Archive: MoneySavingExpert's Money Tips Email

ISA year starts today! 3.3% easy access
Every UK citizen over 16 can deposit a NEW £5,340 into a cash ISA - even if you did it yesterday

The 2011/12 tax year starts today, meaning everyone gets a brand-spanking new, tax-free cash ISA allowance. Even if you've opened one before, you can now do it again. All savers should consider it as cash ISAs are just savings accounts where the interest's tax free, so you get more. We're only including those that have full £85,000 UK Savings Safety protection.

• Top easy-access: 3.3% AER tracker ISA. Santander's* Flexible ISA pays 3.3% AER (some existing cust get 3.5%) and tracks UK base rate for a year, so if that rises, as many pundits predict, so will this. Barclays' 3.25% AER Golden ISA is similar, but is branch application only, except for existing Barclays online or phone customers. The AA's ISA (available Wed pm) pays a higher 3.35% AER (min £500), but doesn't track. All these have year-long temporary rate hikes, so diarise to ditch and transfer then.
• Top 3% AER easy-access allowing transfers / consolidation. Check your old ISA rates; they can be pitiful. Halifax's* ISA Direct Reward, pays 3% AER variable (some existing custs 3.2%) and takes new and transfer money. Though for its existing customers only, Nationwide* beats it at 3.1% AER. Both ISAs include year-long intro rate hikes so diarise to ditch & transfer then. See the Top ISA Transfers guide for more.
• Top fixed cash ISAs up to 4.5%. If you're prepared to lock your cash away (with heavy early withdrawal penalties), you can get a guaranteed rate. 2 years: Santander 3.7% AER (min £500). 3 years: Principality BS 4.17% (min £500). 4 years: Saffron BS 4.5% (min. £500). 5 years: Birmingham Midshires 5% (min £500). Pundits predict rates may rise soon so be aware these fixes mightn't look so competitive.

Full details and more options in the Updated Guide: Cash ISAs Related: ISA Transfers, Top Savings, Safe Savings

Speedily find what you'll take home this month
Our Income Tax Checker tool shows whether today's big tax changes hit or boost your paypacket
It's the first day of 2011/12 tax year, meaning an all change in the tax system: rates are rocketing, allowances ascending and thresholds thinning ...

• Find what you'll take home. We've updated the IncomeTaxChecker tool with the new data - put in your salary and it'll instantly reveal how much will be lining your bank account (or overdraft), and easily compare this year to what you'd have earned last year to last.
  
• Personal allowances up. The amount you can earn before paying tax is up a grand to £7,475 for under 65s meaning lower earners take home more. Those aged 65+ get £9,940 and 75+ £10,090 tax-free unless they earn over £24,000 when gradually that bigger allowance is clawed back. Those earning £100,000+ start to lose their entire personal allowance. Check your tax code for errors though.
  
• Now the 40% rate starts at £42,475. While the personal allowance has gone up, the basic 20% rate band has been cut. The overall effect is most now pay higher 40% rate tax on earnings over £42,475, last year it didn't hit until £43,875 so it's an effective tax rise. The 50% rate still starts at £150,000. See all the 2011/12 Tax Rates.
  
• National Insurance (NI). The amount you must earn before paying NI has increased too, another boon for lower earners. Yet above that NI's increased from 11% to 12% of your salary and from 1% to 2% above £42,484 - which has the same effect on your paypacket as putting income tax up.

The new tax year hits many other things too, the MSE team is speedily altering our guides to ensure it's all up to date, from tax credit to housing benefit, childcare vouchers, to boosted bank accounts.

4% 1yr fixed savings loophole
It's designed for 5 years, but very unusually allows you to withdraw early

Fixed savings give you a guaranteed rate, but you normally need to lock your cash away. Yet a new account doesn't, let's play! All below have full £85,000 UK Savings Safety protection.

• Earn 4% AER for a year! The Northern Rock 5 Year Fixed Rate Notice Bond (Issue 2) pays 4% AER, which is not that high over five years. Yet unusually it allows withdrawals with 180 days' notice, a great escape if rates rise. Plus you could set this up, diarise to give notice in 6 months and this effectively becomes a year bond at a massive 4%, far higher than the 3.4% best-buy for that term. There's a chance it'll change the terms after huge traffic from this e-mail, so double check.
• Top easy access savings: The Santander* eSaver pays 3% AER. A smidgen more's available with Nationwide's* MySave Online Plus at 3.05% AER, yet it only allows 1 penalty free withdrawal a year (min £1,000 deposit). Both accounts include year-long bonuses, so diarise to ditch and switch when they end.
• Top normal fixed rate savings: The top rates available are: 1 year: The AA 3.4% AER (min £1), 2 years: Cheshire BS 3.95% AER (min £500), 3 years: Principality BS 4.26% AER (min £500), 4 years: West Brom 4.31% AER (min £1,000), 5 years: Principality BS 5.01% AER. Many pundits predict rates will rise soon; if they do, these fixes mightn't look so competitive.

More savings, including top easy access accounts, in the Updated Guide: Top Savings ISA guides: Cash ISAs, ISA Transfers Related: Safe Savings

Big energy hikes predicted! Switch, fix, save up to £200
Many dumped off old fixes | cheap online deals being pulled | 15% rises predicted

The energy market's in turmoil. Even though the last 10%(ish) price hikes only hit a few months ago, some experts predict Libya and Japan's impact on world oil prices could see prices rise as much as 15%, as early as this summer. That's probably a little far fetched, but it shows current momentum. Go through this checklist asap.

• Urgent! Is your capped / fixed tariff ending? Over 10 major fixed tariffs, eg, British Gas price guarantee 2011, end this March / April. If you're on one you'll be automatically shifted to standard tariffs, hiking bills massively. if that's you, ditch and switch asap. See the Updated Guide: Capped Tariff Ending Help
• Should I fix? A fixed tariff guarantees your rates won't rise for a set period, eg, 2 years. It typically costs £60/year more than the current cheapest normal deals, then again one comparison site we asked believes price rises will add £170 this year. It's best to think of fixing as an insurance policy against price hikes. The less affordable they'd be for you, the more you should consider it.
• Not on a cheap online tariff? Go quick! Three super-cheap online deals were pulled last week, effectively a stealth rise as it means the average price of best-buy deals is up £30 a year for a typical home. Speed is probably crucial as more cheap deals may be pulled (use comparison sites below to find cheapest).
  
• Find the cheapest tariff and get cashback. The company you're with matters less than which of its many tariffs you're on. While standard tariffs are typically c. £1,100/year, the same provider's online tariffs can be £900. To compare ... Top Pick: Energyhelpline* pays £15 cashback per switch (via these MSE links). Dual Fuel: MoneySupermarket* pays £30 in cash, Uswitch* offers a crate of wine, SimplySwitch* £40 cashback.
  

FULL info and more cashback options in the Updated Guide: Cheap Energy + Cashback Related: Boiler Cover

Totally free BA Europe return
New hot credit card freebie or worldwide flight companion ticket rewards
Two hot new credit card deals have recently launched. With both, just do your normal day-to-day spend on the card to build up points, but only do this if you repay IN FULL every month so there's no interest. Then you reap the gain at no cost. All these cards do require you to pass their credit score.

• Free BA Europe return incl taxes and charges. The Lloyds Airmiles Duo* effectively offers new cardholders spending £500/mth a free return flight, and for 3 mths you get 1 Airmile per £1 spent on the Amex (you also get a Mastercard) up to a max of 1,500 – enough for returns to Spain, Italy etc. This differs to the Airmiles* website deal where you only need spend £10 for a 1,500 miles voucher, but that requires you to book one hotel night via Airmiles (can be costly). Fail to fully repay and it's 15.9% representative APR. See full Lloyds Airmiles pros & cons.
  
• Higher spenders free companion flight - you pay taxes and charges though. The BA Amex* is already a top pick airline rewards card as spend £20k+ a year and it gives a free companion ticket. Eg, if you get biz class to Miami so do they. Currently newbies get 3,000 bonus miles for spending £500 within 3 months (19.9% representative APR) and really big spenders can do even better. See full BA Amex pros & cons.

FULL info and tricks in the Updated: Airline Credit Cards guides and Official APR Examples Related: Credit Card Freebies, Cashback Credit Cards

New Video! The cheapest way to spend overseas
Martin answers your questions on debit cards, prepaid, cash and more ...
We're constantly asked: "What's the cheapest way to spend when I go on holiday?" Well, some things are easier to say than to write. So Martin's filmed a Q&A video guide to complement the written one. Thanks to the 100s who suggested questions. Here are a few tips.

• Avoid debit cards that fine you for spending. Horribly, Halifax, Lloyds, NatWest, RBS & Santander DEBIT cards are worse than credit cards as they add a fee of up to £1.50 every time you spend outside the UK. So buy something costing £5 in Euros and you could pay £6.50 (plus normal exchange rate fees).
• You pay for ATM withdrawals even on debit cards. Use plastic abroad and you'll usually pay c. £2 or 2% of the amount.
• Never change money at the airport. You're a captive customer, so they give much WORSE rates. To find the highest, check the Travel Money Max comparison (read safety tips). If it's too late, at least pre-order for airport pick-up and then you'll get those companies' better online rates.
• Fees for buying foreign currency in the UK. All credit cards and the following debit cards (Santander, Lloyds, Natwest, RBS & Barclays) charge 'cash withdrawal fees' just for buying from bureaux de changes in the UK. Instead, if possible, use the debit card to take cash out of an ATM, then pay the bureau with that.
• The cheapest way is the RIGHT plastic. Nothing beats the specialist cheap credit or debit cards for spending abroad – far undercutting cash, travellers cheques or owt else. Full best buys in Cheap Travel Cards.

Related: Travel Insurance, Cheap Package Holidays