, Cheap Loans
£25 official England footie shirt, £5 unofficial shirts & footie freebies galore!
World Cup kicks off in a fortnight! Free footballs, stickers, wall-charts, sweepstakes & more
We've collated all the deals and freebies around for those supporting England. See the New Deals Note: £25 England Shirt
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£30 of iTunes for £22.50 - bank hol weekend only. Buy a £15 giftcard in store at Clinton Cards, get 2nd half price, see the Forum Note: Cheap iTunes
Last Chance! Lock in 44%ish OFF Direct Line home insurance
Promos end Mon, but quotes last 90 days, so do it now to lock in the cheap price
Some hot new customer deals are about to end, but you can take advantage even if you're not at renewal. 50%ish-off deals: Until Mon 31 May competitive insurer Direct Line* ,which isn't listed by comparison sites, is offering 44% off (25% off 25% off) buildings and/or contents, while Churchill* is 50% off combined cover, providing you've not claimed for 5yrs. Lock in prices: As quotes are valid for 3mths, get it now just in case it's cheapest when you're at renewal (if it launches a better promo you can always re-quote). Never assume it's cheapest: Even though heavily discounted, it isn't automatically best. Always compare with the combined results of comparison sites GoCompare*, Moneysup*, Confused*, CompareTM* (as many as you've time for). These will also include Tesco and Nationwide promos, which end imminently too. For FULL info, including how to get hidden cashback that could mean you profit from insurance, see the Guide: Cheap Home Insurance Related: Cheap Car Insurance, Travel Insurance
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New Sales! All Saints 25% off EVERYTHING, 750 Boots points on £30+. Plus 5x Bourjois lip glosses for £9 see the Daily Deals List: High Street Sales
Urgent! Extra 5%-off code on M&S's 25%-off-all-wine sale. Ends Thur 27 May & you need to buy in cases. Please be DrinkAware. See the Daily Deals List: Discount Vouchers
"I can save £400 on energy? I thought I had a cheap online deal?"
Warning! Viewing gas & elec bills online doesn't mean you've a cheap online tariff
Most families can cut energy bills by £200+ a year just by shifting to an online tariff (where you're billed by email, yet... sometimes online isn't online: Last week, while doing a money makeover for BBC2, the family said they were on an online tariff, yet after digging, it turned out they were on a standard tariff, just accessing it online. Thus their delighted cry of "I can save £400 a year on energy!" after using a comparison site. I'd never realised people may confuse this before, hence this warning. Get bills by post? Save £200+ a year: If your bills arrive via the mail, even if you can also access them online, you can probably save over £200 a year in about five minutes. Compare, switch & get cashback: Top Pick: Energyhelpline* pays £15 cashback per switch. Dual Fuel: MoneySupermarket* £30 in cash, Uswitch* a crate of wine, SimplySwitch* £35 in Amazon vouchers. FULL info & cashback options in the Updated Guide: Switch Gas & Elec Time to Switch? Energy capping views Related: Boiler Cover, Grant Grabbing
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Urgent Favour! Pls take 10 secs to sign FinancialEducationPetition.com. Plus spread the word by email, Facebook, Twitter, we need more. Ends Wed (deadline extended).
New restaurant vouchers! Pizza Express 2 courses + drink £10 & £8 GBK burger 'n' drink
Plus last chance: 2for1s at Strada, Giraffe, Brasserie Gerard & Caffe Uno, La Tasca 50% off
Join Crown Carveries 5 for two courses & free drink at Greene King pubs in the Daily Deals List: Restaurant Vouchers
Cut-cost curvy ladies fashion for up to size 30s
Top stores, tips & tricks from MoneySavers, for bigger women on smaller budgets
For months, curvaceous MoneySavers have been working together to collate tips & tricks to save. And, with the average UK woman a size 16, it's well worth it, as "if you've boobs and a booty, high street bargains can still be scarce". Current sales: Asos Curve range (up to 60% off), plus-size site Yoursclothing.co.uk* (up to 80% off) and Ann Harvey* (up to 50% off), and don't forget there's 25% off Ann Harvey on Debenhams spectacular days. Bargain fashion up to size 30: They also suggest good value picks including Sainsbury's 'Grace' range, Curvety.com, SimplyBe.co.uk and Matalan. Plus try Bon Marche for PJs and nighties. There are hundreds more tips in the Forum Note: Big Fashion at Mini Prices
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New vouchers! Habitat 20% off, Boden 20% off & Wallis 15% off
Join supermarket discounts of £10 off £50 at Sainsbury's, Tesco & Ocado
Plus get £5 off Boots skincare. These and many more in the Daily Deals List: Discount Vouchers
Warning! TalkTalk & Sky join BT hiking prices. Beat 'em with £9 line rental
From 1 June cheap eve. rates start at 7 not 6pm & peak calls rise to 5.9p/MIN. Yet do it for 5p/CALL
Next week TalkTalk & Sky change their peak hours from 6am-6pm to 7am-7pm, so you pay more for an extra busy evening hour (BT did the same in April). Plus they've hiked peak time calls costs by up to 26% too (TalkTalk to 5.9p, Sky's 5.8p). Instead get...Line rental £9/mth: Primus' Home Saver package includes weekend calls & evening calls starting at 6pm if you sign up via comparison site Homephonechoices*. Haggle with BT for £8.54/mth: Alternatively, MoneySavers report that by threatening to leave & quoting the cheaper Primus deal, BT gave them £36 credit which brings the price over a year down to under £9. 5p/CALL daytimes: Also sign up to a no-frills provider like 18185 for much cheaper calls daytimes & to mobiles just by dialling its prefix number. Eg,. it's 5p/CALL to landlines daytimes, BT's 5.9p/min. With broadband: Don't get a bundle, just sign up to broadband from Plusnet* (available to c. 80% of the UK) which is £25 connection plus £6.49/mth but currently has 4mths free, which over the year's contract makes it £2.08. For even more, sign up to cashback site Quidco* and get it from there for a further £52 back FULL pros, cons in the Guide: Cheap Home Phones Related: Cheap Broadband. If you're new to cashback read Top Cashback Sites
Web Developer - MSE Job Opp. Want to join the team? Find out more
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| Big & Easy Ways To Save |
| Quick links or click the titles for full pros, cons, alternatives & more savings |
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| More MoneySaving |
Rolling Stones's new no.1 MP3 album 'Exile on Main St' £6.97. Plus new Faithless album 'The Dance' for £4.97. Compare MP3s & CDs
Warning! Beware conning invoices & debt demands
Don't pay if you receive an invoice when you only requested a quote
Sending an unwarranted invoice or demand for cash in the post is a nasty trick, as many assume they need pay up. Typical scenario: It could be a private parking ticket you didn't warrant, or an offer to list your small biz in an advertising directory, where you agree to a quote, but instead an invoice shows up, threatening debt collection. What to do? If you've no contract, a trader can't take you to court for unpaid bills. Don't fall for their scare tactics. Write back, refuse to pay and threaten to take them to court for harassment if they don't stop. Debts that aren't yours: A similar issue is some debt collection agencies send demands to all folks with the same surname to save time. Remember the onus is on THEM to prove that you DO owe the money and it's genuine debt. Use this National Debtline letter to write back. If the debt is yours, read the Problem Debts Guide on how to deal with it.
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Archna's Free Game of the Week! Rotate the board to clear all the jewels. Jewel Gears
Feeling a bit blue? Avatarise yourself! That's all for this week, but, before we go, get a taster of what you'd look like as a star of the hit film. Get blue!
We hope you save some money,
Martin & the MSE team
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Q. Is it possible to still reclaim charges from a credit card company, even if they sell on the debt to a debt collector? Rita, by email.
Martin's A: In a nutshell, if you've had charges over £12 from a credit card for late payments or busting your credit limit in the last six years, it's usually quite easy to reclaim (see the Credit Card Reclaiming guide for info & templates) and many get £100s.
However, if there's a debt on the account, any reclaimed money's likely to go towards paying it off. Yet don't let this put you off, it still means you're less likely to be chased for any further cash, depending on the amount of charges and debt.
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Discuss: Credit Card Reclaiming
Suggest: A question of the week
(big general issues not personal q's pls) |
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Explanation of * Links
FSA NOTE: Referring people to insurers or insurance intermediaries can in some circumstances require FSA authorisation. For this reason, Martin Lewis of Shepherd's Studios, Charecroft Way, Shepherd's Bush, London W14 0EH is authorised and regulated by the Financial Services Authority.
How this site is financed. Any links with a * by
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to MoneySavingExpert.com, which helps it stay ad-free and free to use. You
shouldn't notice any difference, the links don't impact the product at all and
the editorial line (the things we write) is NEVER impacted by it. If it isn't
possible to get an affiliate link for the best product, it's still included in
exactly the same way. As we believe transparency is important, we're including the
following 'un-affiliated' web-addresses for the same things: alliance-leicester.co.uk,
annharveyfashion.co.uk, churchill.com, comparethemarket.com, confused.com, directline.com, energyhelpline.com, gocompare.com, halifax.co.uk, homephonechoices.co.uk, mbna.co.uk, moneysupermarket.com, natwest.com, parkatmyhouse.co.uk, plus.net, quidco.com, simplyswitch.com, tescofinance.com, uswitch.com, virginmoney.com, yoursclothing.co.uk. Read more about this in how this site is financed.
MoneySavingExpert.com is the free to use Consumer Revenge website focused on how to save you cash. It's owned, and run by ultra-focused journalist and bestselling author Martin Lewis. On TV amongst other things Martin is GMTV's Money SavingExpert and presents money programmes for ITV1 Tonight. On Radio Martin has regular slots on Radio 2 Vine and Radio 1 Whiley. He's also a columnist for amongst others the News of The World, The Telegraph and the Sunday Post. Find out more: About the site and its funding.
Disclaimer: This e-mail is based on journalistic research. It does not constitute financial advice. Any information should be considered in regard to your
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