Martin Lewis reveals details on bank account switching 'bribes'
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Savings habits have been built up by many families over the last year as coronavirus forced people to take stock of their financial priorities. These habits were recently examined by Claro, the financial planning company, whose recent Mental Health Project Report found that 20 percent of UK adults used the lockdown as an opportunity to improve their financial situation.
The report, based on the responses of 1,934 UK adults, showed 82 percent of those polled had been actively saving in the last 12 months.
As many as 42 percent had been able to pay money regularly into a savings account, 35 percent built up their current account balance and 26 percent invested in an ISA.
Additionally, the same research report highlighted many of these habits are expected to continue as the lockdown eases.
Rachel Harte, the Head of Financial Planning at Claro, commented on this.
She said: “Those who have been fortunate enough to stay in employment during lockdown have found themselves in a position where their outgoings are at an all-time low.
“The indication that many have used the pandemic as an opportunity to get their finances in order is welcome news indeed.
“As restrictions are lifted we expect to see a proportion of these accumulated savings being spent on long awaited holidays, meals out and shopping trips.
“But, if one of the lasting legacies of lockdown is a renewed sense of financial awareness and planning, then it could have a real impact in improving the nation’s financial confidence and preventing many people from suffering any further money-related mental distress than is already the case.”
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Those who do plan to continue saving into the coming months may be in for a welcome surprise as some financial experts expect banks to start raising rates and launching deals soon.
On this, Moneyfacts.co.uk released its savings “Pick of the Week” today, highlighting a cash ISA offering favourable returns and features.
Eleanor Williams, a Finance Expert at Moneyfacts.co.uk, broke down Close Brothers two Year Fixed Rate Cash ISA.
She explained: “In addition to launching a new 95-day notice account, Close Brothers Savings also increased rates across a selection of its products.
“One option to see a rise was the two-year ISA, which received a 0.11 percent increase and now pays 0.71 percent on anniversary, an update which propels this account to the lead position in our top tables when compared to other ISAs with similar terms.
“Investors who are looking to utilise their tax-free savings allowance and who are comfortable securing their savings pot away for the two-year term may be attracted by the competitive return and may be interested to know that further additions can be made within 10-days of account opening, which could be a plus for some.
“Early access is only available on closure and is subject to a 150-day loss of interest penalty, so careful planning would be advised.
“On balance, the account secures an Excellent Moneyfacts product rating.”
The specifics of this account were also laid out by Moneyfacts.co.uk, as the following key product details highlights:
- Rate: 0.71 percent gross / 0.71 percent AER payable on anniversary
- Notice / term: Two years
- Minimum opening amount: £10,000
- Maximum investment amount: ISA allowance
- Access: Permitted, on closure only, subject to 150-day loss of interest penalty
- Further additions: Permitted within 10-days of account opening
- Transfers in: Transfer instructions must be received within 10 days of account opening. Accepts cash and stocks & shares ISAs.
- Transfers out: Permitted, subject to 150-day loss of interest penalty
- Opening account: Online
- Managing account: Online, by phone and by post
- Other information: Minimum applicant age 18.
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