Savings: Premium Bond limit rises to £50,000, should you top up?

National-Savings-and-Inve-001From Monday 1st June the maximum amount of Premium Bonds you can hold will increase from £40,000 to £50,000. With over £50 billion held in Premium Bonds, they are the most popular way to save in the UK. However, despite the returns being tax-free, the average prizes won per year (remember Premium Bonds are not traditional savings accounts) equate to an average interest rate of just 1.35% per year. So, if you already hold Premium Bonds should you top up your holdings? Here are the arguments for and against:...

How will the Queen’s speech affect your personal finances?

How will the Queen’s speech affect your personal finances?After the shock General Election victory for the Conservatives, the Queen’s Speech, which was delivered yesterday, set out the Government’s plans for the months and years to come. How will your personal finances be affected? Will you be better or worse off? Read on as we reveal all. Tax The legislation likely to have the largest impact on your personal finance is the ‘National Insurance Contributions and Finance Bill’, which includes commitments that: Income tax, VAT and National Insurance will not increase during the next five ...

Savings: Have you raided your children’s savings?

Have you raided your children’s savings?Educating your children about careful financial management, whilst encouraging then to save, is widely accepted as part of the modern parent’s role. However, new research from Santander has shown that millions of parents might not be the best people to be educating their children about careful financial management. The research, conducted by Santander, has shown: 32% of parents have dipped into their children’s savings to pay for something for themselves Less than half, 49%, of parents replace the money they take from their children, indeed 15% admit to having no intention ...

Is deflation good or bad for your money?

Is deflation good or bad for your money?For the first time since Harold Macmillan was Prime Minister Inflation, as measured by the Consumer Prices Index (CPI), turned negative last month. But what does it mean for your savings, pensions and investments, we have the answers. But, first things first though, exactly what has happened? To put is simply, the CPI (usually) measures that rate at which prices are rising. It does this by comparing a ‘basket’ of goods and services from one month to the next and reporting the change. For the first ...