ST. LOUIS – The James S. McDonnell Foundation has stepped up to privately fund St. Louis residents enrolled in the city’s Guaranteed Basic Income program, following a court order to halt the program in July.
A spokesperson with the The James S. McDonnell Foundation tells FOX 2 that the organization has pledged $1 million to assist families through the end of the 2024 calendar year. Private funders have also pledged around $250,000 on top of that contribution.
Through its Guaranteed Basic Income pilot program, St. Louis intended to offer $500 each month to around 540 families in need over the course […]
Question: ****DRAW IT OUT PLEASE. *******Question 1 – Chapter 2Use the basic income-leisure choice framework to analyze the possible labour supply response ofthe various groups to change in their wagea. The poor who are at a minimum subsistence and who aspire to a middle-classconsumption pattern.b. The wealthy who have acquired an abundance of material goods and
***********Question 1- Chapter 2Use the basic income-leisure choice framework to analyze the possible labour supply response ofthe various groups to change in their wagea. The poor who are at a minimum subsistence and who aspire to a middle-classconsumption pattern.b. The wealthy who have acquired […]
Question: ****DRAW IT OUT PLEASE. *******Question 1 - Chapter 2Use the basic income-leisure choice framework to analyze the possible labour supply response ofthe various groups to change in their wagea. The poor who are at a minimum subsistence and who aspire to a middle-classconsumption pattern.b. The wealthy who have acquired an abundance of material goods and
***********Question 1- Chapter 2Use the basic income-leisure choice framework to analyze the possible labour supply response ofthe various groups to change in their wagea. The poor who are at a minimum subsistence and who aspire to a middle-classconsumption pattern.b. The wealthy who have acquired an abundance of material goods and who nowaspire to be members of the idle rich.c. Workers who have a fairly strong attachment to the labour force and who arereluctant to change their hours of work.d. Workers who have a weak attachment to the labour force and who have viablealternatives to market worksQuestion 2- chapter 3Use the income-leisure choice model to show that an increase in non-labour income will increasethe individual's reservation wage if leisure is a normal good.Question 3.- Chapter 3Income-maintenance policy: wage subsidies and tax creditsThe U.S. Earned Income Tax Credit (EITC) has been described as one of the most successfulelements of U.S. antipoverty public policy, especially as it directs benefits towards the poor.Low-wage workers receive additional income (through a tax credit) from the federalgovernment, depending on how much they earn each year.Consider these program features that define an individual worker's eligibility:i) There is no tax credit if no labour market income is earned.ii) Phase-in range: the tax credit equals $0.35 per dollar earned, and peaks at $3000, when theworker earns $9000.iii) Flat range: the tax credit remains at $3000 until the worker earns around $16,500.iv) Phase-out range: the tax credit is phased out gradually, by $0.15 per dollar earned, untileliminated completely if the worker earns $35,500 or more per year. student submitted image, transcription available
Bachelor’s degree in a technical field, or equivalent practical experience.
5 years of experience in program management.5 years of experience in logistics management.Experience working with data analytics tools and reporting platforms. Preferred qualifications: 5 years of experience managing cross-functional or cross-team projects.Experience in vendor operations management or overseeing vendor operations programs. Experience with logistics in planning, warehouse operations or logistics management.Experience in problem solving and technical innovation.About the job A problem isn’t truly solved until it’s solved for all. That’s why Googlers build products that help create opportunities for everyone, whether […]
Bachelor's degree in a technical field, or equivalent practical experience.
5 years of experience in program management.
5 years of experience in logistics management.
Experience working with data analytics tools and reporting platforms.
Preferred qualifications:
5 years of experience managing cross-functional or cross-team projects.
Experience in vendor operations management or overseeing vendor operations programs.
Experience with logistics in planning, warehouse operations or logistics management.
Experience in problem solving and technical innovation.
About the job
A problem isn’t truly solved until it’s solved for all. That’s why Googlers build products that help create opportunities for everyone, whether down the street or across the globe. As a Technical Program Manager at Google, you’ll use your technical expertise to lead complex, multi-disciplinary projects from start to finish. You’ll work with stakeholders to plan requirements, identify risks, manage project schedules, and communicate clearly with cross-functional partners across the company. You're equally comfortable explaining your team's analyses and recommendations to executives as you are discussing the technical tradeoffs in product development with engineers.
Our goal is to build a Google that looks like the world around us — and we want Googlers to stay and grow when they join us. As part of our efforts to build a Google for everyone, we build diversity, equity, and inclusion into our work and we aim to cultivate a sense of belonging throughout the company.
In this role, you will take on a pivotal role in leading the implementation and optimization of Robotics and Automation solutions within our Warehouse. You will be the critical liaison between our internal teams and external vendors, ensuring seamless integration of cutting-edge technologies and fostering continuous improvement in our automation capabilities.
You will be a key member of our Warehouse leadership team. Your strategic thinking, problem-solving abilities, and passion for innovation will be essential to driving our automation initiatives forward and ensuring we remain at the forefront of Warehouse technology.
Google Cloud accelerates every organization’s ability to digitally transform its business and industry. We deliver enterprise-grade solutions that leverage Google’s cutting-edge technology, and tools that help developers build more sustainably. Customers in more than 200 countries and territories turn to Google Cloud as their trusted partner to enable growth and solve their most critical business problems.
Responsibilities
Create and implement comprehensive project plans for automation initiatives.
Oversee project risks, issues, and dependencies, ensuring timely updates on project progress and adherence to key performance indicators.
Foster and maintain partnerships with the automation vendors. Monitor vendor performance, ensuring strict compliance with project timelines and budgetary limitations, including negotiating agreements and managing any necessary change orders.
Identify and assess potential automation opportunities within the warehouse. Lead pilot programs designed to evaluate and validate innovative solutions while simultaneously ensuring the continuous enhancement of existing automation systems.
Information collected and processed as part of your Google Careers profile, and any job applications you choose to submit is subject to Google's Applicant and Candidate Privacy Policy.
Google is proud to be an equal opportunity and affirmative action employer. We are committed to building a workforce that is representative of the users we serve, creating a culture of belonging, and providing an equal employment opportunity regardless of race, creed, color, religion, gender, sexual orientation, gender identity/expression, national origin, disability, age, genetic information, veteran status, marital status, pregnancy or related condition (including breastfeeding), expecting or parents-to-be, criminal histories consistent with legal requirements, or any other basis protected by law. See also Google's EEO Policy, Know your rights: workplace discrimination is illegal, Belonging at Google, and How we hire.
Google is a global company and, in order to facilitate efficient collaboration and communication globally, English proficiency is a requirement for all roles unless stated otherwise in the job posting.
To all recruitment agencies: Google does not accept agency resumes. Please do not forward resumes to our jobs alias, Google employees, or any other organization location. Google is not responsible for any fees related to unsolicited resumes.
Team at MSE has a warning for NS&I customers over Bonds rates being slashed by the Treasury-backed financial provider. Martin Lewis’ Money Saving Expert has issued a warning to National Savings and Investments customers who have Bonds. The ITV and BBC star’s team at MSE has a warning for NS&I customers over Bonds rates being slashed by the Treasury-backed financial provider.
MSE explained: "N&SI has cut rates on its British Savings Bonds at least once. Its two-year bonds now pay 4.1% (guaranteed growth) and 4.09% (guaranteed income). While its three- and five-year bonds pay 4% and 3.9% respectively (for both […]
Team at MSE has a warning for NS&I customers over Bonds rates being slashed by the Treasury-backed financial provider.
Martin Lewis' Money Saving Expert has issued a warning to National Savings and Investments customers who have Bonds. The ITV and BBC star's team at MSE has a warning for NS&I customers over Bonds rates being slashed by the Treasury-backed financial provider.
MSE explained: "N&SI has cut rates on its British Savings Bonds at least once. Its two-year bonds now pay 4.1% (guaranteed growth) and 4.09% (guaranteed income). While its three- and five-year bonds pay 4% and 3.9% respectively (for both the growth and income versions).
"In addition, NS&I will cut the rate on it Direct Saver to 3.75% from 20 November for both new and existing savers." MSE said: "The top fixed-term and easy-access account rates available elsewhere have also dropped slightly – but you can still easily beat NS&I's bonds and Direct Saver."
New Issues of 2-year British Savings Bonds went on sale today with a lower rate of 4.10% gross/AER for the Guaranteed Growth option and 4.02% gross/4.09% AER for the Guaranteed Income option. The 2-year Issues of the Bonds were brought back on sale in August this year to offer savers increased choice and longer-term security in a changing market.
Andrew Westhead, NS&I Retail Director, said: “As the savings market continues to change, we need to lower the rates on some of our products to help us meet our Net Financing target, while also ensuring we continue to balance the interests of our savers, taxpayers and the broader financial services sector.
“Even with the changes, we’re still expecting to pay out over 5.7 million prizes worth over £435 million in the December Premium Bonds draw." He said: “Our portfolio of both fixed and variable rate products, plus the unique position of Premium Bonds, continues to give savers the choices they need to help reach their savings goals, backed by the safety and security of our 100% HM Treasury guarantee.”
Revenues of $1,409 million increased 7% year-over-year
Operating income of $243 million increased 11% year-over-year
Net income of $157 million increased 28% year-over-year; net income margin of 11.1% Adjusted EBITDA* of $355 million increased 16% year-over-year; adjusted EBITDA margin* of 25.2% increased by 197 basis points year-over-year Cash provided by operating activities of $262 million, an increase of $112 million sequentially and $90 million year-over-year; adjusted free cash flow* of $184 million, an increase of $88 million sequentially and $47 million year-over-year Received credit rating upgrade from S&P Global Ratings to ‘BB-’ with positive outlook, and from Fitch to […]
Revenues of $1,409 million increased 7% year-over-year
Operating income of $243 million increased 11% year-over-year
Net income of $157 million increased 28% year-over-year; net income margin of 11.1%
Adjusted EBITDA* of $355 million increased 16% year-over-year; adjusted EBITDA margin* of 25.2% increased by 197 basis points year-over-year
Cash provided by operating activities of $262 million, an increase of $112 million sequentially and $90 million year-over-year; adjusted free cash flow* of $184 million, an increase of $88 million sequentially and $47 million year-over-year
Received credit rating upgrade from S&P Global Ratings to ‘BB-’ with positive outlook, and from Fitch to ‘BB-’ with stable outlook
Shareholder returns of $68 million for the quarter, which includes dividends payment of $18 million and share repurchases of $50 million
Board approved quarterly cash dividend of $0.25 per share payable on December 5, 2024 to shareholders of record as of November 6, 2024
Deployment of Victus™ Managed Pressure Drilling (MPD) systems in the first two deep geothermal exploration wells that have been drilled for a major operator in the Middle East
Aramco awarded Weatherford a three-year Corporate Procurement Agreement (CPA) including Cementation Products, Completions, Liner Hangers, and Whipstocks, as well as associated service agreements, to enhance its operational efficiency and strategic goals
Hosted 20th annual FWRD conference focused on digitalization and next-generation life-of-well solutions to boost efficiency, sustainability, and performance
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
HOUSTON, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the third quarter of 2024.
Revenues for the third quarter of 2024 were $1,409 million, an increase of 0.3% sequentially and an increase of 7% year-over-year. Operating income was $243 million in the third quarter of 2024, compared to $264 million in the second quarter of 2024 and $218 million in the third quarter of 2023. Net income in the third quarter of 2024 was $157 million, with an 11.1% margin, an increase of 26% or 225 basis points sequentially, and an increase of 28% or 177 basis points year-over-year. Adjusted EBITDA* was $355 million, a 25.2% margin, a decrease of 3% or 78 basis points sequentially, and an increase of 16% or 197 basis points year-over-year. Basic income per share in the third quarter of 2024 was $2.14 compared to $1.71 in the second quarter of 2024 and $1.70 in the third quarter of 2023. Diluted income per share in the third quarter of 2024 was $2.06 compared to $1.66 in the second quarter of 2024 and $1.66 in the third quarter of 2023.
Third quarter 2024 cash flows provided by operating activities were $262 million, compared to $150 million in the second quarter of 2024 and $172 million in the third quarter of 2023. Adjusted free cash flow* was $184 million, an increase of $88 million sequentially and $47 million year-over-year. Capital expenditures were $78 million in the third quarter of 2024, compared to $62 million in the second quarter of 2024 and $42 million in the third quarter of 2023.
Girish Saligram, President and Chief Executive Officer, commented, “I want to thank the Weatherford team for once again delivering strong margins and adjusted free cash flow despite a volatile macro environment and short cycle activity reductions. The margin performance underscores our ability to deliver strong returns in a softer market environment. Despite continued North America weakness, customer scheduling delays in Latin America and a reduced activity outlook in certain other geographies, we still expect strong revenue growth and adjusted EBITDA margins of greater than 25% for the full year.
In the third quarter, Weatherford acquired Datagration, enhancing our position with one of the industry’s most advanced digital offerings for production and asset optimization. The acquisition demonstrates our commitment to driving innovation across our technology portfolio and accelerating our growth in the digital transformation of the energy industry. Following our announcement in the third quarter regarding Weatherford’s first-ever shareholder return program, we paid our first quarterly dividend of $0.25 per share on September 12, 2024, to shareholders on record as of August 13, 2024, and as of September 30, 2024, we have bought back $50 million of ordinary shares.
While the macroeconomic environment is volatile and there is heightened risk of geopolitical events creating sector challenges, Weatherford remains focused on fulfillment initiatives, acquisition integrations, and technology commercialization, which should drive further financial performance.”
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Operational Highlights
Aramco awarded Weatherford a three-year CPA, including Cementation Products, Completions, Liner Hangers, and Whipstocks, as well as associated service agreements, to enhance its operational efficiency and strategic goals.
A major operator in the Gulf of Mexico awarded Weatherford a three-year services contract to deliver Plug & Abandonment activities utilizing our Heavy Duty Pulling & Jacking Unit and multiple service lines.
A National Oil Company (NOC) in the Middle East awarded Weatherford a three-year contract for Drilling Services in unconventional resources fields.
PTTEP awarded Weatherford a multi-year contract for Wireline services in Thailand.
An NOC in the Middle East awarded Weatherford a two-year contract for Liner Hanger and associated services for deep drilling.
A major operator awarded Weatherford a three-year contract to provide MPD services in the Middle East, marking the first time it will utilize this technology.
An NOC in the Middle East awarded Weatherford a three-year contract for Fishing and Milling services.
An NOC awarded Weatherford a five-year contract extension for the supply of Downhole Completion Equipment for deployment in the Middle East.
Shell awarded Weatherford a three-year contract for Dual Stage Cementing technology to be deployed in onshore Australia.
Kuwait Energy awarded Weatherford a two-year contract for Cased Hole Wireline Services in onshore Iraq.
bp awarded Weatherford a two-year contract for multilateral installations and associated services for offshore operations in Azerbaijan.
JVGAS in Algeria awarded Weatherford a three-year contract for velocity string accessories and associated services and awarded a two-year contract for the supply of Fishing and Casing exiting.
Technology Highlights
Drilling & Evaluation (“DRE”)
An NOC deployed Weatherford MPD solutions in its first two deep geothermal exploration wells in the Middle East. This innovative use of MPD technology mitigates risks from elevated geothermal gradients during exploration drilling.
Weatherford celebrates 25 years of Compact Memory Logging technology, with over 10,000 deployments, consistently delivering value and reliability to our customers.
Well Construction and Completions (“WCC”)
In Norway, Weatherford successfully integrated the Vero™ system into an offshore rig control system, enabling further efficiency while maintaining well integrity. This integration allows existing rig crews to operate the Vero system autonomously.
Perenco deployed Weatherford's digital ForeSite® Sense optical monitoring system to oversee injectivity testing performance for the Poseidon carbon capture and storage project, the UK's first well to inject CO2 underground.
Weatherford launched its new Remote-Opening Barrier Valve that decreases risk and time associated with conventional well barriers.
Production and Intervention (“PRI”)
The acquisition of Datagration Solutions Inc. added the PetroVisor and EcoVisor platforms to Weatherford’s Digital Solutions portfolio, enhancing the integration of customer data with ForeSite and Cygnet® for improved real-time analysis and decision-making.
Weatherford deployed its AlphaV system for a major operator in Norway in a complex application that significantly reduced time by eliminating wellbore preparation.
Shareholder Return
During the third quarter of 2024, Weatherford repurchased shares for approximately $50 million and paid dividends of $18 million, resulting in total shareholder returns of $68 million.
On October 17, 2024, our Board declared a cash dividend of $0.25 per share of the Company’s ordinary shares, payable on December 5, 2024, to shareholders of record as of November 6, 2024.
Results by Reportable Segment
Drilling and Evaluation (“DRE”)
Three Months Ended
Variance
($ in Millions)
September 30, 2024
June 30, 2024
September 30, 2023
Seq.
YoY
Revenue
$
435
$
427
$
388
2
%
12
%
Segment Adjusted EBITDA
$
111
$
130
$
111
(15
)%
—
%
Segment Adj EBITDA Margin
25.5
%
30.4
%
28.6
%
(493
)bps
(309
)bps
Third quarter 2024 DRE revenue of $435 million increased by $8 million, or 2% sequentially, primarily from higher Drilling-related Services activity partly offset by lower MPD asset sales and lower international Wireline activity. Year-over-year DRE revenues increased by $47 million, or 12%, primarily from higher Wireline activity and Drilling-related Services activity in Middle East/North Africa/Asia.
Third quarter 2024 DRE segment adjusted EBITDA of $111 million decreased by $19 million, or 15% sequentially, primarily driven by lower MPD asset sales and lower international Wireline activity partly offset by higher fall-through in Drilling-related Services. Year-over-year DRE segment adjusted EBITDA remained flat as higher Drilling-related services were offset by lower margin fall through in MPD and Wireline.
Well Construction and Completions (“WCC”)
Three Months Ended
Variance
($ in Millions)
September 30, 2024
June 30, 2024
September 30, 2023
Seq.
YoY
Revenue
$
509
$
504
$
459
1
%
11
%
Segment Adjusted EBITDA
$
151
$
145
$
119
4
%
27
%
Segment Adj EBITDA Margin
29.7
%
28.8
%
25.9
%
90
bps
374
bps
Third quarter 2024 WCC revenue of $509 million increased by $5 million, or 1% sequentially, primarily due to higher international Well Services and Liner Hangers activity partly offset by lower Cementation Products in North America and Middle East/North Africa/Asia. Year-over-year WCC revenues increased by $50 million, or 11%, primarily due to higher international Completions and Liner Hangers activity, partly offset by a decrease in activity in North America.
Third quarter 2024 WCC segment adjusted EBITDA of $151 million increased by $6 million, or 4% sequentially, primarily due to higher international Well Services and Liner Hangers activity and product and service mix partly offset by lower Tubular Running Services activity. Year-over-year WCC segment adjusted EBITDA increased by $32 million, or 27%, primarily due to higher activity and fall-through in Tubular Running Services, Completions and Well Services.
Production and Intervention (“PRI”)
Three Months Ended
Variance
($ in Millions)
September 30, 2024
June 30, 2024
September 30, 2023
Seq.
YoY
Revenue
$
371
$
369
$
371
1
%
—
%
Segment Adjusted EBITDA
$
83
$
85
$
86
(2
)%
(3
)%
Segment Adj EBITDA Margin
22.4
%
23.0
%
23.2
%
(66
)bps
(81
)bps
Third quarter 2024 PRI revenue of $371 million increased by $2 million, or 1% sequentially, mainly due to increased Digital Solutions and Pressure Pumping activity partly offset by lower Subsea Intervention activity in Latin America. Year-over-year PRI revenue was flat, as higher international Intervention Services & Drilling Tools activity was offset by a decline in Pressure Pumping activity.
Third quarter 2024 PRI segment adjusted EBITDA of $83 million, decreased by $2 million, or 2% sequentially, primarily from lower Artificial Lift product mix and lower Subsea Intervention fall-through. Year-over-year PRI segment adjusted EBITDA decreased by $3 million, or 3% year-over-year, primarily due to lower Pressure Pumping activity.
Revenue by Geography
Three Months Ended
Variance
($ in Millions)
September 30, 2024
June 30, 2024
September 30, 2023
Seq.
YoY
North America
$
266
$
252
$
269
6
%
(1
)%
International
$
1,143
$
1,153
$
1,044
(1
)%
9
%
Latin America
358
353
357
1
%
—
%
Middle East/North Africa/Asia
542
542
471
—
%
15
%
Europe/Sub-Sahara Africa/Russia
243
258
216
(6
)%
13
%
Total Revenue
$
1,409
$
1,405
$
1,313
0.3
%
7
%
North America
Third quarter 2024 North America revenue of $266 million increased by $14 million, or 6% sequentially, primarily due to activity increase in Canada due to favorable seasonality and activity increase offshore in the Gulf of Mexico. Year-over-year, North America decreased by $3 million, or 1%, primarily from lower Tubular Running Services and Cementation Products activity offshore in the Gulf of Mexico, partly offset by an increase in Wireline activity.
International
Third quarter 2024 international revenue of $1,143 million decreased 1% sequentially and increased 9% year-over-year.
Third quarter 2024 Latin America revenue of $358 million increased by $5 million, or 1% sequentially, primarily due to higher Well Services in Brazil and Drilling-related Services in Mexico. Year-over-year, Latin America revenue increased by $1 million.
Third quarter 2024 Middle East/North Africa/Asia revenue of $542 million was flat sequentially, mainly due to increased activity in United Arab Emirates partly offset by a decrease in Integrated Services & Projects activity in Oman and a decrease of activity in Kuwait. Year-over-year, the Middle East/North Africa/Asia revenue increased by $71 million, or 15%, due to an increase in activity across all product lines within the DRE and WCC segments, primarily in United Arab Emirates, Saudi Arabia, Asia and Kuwait.
Third quarter 2024 Europe/Sub-Sahara Africa/Russia revenue of $243 million decreased by $15 million or 6% sequentially, mainly driven by lower MPD asset sales. Year-over-year Europe/Sub-Sahara Africa/Russia revenue increased by $27 million, or 13%, due to increased activity across all segments.
About Weatherford Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company conducts business in approximately 75 countries and has approximately 19,000 team members representing more than 110 nationalities and 330 operating locations. Visit weatherford.com for more information and connect with us on social media.
Conference Call Details
Weatherford will host a conference call on Wednesday, October 23, 2024, to discuss the Company’s results for the third quarter ended September 30, 2024. The conference call will begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).
Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company’s website.
Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call.
A telephonic replay of the conference call will be available until November 6, 2024, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 6410466. A replay and transcript of the earnings call will also be available in the investor relations section of the Company’s website.
Contacts
For Investors: Luke Lemoine Senior Vice President, Corporate Development and Investor Relations +1 713-836-7777 investor.relations@weatherford.com
This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly and full-year revenues, adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, based on factors including but not limited to: global political disturbances, war, terrorist attacks, changes in global trade policies, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from conflicts in the Middle East and the Russia Ukraine conflict, including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the potential for a resurgence of a pandemic in a given geographic area and related disruptions to our business, employees, customers, suppliers and other partners; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to address and participate in changes to the market demands for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; and the realization of additional cost savings and operational efficiencies.
These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission (the “SEC”), including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.
*Non-GAAP - refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Weatherford International plc
Selected Statements of Operations (Unaudited)
Three Months Ended
Nine Months Ended
($ in Millions, Except Per Share Amounts)
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Revenues:
DRE Revenues
$
435
$
427
$
388
$
1,284
$
1,154
WCC Revenues
509
504
459
1,471
1,320
PRI Revenues
371
369
371
1,088
1,086
All Other
94
105
95
329
213
Total Revenues
1,409
1,405
1,313
4,172
3,773
Operating Income:
DRE Segment Adjusted EBITDA[1]
$
111
$
130
$
111
$
371
$
325
WCC Segment Adjusted EBITDA[1]
151
145
119
416
324
PRI Segment Adjusted EBITDA[1]
83
85
86
241
235
All Other[2]
23
23
7
73
25
Corporate[2]
(13
)
(18
)
(18
)
(45
)
(44
)
Depreciation and Amortization
(89
)
(86
)
(83
)
(260
)
(244
)
Share-based Compensation
(10
)
(12
)
(9
)
(35
)
(26
)
Other (Charges) Credits
(13
)
(3
)
5
(21
)
9
Operating Income
243
264
218
740
604
Other Expense:
Interest Expense, Net of Interest Income of $13, $17, $15, $44 and $47
(24
)
(24
)
(30
)
(77
)
(92
)
Loss on Blue Chip Swap Securities
—
(10
)
—
(10
)
(57
)
Other Expense, Net
(41
)
(20
)
(24
)
(83
)
—
(98
)
Income Before Income Taxes
178
210
164
570
357
Income Tax Provision
(12
)
(73
)
(33
)
(144
)
(55
)
Net Income
166
137
131
426
302
Net Income Attributable to Noncontrolling Interests
9
12
8
32
25
Net Income Attributable to Weatherford
$
157
$
125
$
123
$
394
$
277
Basic Income Per Share
$
2.14
$
1.71
$
1.70
$
5.39
$
3.85
Basic Weighted Average Shares Outstanding
73.2
73.2
72.1
73.1
71.9
Diluted Income Per Share[3]
$
2.06
$
1.66
$
1.66
$
5.25
$
3.76
Diluted Weighted Average Shares Outstanding
75.2
75.3
73.7
75.0
73.6
[1]
Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation expense and other adjustments. Research and development expenses are included in segment adjusted EBITDA.
[2]
All Other results were from non-core business activities related to all other segments (profit and loss) and Corporate includes overhead support and centrally managed or shared facility costs. All Other and Corporate do not individually meet the criteria for segment reporting.
[3]
Included the maximum potentially dilutive shares contingently issuable for an acquisition consideration during the three months ended September 30, 2024, the value of which was adjusted out of Net Income Attributable to Weatherford in calculating diluted income per share.
Weatherford International plc
Selected Balance Sheet Data (Unaudited)
($ in Millions)
September 30, 2024
December 31, 2023
Assets:
Cash and Cash Equivalents
$
920
$
958
Restricted Cash
58
105
Accounts Receivable, Net
1,231
1,216
Inventories, Net
919
788
Property, Plant and Equipment, Net
1,050
957
Intangibles, Net
356
370
Liabilities:
Accounts Payable
723
679
Accrued Salaries and Benefits
328
387
Current Portion of Long-term Debt
21
168
Long-term Debt
1,627
1,715
Shareholders’ Equity:
Total Shareholders’ Equity
1,356
922
Weatherford International plc
Selected Cash Flows Information (Unaudited)
Three Months Ended
Nine Months Ended
($ in Millions)
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Cash Flows From Operating Activities:
Net Income
$
166
$
137
$
131
$
426
$
302
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation and Amortization
89
86
83
260
244
Foreign Exchange Losses
35
8
15
58
73
Loss on Blue Chip Swap Securities
—
10
—
10
57
Gain on Disposition of Assets
(1
)
(25
)
(4
)
(33
)
(11
)
Deferred Income Tax Provision (Benefit)
(19
)
13
(14
)
8
(67
)
Share-Based Compensation
10
12
9
35
26
Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits
30
(22
)
(73
)
(144
)
(235
)
Other Changes, Net
(48
)
(69
)
25
(77
)
68
Net Cash Provided By Operating Activities
262
150
172
543
457
Cash Flows From Investing Activities:
Capital Expenditures for Property, Plant and Equipment
(78
)
(62
)
(42
)
(199
)
(142
)
Proceeds from Disposition of Assets
—
8
7
18
21
Purchases of Blue Chip Swap Securities
—
(50
)
—
(50
)
(110
)
Proceeds from Sales of Blue Chip Swap Securities
—
40
—
40
53
Business Acquisitions, Net of Cash Acquired
(15
)
—
—
(51
)
(4
)
Proceeds from Sale of Investments
—
—
—
41
33
Other Investing Activities
1
3
(1
)
(6
)
(9
)
Net Cash Used In Investing Activities
(92
)
(61
)
(36
)
(207
)
(158
)
Cash Flows From Financing Activities:
Repayments of Long-term Debt
(5
)
(87
)
(76
)
(264
)
(306
)
Distributions to Noncontrolling Interests
(10
)
(9
)
(15
)
(19
)
(21
)
Tax Remittance on Equity Awards Vested
—
(1
)
—
(9
)
(54
)
Share Repurchases
(50
)
—
—
(50
)
—
Dividends Paid
(18
)
—
—
(18
)
—
Other Financing Activities
(6
)
(5
)
—
(18
)
(7
)
Net Cash Used In Financing Activities
$
(89
)
$
(102
)
$
(91
)
$
(378
)
$
(388
)
Weatherford International plc
Non-GAAP Financial Measures Defined (Unaudited)
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP financial measures (as defined under the SEC’s Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
Adjusted EBITDA* - Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Adjusted EBITDA margin* - Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Adjusted Free Cash Flow* - Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company's reported results prepared in accordance with GAAP.
Net Debt* - Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash and equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company’s results prepared in accordance with GAAP.​
Net Leverage* - Net Leverage* is a non-GAAP measure which is calculated by dividing by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for the individual components of above defined net debt* divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
*Non-GAAP - as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled
Weatherford International plc
GAAP to Non-GAAP Financial Measures Reconciled (Unaudited)
Three Months Ended
Nine Months Ended
($ in Millions, Except Margin in Percentages)
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Revenues
$
1,409
$
1,405
$
1,313
$
4,172
$
3,773
Net Income Attributable to Weatherford
$
157
$
125
$
123
$
394
$
277
Net Income Margin
11.1
%
8.9
%
9.4
%
9.4
%
7.3
%
Adjusted EBITDA*
$
355
$
365
$
305
$
1,056
$
865
Adjusted EBITDA Margin*
25.2
%
26.0
%
23.2
%
25.3
%
22.9
%
Net Income Attributable to Weatherford
$
157
$
125
$
123
$
394
$
277
Net Income Attributable to Noncontrolling Interests
9
12
8
32
25
Income Tax Provision
12
73
33
144
55
Interest Expense, Net of Interest Income of $13, $17, $15, $44 and $47
24
24
30
77
92
Loss on Blue Chip Swap Securities
—
10
—
10
57
Other Expense, Net
41
20
24
83
98
Operating Income
243
264
218
740
604
Depreciation and Amortization
89
86
83
260
244
Other Charges (Credits)[1]
13
3
(5
)
21
(9
)
Share-Based Compensation
10
12
9
35
26
Adjusted EBITDA*
$
355
$
365
$
305
$
1,056
$
865
Net Cash Provided By Operating Activities
$
262
$
150
$
172
$
543
$
457
Capital Expenditures for Property, Plant and Equipment
(78
)
(62
)
(42
)
(199
)
(142
)
Proceeds from Disposition of Assets
—
8
7
18
21
Adjusted Free Cash Flow*
$
184
$
96
$
137
$
362
$
336
[1]
Other charges (credits) in the three and nine months ended September 30, 2024, primarily includes fees to third-party financial institutions to facilitate loans between those financial institutions and our largest customer in Mexico, who in turn paid certain of our outstanding receivables.
*Non-GAAP - as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
Weatherford International plc
GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited)
($ in Millions)
September 30, 2024
June 30, 2024
September 30, 2023
Current Portion of Long-term Debt
$
21
$
20
$
91
Long-term Debt
1,627
1,628
1,864
Total Debt
$
1,648
$
1,648
$
1,955
Cash and Cash Equivalents
$
920
$
862
$
839
Restricted Cash
58
58
107
Total Cash
$
978
$
920
$
946
Components of Net Debt
Current Portion of Long-term Debt
$
21
$
20
$
91
Long-term Debt
1,627
1,628
1,864
Less: Cash and Cash Equivalents
920
862
839
Less: Restricted Cash
58
58
107
Net Debt*
$
670
$
728
$
1,009
Net Income for trailing 12 months
$
534
$
500
$
359
Adjusted EBITDA* for trailing 12 months
$
1,377
$
1,327
$
1,131
Net Leverage* (Net Debt*/Adjusted EBITDA*)
0.5
x
0.5
x
0.9
x
*Non-GAAP - as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
Global partner winners recognized across seven categories for their leadership and innovation
NEW YORK and LAS VEGAS–(BUSINESS WIRE)– UiPath (NYSE: PATH), a leading enterprise automation and AI software company, today announced at its global user conference, FORWARD , the winners of the UiPath 2024 Partner Awards. The awards celebrate partners that have demonstrated an outstanding track record and dedication to helping organizations leverage the full power of the UiPath Platform.
The UiPath Partner Network is a global ecosystem of elite professionals committed to leading organizations to leverage the full potential of AI and automation to achieve exceptional business outcomes, drive […]
Global partner winners recognized across seven categories for their leadership and innovation
NEW YORK and LAS VEGAS--(BUSINESS WIRE)-- UiPath (NYSE: PATH), a leading enterprise automation and AI software company, today announced at its global user conference, FORWARD, the winners of the UiPath 2024 Partner Awards. The awards celebrate partners that have demonstrated an outstanding track record and dedication to helping organizations leverage the full power of the UiPath Platform.
The UiPath Partner Network is a global ecosystem of elite professionals committed to leading organizations to leverage the full potential of AI and automation to achieve exceptional business outcomes, drive operational efficiencies, and provide remarkable customer service. UiPath partners are crucial champions of automation, empowering their customers to build fully automated enterprises. With the UiPath Platform, customers can readily integrate intelligence into everyday operations, automate all knowledge work, uplevel employees, and revolutionize entire industries by solving for some of the toughest business challenges.
“Our partners are consistently driving and supporting customers’ automation and AI journeys. These partners play a crucial role in propelling customers globally to leverage AI and automation to drive operational efficiency and become more agile,” said Bron Hastings, Senior Vice President of Partner and Ecosystems at UiPath. “We congratulate this year’s winners for their unwavering support and look forward to continuing to grow our partner ecosystem as we enable enterprises to progress further in the automation-first era.”
EY was recognized as the Global Partner of the Year for being the top performing partner in both global leadership and innovation. EY has taken advantage of the UiPath Business Automation Platform to help customers modernize and integrate technologies with automation, optimize the customer experience, and deliver exceptional customer satisfaction.
The UiPath 2024 Partner Award winners are:
Global Award
Global Partner of the Year – EY
Worldwide Awards
Worldwide AI and Automation Growth Partner of the Year – Ashling Partners
Worldwide Automation for Good Partner of the Year – Deloitte Consulting LLP
Worldwide Foundational Partner of the Year – Lunatec
Worldwide Impact Partner of the Year – Capitalize Data Analytics
Worldwide Industry Solutions Partner of the Year – CGI
Worldwide Innovation Partner of the Year – qBotica
Regional Awards
AI and Automation Growth Partner of the Year: recognizes partners who have a proven track record of strong business development, invest in certification attainment, and accelerate growth with a focus on our newest solutions, including Test Suite, AI, Document Understanding, and Process Mining.
Ashling Partners (Americas)
ToBeWAY Co., Ltd (APJ)
Lunatec (EMEA)
Automation for Good Partner of the Year: honors partners who are taking initiative and using automation to accelerate human achievement and make a positive impact in the world, from sustainability to social good.
Deloitte Consulting LLP (Americas)
Roboyo (APJ)
VBM-Veri Bilgi Merkezi (EMEA)
Foundational Partner of the Year: recognizes partners who excel with AI-driven transformation at the foundation by fully utilizing the UiPath Business Automation Platform for both their own and their client's business processes and IT operations to drive efficiencies, push innovation, and achieve higher satisfaction for their employees and clients alike.
Auxis (Americas)
Blackbook.ai (APJ)
Lunatec (EMEA)
Impact Partner of the Year: acknowledges partners who align with UiPath strategic priorities to create the strongest impact across key growth areas, such as important wins in strategic accounts or driving enterprise-wide automation within a large account.
Capitalize Data Analytics (Americas)
BARQ Systems (EMEA)
Industry Solutions Partner of the Year: celebrates partners who are dedicated to driving innovative solutions for specific industries, have shown success in industry problem solving, and have expanded the automation footprint across the vertical.
Tquila Automation (Americas)
SimplifyNext Pte Ltd (APJ)
CGI (EMEA)
Innovation Partner of the Year: honors partners who exhibit true innovation in go-to-market strategy.
UiPath (NYSE: PATH) develops AI technology that mirrors human intelligence with ever-increasing sophistication, transforming how businesses operate, innovate, and compete. The UiPath Platform™ accelerates the shift toward a new era of agentic automation—one where agents, robots, people, and models integrate seamlessly to enable autonomous processes and smarter decision making. With a focus on security, accuracy, and resiliency, UiPath is committed to shaping a world where AI enhances human potential and revolutionizes industries. For more information, visit www.uipath.com.
Job Description: Your Work Shapes the World at Caterpillar Inc. When you join Caterpillar, you’re joining a global team who cares not just about the work we do – but also about each other. We are the makers, problem solvers, and future world builders who are creating stronger, more sustainable communities. We don’t just talk about progress and innovation here – we make it happen, with our customers, where we work and live. Together, we are building a better world, so we can all enjoy living in it. Job Summary: We are seeking a systems […]
When you join Caterpillar, you're joining a global team who cares not just about the work we do – but also about each other. We are the makers, problem solvers, and future world builders who are creating stronger, more sustainable communities. We don't just talk about progress and innovation here – we make it happen, with our customers, where we work and live. Together, we are building a better world, so we can all enjoy living in it.
Job Summary:
We are seeking a systems and software engineering manager to join our Autonomy and Automation (A&A) team to lead the development of key capabilities for Cat® MineStar™ products using a platform and re-usable component strategy. This role has accountability for people supervision, for the team’s output and to lead product development and continuous improvement. The selected candidate, focused on machine onboard capabilities, will work closely with other global CAT teams to deliver on the end-to-end solution. The solution includes onboard machine and off-board capabilities to enable mining production planning, machine assignments, guidance, tracking, automation and optimization. The project is using recent technologies as well as advanced sensory technology for 3D positioning, vision, guidance, machine control and autonomy. We have a fabulous team that does some of the most exciting work at Caterpillar, and we can’t wait for you to join the team!!
What You Will Do:
Lead, develop, coach a system/software team towards a self managed and accountable team that delivers within a global organization using agility at scale principles.
Supervise and manage employees’ performance. Direct 3rd party labor and statement of work employees, scope and performance. Manage related purchasing and invoicing tasks.
Manage product development initiatives, establish budget, build staffing plans, focus on delivering a quality product, meeting customer expectations
Contribute to product and platform strategy, roadmap and architecture definition.
Communicate and gain buy-in on the strategy.
Contribute, define and own the process, tools required for the team’s success in partnership with peers and in alignment with the CAT Robotics Division
Education requirement:
Requires a Bachelor’s Degree in an accredited Engineering, Robotics Engineering, Electrical Engineering, Computer Engineering, or Computer Science.
What skills you will have:
Planning:
Lead and provide quarterly, yearly and strategic product development estimation, budget planning and tracking, risk identification, mitigation and contingency planning.
Excels in time management, ability to pivot, re-evaluate, re-prioritize what’s most important, lead by example and be a change agent.
Use and evolve agility at scale key principles, values and tools to organize work, drive accountability, open communication, trust and transparency inside and outside.
Decision Making and Critical Thinking:
Ability to accurately analyze situations, taking into accounts all aspects, being aware of self and team bias to reach productive decisions and actions based on informed judgment.
Ensure team rallies and supports decision to drive team accountability to results.
Effective Communications :
Active listening, demonstrating empathy and assertiveness.
Ability to coach to understand how to help the team and team members reflect and act on best next course of action to reach goal.
Ability to be clear and concise in written and verbal communication and to adapt communication styles, format and content to various audiences, including upper management.
Collaborates globally. Is intentional and inclusive in sharing information, collecting input and feedback from the global team. Is being sensitive and open to differences in background, culture and values.
Technical Excellence :
Expertise in relevant technologies that can improve worksite and machine operator’s productivity.
Working knowledge of defining, developing, testing, deploying autonomy, automation and worksite Management systems technology, such as MineStar System.
Ability to guide the team to take the appropriate actions, research, info gathering to grow the team’s expertise.
Customer/Market Focus:
Focused on ensuring the team consistently understands and deliver to maximize customer value, while being predictable on a quarterly basis
Proactive in understanding and staying up to date on market and customers’ needs, and how technological advancement can solve future problems
Top Candidates will also have:
MS in Electrical, Electronics or Computer Engineering or Computer Science
Working knowledge of developing software application for autonomous vehicles and/or MineStar products
Working knowledge of implementing, leading an Agile team
Additional Information:
The location for this position is Mossville, IL
Domestic relocation assistance is available for this position.
This position will require less than 10% travel.
Sponsorship is available for this position.
What you will get:
Our goal at Caterpillar is for you to have a rewarding career. Our teams are critical to the success of our customers who build a better world. Here you earn more than just wage, because we value your performance, we offer a total rewards package that provides:
Competitive Base Salary
Annual incentive bonus plan*
Medical, dental, and vision coverage
Paid time off plan (Vacation, Holiday, Volunteer, Etc.)
*Subject to annual eligibility and incentive plan guidelines.
Final details:
Please frequently check the email associated with your application, including the junk/spam folder, as this is the primary correspondence method. If you wish to know the status of your application – please use the candidate log-in on our career website as it will reflect any updates to your status.
For more information, visit caterpillar.com. To connect with us on social media, visit caterpillar.com/social-media
#LI
Posting Dates:
Any offer of employment is conditioned upon the successful completion of a drug screen.
EEO/AA Employer. All qualified individuals - Including minorities, females, veterans and individuals with disabilities - are encouraged to apply.
Transform the Everyday Discover your career with us at Siemens Digital Industries Software!Siemens Digital Industries Software is a global leader in the growing field of product lifecycle management (PLM), manufacturing operations management (MOM), and electronic design automation (EDA) software, hardware, and services. Siemens works with more than 100,000 customers, leading the digitalization of their planning and manufacturing processes. At Siemens Digital Industries Software, we blur the boundaries between industry domains by integrating the virtual and physical, hardware and software, design and manufacturing worlds. With the rapid pace of innovation, digitalization is no longer tomorrow’s […]
Discover your career with us at Siemens Digital Industries Software!
Siemens Digital Industries Software is a global leader in the growing field of product lifecycle management (PLM), manufacturing operations management (MOM), and electronic design automation (EDA) software, hardware, and services. Siemens works with more than 100,000 customers, leading the digitalization of their planning and manufacturing processes. At Siemens Digital Industries Software, we blur the boundaries between industry domains by integrating the virtual and physical, hardware and software, design and manufacturing worlds. With the rapid pace of innovation, digitalization is no longer tomorrow’s idea. We take what the future promises tomorrow and make it real for our customers today. Our culture encourages creativity, welcomes fresh thinking and focuses on growth, so our people, our business, and our customers can achieve their full potential. ‘Transform the everyday’ and ‘Accelerate transformation’.
Siemens EDA is the longest standing Electronic Design Automation company in the world and over the last 30 years has amassed the finest technology portfolio in the business. Our software tools span the full breadth of semiconductor and electrical systems solutions including integrated circuit design and verification, PCB design & manufacturing solutions, cable harness design tools, and embedded software.
This position is a part of the Atlas Graduate Program. Through this program, you will receive 12 months of technical and non-technical training, mentorship from Siemens EDA executives and world-class engineers, and learn what it is like to work as part of a company that is solving software challenges in the area of electronic design automation.
We are looking for a junior software engineer to work in the RET team in the Calibre business unit. You will be teaming up with a group of senior software engineers and working on designing and implementing modules that are part of the Calibre suite of tools. You will be exposed and learn techniques and algorithms related to the general area of mask tapeout tools (including OPC, modeling, MPC and OPC verification tools). You will also participate in teams that work on effectively using machine learning techniques to solve relevant problems for this space. This is a unique role that will challenge you and allow you to grow in interdisciplinary areas of software engineering, physical modeling, data analysis as applies to semiconductor manufacturing problems.
The successful candidate will possess the following combination of education and experience:
•BS in Computer Science, Electrical Engineering, Physics or Applied Mathematics
•Excellent programming skills and demonstrable experience in C and C++ on UNIX and/or LINUX platforms
•Experience/knowledge with integration of software packages and design of interfaces between them to make the whole work
•Demonstrated ability and strong desire to learn and explore new technologies
•Excellent analysis and problem solving skills
Why us?
Working at Siemens Software means flexibility – Choosing between working at home and the office at other times is the norm here. We offer great benefits and rewards, as you’d expect from a world leader in industrial software.
A collection of over 377,000 minds building the future, one day at a time in over 200 countries. We’re dedicated to equality, and we welcome applications that reflect the diversity of the communities we work in. All employment decisions at Siemens are based on qualifications, merit, and business need. Bring your curiosity and creativity and help us shape tomorrow!
Siemens Software. Transform the Everyday
The hourly range for this position is $51.92 to $61.54 and this role is eligible to earn incentive compensation. The actual compensation offered is based on the successful candidate’s work location as well as additional factors, including job-related skills, experience, and relevant education/training. Siemens offers a variety of health and wellness benefits to employees. Details regarding our benefits can be found here: www.benefitsquickstart.com. In addition, this position is eligible for time off in accordance with Company policies, including paid sick leave, paid parental leave and PTO for non-exempt employees.
USCIS Asylum Program Fee: What Employers Need to Know – Statue of Liberty with raining dollar bills
USCIS Asylum Program Fee: What Employers Need to Know – Statue of Liberty with raining dollar bills Sanwar Ali workpermit.com Support migrant centric journalism today and donate
Sanwar Ali is the founder of workpermit.com and a pioneer in legal services automation, specializing in AI-enhanced immigration solutions. He designed and developed the first AI L1 visa assistant system to help businesses manage their L1 visa applications and streamline the intra-company transfer process, helping businesses transfer key personnel to their US […]
Sanwar Ali is the founder of workpermit.com and a pioneer in legal services automation, specializing in AI-enhanced immigration solutions. He designed and developed the first AI L1 visa assistant system to help businesses manage their L1 visa applications and streamline the intra-company transfer process, helping businesses transfer key personnel to their US offices.
The USCIS Asylum Program Fee, effective from April 1, 2024, applies to employers and self-petitioners filing employment-based petitions. This includes popular visa categories like H1B, L1, O-1, and employment-based green cards under the EB1, EB2, and EB3 categories. Here's a comprehensive guide to the fee, eligibility criteria, reductions, and required documentation.
Key Details of the Asylum Program Fee
Fee Amount: $600 per petition.
Reduced Fee: Small businesses with fewer than 25 full-time employees may qualify for a reduced fee of $300.
Exemption for Certain Nonprofits: Nonprofit organizations that are 501(c)(3) tax-exempt and primarily engaged in educational or charitable work are exempt from the Asylum Program Fee.
Implementation Date: This fee became mandatory on April 1, 2024.
Who Needs to Pay?
The Asylum Program Fee applies to both employers and self-petitioners filing certain petitions:
Employers filing employment-based petitions, including Form I-140 (Immigrant Petition for Alien Workers) and Form I-129 (Petition for Nonimmigrant Workers).
Self-petitioners in categories like EB1 (for individuals with extraordinary ability) are also subject to this fee.
Exemptions and Reductions
Small Businesses
Companies with fewer than 25 full-time employees, including subsidiaries and affiliates, may qualify for the reduced fee of $300. Required documentation includes:
Payroll records to show employee numbers.
IRS filings, such as IRS Form 941, to demonstrate compliance.
Nonprofit Organizations
Certain nonprofits are entirely exempt from the fee:
501(c)(3) organizations engaged in charitable, educational, or research activities must submit proof of tax-exempt status, such as an IRS determination letter, with their petition.
Humanitarian and Asylee Applicants
Humanitarian visa applicants, including refugees, asylees, and survivors of crimes or human trafficking, may also qualify for a full fee exemption. To request a waiver, applicants should file Form I-912 (Request for Fee Waiver) and provide supporting documentation demonstrating financial hardship or eligibility.
Payment and Filing Procedures
To ensure petitions are processed without delay, employers and self-petitioners must follow these payment procedures:
By Check/Money Order: Submit separate payments for the petition filing fee and the Asylum Program Fee.
Online Payment: The Asylum Program Fee can be processed as part of the overall payment in the online system but must be indicated separately.
Failure to provide the correct fee or necessary documentation could result in delays or rejections of petitions.
Documentation Requirements for Reduced Fees
To qualify for the reduced fee, employers must submit:
Proof of Employee Count: Payroll records showing fewer than 25 full-time employees.
IRS Forms: Such as Form 941, demonstrating the company’s size.
Nonprofit Certification: Nonprofits seeking the reduced fee or full exemption must provide an IRS determination letter proving 501(c)(3) tax-exempt status.
For businesses with subsidiaries or affiliates, a detailed corporate structure showing the total number of employees may also be required.
Impact on Popular US Work Visas
The Asylum Program Fee applies to a range of employment-based visa categories, affecting both employers and self-petitioners:
Employers sponsoring skilled workers under the H1B visa program must include the Asylum Program Fee in their filings. This ensures the visa applications are processed without unnecessary delays, especially given the annual H1B cap.
The fee applies to L1A (executives and managers) and L1B (specialized knowledge workers) petitions. Multinational corporations that depend on global talent transfers must ensure the fee is correctly paid to avoid delays in business-critical transfers.
Petitions for individuals with extraordinary ability under the O-1 visa category also require the Asylum Program Fee. Whether the petition is for athletes, artists, or business leaders, ensuring this fee is paid correctly is vital for smooth processing.
Employment-Based Green Cards (EB1, EB2, EB3)
Employers or self-petitioners filing Form I-140 under the EB1, EB2, or EB3 green card categories must also account for the Asylum Program Fee. This includes self-petitioners in EB1 (for extraordinary ability).
How the Asylum Program Fee Impacts Processing Times
The fee supports USCIS's processing of both asylum and employment-based cases. By contributing to the funding of the U.S. asylum system, it ensures that employment-related petitions are not delayed due to the diversion of resources. Correct fee submission is critical for timely processing, as missing or incorrect fees can lead to petition rejection or significant delays.
Future Adjustments to USCIS Fees
The USCIS fee structure, including the Asylum Program Fee, may be adjusted periodically based on operational needs and agency funding. Employers and self-petitioners are advised to stay updated with the USCIS Fee Schedule to ensure compliance with future changes. Regularly consulting Form G-1055 (Fee Schedule) and monitoring updates on the USCIS website can help avoid complications from fee changes.
Best Practices for Employers and Self-Petitioners
Verify Fee Requirements: Use the USCIS Fee Calculator to confirm the correct fee amounts before submitting any petition.
Submit Complete Documentation: Ensure all required documents (such as IRS forms and nonprofit status letters) are ready before filing.
Monitor Fee Updates: Regularly check for updates on USCIS fee policies to stay compliant with any changes in fee structures.
Conclusion
The USCIS Asylum Program Fee needs to be taken account in the employment-based immigration and temporary work visa process. Employers and self-petitioners must ensure they meet the fee requirements and submit the necessary documentation to avoid processing delays or rejections. Understanding the eligibility for fee reductions or exemptions is important for both nonprofits and small businesses, allowing them to reduce filing costs. Staying informed and compliant with USCIS regulations will help streamline the visa petition process for all parties involved.
workpermit.com helps with US Work Visa: L1, H1B, E2, and O1 Visas
There are various types of US visas that individuals can apply for, depending on their circumstances. Some of the most common employment-based visas include:
L1 visa: This visa is for intracompany transferees who work in managerial or executive positions or have specialized knowledge.
H1B visa: This visa is for specialty occupations that require theoretical or technical expertise in specialized fields.
E2 visa: This visa is for investors who have made a significant investment in a US business and, management or essential skills employees. Only certain nationalities can apply.
O1 visa: This visa is for individuals with extraordinary abilities in the arts, sciences, education, business, or athletics.
Workpermit.com is a specialist visa services firm with over thirty years of experience dealing with visa applications. For more information and advice, please contact us on 0344 991 9222 or at london@workpermit.com(link sends e-mail)(link sends e-mail)
In an effort to allow third-party administrators to more easily collect payroll and census data directly from employers’ payroll systems, PensionPro Software LLC, a workflow automation software for TPAs, announced it is partnering with Finch Inc., a unified API platform for employment services.
The partnership will automate the collection of plan sponsor information and, via Finch Connect, simplify onboarding and administration for sponsors.
TPAs can either embed the Finch Connect interface into their own platform or share a link to enable plan sponsors to connect it to their payroll system. Once the connection is established, the TPA can automatically pull census […]
In an effort to allow third-party administrators to more easily collect payroll and census data directly from employers’ payroll systems, PensionPro Software LLC, a workflow automation software for TPAs, announced it is partnering with Finch Inc., a unified API platform for employment services.
The partnership will automate the collection of plan sponsor information and, via Finch Connect, simplify onboarding and administration for sponsors.
TPAs can either embed the Finch Connect interface into their own platform or share a link to enable plan sponsors to connect it to their payroll system. Once the connection is established, the TPA can automatically pull census and payroll data from the payroll system into PensionPro’s platform, eliminating the need to manually format incoming sponsor data.
Finch already works with payroll providers like Gusto, Quickbooks, ADP and Paychex.
Accessing “timely, accurate and standardized” plan sponsor data has been a challenge for TPAs and recordkeepers for decades, according to PensionPro’s announcement. The norm has been for TPAs to rely on manual data entry or bulk file transfers, both of which are time-consuming, costly and difficult to scale.
As new plans are being created as a result of the SECURE 2.0 Act of 2022, PensionPro argued that retirement providers need a fast, reliable and secure way to collect employer data.
Linda Chadbourne, vice president of defined contribution services at Definiti LLC, says this automated service is something that TPAs like herself are looking for in order to make the data collection process as seamless as possible.
Chadbourne says clients report payroll data at least once per year, allowing the TPA to conduct non-discrimination testing and help with Form 5500 filing. On these occasions, they typically need to log into a portal and manually upload census data.
“If you have a client that has 100 employees, and we’re asking them for maybe 20 different items on a spreadsheet, it can be very time-consuming,” Chadbourne says.
Plan sponsor clients often will ask the TPA firm to do the data entry for them, but Chadbourne says that comes at an extra charge. Chadbourne says an automated service like the one PensionPro is offering could transfer the necessary data within five minutes, whereas normally it would take the firm upwards of two hours.
She adds that it is important for a plan sponsor to monitor the service provider for cybersecurity reasons, as the provider will have access to important data like compensation and Social Security numbers.
“Accurate payroll data is critical to TPAs, and this partnership gives them an automated solution for acquiring that data for their administrative workflows,” said Darren Conner, PensionPro’s chief operating officer, in a statement.
The Covid-19 pandemic has left an indelible mark on working life. From remote and flexible working to better connected staff members and greater company culture, the pandemic has, in some ways, changed working life for the better.
The consequences of the virus, in terms of working arrangements, led to many experiencing a level of professional autonomy that greatly improved their productivity and overall job satisfaction. The lack of a commute and the ability to care […]
Asana’s latest workplace survey has highlighted the issues plaguing the world of work, leading to stifled productivity, increased burnout and decreased trust.
The Covid-19 pandemic has left an indelible mark on working life. From remote and flexible working to better connected staff members and greater company culture, the pandemic has, in some ways, changed working life for the better.
The consequences of the virus, in terms of working arrangements, led to many experiencing a level of professional autonomy that greatly improved their productivity and overall job satisfaction. The lack of a commute and the ability to care for dependents while at home was also a silver lining to be taken from a difficult situation.
It has also proven that provisions can and should be made to better include people with disabilities, visible and invisible, in working life. There have been many positive side effects to a truly disruptive, frightening and unforgettable global event, but, despite having put some distance between then and now, the pandemic also continues to negatively impact the working world.
San Francisco-based software company Asana has today (22 October) released the State of Work Innovation Report 2024, highlighting the four main challenges affecting organisations and the working population since the pandemic. To gather their data, Asana surveyed 13,066 knowledge workers across six countries in 2024, namely Australia, Japan, the US, the UK, Germany and France between February and August this year.
Who is doing what?
Asana’s research indicated that capacity and a clear understanding of responsibilities is in short supply for many organisations post-pandemic, with 68pc of workers saying their managers don’t understand their workloads. This has led to a workload imbalance where a few high performers are relied on to get the bulk of work done, according to more than half of those surveyed.
Research suggests that employees are drained, mentally and physically, by too many unnecessary, disconnected tools and a heavy workload, which the survey warns has the potential to lead to significant burnout.
Fear of change
The pandemic was undeniably disruptive, forcing many people to adapt and change to fit a transformed working world. Amid economic pressures and technological advancements organisations have had to reshape to stay not just competitive, but afloat.
As indicated by the survey, the issue of low resilience and a fear of change has resulted in some employees losing trust in the organisations they work for and becoming resistant to further alteration. Only 27pc of responding employees are of the opinion that their organisations can weather future challenges and less than a quarter (24pc) said that their company updates strategic goals based on changing priorities.
Are we actually connecting?
The third major challenge to working life since the pandemic identified by the survey is the issue of whether or not we are actually tuned in to our places of employment, or if the multiple forms of workplace communication are actually deepening the divide.
According to the survey, co-workers “are more disconnected than ever, with teams falling into silos, leading to duplicated efforts, wasted resources and costly inefficiencies. Teams are left spinning their wheels rather than driving real progress.”
Just 21pc of responding knowledge workers believe that people in their organisations can work effectively across teams and less than one-fifth are of the opinion that their communication tools support cross-functional collaboration. Interestingly, but perhaps not surprising given the results of the report, less than half (47pc) of those surveyed stated that they understand how their work clearly fits in with their organisation’s long-term objectives.
Breakneck or bottleneck speeds?
Asana’s survey identified low velocity as a serious issue in the workplace post-pandemic. In a changing world, the companies better able to adapt and to do so quickly, are the ones most likely to succeed, therefore bottlenecks can be a significant challenge for modern organisations.
A reliance on outdated technologies and poor workflow can greatly impede the workplace, with 94pc of respondents stating that they still depend on spreadsheets to help manage their work and 64pc feeling that their company’s collaboration tools are actually making the job harder to do.
AI as always seems to be a contentious subject, with nearly half (47pc) of employees concerned about the use of unreliable data and 26pc saying that their organisation does not provide sufficient AI training. 32pc admitted to using unauthorised ‘shadow’ AI tools, putting organisations at risk of cybersecurity threats.
“This report is a wake-up call for leaders,” said Dr Rebecca Hinds, the head of Asana’s Work Innovation Lab.
“The last five years have completely reshaped how we work, but too many teams are still stuck in outdated practices that drain productivity. Holding onto these old habits has come at a high cost – leaving teams disconnected and overwhelmed.”
She said that organisations needs to move beyond traditional methods of working, for example relying on meetings to solve every problem and letting teams adopt technology in silos.
“AI has the capability to help, but too many organisations are only using AI to boost individual productivity.
“By applying AI across the organisation, it gains critical context of the work that is happening – giving organisations the clarity of who is doing what by when. Only then will businesses create connections, move faster, build resilience and balance workloads.”
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Laura Varley is a Careers reporter at Silicon Republic. She has a background in technology PR and journalism and is borderline obsessed with film and television, the theatre, Marvel and Mayo GAA. She is currently trying to learn how to knit.
66e88a33edc5cf7869c82192 Parvalux Modular Series When developing a motion control system for a production line or piece of equipment, a common issue for engineers and integrators is having to mix and match components from multiple suppliers. To ease this process, Maxon has added modular capabilities to its Parvalux line of customizable geared motors to provide prototype motors at a rapid pace.
The strategy behind Parvalux lies in how Maxon has designed and manufactured a series of modular components that can be mixed and matched, enabling users get a paired system from one manufacturer rather than piecing together components such as motors, […]
When developing a motion control system for a production line or piece of equipment, a common issue for engineers and integrators is having to mix and match components from multiple suppliers. To ease this process, Maxon has added modular capabilities to its Parvalux line of customizable geared motors to provide prototype motors at a rapid pace.
The strategy behind Parvalux lies in how Maxon has designed and manufactured a series of modular components that can be mixed and matched, enabling users get a paired system from one manufacturer rather than piecing together components such as motors, gearheads, brakes and encoders from multiple sources. Designing a Parvalux protoype motor drive involves a three-step selection process using Maxon’s online configurator.
Included in the Parvalux line of modular drive systems are permanent magnet DC motors— small motors with high output for their size; brushless DC motors, which require no maintenance and offer high starting torques, power density and quiet operation; and single-phase or three-phase AC motors. All these motor types are available with inline or right-angle gearboxes. Maxon’s line of AC/DC motors are available in series-wound or shunt-would versions.
Although every application can be different, designers need to focus on voltage, speed and torque in every case, said Lewis Bowles, Parvalux business development manager. Using a modular system provides a range of options that allow designers to determine their required output performance and make a quick selection. Once this is done, users of the online configurator can fine tune their selection with accessories such as brakes, encoders, shaft extension kits and controllers.
Also offered in the Parvalux line is the SC 50/15 controller, which ensures control over speed, torque and motor efficiency.
Bowles pointed out that the Parvalux modular range was introduced to support rapid prototyping of motor drives. “Although we offer fully customized solutions, it [the Parvalux configurator] can be a great tool for engineers to choose from our ready-to-use combinations to get their product designed faster for testing,” he said.
He also highlighted four specific benefits for OEMs using Parvalux:
Customization: Parvalux offers extensive customization options, allowing OEMs to tailor motors to their specific application needs. This can include custom windings, shafts and gearboxes.
High performance: Parvalux motors provide high torque density and power for the range of sizes offered making them suitable for demanding applications.
Versatility: With its range of motors and gearboxes, Parvalux can meet diverse requirements across various industries.
Support and service: Parvalux offers specialized service and support, ensuring that OEMs receive ongoing assistance and maintenance.
For end users, Bowles said the key benefits of Parvalux motor drives include their design for optimal efficiency, which can lead to energy savings and lower operational costs, and compact design for applications where space is limited.
About the Author
David Greenfield, editor in chief | Editor in Chief
David Greenfield joined Automation World in June 2011. Bringing a wealth of industry knowledge and media experience to his position, David’s contributions can be found in AW’s print and online editions and custom projects. Earlier in his career, David was Editorial Director of Design News at UBM Electronics, and prior to joining UBM, he was Editorial Director of Control Engineering at Reed Business Information, where he also worked on Manufacturing Business Technology as Publisher.
Douglas Grant, Managing Director at Conister Bank , outlines five key policy areas where Labour can better support small and medium-sized enterprises (SMEs) to ensure sustained growth and economic resilience. By addressing these areas, Labour can create a more stable environment for SMEs, driving innovation, job creation, and local economic development.
As signs of economic recovery were beginning to appear this year, it’s crucial to empower small and medium-sized enterprises (SMEs) with the support they need to flourish. SMEs are the backbone of our economy, driving innovation, creating jobs, and stimulating local communities. However, under Labour’s leadership so far, […]
Douglas Grant, Managing Director at Conister Bank, outlines five key policy areas where Labour can better support small and medium-sized enterprises (SMEs) to ensure sustained growth and economic resilience. By addressing these areas, Labour can create a more stable environment for SMEs, driving innovation, job creation, and local economic development.
As signs of economic recovery were beginning to appear this year, it’s crucial to empower small and medium-sized enterprises (SMEs) with the support they need to flourish. SMEs are the backbone of our economy, driving innovation, creating jobs, and stimulating local communities. However, under Labour’s leadership so far, the rhetoric has leaned toward fiscal fear-mongering, creating an environment of uncertainty that threatens to hinder, rather than support, the growth of SMEs.
With the SME lending landscape rapidly evolving, Labour must urgently recalibrate its policies to better support these essential businesses. To foster resilience and sustained growth, we have outlined five key areas where Labour should focus its efforts.
1. Establish Long-term Government-Backed Regional Financial Support
The pandemic highlighted the critical need for accessible and sustained financial support for SMEs. While temporary measures were helpful, they fell short of addressing the long-term needs of businesses. Labour should focus on establishing enduring, UK wide sector-specific financial support that offers stability and predictability, rather than relying on short-term schemes prone to annual revisions. This would enable SMEs to better plan and invest in growth, innovation, and operational resilience.
Maintaining low corporation tax is also essential, as it allows SMEs to retain more of their earnings for reinvestment, fuelling job creation and economic expansion. Additionally, Labour must ensure that local governments, like Birmingham City Council, are adequately supported to prevent financial collapse. Keeping local authorities solvent but not reliant is critical, as they play a key role in providing essential services and infrastructure throughout the UK that SMEs rely on. By committing to these measures, Labour can foster a more supportive environment for SMEs, driving sustainable growth across the economy.
2. Use Technology to Enhance Job Performance
With rapid technological advancements, concerns about automation and digitalisation displacing jobs are common. However, technology can also be a significant driver of job creation and productivity enhancement. Labour should focus on leveraging technology to complement and support jobs rather than replace them. This can be achieved by investing in digital skills training programmes, improving digital infrastructure, and promoting technology adoption initiatives tailored to the needs of SMEs. By equipping SMEs with the necessary tools and expertise to effectively harness technology, we can build a workforce that is adaptable, innovative, and resilient, fostering economic growth and stability.
3. Enhance and Develop New Infrastructure
Infrastructure investment goes beyond building roads and bridges; it’s about creating jobs, boosting local economies, and providing the foundation for SMEs to thrive. For SMEs, reliable infrastructure means better access to markets, customers, and suppliers, which is vital for growth and competitiveness. The Autumn Statement provides an opportunity for the party to highlight clarity, consistency, and reliability in its infrastructure funding commitments, with a focus on timely execution and efficient resource allocation.
Prioritising infrastructure projects that directly benefit SMEs—such as upgrading digital connectivity, improving transport links, and developing business hubs—will enable these businesses to operate more efficiently and expand their reach. Additionally, the government should focus on sustainable infrastructure initiatives that align with the UK’s net-zero goals, fostering innovation in green technologies and creating new opportunities for SMEs in emerging industries. By committing to comprehensive and strategic infrastructure development, Labour can empower SMEs to flourish in well-connected, resilient, and vibrant communities, driving long-term economic growth across the country.
4. Optimising Supply Chains and Ethical Trade Infrastructure
The pandemic and recent disruptions at key trade routes, like the Panama and Suez Canals, have highlighted the fragility of global supply chains. In an increasingly uncertain geopolitical landscape, it’s important for the Labour government to prioritise supply chain resilience and local business trading. By strengthening local supply chains, SMEs can reduce dependency on unpredictable global markets, lower transportation costs, shorten delivery times, and enhance sustainability efforts. A comprehensive analysis of current supply chains is needed to identify vulnerabilities, bottlenecks, and opportunities for improvement. Using data-driven insights and expert advice, the government can guide SMEs in optimising their supply chains, reducing risks, and increasing efficiency. This includes encouraging best practices in procurement and trade behaviour that adhere to strict ESG criteria, ensuring that SMEs operate sustainably and responsibly. By prioritising local sourcing and environmentally conscious supply chain strategies, Labour can safeguard against future disruptions and position SMEs to thrive in a market that increasingly values sustainability. This approach fosters a robust local economy where SMEs are integrated into resilient, ESG-compliant supply chains, driving economic growth and environmental stewardship.
5.Keep Incentivising Investment in UK SMEs
Access to capital is essential for SMEs to fuel growth and innovation. To attract investment into UK SMEs, the Labour government should not look to remove incentives for investors, such as tax breaks, investment schemes, and venture capital support. It’s crucial that Labour avoids raising taxes on the wealthy too much, as this could lead to a wealth flight, reducing the capital available for investment in the UK economy. Supporting the venture capital sector through established schemes like the VCT, EIS, and SEIS should be reinforced to create a continuous financial support system for SMEs, while appealing to investors who seek tax-efficient opportunities and attractive returns. By maintaining a balanced tax approach and creating a conducive investment environment, Labour can unlock capital, drive entrepreneurship, and catalyse economic growth across all sectors without deterring potential investors.
By adopting these strategies, Labour can cultivate a more resilient and dynamic ecosystem for SMEs, ensuring they play a central role in driving the UK’s economic recovery. With the right support, SMEs will continue to innovate, create jobs, and stimulate local economies. For further insights on how policy can shape the future of businesses, you can explore Chamber UK’s previous analysis on the evolving role of SMEs in our economy here.
One of the biggest industries on the Mississippi Coast is manufacturing, but advances in automation seem to be making less jobs available.
WXXV News 25’s Lucas Warren was at the grand opening of a new lab that is looking to fix that problem.
The MGCCC Advance Manufacturing and Technology Center held a grand opening for their AiM UP lab.AiM UP Labs are the industry leading training ground for those looking for a career in manufacturing.In partnership with Mississippi State, the labs focus on preparing students for the future workforce by focusing on automation as it continues to become a bigger part […]
One of the biggest industries on the Mississippi Coast is manufacturing, but advances in automation seem to be making less jobs available.
WXXV News 25’s Lucas Warren was at the grand opening of a new lab that is looking to fix that problem.
The MGCCC Advance Manufacturing and Technology Center held a grand opening for their AiM UP lab.
AiM UP Labs are the industry leading training ground for those looking for a career in manufacturing.
In partnership with Mississippi State, the labs focus on preparing students for the future workforce by focusing on automation as it continues to become a bigger part of manufacturing.
Vice President of Teaching and Learning Jonathan Woodward said, “We are elated to finally open the AiM UP lab. That’s advancements in manufacturing upscaling program. This program is all about bringing automation to help be more efficient and effective in the manufacturing sector. By partnering with Mississippi State University, we get a look into what the companies are going to do for the next 5 years. So, in this lab we are ensuring our students are future proof. So, as they go into the workforce they’re prepared for today and the future as well.”
Manufacturing is a huge part of the economy in Mississippi especially here on the Coast. There are currently three AiM UP Labs in the state with the MGCCC location being the first on the Coast.
“There are three AiM UP labs in the state of Mississippi and this one is going to serve South Mississippi. It’s a big deal because if you look at manufacturers and where they’re going with their technology. They’re going to need spaces where they come and look at what’s out there and what is possible.”
With industry leading technology right here on the Coast, it’s bringing a lot of attention from some big-time manufactures. Adele Ratcliff with the Department of Defense said, “Manufacturing is an exciting sector to be in and an exciting profession. It doesn’t matter what you want to do whether you want to be an engineer or an operator, these are great professions to be in. It helps you as an individual, your community, and help us in the Department of Defense build what we need for our national security.”
The MGCCC AiM UP lab will begin training staff immediately and eventually open for students at the start of the next semester.
Welcome, Basic Income Readers of the Political Reading Recap!
This week’s articles were selected to provide a comprehensive understanding of the latest developments in guaranteed income programs. The overarching theme for this week is the ethical implications and global reach of these programs in promoting financial stability and social equity.
We encourage you to submit questions and articles related to Basic Income for future newsletters. Additionally, join our Community Discord where we will grow a community to chat, share articles/organizing opportunities, and debate topics like basic income, democracy, sustainability, and more. Leave a comment New Report on the Ethics of Basic […]
Search 2 keywords found: basic income,guaranteed income
Welcome, Basic Income Readers of the Political Reading Recap!
This week’s articles were selected to provide a comprehensive understanding of the latest developments in guaranteed income programs. The overarching theme for this week is the ethical implications and global reach of these programs in promoting financial stability and social equity.
We encourage you to submit questions and articles related to Basic Income for future newsletters. Additionally, join our Community Discord where we will grow a community to chat, share articles/organizing opportunities, and debate topics like basic income, democracy, sustainability, and more.
New Report on the Ethics of Basic Income Piloting: This article discusses a groundbreaking report on the ethical guidelines for running basic income experiments. The UBI Bath authors, experienced in various global basic income projects, emphasize the importance of “do no harm” and ensuring participant dignity and agency. This is a crucial read to understand the ethical framework necessary for conducting basic income experiments without causing harm to vulnerable populations.
Could a Guaranteed Basic Income Pave the Way for Racial Justice?: This piece explores how guaranteed basic income could advance racial justice by providing financial stability to marginalized communities. The article highlights the potential of UBI to address systemic inequalities and promote social equity. Reading this article underscores the transformative power of UBI in creating a more just society.
Salem's Guaranteed Income Uplift Program: This article covers Salem's new guaranteed income program, which provides regular cash payments to low-income families. The program aims to reduce financial stress and improve quality of life for participants. This piece is essential for understanding the local efforts to support families and the broader implications for UBI implementation.
A Sustainable Global Universal Basic Income Can Be Done - Here’s How: This article outlines a comprehensive plan for implementing a global UBI sustainably. The piece discusses the financial mechanisms and international cooperation required to make UBI a reality worldwide. This read is vital for those interested in the feasibility and scalability of UBI on a global scale.
Chavit Singson Wants Universal Basic Income If Elected: This article discusses Chavit Singson’s campaign promise to implement UBI if elected. It explores his vision for financial stability and poverty alleviation through guaranteed income. This piece highlights the growing political support for UBI and its potential to address economic disparities.
Basic Income Could Put Food Banks Out of Business: This article argues that UBI could eliminate the need for food banks by providing financial stability and reducing poverty. The piece highlights the potential of UBI to address food insecurity and promote self-sufficiency. This article is a must-read for understanding the broader social impacts of UBI.
Basic Income: Why We Need to Start Talking About Money: This article emphasizes the importance of discussing financial security and UBI openly. The piece argues that addressing money matters is crucial for promoting financial literacy and support for UBI. This read is essential for understanding the cultural shift needed to embrace UBI.
The Universal Basic Income (UBI) took a hit recently when the local “Smart Money” columnist stepped back a bit from his support. A “rigorous study” showed “there’s little evidence to support my pet economic idea.”
This is important because, for one, our mayor is one of many signatories to Mayors for a Guaranteed Income. Two, almost half of the city council, likely sympathetic to the same, are vying to succeed him next May.
Does the propriety of such an “experiment” ever occur to any of them, or so-called “experts?”This study was borne of the same fear that drove Andrew Yang to […]
Search 2 keywords found: basic income,guaranteed income
The Universal Basic Income (UBI) took a hit recently when the local “Smart Money” columnist stepped back a bit from his support. A “rigorous study” showed “there’s little evidence to support my pet economic idea.”
This is important because, for one, our mayor is one of many signatories to Mayors for a Guaranteed Income. Two, almost half of the city council, likely sympathetic to the same, are vying to succeed him next May.
Does the propriety of such an “experiment” ever occur to any of them, or so-called “experts?”
This study was borne of the same fear that drove Andrew Yang to make a UBI central to his presidential campaign a few years back: automation will so upend society that mass unemployment will result.
Funded by Sam Altman, founder of OpenAI, this fear has crystallized around the growth of artificial intelligence. Good policy never stems from fear, but why are we so fearful anyway?
Technological advance has never resulted in persistently long unemployment lines. Remember operator switchboards? How about phonographs? Drilling for oil used to take many more hands before computers and fracking came along.
All the while, the unemployment rate has hovered around 5-6%. We’ve not only survived, but thrived because of automation.
Moreover, when did we become so condescending to our fellow citizens that we treat them like lab rats, “randomly selected” for a “control trial?”
During a council session in May, one of the mayoral hopefuls thanked “all the players … gathered around the chess table” of the city’s taxpayer-funded workforce development program. We are little more than their pawns.
To those who protested that program he added “win an election.” What about the taxpayers who objected to being test subjects? When did government stop defending the rights of the minority?
Some protest the UBI on principle; it’s simply wrong to take from one to give to another. Still others have a decent enough grasp of economics to know such programs are doomed to fail.
When governments give handouts, people tend to work less, over an hour less in this particular instance. Their income also fell, though they spent more on leisure. All this is a logical consequence that should surprise no one.
Not all recipients would respond this way, but any is too many if it’s funded by those who work. Not all of benefactors would subsequently be discouraged from working, but too many would if we want the prosperity that their earnings and saving/investing brings.
This issue isn’t going away. As the columnist, Michael Taylor said, these “transfers only lasted three years. The dream can stay alive because this one study doesn’t answer everything.”
Council has shown a penchant for flagrantly disregarding key segments of San Antonians for such “dreams.” Reaching forcefully into job creators’ pockets to pass a paid sick leave ordinance in 2018 comes immediately to mind.
As long as policymakers and “scientists” are in cahoots, with the press as their cheering section, taxpayers and small businesses have a target on their back.
Christopher E. Baecker teaches economics at BASIS Charter School and Northwest Vista College in San Antonio, and is Editor & Policy Director at InfuseSA. He can be reached via email, Facebook or Twitter.
Merger Integration Informative Research ’s data-driven credit and verification solutions are now available via the Dark Matter Technologies Exchange service network.
This will enable more mortgage lenders to streamline verification of income (VOI) and verification of employment (VOE).
Verifying borrower income and employment is time-consuming and costly for mortgage lenders. Informative Research’s Verification Platform solution addresses these pain points by automatically cycling through multiple VOI and VOE report providers until borrower data is successfully verified.Lenders can configure the platform with Informative Research to optimize costs by ordering reports starting with the least expensive provider.Additionally, the solution allows lenders to do business […]
This will enable more mortgage lenders to streamline verification of income (VOI) and verification of employment (VOE).
Verifying borrower income and employment is time-consuming and costly for mortgage lenders. Informative Research’s Verification Platform solution addresses these pain points by automatically cycling through multiple VOI and VOE report providers until borrower data is successfully verified.
Lenders can configure the platform with Informative Research to optimize costs by ordering reports starting with the least expensive provider.
Additionally, the solution allows lenders to do business with multiple providers without juggling several vendor relationships.
The efficiency gains of verification platform are further amplified when paired with the Empower loan origination system (LOS) and the Exchange service network, allowing for information to flow from the loan into Informative Research’s system of record, ensuring that a record of the order and response is captured in the Empower LOS.
The Empower LOS’s integrations with automated underwriting systems also ensures that any representation & warranty relief obtained by using Informative Research can automatically be pulled into the loan. On top of that, the integration with the Exchange service network makes Informative Research’s platform offering available to other LOSs such as Blue Sage and other systems such as ICE’s MSP Loss Mitigation solution.
“The biggest benefit of this integration is the enhanced efficiency and reduced manual workload for lenders. By making our advanced verification services available via the Dark Matter Exchange service network, lenders can achieve a seamless, automated experience that significantly reduces the need for manual intervention,” says Ryan Kaufman, IT manager, integrations for Informative Research, in a release. “We’ve seen substantial positive impacts with our partners adopting this product. By automating the verification process, lenders can avoid unnecessary orders and ensure that verifications are performed with the right controls, thus mitigating the risk of automation errors.”
“Informative Research is doing wonderful things to revolutionize the verifications space by offering their clients a unique blend of platform services that cover every use case,” adds Jennifer Miller, managing director of partnership products for Dark Matter. “We are happy to welcome their product to the Exchange service network and support its adoption by the Empower LOS users. We look forward to Informative Research’s continued innovation as they bring new products and solutions to the market.”
UiPath embeds Anthropic’s Claude LLMs to fuel UiPath Autopilot for everyone, Clipboard AI, and a new GenAI healthcare solution to offer customers improved productivity, cost savings, and decision-making capabilities
NEW YORK and LAS VEGAS–(BUSINESS WIRE)–
UiPath (NYSE: PATH), a leading enterprise automation and AI software company, today announced the integration of Anthropic’s large language model (LLM), Claude 3.5 Sonnet , to deliver new AI features in three key products, including UiPath Autopilot for everyone, Clipboard AI, and a new medical record summarization solution. Businesses will be able to achieve greater accuracy with UiPath’s platform and Claude’s advanced trusted and responsible […]
UiPath embeds Anthropic’s Claude LLMs to fuel UiPath Autopilot for everyone, Clipboard AI, and a new GenAI healthcare solution to offer customers improved productivity, cost savings, and decision-making capabilities
NEW YORK and LAS VEGAS--(BUSINESS WIRE)--
UiPath (NYSE: PATH), a leading enterprise automation and AI software company, today announced the integration of Anthropic's large language model (LLM), Claude 3.5 Sonnet, to deliver new AI features in three key products, including UiPath Autopilot for everyone, Clipboard AI, and a new medical record summarization solution. Businesses will be able to achieve greater accuracy with UiPath's platform and Claude’s advanced trusted and responsible AI capabilities.
UiPath announced its latest capabilities at its annual FORWARD user conference taking place October 21-24 in Las Vegas.
provide instant, accurate answers to business questions by accessing trusted enterprise knowledge for a diverse set of use cases and can drive actions across various systems through UiPath automations
enable users to discover, run, and combine existing company automations to complete complex tasks
automates digital paper by extracting information from digital documents and using Clipboard AI technology to paste within enterprise applications
empower users to create new automations using API and UI automation, to update line of business systems, and to automate more work under human supervision
Customers are using Autopilot for everyone to improve employee self-service, ground responses in domain and business-specific knowledge, and automate repetitive work. Current implementations span various business processes. For example, healthcare services and disaster relief organizations use the solution to onboard blood donors, and at various organizations, Autopilot for everyone is used by sales teams to guide client outreach and for employee self-servicing on HR tasks.
"AI is fundamentally changing and improving how businesses work, and how professionals make decisions. It's not just about saving time on mundane tasks – it's about freeing people up to do more meaningful work," said Mike Krieger, Chief Product Officer at Anthropic. "Claude will deliver even greater customer value by streamlining daily tasks with Autopilot, automating data entry with Clipboard AI, and improving medical record analysis in healthcare – enabling faster, more accurate, and more intelligent automation across diverse business processes."
“Our collaboration with Anthropic emphasizes our commitment to help our customers leverage best-in-class LLMs and specialized AI within the UiPath Platform to tackle complex automations – ensuring accurate and trusted results every step of the way,” said Graham Sheldon, Chief Product Officer at UiPath. “By incorporating Anthropic Claude 3.5 Sonnet in the UiPath Platform, our users can deliver real business results with our most innovative experiences like Autopilot and Clipboard AI."
New GenAI Healthcare Solution
UiPath is also launching a new industry solution to help healthcare organizations revolutionize medical record summarization and empower them to take full advantage of the combined power of GenAI and enterprise automation. Developed in partnership with top clinical staff, this solution integrates Anthropic Claude with UiPath Document Understanding to create a more efficient and accurate way to analyze medical documents.
Key features and benefits:
will deliver HIPAA-compliant extraction and summarization of multi-page and multi-modal charts
provides clinician-level summaries organized in easy-to-understand segments with traceable citations
applies proprietary RAG methodology for processing unstructured medical record data, projected to deliver 70% faster chart processing from intake to summary
reduces administrative tasks for both clinical and non-clinical professionals
The new solution provides quick access to accurate information from voluminous medical records, streamlining critical processes such as Utilization Management, Appeals, Referrals and Order Intake, and Clinical Trial Eligibility checks.
UiPath Clipboard AI
UiPath Clipboard AI relieves people from time-intensive, manual tasks of copying information from one place to another. It transforms repetitive data entry into a swift, intelligent process, allowing users to prioritize tasks that will deliver greater value. Clipboard AI introduces a universal extraction fueled by Claude that quickly and accurately processes data from trusted sources, removing the need for manual copy-paste operations.
Clipboard AI excels in:
Automating extraction of information from diverse document types
Eliminating manual copy-paste tasks, boosting accuracy and efficiency
Seamlessly transferring data between applications, including complex spreadsheets
Businesses that leverage Clipboard AI can enhance productivity, improve customer and employee satisfaction, and improve operational efficiency. For example, a leading provider of business-to-business distribution, logistics services, and supply chain solutions is processing thousands of inventory documents from suppliers with Clipboard AI, which extracts data from semi-structured comments and transfers it into an ERP app. By automating this previously manual process, employees are saving hundreds of hours per week.
Clipboard AI was also recognized as one of TIME’s Best Inventions of 2023.
About UiPath
UiPath (NYSE: PATH) develops AI technology that mirrors human intelligence with ever-increasing sophistication, transforming how businesses operate, innovate, and compete. The UiPath Platform™ accelerates the shift toward a new era of agentic automation—one where agents, robots, people, and models integrate seamlessly to enable autonomous processes and smarter decision making. With a focus on security, accuracy, and resiliency, UiPath is committed to shaping a world where AI enhances human potential and revolutionizes industries. For more information, visit www.uipath.com.
Category Engineering & Science Job Description This position will both support production by upgrading and optimizing equipment on the shopfloor, but also look for innovative opportunities to improve equipment and do things differently and better. What your day will look like: Standardize automation platforms around The LEGO Group Processing area Identify and collect continuous improvement for enhanced efficiency, usability and serviceability. Implement platform activities to ensure growth and robust production in respect to novelties and element specific changes. Provides technical mentorship for automation and IT architecture for development and design […]
This position will both support production by upgrading and optimizing equipment on the shopfloor, but also look for innovative opportunities to improve equipment and do things differently and better.
What your day will look like:
Standardize automation platforms around The LEGO Group Processing area
Identify and collect continuous improvement for enhanced efficiency, usability and serviceability.
Implement platform activities to ensure growth and robust production in respect to novelties and element specific changes.
Provides technical mentorship for automation and IT architecture for development and design of automation/software for equipment in collaboration with suppliers and mechanical designers.
Ensures modularity and adaptability for automation and mechatronics related technology for next generation of production equipment.
Support collaboration development of multi-functional team
Provides IT knowledge to ensure innovative architecture for a digital future.
Actively engage partners and customers during and post the ramp up phase of new automation equipment.
Are you up for the challenge?
1-3+ years in automation area.
1-3+ years experience in Allen Bradley, and/or B&R PLC system installation / solving experience (development, design and PLC-programming).
Knowledge of other automation brands and the ability to assess strength and weakness between different solutions.
Fluent English, working across time zones and with multicultural teams.
Applications are reviewed on an ongoing basis. However, please note we do amend or withdraw our jobs and reserve the right to do so at any time, including prior to any advertised closing date. So, if you're interested in this role we encourage you to apply as soon as possible.
What’s in it for you?
Here are some of what to expect:
FamilyCareLeave – We offer enhanced paid leave options for those important times.
Insurances – All colleagues are covered by our life and disability insurance which provides protection and peace of mind.
Wellbeing – We want you to be your best self, so you’ll have access to the Headspace App and lots of wellbeing initiatives and programs run by local teams where you are based
ColleagueDiscount – We know you'll love to build so from day 1 you will qualify for our generous colleague discount.
Bonus – We do our best work to succeed together. When goals are reached and if eligible, you'll be rewarded through our bonus scheme
Your workplace – When you join the team you'll be assigned a primary workplace location i.e. one of our Offices, stores or factories. Our hybrid work policy means an average of 3 days per week in the office. The hiring team will discuss the policy and role eligibility with you during the recruitment process.
We strive to create a diverse, dynamic and inclusive culture of play at the LEGO Group, where everyone feels safe, valued and they belong.
The LEGO Group is highly committed to equal employment opportunity and equal pay and seeks to encourage applicants from all backgrounds (eg. sex, gender identity or expression, race/ethnicity, national origin, sexual orientation, disability, age, religion and Veteran status) to apply for roles in our team. If you dream of being a part of our team and you meet many, but not all of our listed qualifications for this role, please apply.
We support our employees in being there for the moments that matter in life and celebrate families of all kinds, the loved ones that make us who we are. Being part of the LEGO Group also means taking part in our annual Play Day, playing a part in building a sustainable future and continuing our mission to “inspire and develop the builders of tomorrow.”
The LEGO Group is fully committed to Children’s Rights and Child Wellbeing across the globe. Candidates offered positions with high engagement with children are required to take part in Child Safeguarding Background Screening, as a condition of the offer.
Thank you for sharing our global commitment to Children’s Rights.
We conduct drug screening as a part of our drug free workplace policy and in support of our commitment to the health and safety of our employees.
Online Application Accessibility Statement; which is intended for people with disabilities - LEGO systems endeavors to make www.LEGO.com/jobs accessible to any and all users. If you would like to contact us regarding the accessibility of our web site or need assistance completing the application process, please contact the HR Service Desk at 1.860-763-7777, option #3. Please note, these communication channels should be used for those having difficulty accessing our on-line channels, not to inquire about job opportunities.
EDRM – Electronic Discovery Reference Model The Future of AI Is Here—But Are You Ready? Learn the OECD’s Blueprint for Ethical AI by Ralph Losey The future of Artificial Intelligence isn’t just on the horizon—it’s already transforming industries and reshaping how businesses operate. But with this rapid evolution comes new challenges. Ethical concerns, privacy risks, and potential regulatory pitfalls are just a few of the issues that organizations must navigate. That’s where the Organisation for Economic Co-operation and Development (OECD) comes in. To help groups embrace AI responsibly, the OECD has developed a set of guiding principles designed to […]
EDRM - Electronic Discovery Reference ModelThe Future of AI Is Here—But Are You Ready? Learn the OECD’s Blueprint for Ethical AI by Ralph Losey
The future of Artificial Intelligence isn’t just on the horizon—it’s already transforming industries and reshaping how businesses operate. But with this rapid evolution comes new challenges. Ethical concerns, privacy risks, and potential regulatory pitfalls are just a few of the issues that organizations must navigate. That’s where the Organisation for Economic Co-operation and Development (OECD) comes in. To help groups embrace AI responsibly, the OECD has developed a set of guiding principles designed to ensure AI is implemented ethically and effectively. Are you prepared to harness the power of AI while safeguarding your company against the risks? Discover how the OECD’s blueprint can help guide you through this complex landscape.
A detailed blueprint of a humanoid robot is laid out on a cluttered worktable. The robot's design features mechanical joints, wires, and internal circuits, with glowing blue lights on its head and chest. Surrounding the blueprint are various drafting tools, including rulers, a pencil, and a rolled-up blueprint. The table is covered with a dark technical grid; additional mechanical diagrams can be seen in the background. The robot's design resembles an advanced cyborg with intricate mechanical features. The word "OECD" is printed at the top of the blueprint.
Introduction
The Organisation for Economic Co-operation and Development (OECD) plays a vital role in shaping policies across the world to foster prosperity, equality, and sustainable development. In recent years, the OECD has shifted its focus toward the responsible development of AI, recognizing its potential to transform industries and economies. For businesses or any other organizations considering the adoption of AI into their workflows the OECD’s AI Principles (as slightly amended 2/5/24) provide a good starting point to develop internal policies. They can help guide your board to make decisions that ensure AI technology is deployed ethically and responsibly. This can help protect them from liability, and their employees, customers, and the world from harm.
What is the OECD?
The Organisation for Economic Co-operation and Development (OECD) is an independent, international organization dedicated to shaping global economic policies that are based on individual freedoms and democratic values. The U.S. was one of the twenty founding members in 1960 when the Articles of the Convention were signed, establishing the OECD. It now has 38 member countries, mainly advanced economies. Though the OECD initially focused on economic growth, international trade, and education, it has become increasingly concerned with the ethical and responsible development of artificial intelligence.
In 2019, the OECD introduced its AI Principles–the first intergovernmental standard for AI use. These principles reflect a growing recognition that AI will play an important role in global economies, societies, and governance structures. The OECD’s mission is clear: AI technologies must not only drive innovation but also be applied in ways that respect human rights, democracy, and ethical principles. These AI guidelines are vital in a world where AI could be both a powerful tool for good and a source of significant risks if misused. The Five AI Principles and Recommendations were slightly amended on February 5, 2024.
The OECD is a highly respected group that collaborates with many international organizations, such as the United Nations (UN), World Bank, International Monetary Fund (IMF), and World Trade Organization (WTO). The OECD helps these groups align and coordinate efforts in global governance and policymaking. The OECD also engages in regional initiatives, providing tailored advice and support to specific regions such as Latin America, Southeast Asia, and Africa. Bottom line, the OECD has long played a crucial role in shaping global policy, promoting international cooperation, and providing data-driven, evidence-based recommendations to governments around the world.
World in AI Hands (Six Fingers)
Five Key OECD AI Principles
Before starting an AI program, businesses should consider the potential risks that AI poses to their operations, employees, and customers. By taking proactive steps to mitigate these risks, organizations can safeguard themselves from unforeseen consequences while reaping the benefits of AI. The OECD’s AI Principles(amended 2/5/24) represent one of many frameworks businesses should evaluate when integrating AI technologies into their operations. It is well respected around the world and should be a part of any organization’s due diligence.
These principles are built around five core guidelines:
Principle 1. Inclusive Growth, Sustainable Development, and Well-being
The first OECD AI principle stresses that AI should promote inclusive growth, sustainable development, and well-being for individuals and society. AI should benefit people and the planet.This core value reflects the potential of AI to contribute to human flourishing through better healthcare, education, and environmental sustainability.
It is an illustration of a tree with branches and roots designed as circuit board patterns, symbolizing a blend of nature and technology. The canopy has green leaves, and apples hang from the branches. Integrated into the tree's structure are digital elements, such as microchips and an "AI" label on one of the circuits. Beneath the tree, diverse groups of people are walking, including a person in a wheelchair and others carrying bags or walking in pairs. The tree's roots resemble connected circuits, reinforcing the fusion of organic life and technology.
Companies should be aware of the many challenges ahead. While AI-driven solutions, such as climate modeling or precision agriculture, can help tackle environmental crises, there is concern that rapid technological advancements may lead to widening inequality. For instance, the automation of jobs could disproportionately affect lower-income workers, potentially exacerbating inequality. Thus, this principle necessitates a strategy that ensures AI’s benefits are distributed equitably.
For businesses considering AI, three key actions should always be top-of-mind for board members:
Engage Relevant Stakeholders: Before implementing AI, include a diverse group of stakeholders in the decision-making. This should involve executives, legal and data privacy experts, subject matter experts, human resources, and marketing/customer support teams. Each group brings unique perspectives that can help ensure the AI program is equitable and aligned with the company’s values.
Evaluate Positive and Negative Outcomes: Consider both the potential benefits and risks to AI users and individuals whose data may be processed. AI should enhance productivity, but it must also respect the well-being of all involved parties.
Consider Environmental Impact: AI systems require substantial computational resources, which contribute to a large carbon footprint. Sustainable AI practices should be considered to reduce energy consumption and minimize environmental impact.
Consider the Environmental Impact of AI, Including Power Consumption Image by Ralph Losey using his Visual Muse GPT.
Principle 2. Respect for the rule of law, human rights and democratic values, including fairness and privacy.
The wording of the second principle was revised somewhat in 2024. The full explanation for revised Principle Two is set out in the amendment recommendation of February 5, 2024.
a) AI actors should respect the rule of law, human rights, democratic and human-centred values throughout the AI system lifecycle. These include non-discrimination and equality, freedom, dignity, autonomy of individuals, privacy and data protection, diversity, fairness, social justice, and internationally recognised labour rights. This also includes addressing misinformation and disinformation amplified by AI, while respecting freedom of expression and other rights and freedoms protected by applicable international law.
b) To this end, AI actors should implement mechanisms and safeguards, such as capacity for human agency and oversight, including to address risks arising from uses outside of intended purpose, intentional misuse, or unintentional misuse in a manner appropriate to the context and consistent with the state of the art.
Respecting human rights means ensuring that Generative AI systems do not reinforce biases or violate individuals’ rights. For example, there is growing concern over the use of AI in facial recognition technology, where misidentification disproportionately affects marginalized groups. AI must be designed to avoid such outcomes by integrating fairness into algorithms and maintaining democratic values like transparency and fairness.
This vibrant illustration features a large-scale balance of "Fairness" on the left and "Privacy" on the right. Above and around the scale are numerous symbols related to artificial intelligence (AI), including icons of AI, eyes, justice scales, gears, and locks. The words "AI," "Fairness," and "Justice" are prominently displayed. Below the scale, a diverse group of people stands united, representing various genders and ethnicities. The image emphasizes themes of ethical AI, balancing fairness with privacy concerns, and the impact of technology on society. The background is filled with colorful symbols and patterns representing data and technology.
Businesses integrating AI into their operations should address several legal issues, including intellectual property, data protection, and human rights laws. To do this there are four things a board of directors should consider:
Ensure Compliance with Laws: Verify that Generative AI (GAI) adheres to copyright laws and data protection regulations such as GDPR or CCPA. Implement safeguards to ensure the system does not infringe upon users’ privacy or autonomy.
Prevent Discrimination: Conduct thorough audits to ensure that GAI outputs are fair and free from discrimination. Discriminatory outcomes can damage reputations and result in legal challenges.
Monitor for Misinformation: GAI systems must be designed to resist distortion by misinformation or disinformation. Mechanisms should be in place to quickly halt GAI operations if harmful behaviors are detected.
Develop Policies and Oversight: Establish clear policies and procedures that govern the use of GAI within your business. This includes implementing human oversight to ensure AI actions align with ethical and legal standards.
Professional Human Supervision of AI Generation is Imperative Image by Ralph Losey using his Visual Muse GPT.
Principle 3. Transparency and Explainability
Transparency and explainability are fundamental to user trust in AI systems. This principle calls for AI systems to be transparent so that users can understand how decisions are made. With complex AI algorithms, it is often difficult to decipher how certain outcomes are generated—a problem referred to as the “black box” issue in AI.
While transparency enables users to scrutinize AI decisions, the challenge lies in making these highly technical systems comprehensible to non-experts. This requires a good education program by experts. Moreover, explainability must strike a balance between safeguarding intellectual property and providing adequate insight into AI operations, especially when used in public sector decision-making.
Businesses and other organizations must ensure that employees and other users of its computer systems understand when and how AI is used, along with some understanding of how AI decisions are made, and what mistakes to look out for. See e.g.Navigating the AI Frontier: Balancing Breakthroughs and Blind Spots (e-Discovery Team, October 2024). For businesses, ensuring transparency involves two critical steps:
Inform Users: Be transparent with employees, consumers, and stakeholders that GAI is being used. Where required by law, obtain explicit consent from users before collecting or processing their data.
Explain AI Processes: Provide clear, easy-to-understand explanations of how AI systems function. This includes offering insight into the sources of data used for training the AI and explaining the logic behind AI outputs, such as content recommendations or predictions. It is also important to explain the errors to look out for and other idiosyncrasies of the system to look out for. Everyone should be taught the “trust but verify” process and remember that they are ultimately responsible for their actions, not the AI. See e.g. Panel of AI Experts for Lawyers: Custom GPT Software Is Now Available (6/21/24);Can AI Really Save the Future? A Lawyer’s Take on Sam Altman’s Optimistic Vision (10/04/24).
An image of a glowing book titled "Transparency and Disclosure" on a wooden desk emits bright light and sparkles, symbolizing the importance of these concepts. The cover features a scales of justice icon, reinforcing the legal and ethical theme. To the left of the book is a gavel, representing the judiciary, while in the background, a person in a suit is seated, with a library of law books visible on the shelves. The radiant light from the book highlights the significance of openness and accountability within legal or regulatory contexts.
Principle 4. Robustness, Security, and Safety
This principle demands that AI systems be resilient, secure, and reliable. As AI systems are increasingly integrated into sectors like healthcare, transportation, and critical infrastructure, their reliability is essential. A malfunctioning AI in these areas could result in dire consequences, from life-threatening medical errors to catastrophic failures in critical systems.
Cybersecurity is a significant concern, as more advanced AI systems become attractive targets for hackers. The OECD recognizes the importance of safeguarding AI systems and other systems from security breaches. All organizations today must guard against malicious attacks to protect their data and public safety. Organizations using AI must adopt a comprehensive set of IT security policies. Two key actions points that the Board should start with are:
Plan for Contingencies: Implement a Cybersecurity Incident Response Plan that outlines steps to take if the AI or other technology system malfunctions or behaves in an undesirable manner. This plan should detail how to quickly halt operations, troubleshoot issues, and safely decommission the system if necessary. You should probably have legal specialists on call in case your systems are hacked.
Ensure Security and Safety: Businesses should continuously monitor their technology and AI systems to ensure they operate securely and safely under various conditions. Regular audits, including red team testing, can help detect vulnerabilities before they become significant problems.
Safety and Security of Data Should be Prime Directive Futuristic style image by Ralph Losey using his Visual Muse GPT.
Principle 5. Accountability
Accountability in AI development and use is paramount. This principle asserts that those involved in creating, deploying, and managing AI systems must be held accountable for their impacts. Human oversight is critical to safeguard against mistakes, biases, or unintended consequences. This is another application of “trust but verify” on a management level. This is particularly relevant in scenarios where AI systems are set up to help make decisions affecting people’s lives, such as loan approvals, hiring decisions, or judicial sentencing. These should never be autonomous, but recommendation with a human in charge. This is especially true for physical security systems.
A clear accountability framework is critical. The accountability principle ensures that even in highly automated systems, human oversight is necessary to safeguard against mistakes, biases, or unintended consequences. The Board of Directors should, as a starting point:
Designate Responsible Parties: Assign specific individuals or departments to oversee the AI system’s operations. These stakeholders must maintain comprehensive documentation, including data sets used for training, decisions made throughout the AI lifecycle, and records of how the system performs over time.
Conduct Risk Assessments: Periodically evaluate the risks associated with AI, particularly in relation to the system’s outputs and decision-making processes. Regular assessments help ensure the system continues to function as intended and complies with ethical standards.
Key Legal Issue Image by Ralph Losey using his Visual Muse GPT.
Strengths and Weaknesses of the OECD AI Principles
The OECD AI principles are ambitious and reflect a comprehensive effort to create a global framework for responsible AI. However, while these guidelines are strong, they are not without their weaknesses.
Strengths
Comprehensive Ethical Guidelines: The principles cover a broad spectrum of ethical concerns, making them a strong foundation for policy guidance.
Global Influence: As an international standard, the OECD AI Principles provide a respected baseline for countries worldwide, not just the U.S. This allows for a coordinated approach to AI governance.
Commitment to Human Rights: By centering AI development on human dignity and rights, the OECD ensures that ethical concerns remain at the forefront of AI advancements.
Weaknesses
Lack of Enforcement: One of the significant drawbacks is the absence of enforcement mechanisms. The principles serve as guidelines, but without penalties for non-compliance, their effectiveness could be limited. A Board should add appropriate procedures that track their existing policies.
Ambiguity in Accountability: While the principle of accountability is emphasized, the specifics of assigning responsibility in complex AI systems remain unclear.
Rely on Established Policies like OECD Image by Ralph Losey using his Visual Muse GPT.
Conclusion
Implementation of the OECD’s Five AI Principles is an essential step toward the responsible development of AI technologies. While the principles address key concerns such as human rights, transparency, and accountability, they also highlight the need for ongoing international collaboration and governance. In many countries outside of the U.S. there are, for instance. much stronger laws and regulations governing user privacy. Following the OECD Principles can help with regulatory compliance and show an organization’s good faith to attempt to follow complex regulatory systems.
Regulatory Compliance and Privacy Image by Ralph Losey using his Visual Muse GPT.
By relying on multiple AI frameworks, not just the OECD’s, businesses and their Boards can ensure a comprehensive approach to AI implementation. In the rapidly evolving field of AI, where state and foreign laws change rapidly, it is prudent for any CEO or Board of Directors to base its policies on stable, well-respected, principles. That can help establish good faith efforts to handle AI responsibly. Consultation with knowledgeable outside legal counsel is, of course, an important part of all corporate governance, including AI implementation.
Documenting Board decisions and tying them back to internationally accepted standards on AI is a good practice for any organization, local or global. It may not protect all of a company’s decisions from outside attack based on unfair 20/20 hindsight, but it should provide a solid foundation for good faith based defenses. This is especially true if these principles are adopted proactively and implemented with advice from respected third-party advisors. We are facing rapidly changing times, with both great opportunities and dangers. We all need to make our best efforts to act in a responsible manner and the OECD principles can help us to do that.
Important Disclosure: The content provided does not consider your particular circumstances and does not constitute personal advice. Some of the products promoted are from our affiliate partners from whom we receive compensation. Read More Shutterstock 22 October: Effective Rate Of Return Will Fall To 4.15% From December Draw
National Savings and Investments (NS&I), the government-backed savings bank, is pulling £25.6 million from its Premium Bonds prize fund, with effect from the December draw, writes Bethany Garner .
With the total prize pot shrinking from £461.3 million to £435.7 million, it means the new prize fund rate – the effective rate […]
Important Disclosure: The content provided does not consider your particular circumstances and does not constitute personal advice. Some of the products promoted are from our affiliate partners from whom we receive compensation. Read More
Shutterstock
22 October: Effective Rate Of Return Will Fall To 4.15% From December Draw
National Savings and Investments (NS&I), the government-backed savings bank, is pulling £25.6 million from its Premium Bonds prize fund, with effect from the December draw, writes Bethany Garner.
With the total prize pot shrinking from £461.3 million to £435.7 million, it means the new prize fund rate – the effective rate of return on Premium Bonds – will fall by 0.25 percentage points from 4.40% to 4.15%.
It puts the new rate 0.85 percentage points shy of the current market leader for easy access savings, with app-based Chip’s account paying a variable 5.00% AER on balances from £1.
The number of Premium Bond prizes on offer will also reduce by 264,868 from December, the majority of which will be in the smaller £25, £50 or £100 categories.
There will also be three fewer £100,000 prizes and 10 fewer £50,000 prizes. However, each draw will continue to offer two £1 million prizes.
The changes mean that from the December draw, the odds of each £1 Premium Bond winning a prize will fall from 21,000-to-1, to 22,000-to-1.
It marks the second time NS&I has reduced its prize fund rate in 2024, following six consecutive increases during 2023.
Other NS&I cuts
NS&I has also confirmed rate cuts to its British Savings Bonds (see 3 April story below), Income Bonds, and Direct Saver accounts.
From today, the latest issue of the two-year Guaranteed Growth Bond will pay 4.10% AER, down from 4.25%, while the two-year Guaranteed Income Bond will pay 4.02% AER, down from 4.17%.
From 20 November, NS&I’s Direct Saver account and Income Bond will see interest rates pegged down by 0.25 percentage points, to 3.75% AER.
Andrew Westhead, retail director at NS&I, commented: “As the savings market continues to change, we need to lower the rates on some of our products to help us meet our Net Financing target.”
He added: “Even with the changes, we’re still expecting to pay out over 5.7 million prizes worth over £435 million in the December Premium Bonds draw.”
16 October: New Raisin Report Highlights Barriers To Savings
More than a third of UK adults (34%) have either no savings or less than £1,000 to fall back on, according to savings platform Raisin, writes Bethany Garner.
Its Great British Savings Report, which surveyed 4,000 UK adults last month, also found that more than half (58%) felt ‘stressed’ about their financial future, rising to 71% for those aged between 35 and 44.
However, less than a quarter (23%) said they were actively saving for retirement – falling to 8% among those aged under-25.
Barriers to saving
Of those with savings, more than a quarter (26%) admitted habitually dipping into their pots, preventing them from building up a balance. This was a particular issue for younger savers with almost a third (31%) of 16- to 24-year-olds drawing on their cash six times a month on average – three times more than those aged 55 and over.
High living costs was the most commonly cited reason for withdrawing savings (37%) while a quarter of under-25s blamed compulsive spending.
Kevin Mountford, co-founder of Raisin UK, commented: “It’s a worrying sign of the times that so many Brits are without a financial safety net, particularly younger people who are finding it increasingly hard to save.
“The fact that nearly a quarter of the population has such limited savings leaves them dangerously exposed to unexpected expenses.”
Another key barrier to effective saving was missing out on potential interest. Almost one in five (19%) of the over-55s who responded to Raisin’s survey said they kept their savings in low interest accounts, while 14% said they didn’t regularly review their savings options.
At time of writing, the Bank of England estimates that UK adults collectively hold £253 billion in accounts that don’t pay any interest. This is despite the fact that a number of easy access savings accounts continue to pay interest rates in excess of 5%.
For example, at the time of writing, Chip – an app-based provider – pays 5.00% AER (variable) on its Easy Access Saver, which can be opened with just £1. Trading 212’s cash ISA pays 5.10% AER (variable).
With annual inflation at 1.7% in September, accounts like these allow savers to achieve real-terms returns on their cash.
Raisin’s survey also revealed that more than a quarter (26%) of respondents without a savings account expressed a distrust in banks, rising to 39% for those aged 25 to 34. For this reason, many savers stick to familiar brands when opening a savings account. Traditional high-street banks were the most popular choice when it came to savings accounts, accounting for 37% of respondent choice.
Digital-only solutions were most popular among 18- to 24 year-olds with 14% favouring these accounts.
Savings goals
Savers in general also tend to prioritise shorter-term goals, found the report. Putting cash aside for a holiday or Christmas were the most common goals among savers who responded to Raisin’s survey. Over a third (35%) said saving for a holiday was their main goal, while 34% said it was saving for the festive period.
Almost three quarters of respondents (74%) agreed that having a clear saving objective motivated them to save.
Raisin’s Kevin Mountford said: “What’s clear is that savers of all ages need to take action now to ensure their financial future is secure.”
Lloyds Bank is today launching a switch incentive worth £200 when customers move to one of its three premium accounts, writes Bethany Garner.
To qualify for the £200 bonus, customers must open a new Club Lloyds, Club Lloyds Silver or Club Lloyds Platinum account, and make a full switch from an existing current account held with another bank using the Current Account Switch Service (CASS).
They must also move across at least three active direct debits from the old account. Once these criteria are met, the welcome bonus should be paid within three days.
The switch offer is open to both new and existing Lloyds Bank customers, provided they haven’t received a welcome bonus from Lloyds Bank, Halifax or Bank of Scotland (which are all part of the same group) since April 2020.
The Club Lloyds account comes with a £3 monthly fee – but this is waived each month it is credited with at least £2,000.
Account holders earn one reward each year, choosing from benefits such as six cinema tickets or a 12-month Disney+ subscription.
It also pays 1.50% AER on in-credit balances up to £3,999.99 and 3.0% AER on any portion of the balance between £4,000 and £5,000. Any portion of the balance above £5,000 earns no interest.
The account comes with an overdraft, subject to eligibility, with a £50 interest-free buffer. Borrowing above this threshold is charged at 39.90% EAR (variable).
The same £200 switch offer is also available on two of the bank’s packaged accounts – Club Lloyds Silver, and Club Lloyds Platinum.
Both accounts come with the same Club Lloyds perk, and charge a £3 membership fee, which is waived when they’re credited with at least £2,000 per month.
The Club Lloyds Silver account costs an additional £11.50 per month, and provides European and UK family travel insurance, along with family breakdown cover via the AA.
The Club Lloyds Platinum account costs an extra £22.50 per month, and includes worldwide family travel insurance, family breakdown cover, and worldwide mobile phone insurance.
At time of writing, Lloyds’ £200 switch inventive is a market leader, beating First Direct’s £175 welcome bonus, and the Co-operative Bank’s £150 offer (see story below). Neither of these accounts charges a monthly fee.
27 September: Choice Expands For Full Switchers
The Co-operative Bank and Nationwide Building Society have both launched current account switch offers this week, with welcome bonuses worth up to £175, writes Bethany Garner.
The Co-operative is offering a cash bonus of £150 when customers open and maintain one of its current accounts for at least three months.
This incentive is split into an initial welcome bonus of £75, plus three monthly payments of £25 each.
To receive the initial bonus, customers must make a full switch to the bank’s Standard or Everyday Extra current account, using the Current Account Switch Service (CASS).
They must also credit the account with at least £1,000, move across at least two active direct debits and make a minimum of 10 debit card transactions within 30 days of opening.
To earn the three additional £25 payments, customers must pay in at least £1,000 a month, maintain at least two direct debits and make 10 or more debit card purchases each month.
Both new and existing Co-operative Bank customers are eligible, so long as they have not received a switch incentive from the provider since 1 November 2022.
Yesterday, Nationwide launcheda switch offer available to both new and existing customers who make a full switch of their current account using the CASS.
To qualify for the cash they must transfer across at least two active direct debits, make one debit card payment and make a minimum deposit of £1,000 within 31 days of opening.
The offer is available through the following accounts:
FlexAccount: A free to use account that allows customers to carry out their everyday banking.
FlexDirect: An online account paying 5.00% AER on balances up to £1,500, and 1% cashback on debit card spending (capped at £5 per month), for the first 12 months.
FlexPlus: Nationwide’s packaged account, which costs £13 per month and comes with worldwide family travel insurance, as well as UK and European breakdown cover. To be eligible for these benefits, customers must not have previously received a switch incentive from Nationwide.
In total – between the welcome bonus, cashback and in credit interest – a new Nationwide FlexDirect customer could earn up to £310 in their first year:
£175 welcome bonus
£75 in interest
£60 cashback
From November, Nationwide is also adding an interest-free £50 overdraft buffer across all three of its current accounts. Borrowing above this threshold will be charged at 39.9% EAR.
At £175, Nationwide’s switch offer matches the current market leader, first direct (see story below). The digital provider’s switch incentive is open to anyone who hasn’t held an account with first direct or HSBC since 1 January 2018.
9 September: Online Bank Offering £175 Welcome Bonus To New Customers
first direct, has re-launched its long standing switch incentive, offering new customers a welcome bonus of £175 for making a full switch to its 1st current account, writes Bethany Garner.
The offer is only available to customers who have not opened a current account with either first direct or HSBC, its parent company, since 1 January 2018.
To receive the bonus, costumers must make a full switch under the Current Account Switch Service (CASS). They must also credit the new account with at least £1,000, log into mobile banking and use their debit card five times – all within 30 days of opening.
The same switch incentive had been previously withdrawn by the bank on 31 July.
first direct joins TSB as one of just two banking providers currently offering a switch incentive to dump their existing current account provider.
TSB’s welcome bonus is lower at £100 to make a full switch to its Spend & Save current account. However, the bank is also offering an additional £15 monthly cashback for the first 12 months when customers make at least 20 debit card payments each month. This means that, in total, new customers can earn up to £190.
TSB’s offer is open to anyone who has not received a switching bonus from TSB since 1 October 2022.
6 August: Two & Five-Year Options For British Savings Range
National Savings and Investments (NS&I), the government-backed savings bank that oversees Premium Bonds, has launched two new fixed-rate bonds and increased rates on a handful of others, writes Bethany Garner.
The new two-year and five-year British Savings Bonds offer fixed rates of interest on deposits between £500 and £1 million. No withdrawals are permitted until the end of the account term, with the entire balance backed by the UK Treasury.
The two-year Bond pays 4.60% AER, while its five-year counterpart pays 4.10% AER.
Two versions of each bond are available – Guaranteed Growth, and Guaranteed Income.
With Guaranteed Growth Bonds, interest is calculated daily and added to the bond balance annually, where it compounds.
Guaranteed Income Bonds provide savers with monthly interest, paid out into a separate bank account. Both versions offer the same AER, but only the Guaranteed Growth Bond benefits from compounding.
NS&I has also increased rates on its three-year bond from 4.15% to 4.35% AER.
Finally, the latest issue of its one-year bond – which is only available to existing savers with an account nearing maturity – pays 5.15% AER.
Dax Harkins, chief executive at NS&I, said: “It is 15 years since we had two and five-year fixed–term bonds on general sale to new investments. These two new issues, along with a rate increase for our three-year bonds, provide NS&I savers with increased choice and longer-term security in a changing market.”
Despite their popularity with UK savers, who currently hold around 550,000 NS&I bonds, the interest rates paid on these accounts fall short of current market leaders.
At time of writing, HTB’s two-year fixed rate bond pays 4.95% AER on deposits from £1, while its five-year bond pays 4.55%.
Laura Suter, director of personal finance at AJ Bell, said: “The popular British Savings Bonds are back on sale – and despite offering less interest than the market leader, they are likely to sell out quickly once again.
“The one-year version of these bonds that went on sale in autumn last year sold rapidly, selling out in five weeks, and the bonds raised over £10 billion.”
New customers who switch to a TSB Spend & Save or Spend & Save Plus current account can receive £100 cash plus cashback worth £90 to £120 in the first year of opening an account along with the choice of one of three rewards.
To receive the £100 cash bonus, customers must make a minimum of five payments of any value using their debit card on their new Spend & Save or Spend & Save Plus account. This includes payments made via Google and Apple Pay.
Customers will also need to log into the TSB mobile banking app at least once by 27 September 2024.
If these conditions are met, TSB will pay £100 into the new account between 15 October 2024 and 25 October 2024.
Triple cashback
In addition to the £100 bonus, new customers also get the chance to earn triple cashback. This means Spend & Save account holders could earn a total of £90 over six months of their first year (with £15 being paid each month).
Spend & Save Plus customers can earn the same rate of cashback for the first six months and then £5 cashback a month for the remaining six – taking the total cashback earnings to £120 for 12 months.
To qualify for cashback, customers must complete the switch conditions to meet the £100 incentive and then make 20 payments of any value each month in the first six months of opening the new account. These payments can be made using a debit card, Google Pay or Apple Pay.
Customer Reward
Customers eligible for the £100 cash bonus will also be offered a reward if they make at least 20 payments using their new TSB debit card by March 2025.
The available rewards include:
a night away for two at a choice of leading hotels
two Odeon cinema tickets every month for three months
a Now TV entertainment six-month subscription.
At the time of writing, this is TSB’s only current account switching offer. This is a limited time deal and TSB will give notice of the withdrawal date ahead of time.
10 July: Barclays Offers App-Only Current Account Switch
Barclays has launched an app-only switching offer which pays new customers £175 when they make a full switch to one of the bank’s two current accounts, writes Bethany Garner.
The offer applies to Barclays’ standard Bank Account and its Premier Current Account, both of which must be opened via the Barclays app under the Current Account Switch Service (CASS) by 30 August 2024.
The switch must also include at least two outgoing direct debits and a minimum monthly credit of £800 to the new account. Unlike some switch incentives, the offer only applies when customers open the account in their sole name – joint accounts are not eligible.
Customers switching to the standard Barclays Current Account must additionally sign up for Blue Rewards – the bank’s reward scheme – before the cash bonus will be paid.
Blue Rewards costs £5 per month, and provides a range of benefits including an Apple TV+ subscription, up to 15% cashback with partner retailers, the ability to view Major League Soccer matches and an exclusive easy access savings account paying 5.00% AER (variable) on balances up to £5,000.
Barclays’ standard current account also comes with in-app money management tools, an arranged overdraft charged at 35.0% APR (variable) and the ability to purchase and spend euros or US dollars through an app-based travel wallet.
In addition to the Blue Rewards perks, the Premier Current Account, which costs £12 a month, offers an interest-free overdraft buffer of up to £500, access to preferential savings rates and an Avios Rewards programme.
To be eligible for Barclays Premier, individuals need a gross annual income of at least £75,000 (paid into the account), or a total balance of at least £100,000 in savings, or in a mix of savings and investments, held with Barclays or Barclays UK investments,.
Once the respective criteria are met, the £175 welcome bonus will be paid within 28 days. The deal is exclusive to new customers who did not hold a Barclays current account before 8 July 2024.
Barclays joins a string of rival high street banking providers in the latest wave of current account switching incentives.
Lloyds Bank and first direct are also paying new customers £175 to switch – but without the requirement to sign up for a monthly rewards programme. The first direct offer also includes a £25 Amazon voucher.
9 July: Strings Attached To Market-Leading Rate
Virgin Money is offering a 2% bonus rate on its one-year E-Bond, taking the AER to a market-leading 6.65%. But to qualify for the rate, savers must make a sizable investment through the Virgin’s Stocks and Shares ISA, writes Bethany Garner.
The E-Bond, which can be opened and managed online, usually pays 4.65% AER on deposits between £1 and £1 million, fixed for 12 months.
No withdrawals or closures are permitted until the end of the account’s term, and interest is paid annually.
To qualify for the 2% bonus rate, savers must jump through some hoops.
First, they’ll need to open a Virgin Money Stocks and Shares ISA and invest a minimum of £5,000 between 1 July and 30 September 2024.
Once the investment is made, they’ll earn the 2% bonus rate on their E-Bond – and continue to earn it for as long as they hold their investment within the ISA.
However, the bonus rate may not apply to the entire balance – it will only be paid on the portion of their cash deposit that matches their ISA investment.
For example, a saver who deposited £15,000 in their E-Bond and invested £5,000 in a Stocks and Shares ISA would earn 6.65% AER on the first £5,000 of their E-Bond balance, and the standard rate of 4.65% AER on the remaining £10,000.
Additionally, the bonus rate only applies on cash balances up to £20,000 since this is the maximum individuals can pay into ISAs each tax year.
The Virgin Money Stocks and Shares ISA offers three ready-made investment options with three risk levels: cautious, balanced and adventurous. Savers who want to open a fixed-rate bond without making a large investment can currently earn 5.25% AER (fixed) with Mizrahi Tefahot Bank, whose 12-Month Fixed Term Deposit account pays that return on deposits from £1,000. Savers earn the headline rate on their entire balance.
18 June: Sidekick, Vernon B Society Offer Attractive Returns
Wealth management app Sidekick has launched an easy access savings account paying up to 5.34% AER (variable), writes Bethany Garner.
This headline rate includes a 1% bonus, which lasts for 12 months and kicks in when customers invest at least £1,000 in the provider’s actively-managed Flagship portfolio. The bonus rate only applies to balances up to £20,000. Interest is calculated and paid daily.
The new account can be opened and managed through Sidekick’s app, and withdrawals are permitted at any time without notice or penalty.
Sidekick provides its savings account through GB Bank. This means customers’ cash savings are covered up to the value of £85,000 under the Financial Services Compensation Scheme (FSCS) should the provider go bust.
At 5.34% AER, the account is the market-leading easy access option at time of writing – paying 0.14 percentage points more than the previous leader, Ulster Bank. However, Ulster Bank’s 5.20% AER rate applies to the entirety of the account balance.
Sidekick is the second investing platform to launch a cash savings account this month, following in the footsteps of Trading212, which began offering a cash ISA last week (see story from 12 June).
Elsewhere, Stockport-based Vernon Building Society has launched a one-year regular saver paying a competitive 6.50% AER when savers deposit up to £250 per month. No withdrawals are permitted, but savers can close the account at any time.
The account is only available to Vernon members who have held an account with the building society since at least 1 May 2024, or to individuals residing in the following postcodes: BL, CH, CW, M, OL, SK, WA or WN (Greater Manchester and Cheshire). The minimum age for applicants is 16.
A saver who used the maximum allowance each month would earn £105.69 total interest at the end of 12 months.
While savers have the option to skip monthly payments, unused subscriptions cannot be rolled over into subsequent months. Interest on the regular saver is calculated daily and paid annually.
At 6.50%, the account falls 0.50 percentage points shy of the current market leaders. Both the Co-operative Bank and first direct pay 7.00% AER on their regular saver accounts.
14 June: Competition Heats Up In Current Account Market
The Co-operative Bank has launched a current account switch offer that pays new customers up to £150 – but the deal comes with strings attached, writes Bethany Garner.
The bank’s new switch incentive comprises a £75 welcome bonus plus five monthly instalments of £15.
To earn the initial bonus, customers must make a full switch to the Co-operative’s Standard or Everyday Extra Current Account, using the Current Account Switch Service (CASS).
They must also move across at least two direct debits, make 10 transactions with their new debit card and deposit at least £1,000, all within 30 days of opening.
To receive the remaining £75 in five monthly instalments of £15, switchers must open a Regular Saver account with Co-operative Bank and deposit at least £50 per month.
At the same time, they must continue to pay at least £1,000 per month into their new current account, maintain two direct debits and make 10 or more monthly debit card transactions.
This offer is only available to new customers who have not received a switch incentive from the Co-operative Bank since 1 November 2022.
The Standard Current Account is free to open and maintain, comes with an overdraft facility and can be managed online or through the provider’s app.
The Everyday Extra account comes with a £15 monthly fee, and includes worldwide travel insurance, breakdown cover and mobile phone insurance.
In launching the offer, Co-operative Bank joins first direct, Lloyds, Santander, TSB and Nationwide.
At time of writing, Nationwide offers the largest switching bonus at £200 – but only existing Nationwide customers can qualify.
12 June: Investment Platform Diversifies With Saving Option
Trading212, the app-based trading platform, has launched a cash Individual Savings Account (ISA) paying a market-leading 5.20% AER, writes Bethany Garner.
The variable rate account must be opened and managed through Trading212’s app, and there’s no minimum opening deposit. Transfers are also accepted from other ISA providers and, once opened, savers can access their cash at any time with unlimited withdrawals.
As a flexible ISA, cash can be withdrawn and replaced without the replacement counting towards savers’ annual ISA allowance.
Since Trading212 is not a bank, savers’ money is not covered by the Financial Services Compensation Scheme (FSCS). Instead, Trading212 holds customer money in a separate dedicated account, a process known as ‘safeguarding’.
At 5.20% AER, the account offers market-leading returns for easy access ISAs at time of writing. The former marker leader, provided by budgeting app Plum, pays 5.17% AER on balances from £100.
Currently, the four highest-paying easy access ISAs are offered by online and app-only providers, with their high street counterparts falling behind.
According to data from Moneyfactscompare, the UK’s highstreet banks paid an average of just 1.62% AER on their easy access cash ISAs as of 6 June – less than half the market average of 3.31%.
5 June: Chase Boosts Savings Rate To 5.1% Until 2025
Saffron building society is offering its members exclusive access to a regular saver account that pays 8% AER interest on balances from £1, writes Bethany Garner.
The Members’ Regular Saver is available to existing customers who have held a mortgage or savings account with the society for at least 12 months.
At 8% AER, the account offers market-leading returns for regular savers. However, since customers can only deposit up to £50 each month, and as interest paid on each monthly balance, the maximum they could earn on a total deposit of £600 is £26, paid at maturity.
By contrast, first direct’s regular saver pays a lower rate of 7% AER, but allows customers to deposit up to £300 each month. By making full use of this allowance, savers could earn £136.50 when the account matures after 12 months.
Saffron’s new account is part of its Members’ Month initiative, which involves a range of prize draws and giveaways throughout June.
Prizes range from theatre vouchers to mortgage payment contributions of up to £2,000.
Marcus Buck, head of marketing and product, said: “We wanted to focus on giving our members tangible rewards. That’s why we’ve brought Members’ Month back for the second year running.”
Chase, the online-only provider, has introduced fresh competition to the easy access market, by adding a 1% bonus rate to its Chase Saver account.
The bonus, which will remain in place until 16 January 2025, takes the account’s rate to 5.1% AER (variable) – just 0.1% shy of the current market leader.
At time of writing, Ulster Bank’s Loyalty Saver pays 5.2% AER (variable) on balances from £5,000. To be eligible, savers must hold a current account with Ulster Bank. The Chase bonus rate is available to new and existing customers, provided they hold no more than £50,000 in savings with Chase, and open a current account with the provider.
30 May: Top NS&I Rate Almost Double Latest Inflation Figure
National Savings and Investments (NS&I), the government-backed savings bank that oversees Premium Bonds, has raised interest rates on two of its savings accounts, and launched a new bond, writes Bethany Garner.
Its Income Bond and Direct Saver accounts now pay 4% AER (variable), up from 3.64%. Both are easy access accounts, which can be opened online from £1.
NS&I has also launched a one-year fixed-rate British Savings Bond, paying 4.50% AER on deposits from £500. It joins its three-year counterpart, announced in the spring Budget, which pays 4.15% AER.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Savings rates have crept up a little at NS&I. They’ve kept it quiet, given the general election, but they’re not much to shout about anyway. You can do so much better elsewhere.”
The rate of inflation in April stood at 2.3%, meaning savers are able to achieve a healthy ‘real’ return on their deposits. In addition to the latest NS&I offers, some accounts are yielding over 5% AER on easy-access savings.
The market-leading easy access account is offered by Ulster Bank, which pays 5.20% AER on balances from £5,000 through its Loyalty Saver. This account is only available to existing Ulster Bank customers.
National Bank of Egypt’s UK arm provides the highest-paying one-year bond, offering savers an interest rate of 5.22% AER on deposits from £10,000. The account is available exclusively through the online savings platform, Raisin.
23 May: Society’s Takeover Of Virgin Money Gets Green Light
Nationwide building society will pay a cash bonus of £100 to all eligible current account customers from next month as part of its annual Fairer Share Payment scheme, writes Jo Thornhill.
As a mutual entity, Nationwide is owned by its customers, who are known as members. It launched the payment scheme last year as a way of distributing part of its profits to its membership.
This year the total pot to be paid out is £385 million.
To qualify, members must have held a Nationwide current account on 31 March 2024 (and the account must still be open in June), plus they must have at least £100 in a qualifying savings account or owe at least £100 on a Nationwide mortgage,also as of 31 March.
In March, Nationwide announced plans to buy Virgin Money for £2.9bn. This week, Virgin Money shareholders voted this week to accept the takeover, with 89% voting in favour. The deal is expected to be completed by the end of the year.
Nationwide members did not get a vote on the takeover as the society is not required to seek their permission. A petition to persuade it to consult the membership has so far attracted 5,000 signatures.
There are 9.2 million Nationwide current account customers, but only those who are eligible, of which there are an estimated 3.85 million, will receive the £100 flat rate payment. Last year a total pot of £344 million was split among 3.4 million customers, who also each received a £100 bonus.
The mutual has said it will write to eligible customers by 31 May, with payments paid directly into Nationwide current accounts between 13 and 28 June.
In addition to the Fairer Share Payment, Nationwide has launched a member exclusive savings bond with a rate of 5.5%, fixed for 12 months. It is open to all of the society’s 16 million members, and the maximum deposit limit is £10,000.
Nationwide is also offering a £200 cash incentive for members who don’t hold a current account with the society to switch to it. To qualify for the switching bonus you need to have been a member of Nationwide on 31 March 2024, with a qualifying savings or mortgage account.
20 May: Increase Reflects Rising Costs Of Home Improvements
Nationwide, the UK’s largest building society, has doubled the size of its personal loans from £25,000 to £50,000 to help customers plug the gap between borrowing availability and rising construction and labour costs, writes Laura Howard.
The loans, which represent the largest unsecured borrowing on the market, are available only to Nationwide’s current account customers.
Over a third (35%) of those taking out personal loans of between £20,000 and £25,000 with the society plan to use the money for home improvements.
But costs for a typical house extension range from £45,000 to £75,000, according to trade website, MyBuilder and are predicted to rise by a further 15% over the next five years, according to the Building Cost Information Service (BCIS).
Half of those carrying out building projects (57%) have had to already ‘shave or shelve’ their plans due to lack of finances, according to Nationwide.
Darren Bailey, head of personal loans at Nationwide, said: “With the impact of inflation and other external pressures, the costs of construction have seen significant increases in recent years.
“However, we recognise many people will want to continue with the home improvement plans, even if that means they have downscaled their plans to accommodate their budget. Our increased maximum personal loan size of £50,000 means we have an option to suit everyone.”
Customers can apply online, in branch or on the phone and receive the money the same day. Nationwide doesn’t apply an early settlement charge for paying the loan back early.
14 May: Bank Joins First Direct In Tempting New Customers
Santander has launched a switch incentive that pays customers £175 when they open an Edge or Edge Up current account, writes Bethany Garner.
The offer is available to both new and existing customers, provided they have not received a switch incentive from Santander in the past.
To receive the incentive, individuals must make a full switch to Santander via the Current Account Switch Service (CASS), move across at least two standing orders or direct debits, and credit their new account with at least £1,500, all within 60 days of opening.
The Edge current account comes with a £3 monthly fee, and pays 1% cashback on household bills up to the value of £20 per month.
The Edge Up account offers 1% cashback on household bills up to £30 per month, and 3.50% AER (variable) on balances up to £25,000. It charges a £5 monthly fee.
This marks the second time Santander has launched a switch incentive this year, having previously offered new customers £185 to switch in March. At £175, the new offer matches first direct’s long-running welcome bonus, which returned to the market on 7 May (see story below).
7 May: 1st Account Offers £175 Welcome Bonus
Online-only bank first direct, has relaunched its switch incentive, paying new customers £175 when they make a full switch to its 1st Account, writes Bethany Garner.
To receive the bonus, customers must make the switch using the Current Account Switch Service (CASS), move across at least two direct debits, deposit £1,000 into the account and make five debit card purchases within 30 days of opening.
This offer is only available to new customers, which is determined by not having held an account with first direct or HSBC (the brand’s parent company) since 1 January 2018.
The 1st Account, which is first direct’s only current account, also comes with a £250 interest-free overdraft buffer (subject to status), a linked regular saver paying fixed annual interest of 7% (gross) for 12 months (on deposits of between £25 and £300), and no debit card fees when spending abroad.
First direct’s switching offer is the only one currently on the market that pays a cash bonus. However, Virgin Money is offering new customers a bonus interest rate of up to 12% when they make a full switch to one of three current accounts (see story below).
Virgin Money has launched a current account switching offer paying a headline interest rate of 12% (gross) – but it comes with some catches, writes Bethany Garner.
The attractive 12% return comprises a 10% ‘bonus’ rate which is paid on top of the provider’s standard 2%. The bonus rate only applies for 12 months between 1 July 2024 and 30 June 2025 – and only to the first £1,000 balance.
It means that the maximum interest an account holder could earn over this time is £120, providing the £1,000 balance was maintained.
For comparison, savers can currently access top rates of 5.18% (gross) fixed over 12 months with Smart Save. But the rate applies to much bigger balances of up to £85,000.
Customers accessing the Virgin deal must also make a full switch under the Current Account Switch Service and move across at least two direct debits. They must not have held an account with Virgin Money since 30 April 2024.
The switcher offer applies across Virgin Money’s M Account, M Plus Account and Club M Account and will be available until 31 May 2024.
At time of writing, Virgin’s is the only current account switching offer available, first direct having withdrawn its long-standing £175 welcome bonus in April.
24 April: Bank Launches Account After Coventry Takeover News
Co-operative Bank has launched a regular saver account offering 7% AER, fixed for 12 months, writes Bethany Garner.
Account holders can deposit up to £250 each month. There’s no requirement to make a deposit every month, but unused subscriptions cannot be rolled over.
Savers can withdraw their cash at any time.
Like many regular savers, the account is only available to the bank’s existing customers. Interest is calculated daily from the outset and paid at maturity, with the total deposit plus interest transferred to a Smart Saver instant access account.
If an account holder used their full £250 allowance each month – £3,000 in total over 12 months – and made no withdrawals, they would earn £114 in interest when the account matured.
Seven per cent of £3,000 is £210, but the amount earned is less because interest is calculated on the amount deposited throughout the 12 months, not the sum total.
The launch of the account follows the news that Coventry building society plans to buy Co-operative Bank, having outlined the terms of a £780 million takeover last week.
The move would be unlikely to impact Co-operative Bank customers in the short term, although their accounts would likely be transferred to Coventry at some point. If the merger is completed, the new group would have £89 billion of assets under management.
At 7% AER, the Co-operative’s regular saver rate matches the market leader, first direct, although its Regular Saver allows customers to deposit between £25 and £300 each month, with any unused subscriptions rolling over into subsequent months.
Unlike the Co-operative’s offering, however, first direct customers must make a deposit every month throughout the account’s 12-month term, and cannot access the cash until it matures.
As inflation eases, savers are increasingly taking advantage of competitive rates such as these. According to analysis by Aldermore Bank, UK adults deposited a collective £83 billion into savings accounts over the course of 2023, with the average saver setting aside £2,274 – an increase of 26% compared with 2022.
However, a survey by credit management company Lowell found that 33% of respondents report having less than £500 saved, and 13% said they had no savings at all.
3 April: Top Rate Of 4.15% Sits ‘Mid Table’ In Savings Charts
The ‘British Savings Bond’ announced by Chancellor Jeremy Hunt during his Spring Budget is available from today, writes Bethany Garner.
The three-year bond, provided by government-backed National Savings & Investments (NS&I), pays a fixed interest rate of up to 4.15% AER on deposits from £500 to £1 million.
The Bonds must be opened and managed exclusively online. No withdrawals or further deposits are permitted until the end of the three-year term.
Savers can choose between two versions of the Bond:
Guaranteed Growth Bond – offers 4.15% AER, with interest paid at the end of the term
Guaranteed Income Bond – offers 4.07% AER, with interest paid into a nominated account month.
With a rate of 4.15%, the Guaranteed Growth Bond falls 0.52 percentage points short of the top equivalent deal currently available – Zenith Bank’s three-year Fixed Term Deposit account which pays 4.67% AER.
According to Sarah Coles, head of personal finance at Hargreaves Lansdown, NS&I British Savings Bonds may be, ‘doomed to mid-table mediocrity’. She added that, “easy access and short-term fixed accounts offer higher rates right now, because longer fixes factor in expectations that interest rates will fall during the term.”
However, while higher rates are available elsewhere, British Savings Bonds could prove attractive to savers looking to safeguard larger balances; up to £1 million is guaranteed by the Treasury, compared to the £85,000 protection offered by regular banks and building societies under the Financial Services Compensation Scheme (FSCS).
Dax Harkins, chief executive at NS&I, said: “British Savings Bonds are there to help people save for the longer term and support their savings goals, safe in the knowledge that their investments are 100% protected.”
NS&I says it plans to offer the bonds for an ‘extended period’ as part of its efforts to increase savers’ deposits to £9 billion over the course of the new tax year which starts on 6 April (Saturday).
27 March: First Direct Enters Switching Market With £175 Incentive
Online-only bank, first direct, has re-launched its current account switch offer, which pays new customers £175 when they make a full switch to its 1st current account, writes Bethany Garner.
To qualify, customers must make their switch through the Current Account Switch Service, move across or set up at least two direct debits, and credit the new account with at least £1,000 within 30 days of opening.
The offer is only available to new customers, defined as individuals who haven’t held a first direct or HSBC current account since 1 January 2018. HSBC owns first direct.
The deal will be available until 22 April 2024, but could be withdrawn early if demand is high.
The same £175 welcome bonus previously ran between August 2022 and 26 January 2024.
The first direct offer is the latest in a flurry of providers to tempt new customers with a welcome bonus. At time of writing, individuals can earn up to £220 to switch current accounts, with five other providers currently running offers (see story from 18 March).
20 March: New App-Only ISA Pays Leading 5.15%
Plum, the budgeting app, has launched a tax-free cash ISA offering market-leading returns of 5.15% AER (variable), writes Bethany Garner.
With an interest rate cut looking more likely by the summer – following today’s news that annual inflation fell sharply to 3.4% in February – savings deals paying 5%-plus may now have a limited shelf life.
Currently 80% of UK savings accounts pay interest at above-inflation rates, according to data from Moneyfacts Compare.
However, the Plum ISA’s headline rate includes a bonus of 0.86% AER, which falls away after the first 12 months. It must also be opened and managed exclusively through the Plum app. The minimum opening deposit is £1.
While savers can transfer in a cash ISA balance held with another provider, accounts opened via transfer will not be eligible for the bonus rate, earning 4.29% AER (variable) instead.
As an easy access ISA, savers can make withdrawals at any time without notice or penalty. But the ISA is not ‘flexible’, which means any money that is withdrawn loses its tax-free status and counts towards the saver’s £20,000 annual ISA allowance if it’s re-deposited.
The account is offered under the Plum brand but is provided by Citibank which is fully regulated by the Financial Conduct Authority. This means that the first £85,000 held in the account is protected under the Financial Services Compensation Scheme (FSCS).
According to Bank of England figures, an average of £4 billion was paid into ISAs every month between March 2023 and March 2024 as savers sought to shield higher interest earnings from tax.
18 March: Banks Tempting Customers With Cash Offers
Santander has launched a switch incentive worth up to £185 when customers switch to one of four current accounts, writes Bethany Garner.
The offer comes just days after HSBC introduced its own switch incentive worth up to £220 (see story below).
To claim Santander’s £185 welcome bonus, individuals must make a full switch to one of its Everyday, Edge, Edge Up or Private current accounts using the Current Account Switch Service (CASS).
Within 60 days of opening, the new account must be credited with at least £1,500, and customers must set up or move across at least two direct debits. Once these criteria are met, the £185 bonus should be paid within 30 days.
The offer is available to new and existing Santander customers provided they have not received a switching bonus from the bank in the past.
Santander’s Everyday Current Account is free to open and maintain. It offers standard current account features such as online and mobile banking, along with an overdraft facility (eligibility permitting).
The Edge Current Account charges a £3 monthly fee but offers up 1% cashback on bills, supermarket and travel spending, capped at £20 per month. There’s also a linked savings account that pays 7.00% AER (variable) on balances up to £4,000 for 12 months.
The Edge Up Current Account also pays 1% cashback on bills and daily essentials – capped at £30 per month – in exchange for a £5 monthly fee. In-credit balances up to £25,000 earn 3.50% AER (variable), and customers can use their Edge Up debit card abroad for free.
The bank’s Private Current Account also pays 3.50% AER (variable) on balances up to £25,000, allows customers to hold cash in multiple currencies and offers fee-free spending outside the UK.
To open the account, individuals must have savings or investments worth at least £500,000, or an annual income above £250,000. It comes with a monthly fee of £5. At time of writing, Santander is one of five providers to offer customers a cash bonus when they switch. Here’s our run-down of what’s on offer.
14 March: Latest Offer Worth Up To £220
HSBC has launched a current account switch incentive of up to £220 when customers transfer to its Premier or Advance account, writes Bethany Garner.
HSBC is the fourth provider to launch a current account switch incentive in 2024 so far – one has since been withdrawn – and its £220 welcome bonus is the largest currently on the market (see story from 15 February below).
To get the headline £220, however, individuals must jump through a few hoops. The first £100 is paid when customers take the following actions within 60 days of opening the account:
make a full switch to the HSBC Premier or Advance account through the Current Account Switch Service (CASS)
make at least 20 HSBC debit card payments
register for mobile banking and log into the HSBC mobile banking app
open an Online Bonus Saver account and deposit at least £50.
The remaining £120 is paid in monthly instalments of £10, over the course of 12 months. Customers receive their £10 payment each month they:
credit the account with at least £1,500
make at least 20 debit card payments
log into the HSBC mobile app
deposit at least £50 into their Online Bonus Saver account.
To be eligible for the offer, individuals cannot have held an HSBC or first direct current account since 1 January 2019.
HSBC’s Advance account is free to open and maintain. It comes with a £25 interest-free overdraft buffer (eligibility permitting, charged at 39.90% thereafter), and a linked Regular Saver paying 5.00% AER.
The Premier account is also free to maintain, but only individuals with an annual income of at least £75,000 or £50,000 worth of savings and assets held with HSBC are eligible. It comes with benefits such as worldwide travel insurance and preferential savings and mortgage rates.
HSBC’s Online Bonus Saver pays 4.00% AER (variable) during months that no withdrawals are made. If savers make a withdrawal, the rate drops to 2.30% (AER). Any portion of the balance above £50,000 also earns this reduced rate, regardless of whether any withdrawals are made.
7 March: Building Society Commits To Branch Network
Nationwide building society is planning to buy Virgin Money for £2.9 billion, creating one of the UK’s biggest mortgage and savings providers with combined assets of over £366 billion.
The as-yet unfinalised deal, which is subject to regulatory and Virgin shareholder approval, means Nationwide would control 696 branches in the UK, which is the largest single-brand network and second only in size to that of Lloyds Banking Group.
Both companies are stressing that the deal, if completed, would benefit their customers in terms of product choice and enhanced customer service. No customer action is required at this stage, with existing products, including mortgages, continuing as normal.
The building society says it will stick with its pledge not to close any of its own branches, and it will maintain a presence wherever either brand is currently represented. However, already-announced Virgin branch closures may go ahead as planned.
The Virgin brand will survive the take-over, but will be retired after six years, when Nationwide will stop paying an annual royalty to Richard Branson’s Virgin Enterprises for the use of the name.
The UK’s biggest member-owned financial services business says it will not make any material changes to the size of the Virgin Money employee base in the near term.
Debbie Crosbie, Nationwide’s chief executive, said: “Nationwide will remain a building society, and a combined group would bring the benefits of fairer banking and mutual ownership to more people in the UK, including our continuing commitment to retain existing branches, as part of our ‘Branch Promise’ and leading levels of customer service.”
Nationwide has offered to pay 220p per share for Virgin Media along with a 2p per share dividend. The offer price was 38% more than Virgin Money’s closing share price on Wednesday. However, early trading on Thursday has seen the share price rise to 217p, which might prompt shareholders to push for a greater premium from Nationwide or from a rival bidder.
However, analysts analysts Peel Hunt said: “We think 220p is an attractive level. We doubt that Virgin Money UK’s share price would reach that level in any reasonable time horizon without a bid. In our view, VMUK shareholders should accept any cash bid at 220p.”
Virgin Money bought Northern Rock building society from the government in 2011 in the wake of the 2007-08 financial crisis. Virgin was previously sold to CYBG, the owner of Clydesdale and Yorkshire banks, in 2018.
David Hollingworth of broker L&C Mortgages commented: “Nationwide underlines its position as a superpower of the mutual sector in acquiring a substantial bank player in the mortgage market. The combination will create another Goliath furthering Nationwide’s ability to directly take on the big banking groups.
“This move would initially look to carry the drawback of reduced competition in the mortgage market. Virgin Money has been very competitive in the mortgage market and shown itself more than capable of going toe to toe with the major high street banks. At times it has shown an ability to bring a different way of thinking to the market and sought to innovate in its product options.
“It also has a solid heritage in being able to take a more flexible approach for the right customers to help borrowers that may be a little outside the standard high street offerings.
“That expertise will hopefully appeal to Nationwide rather than risk the gradual demise of the more individual approach that can be available through Virgin’s Clydesdale mortgage brand in particular.
“Borrowers have nothing to worry about and their mortgage will continue as normal. In fact, both brands are set to continue for some time to come, so the market should continue to benefit from differentiated ranges in the near term.”
27 February: ‘Take 5 Minutes To Find A Better Deal’
The Financial Conduct Authority, which regulates financial services in the UK, is urging consumers to move their savings to get a better interest rate, writes Bethany Garner.
It says over half of UK savers (52%) have either switched savings accounts, or considered doing so, to get a better return, while 69% of UK adults would consider switching savings accounts in the future.
Bank of England figures from last year suggest up to £250 billion may be languishing in non interest-bearing accounts. Banks have been criticised for failing to pass on the full effects of successive bank rate hikes to savers (see story from 31 July).
According to FCA figures, the amount held in non-interest bearing accounts reduced by £13 billion between July and December 2023. In the same period, deposits held in fixed-term and notice accounts, which typically offer higher returns, rose by £24 billion.
To encourage more consumers to switch, the regulator has launched a social media and radio campaign that will prompt savers to shop around for better rates.
The campaign also features an online savings calculator to help consumers work out how much interest they could earn.
Sheldon Mills, an executive director at the FCA, said: “We know people can be put off switching for a variety of reasons, but they could be making their money work harder. There are some great rates out there and it could take as little as five minutes to find a better deal.”
Adam Thrower, head of savings at Shawbrook Bank, said: “In the past year, savings rates hit their highest point in over a decade. It’s disheartening that many people haven’t seized this opportunity and may be losing out on hundreds of pounds in missed interest.
“People often stick to the names they know, missing out on the chance to boost their earnings with smaller banks that are equally secure when FSCS accredited and offering much better rates.”
15 February: Banks Inject Life Into Dormant Market
NatWest, Royal Bank of Scotland (RBS) and Lloyds have each launched current account switch incentives where customers are paid up to £200 to move to a new provider, writes Bethany Garner.
From today, NatWest and RBS – both part of the NatWest Banking Group – are paying individuals £200 to make a full switch to one of the following accounts:
Select
Select Silver
Select Platinum
Premier Select
Reward
Reward Silver
Reward Platinum
Premier Reward
Black account
Foundation account
The Select and Foundation accounts are free to open and maintain, while the others (including Select Silver and Select Platinum) charge a monthly fee in exchange for perks such as rewards, insurance and cashback.
To receive the bonus, customers must apply online or via app, use the Current Account Switch Service (CASS), and credit the account with at least £1,250 within 60 days of opening.
This offer is available to new and existing customers, provided they have not received a switching bonus from NatWest, RBS or Ulster Bank (part of the same group) since 1 January 2020.
Lloyds is offering a welcome bonus of £175 when customers switch to its fee-charging Club Lloyds current account. The incentive is available until 28 March.
To be eligible, customers must make a full switch using the Current Account Switch Service (CASS) and transfer at least two direct debits to the new account. The offer is available to new and existing customers as long as they have not received a switching bonus from Lloyds or Halifax (part of the Lloyds group) since April 2020.
The Club Lloyds account charges a £3 monthly fee, although this is waived when the account is credited with at least £2,000 per month.
Account holders can earn one reward each year, choosing from benefits such as six cinema tickets or a 12-month Disney+ subscription. It also pays interest on in-credit balances up to £5,000.
These new offers bring fresh competition to the current account switching market. Between 2 and 13 February, there were no cash switch incentives available (see story below).
2 February: TSB, Co-op & First Direct Last To Withdraw Offers
Following TSB’s decision to pull its £125 current account switching offer on Wednesday, there are no cash bank switching incentives available in the UK, writes Bethany Garner.
Co-operative Bank withdrew its £100 switching bonus on 19 January, just four days after launch.
Online-only bank, first direct, indefinitely paused its £175 switching offer – which had been available since August 2022 – on 26 January.
The lack of offers stands in stark contrast to the flurry of switch incentives run by providers such as HSBC, Nationwide and NatWest in 2023.
Throughout last year, around 1.5 million current account switches took place, according to data from the Current Account Switch Service (CASS). This marks a 50% increase from the 1 million switches carried out in 2022.
A CASS spokesperson said: “While CASS doesn’t explicitly track why consumers or businesses switch accounts, there is a subset of switchers who are attracted by cash incentives.
“Banks and building societies regularly launch switching offers to attract new customers, and we expect offers to re-enter the market.”
Despite a lack of cash welcome bonuses, some providers continue to offer switch incentives in other forms. Chase pays, for instance, new customers 1% cashback on debit card purchases (capped at £15 per month) for their first year.
Customers may also switch for a variety of other reasons. The CASS spokesperson said: “We found that online or mobile app banking was the top reason people prefer their new account to their old one, which has consistently been the case for a number of quarters.
“Interest earned was the second most popular reason for people preferring their new account, with non-financial benefits such as customer service and location of branches also ranking highly.”
30 January: Personal Savings Allowance Under Threat
Around 1.4 million UK taxpayers will see their Personal Savings Allowance (PSA) halved for the 2023-24 tax year, which could mean a surprise tax bill for many savers, writes Bethany Garner.
The PSA is the amount of interest paid on savings that can be earned tax-free. Any interest earned above your PSA is taxed the same way as other income: 20% for basic rate taxpayers and 40% for higher rate taxpayers.
Additional rate taxpayers, who pay income tax at 45%, are not entitled to a PSA.
With tax bands frozen until 2028, 3.8 million people will move to a higher income tax band in the 2023-24 tax year as their pay increases, According to the Office for Budget Responsibility (OBR). This is known as ‘fiscal drag’.
Analysis by Coventry Building Society suggests this will push 1.4 million earners from the basic rate tax band to the higher rate tax band, as their earnings exceed the £50,270 higher rate threshold, meaning their PSA will fall from £1,000 to £500.
A further 2.1 million will breach the £12,570 threshold, and move into the basic rate band, while 300,000 will be pushed into the highest additional rate band, reserved for those with annual income above £125,140.
Jeremy Cox, head of strategy at Coventry, said: “Higher rate taxpayers need just £10,000 earning a ‘best buy’ rate of 5% before the interest they receive uses up their £500 Personal Savings Allowance. After that they would be hit with 40% tax on any additional interest they are paid.”
If you’re employed or paid a pension, HMRC will automatically adjust your tax code and tax-free allowance to ensure you pay any tax owed on savings interest.
However, if you complete a self assessment tax return (for example, you’re self-employed or have additional sources of income) you should declare interest received therre. For the 2023-24 tax year, this return will be due on 31 January 2025.
Any individual who earns more than £10,000 from their savings in a given tax year will also need to complete a Self-Assessment return.
However, money held in an Individual Savings Account (ISA) is exempt from this tax. Every individual can pay £20,000 into ISAs every tax year.
Cox added: “Tax bills will steadily rise for anyone with non-ISA savings that has exceeded their Personal Savings Allowance. There are only a few months left to make full use of this year’s tax-free ISA allowance of £20,000.”
The Co-operative Bank and TSB have launched welcome offers that pay new customers more than £100 when they switch providers, writes Bethany Garner.
TSB is paying individuals £125 when they make a full switch to its Spend & Save current account via the Current Account Switch Service (CASS), plus a further £10 monthly cashback for their first six months.
Between the welcome bonus and cashback, switchers can earn up to £185 in total – £10 more than the former market leader, first direct, which pays new customers £175 to switch.
To receive the TSB bonus, new customers must set up at least two direct debits, make a payment with their new TSB debit card and log into the TSB Mobile Banking App by 15 March 2024.
Customers who have received a switching offer from TSB since October 2022 are not eligible.
Co-operative Bank’s switch incentive pays a £100 welcome bonus when customers make a full switch to one of its current accounts using CASS. There’s a further £50 available if they open a new savings account with the provider, too.
This offer is available to both new and existing customers, provided they complete a full switch from another current account provider, deposit at least £1,000 and set up two direct debits or standing orders.
To snag the extra £50, switchers must deposit at least £25 in their newly opened savings account.
Individuals who have received a switching offer from Co-operative Bank since 1 November 2022 are not eligible.
17 January: YBS Launches New Christmas Regular Saver
Yorkshire Building Society (YBS) has launched its latest Christmas Regular Saver which is open to both new and existing customers, writes Bethany Garner.
The account pays 6.00% AER (variable) on deposits of up to £150 a month and matures on 31 October 2024. By paying in the monthly maximum (starting from January and making no withdrawals) savers could accrue a balance of £1,552.03 with interest accounting for £52.03 of the balance.
Although withdrawals are permitted, savers can only access their cash penalty-free for a single day of their choosing between account opening and maturity.
The account is designed to support customers in saving for Christmas this year. According to YBS research, the average UK adult expected to spend £768 on Christmas 2023 – an increase of almost 50% compared with 2020. Almost one in three (30%) surveyed said they would use credit to cover the cost.
Savers stashed a total of £70 million in Yorkshire’s Christmas Regular Saver 2023, which paid a lower rate of 4.50% (variable).
Chris Irwin, director of savings at YBS, said: “We’re really proud to offer this popular account again this year, which encourages saving little and often, and also offers a competitive return.”
Nationwide’s Flex Regular Saver beats the account paying 8.00% (variable) and on larger monthly deposits of £200 – but customers must have a current account with the provider to be eligible.
Despite some accounts still paying inflation-beating returns, an estimated £400 billion is currently being held in accounts earning 1% or less, according to data from the business consultancy, CACI.
11 January: Prize Fund Rate Drops From 4.65% To 4.40%
National Savings and Investments (NS&I), the government-backed savings bank, is pulling £31 million from the Premium Bonds prize fund, with effect from its March draw, writes Bethany Garner.
The monthly prize fund will drop from £475.5 million to £444.4 million. This means the new prize fund rate – the effective rate of return on Premium Bonds – will reduce by 0.25 percentage points from 4.65% to 4.40%.
The number of prizes on offer will reduce by 72,022 – the majority of which will be worth £100, £50 or £25.
The number of larger prizes will also fall however with six fewer £100,000 prizes, and eight fewer £50,000 prizes. The current two £1 million prizes in each draw will stay in place.
The odds of each £1 Premium Bond winning a prize will remain at 21,000-to-one from March – still an improvement on the 24,000-to-one odds offered in the March 2023 draw.
The move follows six consecutive increases over the course of 2023 as interest rates rose, with the prize fund rate hitting a 24-year high of 4.65% in September.
Andrew Westhead, retail director at NS&I, commented: “These changes reflect our requirement to strike a balance between the interests of our savers, taxpayers and the stability of the broader financial services sector.
“After these changes, the Premium Bonds draw in March is expected to pay out over 5.7 million tax-free prizes totalling more than £444 million to savers across the UK.”
NS&I is designed to raise funds for the public purse but it is not allowed to offer interest rates that result in the private sector being unable to compete, hence the adjustment to the rates it offers as market conditions change.
Cash deposits held in fixed-term and notice accounts soared by £57 billion between January and October this year, as savers took advantage of rising interest rates, writes Bethany Garner.
Over the same period, easy access and non-interest bearing accounts were depleted by £86 billion, according to new figures from regulator, the Financial Conduct Authority (FCA).
Fixed rate and notice accounts offer some of the highest returns on the market – which are guaranteed for a set term – but require savers to forgo access to their cash.
In the third quarter of 2023 (between July and October), average returns on fixed rate and notice accounts increased from 2.95% to 3.52%. Rates on easy access accounts climbed to a lesser degree over the same period, from 1.66% to 1.99% on average.
Sheldon Mills, executive director at the FCA, commented: “There is a more competitive savings market now than in July – including many easy access accounts paying above 5%. But there are still low-paying accounts out there, particularly products that are no longer on sale.
She added: “We want firms to keep prompting customers in lower-paying accounts to move, and we encourage customers to shop around for the best savings deals.”
The top-paying one-year fixed rate bond and easy access account currently pay 5.80% and 5.22% respectively. Both deals are offered by Metro Bank.
28 November: Society Rewards Existing Customers
Coventry Building Society is launching a regular saver account paying 7% AER, writes Bethany Garner.
The 12-month Loyalty Regular Saver is available exclusively to existing customers who have held a savings account or mortgage with Coventry Building Society since at least 1 January 2022.
The minimum balance is £1, and savers can deposit up to £250 per month, with no obligation to make a deposit every month.
Any withdrawals made before the end of the account’s term incur a penalty fee worth 30 days’ interest on the amount withdrawn.
If a saver maxed out their £250 monthly allowance for the full account term (£3,000) and made no withdrawals, they would earn £113.87 in interest.
Jonathan Wilson, senior savings propositions manager at Coventry, said: “Our loyalty accounts offering exclusive rates to our two million members are a way of rewarding those who choose to keep saving with us.”
At 7% AER, the account’s interest rate falls one percentage point shy of the current market leader – Nationwide’s Flex Regular Saver, which pays 8% AER and permits three penalty-free withdrawals during its 12-month term.
However, this account has a lower monthly deposit limit of £200, and only Nationwide customers can apply. If a saver used the full allowance, and made no withdrawals, they would earn around £104.50 in interest.
Typically, regular saver accounts are only available to existing customers. At time of writing, the highest rate available to new customers is 5.75% AER – offered by Saffron Building Society’s Small Saver account.
However, Saffron’s offering only permits customers to deposit up to £50 per month during its 12-month term.
22 November: Deal Available With Linked Current Account
Nationwide Building Society has today launched a new children’s savings account that pays 5% AER (variable) on balances up to £5,000, writes Bethany Garner.
The society’s FlexOne Saver is available to children aged between 11 and 17, who hold a FlexOne current account.
There’s no minimum opening balance and, as an instant access account, withdrawals are permitted at any time without notice or penalty. Interest is calculated daily and paid annually.
At 5% AER, the account’s interest rate falls 0.80 percentage points shy of the current children’s account market-leader. At time of writing, Saffron Building Society pays 5.80% AER on its regular saver account.
However, returns on the FlexOne account outpace inflation, which fell to 4.6% in the 12 months to October 2023 (see story below).
Tom Riley, director of retail products at Nationwide, said: “It’s important to develop a savings habit at a young age and, as a building society, we want to help foster that.
“FlexOne Saver will also ensure that our youth current account remains one of the most compelling accounts available.”
Nationwide’s FlexOne children’s current account pays 2% AER (variable) on balances up to £1,000.
The FlexOne Regular Saver – a children’s regular saver account not currently available to new customers – will also see its interest rate rise to 5% AER from today.
15 November: Savers Can Beat Rising Prices With Top Offers
With inflation falling to 4.6% in the year to October 2023, many easy access savings accounts and fixed rate bonds are offering rates that beat inflation, writes Bethany Garner.
At time of writing, Metro Bank’s Instant Access Account pays up to 5.22% AER (variable) – 0.62 percentage points higher than the Consumer Price Index figure released today by the Office for National Statistics.
Elsewhere, Ulster Bank pays 5.20% AER (variable) on its Loyalty Saver, while Cynergy Bank’s Online Easy Access Account pays 5.15% AER (variable), including a bonus rate of 1.15% that drops off after 12 months.
Fixed rate bonds are also outpacing inflation, with top contenders paying upwards of 5.50%.
As of 15 November, Metro Bank offers a one-year fixed rate bond that pays 5.91% AER on deposits between £500 and £2 million – 1.31 percentage points above inflation.
Longer-term bonds offer similar rates. JN Bank pays 5.90% AER on its three-year bond, and 5.60% on both its four and five-year bonds. All three accounts have a minimum opening deposit of £1,000.
Kevin Mountford, co-founder of online savings platform Raisin, said: “Finally it looks like inflation is coming under control and the successive interest rate rises have had the desired effect.
“For now, this may also mean there’s reduced pressure on the Bank of England to further increase the base rate, though it’s unlikely we will see any immediate reduction on the current 5.25%.
“This said, things could start to change as we move into 2024, and while this represents more promising news for borrowers it could mean that for now fixed savings rates could start to fall.
“In the fixed rate bond market, we have already seen reductions from the dizzy heights of 6% – but competition within the UK should ensure that decent returns can be earned for some time to come.
“For those who can afford to lock money away, medium-term products could prove attractive, with a few three-year fixed rate accounts paying over 5.50%.”
14 November: Latest Issue Cut By 1.75 Percentage Points
National Savings & Investments (NS&I), the government-backed savings bank, has launched the latest issue of its Green Savings Bond, writes Bethany Garner.
The sixth iteration of the bond pays interest 3.95% AER a year fixed for three years.
It can only be opened online with a deposit between £100 and £100,000, all of which is protected by HM Treasury backing (bank and building society accounts are protected up to a maximum of £85,000 per person by the Financial Services Compensation Scheme).
No further deposits or withdrawals are permitted until the end of the three-year term.
NS&I says all deposits will be used to help finance green projects chosen by the government, such as increasing renewable energy production, building sustainable transport and reducing pollution.
At 3.95% AER, this latest issue of the bond pays an interest rate 1.75 percentage points lower than its predecessor, which offered an annual return of 5.70% AER.
This decrease may represent a broader trend. According to Moneyfacts data, average returns for longer-term bonds (those lasting at least 550 days) fell for the first time in over six months in October 2023.
As of 16 October, these bonds paid 5.11% AER on average, a decline from the 5.12% peak in September.
NS&I withdrew its one-year Guaranteed Growth Bond, which paid a chart-topping 6.20% AER, from the market on 6 October.
10 November: Aldemore Tops Bank Of England Bank Rate
Aldermore Bank has today launched two fixed rate bonds paying 5.40% AER, writes Bethany Garner.
The provider’s nine-month and 18-month Fixed Rate Savings Accounts allow savers to deposit between £1,000 and £1 million – though only the first £85,000 is covered by the Financial Services Compensation Scheme.
No further deposits are permitted, and savers can’t access their cash until the account matures.
Interest on these accounts is calculated daily, and paid at maturity.
At 5.40% AER, both accounts offer an interest rate that exceeds the Bank of England’s bank rate, maintained at 5.25% since August.
However, Aldermore’s offering falls 0.50 percentage points shy of the current market leader for fixed rate accounts. JN Bank pays 5.90% AER on its one-year and three-year fixed rate bonds.
Alex Myers, director of savings at Aldermore, said: “Our new fixed rate accounts are an ideal product for people saving for short or medium term goals, such as an upcoming holiday or a larger purchase on the horizon.
“These accounts also allow an extra layer of certainty, knowing exactly how much interest they will earn for the duration of their fixed term, helping savers protect their hard-earned savings.”
26 October: Incentives Trigger 63% Rise Year On Year
Almost 1.4 million current account switches took place between 1 October 2022 and 30 September 2023, according to the latest data from Pay.UK, writes Bethany Garner.
This represents a year-on-year increase of 63% from 2021 to 2022, with switch activity up in every quarter.
Pay.UK, which oversees the Current Account Switch Service (CASS), also found that March has been the busiest month for switching in 2023, with 155,116 switches taking place.
The overall uptick in current account switches is being driven by the number of attractive switching offers on the market.
At time of writing, HSBC is offering a welcome bonus of up to £205 for opening its Advance Account and linked Global Money Account, with the offer not dependent of the accountholder having to close their existing current account.
Nationwide is paying £200 for a full switch to its FlexDirect account, while First Direct has a £175 cash incentive to encourage new customers £175 to make a full switch to its 1st Account.
Although the offer has now been withdrawn, NatWest also ran a £200 switch incentive for much of 2023, which may explain why more consumers switched to NatWest between April and June than any other provider.
Despite these offers, a 2023 study by Atom Bank found that 49% of UK adults have never changed their current account.
John Dentry, product owner for CASS at Pay.UK, said: “The Current Account Switch Service marked its 10 year anniversary this quarter, and in that time the service has upheld an important role in supporting consumers and businesses to change their current account to better suit their needs.”
At present, 51 banks and building societies are signed up to CASS, with three new providers, Citibank, Allica Bank and Rothschild, joining in the third quarter of 2023.
Since its launch in 2013, around 9.8 million switches have been completed via the service. Of these 99.7% were within the CASS timescale promise of seven working days.
24 October: New Account Just Shy Of Market Leader
Paragon Bank, the online provider, has today launched a new issue of its Double Access savings account paying 5.25% AER, writes Bethany Garner.
The account pays 0.20 percentage points more than its previous iteration, which offered savers a rate of 5.05% AER. Double Issue refers to the fact that two withdrawals can be made each year without notice or penalty. From the third withdrawal, however, the interest rate drops to 1.50% AER (variable).
The headline rate is market-leading for double-access savers. Chorley building society’s Easy Access Saver Account pays 5.30% AER (variable) on balances from £500 to £500,000, but this account only permits one withdrawal per year. From the second withdrawal its interest rate drops to 2.50% AER (variable).
The minimum opening balance on the Paragon account is £2,000, and savers can deposit up to £500,000 (the first £85,000 is covered by the Financial Services Compensation Scheme, as is the case with any UK-authorised savings institution).
Derek Sprawling, savings director at Paragon Bank, said: “We’re pleased to launch the latest issue of our Double Access account, paying a market-leading rate.
“This product could suit those savers who are happy to lock their money away but may want to retain access to it in the event of a rainy day.”
5 October: New Deals Include Top-Paying 5.00% Easy Access ISA
App-only provider Moneybox has increased rates on its easy access cash ISA to a market-leading 5.00% AER (variable), writes Bethany Garner.
The account, which previously paid 4.75% AER, can be opened with a minimum deposit of £500 – although the new 5.00% rate includes a bonus of 0.85 percentage points that expires after the first 12 months.
While savers retain full access to their cash, only three withdrawals are permitted within any 12-month period. From the fourth withdrawal (or if the account balance falls below £500) returns fall to 0.75% AER (variable).
Easy access accounts
Fresh competition has also emerged among non-ISA accounts. Coventry Building Society has launched an easy access account paying 5.20% AER (variable). The Triple Access Saver can be opened and managed exclusively online, with a minimum £1 deposit.
Withdrawals are restricted to three per year. Any subsequent withdrawals incur a fee worth 50 days’ interest on the amount withdrawn.
Fixed rate savings
HSBC has today increased the rate on its One Year Fixed Rate Saver to 5.70% AER (fixed) – 0.65 percentage points above its usual return – to customers who open an account before 18 October.
Savers can deposit between £1,000 and £1 million into the account, with no further deposits or withdrawals permitted until the end of the account term.
However, HSBC’s offering still falls 0.50 percentage points short of the current market-leader, National Savings and Investments (NS&I), which pays 6.20% AER on its one-year Guaranteed Growth Bond on deposits of between £500 and £1 million.
Current accounts
Online-only bank, Starling, has increased the interest paid in-credit current account balances by 3.20 percentage points, to 3.25% AER (variable).
Balances up to £5,000 earn the new rate, including any portion held in one of Starling’s virtual piggy banks, known as ‘Spaces’.
At 3.25% AER, the current account’s interest rate now outstrips many high street easy access savings accounts.
At time of writing, HSBC pays just 2.00% AER (variable) on its Flexible Saver account, while Halifax pays up to 1.80% AER (variable) on its Instant Saver account.
29 September: Shawbrook Trumps Beehive By A Whisker
Shawbrook Bank has launched an easy access savings account paying a market-leading 5.11% AER (variable) – just 0.01 percentage points above former leader Beehive Money, writes Bethany Garner.
This latest issue of Shawbrook’s Easy Access Account can be opened with £1,000. The maximum balance is £85,000 for sole accounts or £170,000 for joint accounts, both in line with the Financial Services Compensation Scheme limit.
Savers can make as many withdrawals as they like from the online-only account without notice or penalty, in return for a minimum withdrawal amount of £500.
Interest on the account is calculated daily and added to the balance either monthly or annually.
At 5.11% AER, the account’s interest rate is pegged 0.01 percentage points higher than the former market leader, Beehive Money (see story below), just nudging it out of the top spot.
Adam Thrower, head of savings at Shawbrook, said: “Despite the recent base rate hold, we remain committed to offering competitive rates on our savings accounts.”
28 September: App-Only Beehive Money Account Pays Leading 5.10%
App-only provider Beehive Money – part of Nottingham Building Society – has launched a limited edition savings account paying a chart-topping 5.10% AER (variable), writes Bethany Garner.
The provider’s new Limited Issue Easy Access Account can be opened from £1,000 with a maximum balance is £85,000 – the maximum sum protected under the Financial Services Compensation Scheme.
The headline 5.10% rate includes a bonus of 2.45%, which applies until 31 October 2024. To get the best from this account, savers may then want to move their cash to a better deal.
As an easy access account, withdrawals are permitted at any time – so long as savers maintain a balance of at least £1,000. Interest is calculated daily, and credited to the account annually on 31 October.
While rising rates are welcomed by savers, higher returns mean a greater risk of exceeding their Personal Savings Allowance. The PSA limits tax-free interest earnings to £1,000 a year for basic rate taxpayers, or £500 for higher-rate taxpayers.
For example, a basic rate taxpayer could save £19,607 in Beehive’s easy access account before breaching their PSA, while an additional-rate taxpayer could deposit just £9,803.
The new Beehive account knocks Paragon Bank off the top spot for easy access accounts by 0.05 percentage points. However, it remains 0.10 percentage points under Santander’s limited edition Easy Access Saver. The account paid 5.20% AER but was withdrawn from the market just eight days after launch, having reached its full subscription (see 12 September story, below).
26 September: Providers Boost Rates But 1-In-5 Aren’t Saving
Coventry building society has launched a market-leading easy access cash ISA paying 4.90% AER on balances from £1, writes Bethany Garner.
The Four Access ISA is available to both new and existing customers, and is opened and managed exclusively online. It allows savers to make up to four withdrawals per year without penalty.
Any subsequent withdrawals incur a fee of 50 days’ interest on the amount withdrawn.
As a flexible ISA, savers can withdraw and replace cash in the same tax year, without the replacement counting towards their annual ISA allowance.
Bethaney Cozens, savings product manager at Coventry, said: “We’ve opened almost as many new ISAs so far this year as the last two years combined, as ISAs have become an increasingly popular option for members wanting to maximise their tax-free savings allowances in a higher interest rate environment.”
Elsewhere, budgeting app Plum has launched a savings option called Plum Interest, which aims to offer returns that mirror the Bank of England Bank rate.
The account invests savers’ cash into a low-risk money fund provided by asset management firm, BlackRock. Money funds invest in low-risk assets such as government debt (gilts) and high quality corporate bonds.
It currently pays a variable annual rate of 4.94%, and savers can add and withdraw cash at any time without penalty.
While just shy of 5% is a competitive offer, leading easy access accounts pay up to 5.10% AER (variable) at time of writing – albeit with withdrawal restrictions.
Climbing rates may be welcome news for savers, but new research suggests a growing number of individuals are not benefitting.
According to a study by online savings platform, Raisin, one in five UK adults (20%) admit they never save a portion of their monthly income.
The study, which surveyed 5,001 UK adults in July 2023, also found that just a third (33%) of respondents save at least 10% of their salary each month.
Faced with rising living costs, 25% of respondents described their financial circumstances as ‘unstable’, while a further 41% said meeting basic living costs was their top financial priority for the next 12 months.
According to Raisin, a lack of knowledge could be part of the problem, with 30% of survey respondents describing their financial knowledge as ‘low’ or ‘non-existent.’
21 September: Society Pays Chart-Topping 8% On Regular Saver
Eligible customers who switch to a Nationwide current account will receive a £200 cash ‘welcome bonus’ from today, writes Bethany Garner.
Both new and existing customers are eligible for the bonus, provided they complete a full switch from another provider, using the Current Account Switch Service, and transfer a minimum of two direct debits.
Individuals who have received a welcome bonus from Nationwide since April 2021 are not eligible.
The offer is available on three accounts: standard FlexAccount, packaged FlexPlus account and online-only FlexDirect account, which also pays 5% AER on in-credit balances up to £1,500 for 12 months.
The building society has also launched a market-leading regular saver account, paying 8% AER fixed for 12 months. Savers can deposit up to £200 per month, netting them up to £104 in interest.
At 8%, the account beats the regular saver launched by Yorkshire building society earlier this week (see story below), which pays 7% AER, fixed for 12 months.
According to Nationwide, by switching to its FlexDirect account, customers could earn up to £377 in their first year from earned interest and the welcome bonus.
Yorkshire Building Society (YBS), has launched a new table-topping regular savings account to mark UK Savings Week, writes Bethany Garner.
The limited edition Loyalty Regular Saver account pays a rate of fixed 7.00% for 12 months with a £500 maximum monthly deposit. One penalty-free withdrawal is permitted during the 12-month term.
However, the deal is only available to customers who already hold a savings account or a mortgage with the YBS.
first direct also offers a 7% regular saver to existing customers. However, monthly deposits are limited to £300, making YBS the leading deal of its kind.
The account has been launched on the back of the Building Societies Association’s UK Savings Week. Running until 24 September (Sunday) the annual initiative aims to raise awareness around good saving habits. Around 11.5 million UK adults have less than £100 in cash savings, according to BSA figures.
Chris Irwin, director of savings at Yorkshire Building Society, said that regular savings accounts are, “one way to encourage establishing healthing savings habits.”
The easy access account market has also seen a new account from GB Bank. Launched in partnership with online savings and investment platform, Wombat, the account tracks the Bank of England Bank rate by minus 0.5 percentage points – currently offering a rate of 4.75% AER.
The account must be opened via Wombat’s mobile app, with a minimum deposit of £500 and savers can withdraw cash at any time penalty-free.
It carries a maximum balance of £250,000 plus interest, but only the first £85,000 will be covered by the Financial Services Compensation Scheme.
The next Bank rate announcement will be made on Thursday (21 September).
According to the latest figures from Moneyfacts, the average easy access rate now stands at 2.95% AER – the highest since 2008. However, the most competitive accounts, including those from Paragon, Tandem and Aldermore pay 4.50% or more.
Aldermore is also boosting rates by up to 0.25 percentage points from today.
The bank’s Easy Access account now pays 4.50% AER – up from 4.25%, while its Double Access Account has seen rates rise from 4.70% to 4.90%.
Its 30 Day Notice account now offers 4.55% AER, up from 4.30%, while the ISA equivalent pays 4.50%, up from 4.25%.
The 120 Day Notice Account will pay 4.80% from today, up from 4.55%.
Rates are also rising on a number of accounts exclusive to existing customers:
The 45 and 60 Day Notice accounts will now pay 4.60% AER, up from 4.35%
The 90 Day Notice account pays 4.65% AER, up from 4.40%
The 60 Day Notice ISA now pays 4.80% AER, up from 4.55%
The Help to Buy ISA (no longer available for new customers) will pay 3.85% AER, up from 3.60%.
12 September: Rate Falls To 2.5% From Tomorrow (Weds)
Santander is withdrawing its Easy Access Limited Edition 3 account at 11:59pm tonight. However, applications from new and existing customers will be accepted until then on current terms.
The account can be opened and managed online as well as in branch.
The Limited Edition account pays 5.20% AER/ 5.08% gross (variable) on balances between £1 and £250,000, as outlined in the story below.
Announcing the changes, Santander said: “Any applications received by 23:59 today (12 September 2023) will receive the Easy Access Limited Edition 3 rate once opened.
“From tomorrow, Santander’s Easy Access Saver account returns to sale offering 2.50% AER/gross for 12 months.”
Santander has launched a market-leading easy access savings account paying 5.20% AER on balances up to £250,000, writes Bethany Garner.
The Easy Access Saver Account is available to both new and existing customers until 17 September, but the bank has cautioned it may be withdrawn sooner if demand is high.
It can be opened online, over the phone or in a branch from £1, and savers can make as many withdrawals as they like without notice or penalty.
Interest on the account is calculated daily and paid monthly or annually, and it matures after 12 months.
Andrea Melville, director of current accounts, savings and business banking at Santander, said: “We know now more than ever people want their money to go further and this account is one of the ways we are helping customers maximise their savings income.”
Santander has, this week, also increased rates on its fixed-term ISAs. The provider’s one-year fixed ISA now pays 5.05% AER, while its two-year fixed rate ISA saw rates increase to 5.10% AER.
While climbing interest rates may be welcome news for savers battling the corrosive effects of inflation on their cash, higher returns could tip them over their Personal Savings Allowance (PSA).
First introduced in 2016, the PSA allows basic-rate taxpayers to earn £1,000 (£500 for higher-rate taxpayers) in interest each year before it becomes liable for income tax.
A basic rate taxpayer could save £19,231 in a Santander Easy Access Saver before breaching their PSA, while an additional-rate tax-payer could deposit just £9,616 before income tax kicks in. Additional rate taxpayers do not receive a PSA.
By contrast, a basic rate tax-payer would need to deposit about £50,000 in an easy access account paying a more typical 2% AER before reaching their PSA threshold.
30 August: Govt-Backed Bond Tops Tables With 6.20% Returns
National Savings and Investments (NS&I), the government-backed savings bank that oversees Premium Bonds, today launched the latest issues of its one-year Guaranteed Growth and Guaranteed Income Bonds, writes Bethany Garner.
Both bonds pay 6.20% AER (fixed) – an increase of 1.20 percentage points since their last issue – positioning them as prevailing market leaders.
To open a Guaranteed Growth or Income Bond, savers must deposit a lump sum between £500 and £1 million. The entire balance is protected by HM Treasury backing.
Interest on the one-year Guaranteed Growth Bond is calculated daily and paid at maturity. Interest on the Guaranteed Income Bond is also calculated daily, but is paid monthly into a nominated bank account.
When the bond matures after 12 months, savers can withdraw their money or invest in another bond.
Andrew Griffith, economic secretary to the Treasury, said: “It’s vital that savers are able to benefit from recent interest rate rises, so I’m delighted that NS&I is releasing new Issues of Guaranteed Growth Bonds and Guaranteed Income Bonds at over 6% – the highest rate since they were launched.”
NS&I has also increased rates on new issues of its two, three and five-year bonds by up to 1.25 percentage points from today.
The bank’s two and three-year Guaranteed Growth and Guaranteed Income Bonds will both pay 5.80% AER, up from 5.10% and 5.22%, respectively.
Meanwhile, the latest issue of its five-year Guaranteed Growth Bond pays 5.50% AER – up from 4.25% – while interest on the Guaranteed Income bond has increased from 4.23% to 5.50% AER.
These bonds are not available to new applicants, but existing savers can apply when their current bond reaches maturity.
22 August: Latest Issue Paying 5.70% But Lags Market Leader
National Savings and Investments (NS&I), the government-backed savings bank that oversees Premium Bonds, has today increased the rate paid on its Green Savings Bond to 5.7% AER, writes Bethany Garner.
This latest issue of the three-year bond pays 1.50 percentage points more than its previous iteration, and marks the second issue of 2023.
NS&I’s Green Savings Bonds help finance sustainability projects across the UK as part of the Government Green Financing Framework, which aims to achieve net zero greenhouse gas emissions by 2050.
The minimum investment is £100, and savers can deposit up to £100,000 in each issue. No withdrawals are permitted during the three-year term.
More than £915 million has been invested in Green Savings Bonds since their launch in 2021, with £627 million invested between March 2022 and March 2023 alone.
Dax Harkins, chief executive at NS&I, said: “This is a great opportunity for savers who want to see a guaranteed return on their investment while also making a difference with their savings by helping to make the world greener, cleaner and more sustainable.”
While this latest issue of the bond pays a competitive rate of interest, it lags behind the current market leader for three-year bond by 0.35 percentage points.
At time of writing, Recognise Bank’s three-year fixed rate bond pays 6.05% AER. However, the minimum deposit is £1,000.
10 August: Shawbrook, Paragon Nudge Towards 5% Level
Shawbrook Bank has raised rates on two of its easy access savings accounts by as much as 0.77 percentage points, writes Bethany Garner.
The Easy Access account is paying 4.68% AER (variable) – up from 3.91%. The Easy Access ISA has received a boost of 0.65 percentage points, and now pays 4.43% AER (variable).
Both accounts have a minimum opening deposit of £1,000, and pay a reduced rate of interest if the balance falls below this threshold – 0.05% AER for the Easy Access account, and 0.25% AER for the easy access Cash ISA.
While the accounts allow unlimited withdrawals without notice, each withdrawal must be at least £500.
Elsewhere, Paragon Bank has increased the interest paid on its Double Access savings account, from 4.60% to 4.75% AER (variable).
The account allows savers to make two penalty-free withdrawals every 12 months. From the third withdrawal, the interest rate drops to 1.50% AER. Its minimum operating balance is £1,000.
As rates continue to rise, a growing number of savers are at risk of being liable for tax on their interest, however (see story from 25 July).
According to Shawbrook’s analysis of data collated by consultancy CACI, over three million savings accounts were liable for tax on earned interest in April 2023, marking a 13-fold increase compared with the same month in 2022.
Adam Thrower of Shawbrook said: “As rates continue to tick up, we’ve seen the demand for ISAs increase as people recognise the need to protect their savings from tax.”
8 August: Tandem Offers 5% Easy Access, Lloyds Boosts Rates
National Savings and Investments (NS&I), the government-backed savings bank that oversees Premium Bonds, is adding £66 million to its prize fund from September, writes Bethany Garner.
Around 27,000 extra prizes will be added from September’s draw, boosting the prize fund rate – the effective rate of return on premium bonds – from 4.00% to 4.65%, its highest level since 1999.
The majority of new prizes will be worth £50 or £100, but there will also be more prizes of £100,000 (+13), £50,000 (+27) and £25,000 (+53). There will continue to be just two £1 million prizes in each draw.
The odds of each £1 bond winning a prize will improve from one in 22,000 to one in 21,000 – the highest they have been since April 2008. There is no guarantee that any bond will ever win a prize.
NS&I is also upping interest rates on a number of savings accounts from 18 August. The Direct Saver will pay 3.65% AER (variable) – up from 3.40% – while Income Bonds will see rates rise by 0.25 percentage points to 3.65%.
The Direct ISA will see rates improve from 2.40% AER (variable) to 3.00%, while the Junior ISA rate will increase from 3.65% AER (variable) to 4.00%.
Cash held in an NS&I investment account will earn 1.00% AER (variable) – up from 0.85%.
Elsewhere,the app-only bank, Tandem, has boosted the interest paid on its easy access savings account to 5% AER (variable). The account includes a 0.35% bonus rate, which drops off after 12 months.
According to Moneyfacts, this is the first time an easy access account has paid 5% interest since 2009.
Lloyds Banking Group, which owns Lloyds Bank, Halifax and Bank of Scotland, is upping rates on an array of fixed and variable accounts by up to 0.30 percentage points from 22 August.
The Halifax Everyday Saver and ISA Saver will see rates increase by up to 0.30 percentage points, paying 1.45% on balances up to £99,999, 1.50% on balances between £10,000 and £49,999, and 1.80% on balances of £50,000 or more.
Its children’s savings accounts will also receive a boost. The Kids Saver account will pay 3.50% AER on balances from £1 to £5,000 – an increase of 0.15 percentage points – and 1.45% on balances above £5,000, up 0.30 percentage points.
The Money Smart Account – aimed at young savers ages 11 to 15 – will see rates increase by 0.15 percentage points, paying 3.40% AER on balances up to £1,000, and 1.45% on balances above this.
Its Junior Cash ISA will pay 3.65% AER (variable) – up from 3.50%.
The Halifax Help to Buy ISA (no longer available to new customers) will pay 2.90% AER on balances up to £12,000 – up 0.15 percentage points – and 1.45% on balances above this – up 0.30 percentage points.
Lloyds Bank is raising rates on its Everyday Saver and Cash ISA Accounts by up to 0.30 percentage points.
From 22 August, both accounts will pay 1.40% AER on balances up to £24,999, 1.45% on balances between £25,000 and £99,999, and 1.90% on balances of £100,000 or more.
The bank is also raising rates on its Club Lloyds Saver – exclusive to existing customers. Balances up to £24,999 will earn 1.70% AER – up from 1.50%. Balances between £25,000 and £99,999 will continue to earn 1.75% AER, and balances of £100,000 will continue to earn 2.20%.
Lloyds’ Help To Buy ISA (no longer available to new customers) will raise rates by up to 0.30 percentage points, paying 2.90% on balances up to £12,000 and 1.40% on balances above this threshold.
Its Childrens Saver will pay 3.15% AER on balances up to £5,000 – an increase of 0.15 percentage points – and 1.40% on balances above £5,000, up 0.30 percentage points.
Its Smart Start account (aimed at 11 to 15 year olds) will pay 3.15% AER on balances up to £1,000, and 1.40% on balances above this – an increase 0f 0.15 percentage points.
The Lloyds Junior Cash ISA will pay 3.15% AER – up from 3.00%.
Bank of Scotland is raising rates on its Access Saver and Cash ISA by up to 0.30 percentage points.
Both accounts are set to pay 1.45% AER on balances up to £9,999, 1.50% on balances between £10,000 and £49,999 and 1.80% on balances of £50,000 or more.
Its Childrens Saver account will pay 3.15% AER on balances up to £5,000 – up from 3.00% – and 1.45% AER on balances above £5,000, up from 1.15%.
Its Smart Start Account, available to savers aged 11 to 15, will pay 3.15% AER on balances up to £1,000, and 1.45% on balances above this threshold – an uplift of 0.15 percentage points.
The Bank’s Junior Cash ISA will also see a rate boost of 0.15 percentage points, to 3.15% AER.
Its Help to Buy ISA (no longer available to new customers) will see rates rise by 0.15 percentage points – to 2.90% AER – on balances up to £12,000, and by 0.30 percentage points – to 1.45% – on balances above this limit.
4 August: Providers Act Swiftly To Pass On Increase To Savers
Yorkshire Building Society (YBS) is raising rates across all its variable savings accounts in response to yesterday’s bank rate rise, writes Bethany Garner.
From 10 August, these accounts will receive an uplift of up to 0.25 percentage points.
This includes the society’s Rainy Day Saver, which pays a tiered rate of interest depending on the balance. It will offer 4.55% AER (variable) on balances up to £5,000, and 3.90% on balances above this level – up from 4.35% and 3.70% respectively.
Aldermore Bank is also upping rates across personal savings accounts by up to 0.25 percentage points from today (4 August).
The provider’s Easy Access account has seen rates rise from 4.00% to 4.25% AER (variable), while the Double Access Account now pays 4.60% AER (variable) – up from 4.25%.
Elsewhere, its 30 Day Notice account now pays 4.30% AER (variable) – up from 4.05% – and the rate paid on the 120 Day Notice account has increased from 4.30% AER (variable) to 4.55%.
The bank’s three-year fixed rate account now pays 5.51% AER – up from 5.51%.
The provider’s ISA rates have also improved. Its one-year Fixed Rate ISA now pays 5.54% AER (up from 5.35%), while its two-year counterpart pays 5.61% (up 0.16 percentage points). The three-year Fixed Rate ISA will pay 5.51% from today – up from 5.45%. The 30 Day Notice ISA rate has risen from 4.00% AER (variable) to 4.25%.
Aldermore has also increased rates on accounts available to existing customers only.
Banks have come under pressure in recent months for their failure to pass on the full effect of successive bank rate increases to savers (see story from 31 July).
The Financial Conduct Authority (FCA), the UK’s financial regulator, announced a plan earlier this week to tackle the issue.
Myron Jobson, senior personal finance analyst at interactive investor, commented: “Savings rates have picked up thanks, in part, to intense scrutiny from the FCA and MPs who have challenged some banks and building societies that had been miserly with their savings rate increases.
“However, any reprieve in cash savings rates is being drowned out by the stubborn persistence of high inflation.”
3 August: Nationwide Raises Rates By Up To 0.75 Percentage Points
Nationwide Building Society is increasing interest rates on a selection of savings accounts by up to 0.75 percentage points, writes Bethany Garner.
Nationwide’s one-year Triple Access Online Saver, and one-year Triple Access Online ISA, will pay 4.25% AER (variable), up from 3.50%. Both accounts allow three penalty-free withdrawals during their 12-month term.
The provider’s Flex Instant Saver account will pay 3.25% AER (variable) – up from 3.00% – while the rate paid on its Instant Access Saver will improve from 2.30% to 2.40% AER (variable).
The society’s member-only Loyalty accounts are also to receive a boost. The Loyalty Saver, Loyalty ISA and Loyalty Single Access ISA will see rates rise from 3.50% AER (variable) to 3.75%.
Its Instant Access Saver, Instant ISA Saver and Cashbuilder accounts – which pay interest at a tiered rate depending on the account balance – will pay between 2.25% and 2.35% AER (variable) – a rise of 0.10 percentage points.
However, savers will have to wait until 16 August for all rises to take effect.
Online-only bank, first direct, is also upping the rates on three of its savings accounts – from 10 August.
Its easy access FD Savings Account will pay 2.00% AER (variable) – up from 1.75% – while the Cash ISA rate is set to rise from 2.70% AER (variable) to 2.85%.
The FD Bonus Savings Account – which pays a boosted interest rate in each month savers avoid making a withdrawal – will see its non-bonus rate rise from 1.75% AER (variable) to 2.00%.
The account’s bonus rate will remain unchanged at 4.00% on balances up to £50,000, and 2.30% on balances above this limit.
Marcus by Goldman Sachs is also raising interest. The provider’s Cash ISA and Online Savings Account now pay 4.30% AER (variable), up from 4.00%. This includes a bonus rate of 0.34 percentage points (gross), which expires after 12 months.
Marcus by Goldman Sachs has also announced a rate rise. Its Cash ISA and Online Savings Account will now pay 4.30% AER (variable), up from 4.00%. This includes a bonus rate of 0.34 percentage points (gross), which expires after 12 months.
Interest paid on its Maturity Saver has increased from 3.64% to 3.94% AER, while savers taking out a new one-year Fixed Rate Saver account benefit from a higher rate of 4.80% AER, up from 4.50%.
All rises take effect from today.
Rachel Springall, finance expert at Moneyfacts, reminded all savers that, despite further rate rises being good news, the onus remains on them to ensure they squeeze the best returns on their cash: “It is imperative that savers take time to review their existing accounts and not presume any Bank Rate rise will be passed onto them, as this is never guaranteed.”
Experts have also warned that the continued rate hikes are likely to lead more savers to exceed the Personal Savings Allowance (PSA) threshold of £1,000 a year for basic rate taxpayers and £500 a year for higher rate tax payers.
1 August: Providers Begin To Heed Regulator Warning On Rates
Shawbrook Bank has launched a market-leading easy access account paying 4.63% AER (variable), with Saffron Building Society offering two accounts at 4.6% (AER) variable, writes Bethany Garner.
The moves come as the regulator, the Financial Market Authority, warns institutions that it will take action if they fail to pass on interest rate rises to their savings customers (see story below).
Shawbrook’s minimum opening balance on its Easy Access account is £1,000, and savers can deposit up to £85,000 (which is the limit of protection provided by the government if a financial institution fails under the Financial Services Compensation Scheme).
If the account balance drops below £1,000, the interest rate falls to 0.05% AER.
While savers can access their cash without notice, the minimum withdrawal amount is £500. Interest is calculated daily and paid either monthly or annually.
Shawbrook has also increased rates on two of its cash ISAs. The bank’s Easy Access ISA now pays 4.33% AER (variable) – up from 3.78% – while its one Year Fixed Rate Cash ISA pays 5.71% AER, up from 5.32%.
Both ISAs are market leaders in their categories at time of writing.
Adam Thrower, head of savings at Shawbrook, said: “As the UK braces for the highly anticipated 14th consecutive interest rate rise [the Bank of England’s Bank Rate announcement is on 3 August], savers should be seeing some of the best rates in decades.
“Brits being paid rates lower than 2.5% can earn substantially more if they switched today. Capitalising on the current rates should be a priority to maximise earnings on their savings.”
Saffron Building Society is also upping rates. From today, the provider’s E-Saver account will pay 4.60% AER on balances from £10 – up from 4.10%.
Savers can make unlimited withdrawals without notice, and save up to £500,000 – though only the first £85,000 is protected under the Financial Services Compensation Scheme (FSCS).
Interest on the account is calculated daily and can be paid either monthly or annually.
Saffron’s online MySaver account will also pay 4.6% AER from today, while its Enviro Saver – which includes an annual donation to an environmental charity – will pay 4.55%. Both accounts offer instant access to savings.
While these higher rates will be welcome news for savers, a growing number are now earning interest above their personal savings allowance (PSA) – the amount of interest individuals can earn on savings tax-free (see story from 25 July).
A basic rate (20%) taxpayer, who can earn £1,000 a year in interest before paying tax, could save up to £21,598 in Shawbrook’s Easy Access account, or £21,739 in Saffron’s E-Saver, before being liable for tax.
For a higher rate (40%) taxpayer, whose allowance is £500 a year, this drops to £10,799 and £10,869, respectively.
When top easy access rates were closer to 1%, a basic rate taxpayer could deposit around £100,000 without being liable for tax, with the sum standing at around £50,000 for higher rate taxpayers.
31 July: Providers Slammed For Not Passing On Bank Rate Rises
The Financial Conduct Authority (FCA), the financial regulator, will take action against banks and building societies that fail to pass on adequate Bank Rate rises to savers, writes Bethany Garner.
Since December 2021, there have been 13 successive bank rate hikes by the Bank of England, taking it from 0.1% to 5%.
Providers have come under fire for the widening gap between the rates they charge borrowers, which have largely matched the movement in the Bank Rate, and the rates they pay savers, which have noticeably failed to do so in many instances.
The latest Bank Rate will be announced this Thursday, when an increase to 5.25% is expected.
According to FCA figures, out today, the UK’s nine biggest savings providers passed on just 28% of Bank Rate rises to their easy access account customers between January 2022 and May 2023.
These providers performed better when it came to notice accounts and fixed term deposits, but still fell short of passing on the full effect of the rising bank rate – sharing 51% of increases with customers during the same period.
Under the new FCA plan, banks will be expected to justify how lagging easy access rates offer ‘fair value,’ and to proactively direct customers towards the highest rates on offer.
If providers are unable to justify low rates, the regulator has warned it will take action.
The intervention comes as Consumer Duty — rules designed to set higher standards of consumer protection across financial services – comes into force from today.
The Chancellor, Jeremy Hunt MP, said: “Banks should be passing on interest rate increases to savers, and we’re keeping a close eye on whether they do. Today’s new Consumer Duty gives the regulator the tools they need to take action where that isn’t happening.”
Alice Haine, personal finance analyst at Bestinvest, said: “Savers may finally see an end to dismal savings rates offered by high street lenders thanks to the FCA’s decision to crackdown on banks and building societies for being slow to deliver better interest rate rises to their customers.”
The regulator will also review easy access savings rates every six months, and publish a ranking that lists providers from the highest to the lowest rates.
Sheldon Mills, executive director of consumers and competition at the FCA, said: “We want a competitive cash savings market that delivers better deals for savers, where interest rates are reviewed quickly following base rate changes and firms prompt savers to switch to accounts paying higher rates.”
Ms Haines encourages consumers to scan the market for better rates, rather than stick with a single provider: “While it is great that the FCA can take stronger action against lenders under the Consumer Duty framework, with inflation still high at 7.9%, even the best rates deliver a negative return in real terms so finding the best deal is imperative.
“Those locking in a high fixed rate now could see their pot gain value in real terms if inflation continues to ease in the months ahead.”
The FCA has found that, since the start of 2023, the amount of cash held in easy access accounts has dropped by 4% – approximately £52 billion – while deposits into fixed-term accounts have risen 3%.
25 July: Millions More Liable For Savings Tax As Rates Climb
Over 3 million savings accounts were liable for tax on earned interest in April 2023 – a 13-fold increase compared with the same month in 2022 – thanks to improved rates, writes Bethany Garner.
As savings rates climb,a growing number of savers are earning interest above their personal savings allowance (PSA) – the amount of interest you can earn on your savings tax-free.
The rising rates have been driven largely by 13 successive bank rate hikes, which many providers have passed along, at least in part, to savers.
The PSA currently sits at £1,000 for basic rate taxpayers, and £500 for higher-rate taxpayers. Additional-rate taxpayers do not receive a PSA.
The report by Shawbrook Bank, based on data collated by consultancy CACI, found that depositing £17,500 in a top one-year fixed rate bond paying 6% could push a basic rate taxpayer over their PSA limit.
The interest here would be £1,050, of which £50 would be taxable at 20%.
For a 40% taxpayer, depositing £8,500 at 6% interest would earn them £510, tipping them into tax-paying territory.
With today’s leading easy access accounts paying upwards of 4%, a basic rate taxpayer could deposit just £25,000 before paying tax on the interest.
The figure for higher rate taxpayers would be £12,500.
By contrast, when top easy access rates were closer to 1%, a basic rate taxpayer could deposit around £100,000 without being liable for tax, with the sum standing at £50,000 for those paying at the top rate.
Whatever their tax band, savers can deposit up to £20,000 into an Individual Savings Account (ISA) each tax year without paying any tax on the interest.
Adam Thrower, head of savings at Shawbrook bank, said: “Higher rates are great for savers, and they are now finally getting attractive returns on their deposits. However, due to frozen tax thresholds, a basic rate taxpayer with £17,500 in savings could end up paying tax on the interest earned.
“As interest rates have continued to rise, many might find themselves nearing the threshold for taxation on their interest income.
“For those that are, ISAs are a great way of reducing your tax burden – although they do often come at a slightly lower interest rate.”
13 July: Savings Bonds Benefit From Chunky Improvements
National Savings and Investments (NS&I), the government-backed savings bank that oversees premium bonds, is increasing the interest on its fixed-rate bonds by up to 1.10 percentage points, writes Bethany Garner.
The latest issue of the bank’s one-year Guaranteed Growth Bond and one-year Guaranteed Income Bond will each pay 5% AER (fixed) – up from 4.00% and 3.90% respectively. Both products are available to new and existing customers.
NS&I is also raising rates on a number of bonds only available to existing customers approaching renewal.
The latest issues of its two-year Guaranteed Growth Bond, two-year Guaranteed Income Bond, three-year Guaranteed Growth Bond and three-year Guaranteed Income Bond will all pay 5.10% AER (fixed) – up to a full percentage point higher than their previous issue.
These rate changes closely follow NS&I’s announcement, on 30 June, that interest rates were rising on a range of variable rate accounts (see story below). The new rates kick in from today.
Dax Harkins, chief executive at NS&I, said: “Guaranteed Growth Bonds and Guaranteed Income Bonds are popular with our customers and I’m pleased that we’re able to announce these changes today for new and existing customers to take advantage of.”
Elsewhere, NS&I is changing the way its fixed rate Savings Certificates work.
From 23 July, savers renewing their certificates won’t be able to withdraw cash before the end of the new term.
Prior to this change, money could be withdrawn from the certificate at any time – in exchange for a penalty fee worth 90 days’ interest.
Savings Certificates allow customers to deposit a lump sum between £100 and £15,000, and earn a fixed rate of interest (tax-free) for between two and five years.
The savings bank also offers an index-linked certificate, which pays a rate of interest equivalent to the current Consumer Price Index (CPI) plus 0.01%.
Savings certificates are no longer on sale to new customers, and the change in withdrawal policy only applies to existing savers approaching renewal.
Three providers have boosted rates across a range of savings accounts from today, as the Financial Conduct Authority urges banks to do more to support savers, writes Bethany Garner.
The moves follow rate rises across the stable of brands run by Lloyds Banking Group yesterday (see story below).
HSBC is boosting a handful of savings rates from today.
The bank’s Fixed Rate Saver accounts have seen rates increase by 0.65%. Its one-year Fixed Rate Saver will pay 5.05% AER from today, while its two-year counterpart will pay 5.10%
Meanwhile, HSBC’s Premier Loyalty ISA and Advance Loyalty ISA saw rates increase by 0.20%, to 3.20% and 2.70% AER respectively.
Coventry Building Society is increasing returns paid on variable rate accounts by up to 0.60 percentage points from today.
Its Easy Access Account and Easy Access ISA will pay 2.85% AER – up from 2.50% – while the Limited Access ISA will pay 4.10% AER, up from 3.50%.
Meanwhile, its 30 Day Notice Account and 30 Day Notice ISA will both see rates climb by 0.30 percentage points, to 2.90% AER, while the Easy Access ISA (Online) is receiving a 0.40 percentage point boost – taking the interest rate to 3.20% AER.
The provider’s Limited Access Saver (Online) will now pay 4.30% AER – up from 3.55%.
Coventry’s Regular Saver, Regular Saver ISA, Regular Savings Account and First Home Saver (2) will all see rates improve from 4.40% to 4.80% AER.
The mutual’s Junior Cash ISA has also received a 0.40 percentage point boost, and now pays 4.70% AER.
A number of accounts that are no longer open to new applicants – such as the Privilege ISA, Privilege Reward ISA and Help to Buy ISA – have received an uplift of up to 0.40% percentage points.
The society has also recently launched two fixed rate cash ISAs. Its Fixed Rate Cash ISA 30.09.2024, which matures next September, pays 5.30% AER, while the Fixed Rate Cash ISA 3009.2025, which matures in September 2025, pays 5.40%. Both accounts are market-leaders at time of writing.
Yorkshire Building Society launched a range of fixed rate cash ISAs yesterday. Its one-year fixed rate ISA pays 5.10% AER, while its two and three-year equivalents both pay 5.20% AER.
Marcus by Goldman Sachs is also raising interest rates on three of its accounts.
From today, the provider’s Online Savings Account and Cash ISA will see rates rise from 3.73% to 4.00% AER. This includes a bonus rate of 0.34 percentage points (gross), which expires after 12 months.
The Maturity Saver account will pay 3.64% AER – up from 3.39%.
These improved rates come as the bosses of four major banks – HSBC, Barclays, NatWest and Lloyds – met with the Financial Conduct Authority (FCA) yesterday to discuss the growing disparity between rates charged for borrowing and rates paid to savers.
The UK’s financial watchdog says it has begun to see banks and building societies improve savings rates, but wants progress to accelerate. It expects providers to pass on interest rate rises to savers more quickly, and help customers access the best rates available.
These changes will fall under the FCA’s new Consumer Duty guidelines, which come into effect at the end of July.
Consumer Duty will require banks, building societies, insurance providers and other financial services firms to maintain a higher standard of consumer protection, and prove they are acting in the best interest of customers.
The FCA will also report what the savings market is doing as a whole to help support savers at the end of this month.
Victor Trokoudes, founder of financial app Plum, said: “Banks want to maximise the difference between the rate they lend at and their cost of deposits in order to grow their new interest margin. That means they’re effectively incentivised to pay the lowest possible rate to their depositors to maximise profits.
“[Yesterday’s] announcement suggests the FCA was hoping to embarrass the high street banks into action by shining a light on the issue. It remains to be seen to what extent banks will accelerate rate rises and more effectively communicate better value products to their customers. Even after their recent rate increases, most high street banks still offer an easy access rate of less than 2%.”
6 July: Halifax, Bank Of Scotland, Lloyds Accounts See Increases
Lloyds Banking Group has announced it is boosting rates across a range of savings accounts, writes Bethany Garner.
The group – which owns brands including Lloyds Bank, Halifax and Bank of Scotland – is increasing rates on a number of fixed and variable accounts by as much as a full percentage point.
These new rates come as the chief of Lloyds Bank – along with representatives from HSBC, Barclays and NatWest – prepare to meet the Financial Conduct Authority today to discuss the widening gap between rates charged to borrowers and rates paid to savers.
Fixed rates
From 12 July, the Halifax one-year fixed rate ISA and one-year Fixed Saver will both see rates increase by 0.50 percentage points, to 5.30% AER. Their two-year counterparts will also increase by the same amount to 5.35% AER.
Lloyds Bank is raising rates on its one and two-year fixed rate accounts. The one-year Fixed Rate Cash ISA and one-year Fixed Bond will pay 5.45% AER from 12 July – up from 4.95%.
The bank’s two-year Fixed Rate Cash ISA and two-year Fixed Bond will also receive a boost of 0.50 percentage points, to 5.50% AER.
Bank of Scotland’s one-year Fixed Rate Cash ISA and one-year Fixed Bond are undergoing the largest rate hikes, with both accounts paying 5.45% AER from next week – a full percentage point increase.
Their two-year counterparts will see rates increase by 0.95 percentage points from next week. The two-year Fixed Rate Cash ISA will pay 5.50% AER, while the two-year Fixed Bond will pay 5.00%.
Variable rates
Rates are also set to rise by up to 0.80 percentage points across several of the group’s variable rate accounts.
From 20 July, the Halifax Everyday Saver and ISA Saver Variable accounts will pay between 1.15% and 1.65% AER – up from a range of 0.95% to 1.35% AER. These accounts pay a tiered rate of interest depending on the saver’s balance.
Elsewhere, the ISA Reward Bonus Saver and Reward Bonus Saver will see rates rise by 0.80%, to 4.20% AER, while the ISA Bonus Saver and Bonus Saver accounts are set to pay 4.10% AER – up from 3.30%.
The bank’s Kids Saver and Junior ISA accounts will receive uplifts of 0.20 and 0.25 percentage points respectively, paying 3.25% and 3.50% AER.
While Help to Buy ISAs are no longer available to new customers, existing account holders will also see their rates rise by 0.25 percentage points to 2.75% AER.
Lloyds Bank is upping rates on the Easy Saver and Cash ISA Saver. From 20 July, the accounts will pay 1.10% to 1.80% – up from 0.90% to 1.50%. Both accounts pay a tiered rate of interest that varies depending on the customer’s balance.
The Club Lloyds Saver, which also pays a tiered rate of interest, will see rates rise by 0.20 percentage points to between 1.50% and 2.20% AER.
Both the Club Lloyds Advantage Saver and Advantage ISA Saver will undergo the largest increase, with rates rising 0.80 percentage points to 4.00% AER.
Lloyds’ Junior ISA and Child Saver accounts will also receive a boost of 0.25 and 0.35 percentage points respectively, taking both accounts to 3.00% AER.
Existing Help To Buy ISA customers will see an uplift of 0.25 percentage points, with the account paying 2.75%.
Bank of Scotland’s Access Cash ISA and Access Saver, which pay a tiered rate of interest depending on the balance, will see rates rise to 1.15% to 1.65% AER.
The bank’s Advantage ISA Saver and Advantage Saver will both pay 4.00% from 20 July – representing a jump of 0.80% percentage points.
Both the Junior ISA and Childrens Saver accounts will see rates boosted to 3.00% AER – up from 2.75% and 2.65% respectively.
Finally, existing Help To Buy ISA customers will receive a rate increase of 0.25% percentage points, taking the account AER to 2.75%.
6 July: Shawbrook Looks To Stimulate Switching Market
Shawbrook Bank is launching an easy access savings account paying a market-topping 4.35% AER (variable) on balances above £1,000, writes Bethany Garner.
The instant access account can be opened online, and allows savers to make unlimited deposits and withdrawals without notice. Interest on the account is calculated daily, and can be paid either monthly or annually.
With this new rate, Shawbrook joins a flurry of providers boosting savings returns in the wake of the Bank of England’s decision to increase the bank rate to 5.00%.
The move also comes as chief executives from four major banks – HSBC, Barclays, NatWest and Lloyds – prepare to meet the Financial Conduct Authority later today to discuss the growing gap between rates charged to borrowers and rates paid to savers.
At time of writing, these high street banks lag behind lesser-known providers when it comes to savings rates.
While Shawbrook’s new account is a market-leader in the easy access category, it currently shares the top spot with Family Building Society’s Online Saver.
This easy access account – also paying 4.35% AER (variable) – can be opened online from £100, with interest calculated daily and paid annually.
Adam Thrower, head of savings at Shawbrook, said: “Our research shows that almost half (46%) of Brits have yet to take advantage of higher rates, and instead have been keeping their savings in low-paying or non-interest earning current accounts.
“Our new market-leading easy access account should encourage those who have savings in current accounts or other low-paying accounts to switch.”
Renewed competition among providers to offer the top rate may be welcome news for savers, but stubbornly high inflation continues to erode returns.
Annual inflation, as measured by the Consumer Price Index (CPI) sat at 8.7% in the year to May 2023.
5 July: Mutual Reveals Rise Ahead Of Bank Grilling Tomorrow
Nationwide Building Society is raising rates on several savings accounts from next week, with some increases as high as 0.80 percentage points, writes Bethany Garner.
The move comes as chiefs from four major banks – HSBC, Barclays, NatWest and Lloyds – prepare to meet the Financial Conduct Authority tomorrow to discuss the widening gap between rates charged for borrowing and rates paid to savers.
The Treasury Select Committee of MPs has also written to the banks demanding to know why interest rate increases take longer to reach their savings account customers.
Nationwide’s increase is the second time it has hiked rates in recent months – with a handful of accounts having already received a boost from 1 July.
From 14 July, Nationwide’s Instant Access Saver, Instant ISA Saver and Cashbuilder accounts – which pay a tiered rate of interest depending on the saver’s balance – will pay between 2.15% and 2.25% AER, up from 1.35% to 1.50%.
Its regular savings account – Start to Save 2 – is set to pay 5.50% AER, up from 5.25%.
The society’s member-only Loyalty accounts will receive an uplift, too. Interest paid on the Loyalty Saver, Loyalty ISA and Loyalty Single Access ISA is increasing from 3.30% to 3.50% AER.
Nationwide is also hiking rates on its children’s accounts by up to 0.75%. The Child Trust Fund, Junior ISA and Future Saver accounts will all pay 4.00% AER – up from 3.25%.
Meanwhile, from 1 August, Nationwide is raising rates on a selection of limited access accounts.
The provider’s Triple Access Online ISA and Triple Access Online Saver will see rates increase from 3.30% to 3.50% AER – though this new rate falls to 2.15% if savers exceed their withdrawal limit.
Elsewhere, the society is launching a suite of one-year fixed rate accounts from today.
Its new Fixed Rate Online Bond, Fixed Rate Branch Bond and Fixed Rate ISA will all pay a competitive 5.10% AER on balances from £1.
3 July: Premium Bond Odds To Improve From August
National Savings and Investments (NS&I), the government-backed savings bank, is adding £30 million to the Premium Bond prize fund from August, writes Bethany Garner.
This takes the prize fund rate – the effective rate of return paid by the fund in aggregate – from 3.70% to 4.00%, its highest level since 2007. No individual bondholder is guaranteed any return from the fund.
The odds of each £1 bond winning a prize is set to increase from August – improving from one in 24,000, to one in 22,000.
The majority of new prizes added to the monthly draw will be worth £25 to £100, but the number of larger prizes is also rising.
There will be an additional six £100,000 prizes, 13 more £50,000 prizes and 24 more £25,0000 prizes. There will still be just two £1 million prizes in each draw.
This change follows hot on the heels of NS&I’s last prize fund hike, which saw £39 million added to July’s prize draw (see story from 23 June).
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “It’s a boost for over 22 million people with bonds and may well attract even more savers in the coming months.
“Anyone considering snapping up Premium Bonds needs to understand the price they pay. In an average month a typical bond holder will win nothing, and unless you’re unusually lucky you won’t get close to a return of 4%.
“While interest rates are higher, you’re missing out on more interest elsewhere by opting for Premium Bonds.
“However, there will be plenty of people who think this is a price worth paying for the chance of winning a life-changing sum of money. You could be one of the 1,310 people in August who win £25,000 or more – or one of two to take away £1 million.”
NS&I has also announced that it is upping interest rates on two easy access savings accounts. From 13 July, NS&I’s Direct Saver and Income Bond will both see rates rise from 2.85% to 3.40% AER.
29 June: Easy Access Account Pays 4.30% As Providers Up Rates
More providers have boosted rates across a range of savings accounts in the wake of the latest Bank Rate hike, writes Bethany Garner.
HSBC has announced it will raise rates by up to 0.40% across a number of savings accounts from tomorrow (30 June).
Interest on the bank’s instant access Premier Savings account will rise from 1.60% AER (variable) to 2.00%, while the Flexible Saver will pay 1.75% AER (variable) – up from 1.35%.
HSBC’s Online Bonus Saver will also see an uptick in the amount of interest paid. The account pays a higher rate on the first £10,000 – but from tomorrow, this threshold is rising to £50,000.
The account also pays a bonus rate each month that savers avoid making a withdrawal.
From tomorrow, balances up to £50,000 will earn 4.00% AER (variable) if savers have not made a withdrawal in the previous month, or 2.30% AER if they have.
The standard rate paid on any portion of the balance above £50,000 is also increasing, from 1.35% to 1.75% AER (variable). When savers have not made a withdrawal in the current month, the bonus rate on this portion of the balance will continue to be 2.30% AER.
HSBC says the changes could net savers with at least £50,000 up to £680 in additional interest each year.
Online-only bank First Direct, an HSBC subsidiary, is boosting rates on three of its savings accounts.
The bank’s one-year Fixed Rate Saver will pay 5.00% AER from today – up from 4.60% – while its easy access FD Savings Account will see rates rise by 0.40% to 1.75% AER from 30 June.
The FD Bonus Savings Account will pay up to 4.00% AER (variable) on balances up to £50,000. Cash above this threshold will continue to earn 2.30% AER.
The Bonus Savings Account pays a lower rate of 1.75% AER (up from 1.35%) when savers have made a withdrawal the previous month.
Newcastle building society has launched a market-leading easy access account paying 4.30% AER (variable) on balances from £1 to £250,000.
The Base Rate Tracker account guarantees an interest rate that does not fall more than 0.70% below the current bank rate until the end of 2025.
It’s available to both new and existing customers, and can be opened online or in a branch. Savers can access their cash any time without notice, and interest is paid monthly.
Yorkshire building society has announced it will raise rates by up to 0.50% across all variable rate savings accounts from 6 July.
The provider’s Internet Saver Plus account, Rainy Day account, and Regular Saver accounts will all see rates jump by 0.50%.
The Internet Saver will pay 4.00% AER (variable) – up from 3.50% – while the Rainy Day account will offer 4.35% AER on balances up to £5,000, and 3.70% AER on balances above £5,000.
Meanwhile, the society’s Access Saver Plus account will see rates rise from 3.05% to 3.35% AER.
While rising rates may be welcomed by many savers, those forced to dip into their funds to make ends meet may not see the benefit.
According to the latest Bank of England figures, UK households withdrew £4.6 billion (net) from banks and building societies in May.
27 June: Providers Reserve Best Deals For Existing Customers
Lloyds Bank is rewarding existing customers with exclusive cash ISA rates, writes Bethany Garner.
The bank has launched two fixed-rate ISAs, paying up to 5.05% AER on balances from £3,000.
While the accounts are open to anyone, only customers who have held a personal current account with Lloyds for at least 40 days receive the highest rates – which include a 0.05% bonus.
Its one-year fixed rate ISA pays 4.95% AER to new customers, and 5.00% to existing customers. At time of writing, this bonus rate edges the account into position as market-leader.
Its two-year counterpart pays 5.00% AER to new customers, and 5.05% to existing customers – just 0.05% shy of the current market leader.
Interest on both ISAs is calculated daily, and paid either monthly or annually.
Lloyds is not the only provider to offer better deals to its existing customers.
Nationwide Building Society recently paid out £100 to qualifying members under its profit sharing programme, Fairer Share (see story from 19 May).
Nationwide also offers a range of members-only Loyalty accounts, which pay up to 3.30% AER at time of writing.
Elsewhere, Saffron Building Society recently launched a market-leading regular saver, available exclusively to members who have held an account with the provider for at least 12 months.
The Members’ Month Loyalty Saver pays 9% AER (fixed), and allows savers to pay in up to £50 each month for a year.
23 June: New Market-Leaders Emerge To Boost Competition
Several savings providers have boosted returns across a range of savings accounts, as interest rates continue to climb, writes Bethany Garner. Here’s what’s happening.
Halifax has increased interest rates by 0.50% on four of its fixed-term accounts today.
The bank’s one-year fixed rate ISA, and one-year Fixed Saver, saw rates rise to 4.80% AER.
Elsewhere, its two-year fixed rate ISA, and two-year fixed rate Saver, will now pay 4.85%.
Lloyds Bank has increased the returns on its fixed rate products by up to 0.50%.
The one-year Fixed Rate Cash ISA and one-year Fixed Bond will pay 4.95% AER from today – an increase of 0.50%
The two-year Fixed Rate Cash ISA and two-year Fixed Bond now pay 5.00% AER, representing a rise of 0.45%.
Shawbrook Bank announced the launch of four fixed rate cash ISAs today (Friday 23 June) with its one-year fixed rate ISA paying a market-leading 4.82% AER (fixed).
The bank’s two, three and five-year fixed rate ISAs pay competitive 4.93%, 4.82% and 4.65% respectively.
Accounts are online-only and require a minimum deposit of £1,000. The maximum deposit matches the £20,000 annual ISA allowance. No further deposits are allowed and early withdrawals are subject to the loss of 90 days’ interest.
Paragon Bank has increased rates across 10 of its savings accounts, also effective from today.
Fixed rate bonds
One-year fixed rate and 18-month fixed rate accounts now pay 5.40% AER – up from 4.95%
The two-year fixed rate account pays 4.45% AER, an increase of 0.50%
Newly-launched three-year fixed rate account now pays 5.30% AER
Green three-year fixed rate account now pays 5.30% – up from 4.85%
Five-year fixed rate account now pays 5.00% AER – up from 4.50%.
Fixed rate ISAs
Paragon’s three-year fixed rate ISA has increased its rate from 4.35% AER to 4.75%
Five-year fixed rate ISA now pays 4.65% AER, up from 4.00%
Notice accounts
The bank’s 120 day Notice account rate has risen from 4.00% AER to 4.60%
Its 180 day Notice account will pay 4.65% AER, representing a chunky increase of 0.60%.
National Savings & Investments
National Savings and Investments (NS&I), the government-backed savings bank that oversees premium bonds, has made the following changes:
Junior ISA rate increased from 3.40% to 3.65% AER. Around 89,000 young savers will benefit from the rise
Adding £39 million to its prize fund taking the effective prize fund rate to 3.70%, with effect from the July draw.
The majority of new prizes will be worth £50 or £100 – but there will also be eight additional prizes at £100,000, 16 at £50,000, and 32 at £25,000.
Each draw will continue to feature just two £1 million prizes, and the odds of each bond winning a prize remains unchanged at 24,000 to 1.
Marcus by Goldman Sachs is hiking interest rates on two savings accounts from 21 June (Wednesday):
Online Savings Account now pays 3.75% AER (variable) – up from 3.50%
The Cash ISA pays 3.75% AER (variable), an increase of 0.25%
Both accounts include a 12-month bonus rate of 0.34%.
Nationwide building society has announced it will raise interest rates on several accounts from 1 July as follows:
Members-only Loyalty Saver, Loyalty ISA and Loyalty Single Access ISA accounts will pay 3.30% AER (variable) – an increase of 0.10%
1 Year Triple Access Online ISA will see rates rise from 3.20% to 3.30%.
Instant Access Saver, Instant ISA Saver and Cashbuilder accounts – which pay a tiered rate of interest depending on the customer’s balance – will pay between 1.35% and 1.50% AER, up from between 1.25% and 1.50%.
While climbing rates is welcome news for savers, providers have come under fire for failing to pass on full rate rises to savers (see story below).
The Bank of England raised interest rates by 0.5 percentage points yesterday to 5% – the highest level for 15 years.
8 June: Loyal Customers ‘Squeezed By Measly Interest Rates’
MPs who last month quizzed Nationwide, Santander, TSB and Virgin Money about low rates of interest on their easy access savings accounts have published the responses they received.
The cross-party Treasury Select Committee is concerned that the rates on offer are too low compared to the Bank of England Bank Rate.
In February, when the Committee launched its enquiry, leading banks and building societies were paying between 0.5 and 0.65 per cent for easy access savings accounts. The range has since risen to between 0.7 and 1.35 per cent.
The Bank rate was 4% in February and now stands at 4.5% after two increases of 0.25 percentage points.
The Bank of England has noted that the ‘pass-through’ of interest rate rises to savers has been “unusually weak”.
The Financial Conduct Authority, the market regulator, has also expressed concerns about low rates on offer to savers, threatening interventions if the situation does not improve.
Harriett Baldwin MP, chair of the Committee, said: “It’s clearer than ever that the nation’s biggest banks need to up their game and encourage saving.
“While other products are available to those who shop around, the measly easy access rates on offer lead us to conclude that loyal customers are being squeezed to bolster bank profit margins.
“We remain concerned that the loyalty penalty is especially prominent for elderly and vulnerable customers who may still rely on high street bank branches.”
In their responses, the four institutions argue that they offer a range of savings products, with rates on offer that are much higher than on their ordinary savings accounts. Each provider said it communicates with customers to make them aware of accounts that have higher rates of interest on offer.
The Bank Rate is widely expected to rise to 4.75% or 5% when the next decision on interest rates is announced on 22 June.
7 June: Banks To Reimburse Victims Of Fund Transfer Fraud
From 2024, banks and other payment process companies will be required to reimburse customers who fall prey to authorised push payment (APP) scams, the Payment System Regulator announced today.
APP scams see victims tricked into sending money directly to a fraudster, who may be posing as a legitimate company or government body. According to figures from trade body UK Finance, £485.3 million was lost to APP fraud in 2022 alone.
The forthcoming regulations will apply to transfers made through Faster Payments – the system through which the regulator says most APP fraud takes place.
When the new rules come into force, banks and other companies that use the Faster Payments system will be required to reimburse the victims of APP scams.
These regulations will apply to over 1,500 payment service providers from 2024.
The cost of reimbursement will be evenly split between the company that sent the money – such as the victim’s bank – and the company responsible for the running of the account that received the fraudulent payment.
Victims must be repaid within five business days.
However, victims could be denied a reimbursement if their provider believes it was caused by ‘gross negligence’, or if they wait more than 13 months to report the scam.
Victims deemed ‘vulnerable’ to APP scams cannot be denied reimbursement on the grounds of gross negligence.
The PSP says it will provide clear guidance on minimum reimbursement claims and what level of excess victims may have to contribute towards the claim they make – suggested at £35. The regulator will also publish data on how well firms are protecting their customers from APP fraud.
As well as supporting the victims of APP fraud, the PSP say these new rules will encourage banks, building societies and other firms that handle payments to step up their fraud prevention efforts.
Chris Hemsley, managing director of the PSR, said: “Once implemented, our changes will deliver a major shift from the status quo, giving everyone across the payments ecosystem a reason to act to prevent fraud from happening in the first place.
“That means everybody who makes payments can do so with much greater confidence, knowing that they will be better protected against fraudsters.”
While the PSP hopes these regulations will reduce instances of APP fraud – and support customers who do fall victim – there are some limitations.
In their current form, the regulations will not apply to international payments, or those made through other systems such as CHAPS, BACS, card purchases and some other transfers.
These regulations form part of a larger effort to crack down on financial fraud, which has been on the rise as unscrupulous scammers take advantage of people’s increased financial vulnerability amidst the cost-of-living crisis.
In May, the government announced its new fraud strategy, which will place a blanket ban on cold calls offering financial products.
It will also ban ‘Sim farms’ – where criminals send fraudulent text messages to thousands of people at once – and bar scammers from impersonating the phone numbers of banks and other legitimate businesses.
While these measures will be welcomed by consumers, remaining vigilant is vital. To reduce the likelihood of falling for a scam, Citizens Advice advises individuals watch out for the following warning signs:
Skipton building society has launched a regular saver account offering 7.5% AER, fixed for 12 months, writes Bethany Garner.
The account is available exclusively to Skipton Building Society members who joined before 31 May 2023. Account holders can set aside up to £250 each month, but there’s no obligation to make a deposit every month.
Any unused subscriptions can also be rolled over into subsequent months, provided savers do not deposit more than £3,000 over the account’s 12-month term.
Interest is calculated daily and paid when the account matures after 12 months. Withdrawals are not permitted, but savers can close the account any time – although this means sacrificing the interest earned so far.
Savers who set aside the maximum subscription of £250 per month would earn £121 in interest.
Skipton is not the only provider to bring out a competitive regular saver account this month. Last week, Saffron Building Society launched its Members’ Month Loyalty Saver – a members-only account paying 9% AER (fixed for 12 months), when savers deposit up to £50 per month.
As savings rates continue to climb, research by online provider, Atom Bank, has found that 50% of UK adults have never switched savings accounts.
The study, which surveyed 2,000 UK adults in April 2023, found that 24% of those who have not switched savings accounts avoided the process because they believe it will be ‘too much hassle.’
This hesitancy could be costing savers hundreds of pounds. According to Atom’s analysis, individuals who hold £10,000 in an easy access account could earn an additional £227 of interest each year by transferring the balance from a high street bank to a challenger bank.
At time of writing, the average easy access rate offered by Barclays, HSBC, NatWest, Lloyds, TSB, Virgin Money and Nationwide paid 0.88% AER (variable) – considerably lower than the 3.88% AER (variable) offered by the current market leader, Principality Building Society.
Mark Mullen, chief executive officer at Atom Bank, said: “The myth remains that switching banks is a time-consuming and difficult process. Savers today have the best rates at their fingertips, and just a few clicks on a decent app can earn them an extra few hundred pounds a year.
“The sooner people realise this, the sooner big banks will be forced to change their ways.”
1 June: First Direct Also Boosts Savings Returns
Saffron Building Society today launched a market-leading savings account paying a 9% AER, writes Bethany Garner.
The Members’ Month Loyalty Saver is only available to existing customers who have held a Saffron Building Society account for at least 12 months.
At time of writing, this limited edition account – available until 30 June 2023 and lasting for a 12-month term – is the only savings account on the market to pay an interest rate that beats the official headline rate of inflation, which stands at 8.7%.
Savers can pay in up to £50 each month, and the minimum opening deposit is £1.
Interest on the account is calculated daily, and paid at the end of the 12-month term. An account holder who deposited £50 each month and avoided making any withdrawals would earn £29.25 in interest.
Savers can access their cash any time, but are limited to one withdrawal per calendar month. The account can be opened online or in a branch.
The account’s launch coincides with Saffron’s first Members’ Month celebration, which rewards customers with events including a daily £100 prize draw over the month of June.
Colin Field, chief executive officer at Saffron, said: “We have introduced this chart-topping product to coincide with the launch of our first Members’ Month. The Members’ Month Loyalty Saver has been developed to show big support to our small savers.”
With its 9% interest rate, Saffron beats out the former market leader for regular saver accounts, First Direct, by 2%.
First Direct’s Regular Saver account pays 7% AER (fixed for one year) when customers deposit between £25 and £300 per month. A saver who deposited £300 into their account each month would earn £136.50 in interest at the end of its term.
First Direct also announced today it is raising interest rates by up to 0.50% on three of its other savings accounts from 8 June 2023.
The bank’s Bonus Savings Account – which pays an enhanced interest rate each month savers avoid making withdrawals – will offer 3.50% AER on balances up to £25,000 (up from 3.00%), and 2.30% AER on balances greater than £25,000 (up from 2.00%).
A lower rate of 1.35% will be paid each month the customer makes a withdrawal (up from 1.30%).
Meanwhile, First Direct’s easy access FD Savings Account will see rates increase from 1.30% to 1.35% AER (variable) from 8 June, while its Cash ISA rate will increase from 2.30% to 2.50% AER (variable).
First Direct and Saffron are not the only providers raising rates in the wake of the latest bank rate hike, which saw the Bank of England raise its bank rate to 4.5% – the 12th consecutive increase in 18 months.
Elsewhere, the online savings bank Shawbrook launched a one-year fixed rate bond paying a market-leading 5.06% AER, and a cash ISA paying 4.43%, fixed for 12 months.
19 May: Society Unveils Member-Only 2-Year Bond At 4.75%
Eligible customers of Nationwide building society will receive a £100 bonus under its Fairer Share reward programme, announced today.
As a mutual organisation, Nationwide’s customers are ‘members’ who effectively own the society. It is funding the payments and a member-only Fairer Share Bond out of its annual profit of £2.2 billion for the year to April (up from £1.6 billion in 2021/22).
To be eligible for the £100 payment, a member must have a:
qualifying current account and
qualifying savings or mortgage account.
The current account must already have been open on 31 March and the member must also have an open current account in June.
For savings accounts, the member must have had at least £100 in total in one or more Nationwide personal savings accounts or cash ISAs at the end of any day in March 2023.
For mortgages, the member must have owed Nationwide at least £100 on a residential mortgage on 31 March 2023.
You can access the society’s eligibility checker here.
Will I pay tax on this payment?
The Fairer Share £100 payment counts as taxable savings income, which means it is treated in the same way as any interest you earn on your savings account or current account. If you are a 20% basic rate taxpayer, you can earn interest of £1,000 each financial year without paying tax – this is your Personal Savings Allowance (PSA). If you pay 40% higher rate tax, the amount on interest you can earn tax-free is £500 a year thanks to your PSA – so £100 would represent a fifth of your allowance. If you pay the additional rate of tax at 45%, you do not have a PSA.
No tax will be deducted from the payment by Nationwide, but the society will report it to HM Revenue & Customs (HMRC), as is required. You must account for any tax you owe for a particular financial year via a self-assessment tax return.
Payments will be made automatically to qualifying members – there is no need for action. The society will get in touch with eligible members from today, and payment will be made into current accounts from 13 June to 30 June.
Nationwide says it intends to make such payments annually, provided it would not be detrimental to its financial strength.
The new Fairer Share Bond, which is already on sale, is a two-year fixed-rate bond paying 4.75%. It is available to Nationwide members who were customers of the society yesterday, 18 May.
This rate is slightly below the 4.95% paid by a number of other financial providers.
17 May: Govt-Backed Bank’s Direct ISA Gets Quarter Point Uplift
National Savings and Investment (NS&I), the government-backed savings bank that oversees premium bonds, has increased the interest rate on its Direct ISA by 0.25 percentage points, to 2.40% AER, writes Bethany Garner.
This marks the second time the bank’s ISA rate has been hiked since the start of 2023, and will benefit more than 333,000 NS&I savers.
Despite the increase, NS&I’s ISA rates fall behind current market leaders. At time of writing, the leading variable rate cash ISA, provided by Furness Building Society, pays 3.55% AER 1.15% points higher than the Direct ISA.
NS&I has also increased the value of its premium bond prize fund five times in the last 12 months, taking the total to £331.5 million (see story from 14 February).
11 May: Nationwide, Santander, TSB, Virgin Called To Account
Pressure is mounting on bank bosses over poor interest rates on their savings accounts, despite a huge uplift in the Bank of England Bank Rate over the past year, writes Jo Thornhill.
The influential cross-party Treasury Select Committee of MPs has written to the bosses of Nationwide, Santander, TSB and Virgin Money, questioning the interest rates on easy access savings products and how Bank Rate rises are passed on to customers.
The Committee also asked providers how they communicate with those of their customers who have cash in lower paying accounts regarding higher savings rate deals that may be available.
Nationwide, Santander, TSB and Virgin Money have been given until 24 May to respond.
In the letters, Harriet Baldwin MP, chair of the Committee, highlights the increased pre-tax profits recorded at each of the banks in 2022, which she states were £1.9 billion for Santander, £1.6 billion for Nationwide, £595 million for Virgin Money and £183 million for TSB.
The inference made in the letters is that profits are being boosted at the expense of loyal savers, who have not benefited from increased savings rates.
Yorkshire building society is to add 0.25% onto the rates paid on its variable rate savings accounts. It means instant access accounts will pay a minimum rate of 3.05% (3.25% for restricted access accounts). New accounts will pay a minimum of 3.05%. The change will take effect from 17 May.
Digital bank Chase is to increase the rate on its saver account from 3.1% to 3.3% – just short of the full quarter-point Bank rate increase – for new and existing customers, with effect from 22 May.
Last month, the Financial Conduct Authority wrote to the Committee in response to its request for more evidence on savings rates and competition in retail banking. Nikhil Rathi, FCA chief executive, agreed with the MPs’ opinion that many savers have lost out as interest rates have risen.
He said: “It is, and has been, standard practice for firms to offer more attractive rates to new savers, while leaving existing savers earning less competitive rates. We expect that the harm from this practice (and the loyalty penalty faced by longstanding customers) will have increased as the base rate has risen.”
In her letter to Mike Regnier, UK boss of Santander, Ms Baldwin said: “The Bank of England has increased the base rate from 0.25% in January 2022 to 4.25% currently. The interest rate on the Santander ‘everyday saver’ account for deposits is currently 0.7%.
“Please could you therefore answer: How does Santander UK determine how increases in the base rate are passed on to its savers? Why is the interest rate on its ‘everyday saver’ account so much lower than the base rate? And How does Santander UK communicate with its consumers, in particular those with large balances in their ‘everyday saver’ account, to make them aware of what could be more suitable, higher rate savings options available to them.”
Nationwide, Santander, TSB and Virgin Money have said they will respond separately by the deadline.
A Santander spokesperson said: “We have received the letter from the Treasury Committee and look forward to providing them with our response. Over the last few months we have launched some market-leading rates across our Cash ISAs and savings accounts.
“Our 123 current account offers 2% interest on balances up to £20,000 and our Edge current account has a linked savings account paying 4%. Both of these accounts allow customers to withdraw money with no penalty.”
A Nationwide spokesperson said: “Our average deposit rate has been at least 42% higher than the market average in recent months and we will pay the best rates we can sustainably afford.
“We are different from banks because we are owned by our members, so we always look for opportunities to reward them with even better value.”
2 May: Bank Boosts Rates Across Range Of Products
Aldermore is increasing its interest rates by up to 0.40 percentage points across a range of savings deals including its Easy Access and Notice accounts and its fixed rate bonds, writes Jo Thornhill.
The bank’s Easy Access account is boosted to 3.4% (AER Annual Equivalent Rate) from 3.15%. Its Double Access Account Issue 1, which allows two withdrawals per year, is already among the market leading rates, although its rate remains unchanged at 3.55% AER.
The four-year fixed rate bond is also now market leading at 4.65% (AER), up from 4.45%.
Aldermore is increasing its fixed rate bonds across the board. Its one-year rate is now 4.6% (AER) up from 4.35% and its two- and three-year rates are both now paying 4.65% (up from 4.45% AER).
At the same time the bank has upped the rates on its Notice accounts and its Notice Isa. The 30-day notice account (non-Isa) is paying 3.45% (AER) up from 3.2% and the equivalent 30-day notice Isa is paying 3.2% (AER) up from 2.8%.
Ewan Edwards, director of savings at Aldermore said: “Offering customers good value on their savings is incredibly important and with these increases savers can rest easy knowing their hard-earned cash is working hard for them.
“Our increases today are across a range of different account types so you can get a great rate no matter what your saving goal is.”
28 April: Rates Climb By Up To 0.35% From Monday
Nationwide Building Society is raising interest rates on several savings accounts from 1 May, writes Bethany Garner.
Rates are set to rise by as much as 0.35% across Nationwide’s variable rate accounts.
Two limited access accounts – the Limited Access Saver and eSavings Plus accounts – will see interest rates increase by 0.35%, from 1.40% to 1.75% AER.
The provider’s Instant Access Saver (issue 10) will pay 1.55% AER from May – an increase of 0.25% – while both the Loyalty Saver and Loyalty ISA account will see rates rise by 0.20%, to 3.20% AER.
Meanwhile, rates paid on regular savings accounts such as the Flex Regular Saver will rise by 0.25%.
Nationwide is also increasing rates across its children’s savings accounts.The provider’s Child Trust Fund, Junior ISA and Future Saver accounts will all see rates rise by 0.25% – from 3.00% to 3.25% AER.
Tom Riles, director of retail products at Nationwide, said: “As a mutual, we are always keen to support savers and pay the best rates we can sustainably afford, which is why we are increasing rates on all variable rate accounts, including our popular Loyalty and Triple Access accounts.”
Nationwide is the latest provider to announce rate increases in the wake of last month’s bank rate hike from 4.00% to 4.25%. Marcus by Goldman Sachs raised rates on two of its popular accounts this week.Both the provider’s Cash ISA and Online Savings Accounts now pay 3.30% AER (variable).
It’s worth noting that this includes a bonus rate of 0.34%, which savers must actively apply to their account. The rate expires after 12 months, and savers could be offered a more competitive bonus rate in the interim. In this case, they can opt in to the new bonus rate, which replaces the old one even if it hasn’t expired.
24 April: Reduction In Permitted Deposits To Limit Fraud
Regulator the Financial Conduct Authority (FCA) is taking steps to reduce money laundering via the Post Office, writes Bethany Garner.
According to the National Economic Crime Centre (NECC), hundreds of millions of pounds are laundered through Post Office cash deposits each year.
Under the measures from the FCA, customers paying in cash will be encouraged to use their debit card rather than a paying-in slip where possible, which the regulator says will allow increased monitoring.
The maximum cash deposit for a single transaction is also set to be reduced from its current limit of £20,000, though new limits are yet to be confirmed.
To support these anti-money laundering efforts, Post Office staff will receive additional training in spotting suspicious activity. Banks and building societies will also be required to enhance their fraud monitoring activities.
Newly curbed deposit limits could impact customers who rely on cash for day-to-day money management – particularly those who do not have access to a physical branch of their bank.
The move may also affect digital banking customers, since many app-only providers accept cash deposits through the Post Office.
Local businesses that don’t have a bank near-by may equally struggle with a reduced cap on cash deposits.
Sheldon Mills, executive director of consumers and competition at the FCA, said: “We have worked in partnership with law enforcement, industry and government to ensure people and businesses can still draw on the vital cash banking services provided by the Post Office, while addressing gaps that criminals could abuse.”
20 April: MPs Join Condemnation Of Harm Done To Savers
Loyal savers have suffered increasing financial harm over the past year, according to the financial regulator, because banks have failed to pass on interest rate rises fairly, writes Jo Thornhill.
In a letter to the parliamentary Treasury Select Committee, the chief executive of the Financial Conduct Authority, Nikhil Rathi said: “It is, and has been, standard practice for firms to offer more attractive rates to new savers, while leaving existing savers earning less competitive rates.
“We expect that the harm from this practice (and the loyalty penalty faced by longstanding customers) will have increased as the base rate has risen.”
The Bank of England Bank Rate has risen from 0.1% at the end of 2021 to its current level of 4.25%, but the average interest rate on easy access savings is languishing at around 2%, according to financial data analysts Moneyfacts.
The next Bank Rate announcement is on 11 May.
The FCA’s letter comes in response to concerns expressed by the Committee last month that banks were earning disproportionate profits by increasing rates on mortgages far quicker than on their savings products.
Mr Rathi added that the FCA had ‘challenged’ some of the worst culprits who had failed to increase savings rates, or did so with a ‘material time lag’ compared to prompt increases to mortgage rates.
He told the Treasury Select Committee he expected that the FCA’s new Consumer Duty, which will come into force for new and existing products from 31 July, would benefit all groups of savers.
The new rules will place greater emphasis on financial providers offering fair and good value products to all customers.
Mr Rathi said change would require a “significant culture shift from firms”, adding that he has stressed to banks the FCA’s interest in how they have been “moving mortgage rates and savings rates, the considerations they balance and the governance around decisions made.”
He said: “Once the Consumer Duty is in force the FCA will be able to identify and act against practices that do not deliver good outcomes for consumers.”
In response to today’s FCA letter, Harriett Baldwin, chair of the Treasury Select Committee, said: “The regulator has now given us official confirmation that the UK’s biggest banks are profiting from interest rate rises and that loyal savers are being increasingly harmed.
“While it’s welcome to hear the financial regulator is monitoring this situation, we will be keeping a close eye to ensure they act on these assurances. Consumers should continue to shop around to get the best rates possible.
“With banks set to release their first quarter results in the coming weeks, we will be monitoring whether firms are continuing to squeeze profits from their loyal savings customers.”
14 April: Provider Leads Market For Non-App Accounts
Family Building Society has increased the rate on its Online Saver account to 3.40% AER, writes Bethany Garner.
The Online Saver account can be opened and managed exclusively online, and the minimum opening deposit is £100.
Savers can access their cash at any time without penalty, though the minimum withdrawal is £100.
At 3.40%, Family Building Society now offers the market-leading rate for non-app easy access accounts – and the highest in a decade, according to analysis from Savings Champion.
At time of writing, the overall market leader is app-only provider Chip, which offers an instant-access account paying 3.55% AER. Another app-based bank, Tandem, takes the runner-up spot with an instant access account paying 3.50% AER.
The rates offered by challenger banks such as these have outpaced traditional high street banks in recent years.
At time of writing, Halifax, Lloyds Bank, Santander and Barclays all paid interest rates under 1% on their standard easy access accounts.
Savers who rely on in-person banking services, or are unable or unwilling to use online or mobile banking, are likely to miss out on the most competitive rates in this climate.
Coupled with the hundreds of branch closures scheduled for 2023, accessing competitive savings accounts on the high street looks set to become even more challenging.
6 April: Provider Marks New Tax Year With Rates Up To 4.25%
Nationwide Building Society is launchingtwo fixed rate cash ISAs paying interest up to 4.25%, writes Bethany Garner.
The building society’s one-year Fixed Rate ISA comes with a rate of 4.10% AER, up 0.35% percentage points from its last issue.
Meanwhile, its two-year Fixed Rate ISA will pay 4.25% AER, representing an increase of 0.25% percentage points.
Each account can be opened with a lump sum between £1 and £20,000, and partial withdrawals are not permitted mid-term.
Both ISAs are available to new and existing customers, and can be opened in a branch, online or via the Nationwide app. The building society also accepts transfers from existing cash ISAs from other providers.
These new rates place Nationwide in close competition with current market leaders. At time of writing, the leading one-year fixed rate cash ISA, provided by Santander, pays 4.15% AER on balances from £500.
Virgin Money just bags the top spot for two-year fixed rate ISAs, with an interest rate of 4.26% AER on balances from £1.
Tom Riley, director of retail products at Nationwide, said: “Cash ISAs are an important product for savers, as interest doesn’t count towards the Personal Savings Allowance. They are a tax-efficient way to save for the short or long term.
“That’s why, to start the new tax year, we’re launching two fixed-rate ISAs offering some of the most competitive rates currently available on the market.
”The launch of these ISAs closely follows rate hikes on several other Nationwide savings products – including the One Year Triple Access Online Saver, now paying 3.00% AER (see story below).
31 March: Major Account Provider Responds To Bank Rate Hike
Nationwide is hiking interest rates on several of its savings accounts from 1 April, with many increases as high as 0.50% percentage points, writes Bethany Garner.
In raising its rates, the UK’s largest building society follows providers such as Yorkshire and Coventry building societies and Aldermore Bank, which increased rates in response to the latest bank rate hike(see story below).
From tomorrow, the interest rate on Nationwide’s One Year Triple Access Online Saver is set to rise by 0.50% points, from 2.50% to 3.00% AER, while both the Limited Access Saver and eSavings Plus accounts will see rates rise from 1.25% to 1.40% AER.
Elsewhere, the provider’s easy access rates will rise from 0.75% – 0.90%, to 1.00% – 1.25%. Interest paid on these accounts varies depending on the saver’s balance, with accounts worth £50,000 and above earning the highest rate.
Nationwide is also raising rates on three of its Loyalty accounts – the Loyalty Saver, Loyalty ISA, and Loyalty Single Access ISA – from 2.50% to 3.00% AER. Loyalty accounts are not currently open to new applications.
Tom Riley at Nationwide, said: “We remain committed to supporting savers, which is why we have increased rates on our popular loyalty, triple access, and instant access savings accounts where most balances are held.”
While many of these increases are chunky, Nationwide accounts fall behind current market leaders. At time of writing, the leading variable rate cash ISA, provided by Furness Building Society, pays 3.30% AER – 0.30% points higher than Nationwide’s highest paying ISAs.
Online-only provider, Chip, takes the top spot for easy access accounts, with an interest rate of 3.40% AER (variable).
24 March: Savings Rates Climb – But Many Fall Short Of Full Bank Rate Rise
Yorkshire and Coventry building societies, Aldermore Bank and app-based banks Monzo and Atom are among the savings account providers to have raised rates following yesterday’s increase in Bank Rate from 4% to 4.25%, writes Laura Howard.
Yorkshire has passed on the full increase across its easy access accounts, which now offer returns of 2.80% – or 3.0% on accounts with restricted access. All new accounts at Yorkshire will pay a minimum of 2.80%.
Aldermore has upped savings rates across a range of accounts, including its fixed rate cash ISAs, 1-year fixed rate bonds and ‘double access’ accounts (which permit up to two withdrawals per year).
But while Aldermore’s 1-Year Fixed Rate ISA benefits from the full hike – rising from 3.70% to 3.95% – its 2-Year Fixed Rate ISA increases by 15 percentage points to 3.90%, and its 3-Year by just five percentage points to 4.0%.
Monzo has increased the rate payable on its Instant Access account by just under the full Bank Rate hike – from 3% to 3.2%.
Digital bank Chase will increase rates on its 3.00% Saver Account by 10 percentage points to 3.10% from 3 April.
Rachel Springall at Moneyfacts points out that not all savings providers’ rate hikes may be directly linked to yesterday’s announcement – some may have been previously priced in.
Research from data provider Defaqto shows, with rates on cash the highest they have been for 10 years, it’s much easier for savers to breach the Personal Savings Allowance threshold.
The Allowance shields basic rate taxpayers from paying tax on the first £1,000 of interest earned a year. For higher rate taxpayers, the threshold is £500 a year.
Katie Brain, consumer banking expert at Defaqto, said: “It may be worth considering an ISA account instead this year in order to save without the tax liability.
“It is also worth noting that some of the best rates being offered across all accounts are not necessarily from the high street banks. It’s worth looking at building societies and challenger banks that are offering top rates right now, to get the most from your savings.”
The official Dormant Assets Scheme will direct £76 million from forgotten bank accounts towards cost-of-living support for financially vulnerable households, writes Bethany Garner.
Launched in 2011, the Dormant Assets Scheme aims to reunite funds held in products such as current and savings accounts with accountholders who, for whatever reason, have not touched their money for 15 years or more.
Unclaimed cash is redirected towards social and environmental initiatives. So far, the scheme has raised £892 million for these causes.
It should be stressed that money held in a dormant account continues to belong to the accountholder, and can be reclaimed at any time. The Scheme retains a pool of cash to cover this eventuality.
The government says £45 million of funding from the scheme will be distributed among 69,000 individuals struggling with the cost of living crisis. No-interest loans will be made via the government-backed body Fair4AllFinance.
The remaining £31 million will support charities and social enterprises working to improve households’ energy efficiency through schemes such as upgrading boilers, improving insulation and installing heat pumps or solar panels.
For the first time, community wealth funds can also apply for Scheme grants. These funds support communities in deprived areas, with local residents deciding how the money is spent.
Lucy Frazer MP, culture secretary, said: “This will have a real impact on people’s lives, help alleviate debt and provide money saving solutions for charitable organisations.”
In a bid to unlock additional funding, the Scheme will soon cover pensions, securities, investment accounts, and funds held in insurance or wealth management products. Currently, only bank and building society accounts are covered.
The change is expected to raise an extra £738 million.
14 February: Banks Bonus Battle To Attract Customers
Eligible customers who make a full switch of their current account to NatWest will receive a £200 cash welcome bonus from today, writes Laura Howard.
A full switch means using the Current Account Switching Service, which entails closing down your old current account.
Customers won’t be eligible if they are switching between banks within the NatWest Group – NatWest, RBS and Ulster Bank – or if they have been paid a switching bonus by any of these banks between 1 October 2017 and 13 February 2023.
The £200 welcome offer applies across NatWest’s full range of current accounts – Select, Reward, Premier Select and Premier Reward – and is also available on accounts at RBS and Ulster Bank.
To qualify for the welcome bonus, customers must apply online or via the NatWest app. They must then deposit a minimum of £1,250 into the account and log into the NatWest banking app within 60 days. The £200 welcome bonus will then be paid into the account within seven days.
First Direct, Lloyds Bank and TSB are also currently offering cash incentives to new customers switching current accounts.
14 February: £15 Million Boost To Premium Bond Prize Pay-Outs
National Savings and Investments (NS&I), the government-backed savings bank that oversees premium bonds, is increasing the value of its prize fund for the fifth time in 12 months, writes Bethany Garner.
From March 2023, NS&I will add around £15 million to its premium bonds prize fund. The majority of new prizes added to the monthly draw will be worth £50 or £100, but the number of larger prizes is also rising.
There will be an additional three £100,000 prizes, six more £50,000 prizes, and 12 more £25,000 prizes. There will continue to be just two £1 million prizes in each monthly draw.
However, the number of £25 prizes will fall by almost 250,000. The total number of prizes will remain the same, and the odds of each bond winning will remain at 24,000 to 1.
These changes will increase the effective prize rate from 3.15% to 3.35%, but it is possible to hold premium bonds and never win a prize. Prizes are paid tax-free.
NS&I is also increasing the interest rates on its Direct Saver and Income Bond products from 2.60% to 2.85% as of today.
Ian Ackerly, chief executive of NS&I, said: “We are committed to ensuring our products remain attractive and our customers can continue to save with confidence.
“Today’s changes mean that we continue to balance the interests of savers, taxpayers and the broader financial services sector.”
13 February: PO Cash Deposits At £1.4 Billion In January
The amount of cash deposited across the Post Office’s 11,500 branches increased by 9.3% in January compared to December 2022, writes Bethany Garner.
Account holders deposited £1.4 billion during January, up from £1.28 billion in December 2022.
The increase was largely driven by activity in Northern Ireland, where personal cash deposits soared almost 100% as households cashed in government energy vouchers.
On 16 January, the first 500,000 of these £600 energy vouchers were issued to households in Northern Ireland which don’t pay energy bills via direct debit.
They combine the £400 Energy Bills Support Scheme and £200 Alternative Fuels Payment into a single, one-off payment for every household in Northern Ireland. Vouchers will continue to be issued until the end of February.
Martin Kearsley, banking director at the Post Office, said: “We expect a significant amount of cash to be deposited in February too, and we expect cash deposits to remain higher than before the voucher scheme started as more people recognise they can do their everyday banking at Post Offices.”
Meanwhile, personal cash withdrawals decreased by 20% month on month, as consumer spending fell back following its Christmas uplift.
Business cash deposits totalled £1.09 billion in January, roughly the same as December.
As the number of bank branches and cash machines declines across the UK, the Post Office is likely to play a significant role in preserving access to cash.
According to Link, the UK’s largest cash machine network, the number of free-to-use ATMs dropped to 39,429 at the end of 2022, down by 25% since 2018.
9 February 2023: Time-Limited Offer Pays Up To £10 A Month
Nationwide current account customers will automatically earn cashback on supermarket spending from today, writes Bethany Garner.
Account holders will earn back 5% of what they spend – up to a maximum of £10 a month – when using their debit card at supermarkets and convenience stores.
Supermarket fuel is excluded, however.
The offer applies across all of Nationwide’s adult current accounts – FlexAccount, FlexPlus, FlexDirect, FlexStudent, FlexGraduate and FlexBasic.
The scheme will run either until 30 April 2023 or until £99 million has been paid out to customers —whichever is sooner.
Cashback will be paid directly into the customer’s current account. The minimum cashback payment is £3, which means account holders must spend at least £60 a month to qualify. Earning the maximum £10 cashback requires a monthly supermarket spend of £200.
The offer is available to both new and existing current account customers.
Tom Riley, director of retail products at Nationwide, said: “Food costs have risen sharply and many households now think carefully about how and where they shop. We’re helping members with £10 monthly cashback on supermarket spending.”
In launching the scheme, Nationwide joins the ranks of banks and building societies, such as Chase and Santander, offering cashback to their current account customers. At 5%, albeit capped at £10 per month, Nationwide’s cashback rate is a competitive first foray into this arena.
7 February: Chunky Rise From 3% On New 3-Year Bond Issue
NS&I, the government-backed savings bank, has launched a new issue of its three-year Green Savings Bond paying 4.20% AER, writes Bethany Garner.
This new rate is up from the 3% AER offered when the bond was last issued in August 2022, and places it just below the current market leader, Gatehouse Bank, which offers a three-year bond paying 4.45% AER.
Laura Suter, head of personal finance at AJ Bell, commented: “The [Green Savings Bonds] rate now is a far cry from the paltry 0.65% interest paid on these accounts when they were first launched almost 18 months ago.
“Someone who put £5,000 into the bonds at launch will be earning just £32.50 a year in interest, compared to the £210 a year that a new customer will be getting now. If they had invested £20,000 that difference in interest jumps to more than £700 a year.”
Savers can invest between £100 and £100,000 in the latest Green Savings Bond issue, and interest is credited to the account once a year. Cash held in the bond can’t be accessed until it matures after three years.
The bonds will help finance sustainability projects across the UK as part of the Government Green Financing Framework, which aims to achieve net zero greenhouse gas emissions by 2050.
Projects include improving energy efficiency, developing sustainable energy sources and tackling pollution.
Ian Ackerly, chief executive of NS&I, said: “This is an excellent new opportunity for savers who want to grow their funds over the next three years, at the same time knowing their investment will make a difference by helping finance the government’s green projects.”
6 February: Stock Market Bond To Pay 6.25%
The Royal Masonic Benevolent Institution Care Company (RMBI) has launched a six-year investment bond with an interest rate of 6.25%, writes Bethany Garner.
The minimum investment is £500, and subsequent investments must be multiples of £100. Savers can purchase bonds until 28 February 2023 – no further investments are allowed beyond this date.
RMBI – a charity that provides elderly and dementia care services across England and Wales – is issuing the bonds to support its work, including the replacement of six of its care homes.
Paying a fixed annual interest rate of 6.25%, it outstrips the most competitive fixed rate bonds on the market. However, as a retail bondit differs from bonds offered by banks and building societies in a number of ways.
First, as an investment rather than a savings account, it must be purchased through an investing platform. Platforms including AJ Bell and Hargreaves Lansdown are listing the RMBI bond.
Investors can also sell bonds before they reach maturity, and their value can go down as well as up. The RMBI bonds are expected to be admitted to the London Stock Exchange in March.
Interest on the bonds is paid in two instalments per year – each equivalent to 3.125% of the sum invested – on 7 March and 7 September. The first payout is scheduled for 7 September 2023, and the bond will mature on 7 March 2029.
Mark Lloyd, managing director of RMBI Care Co. said: “A successful bond issuance will enable us to become even more innovative in meeting the wider needs of our communities and increase the number of people we can support.”
The bonds are issued by RBC Bonds PLC, which has previously issued bonds for 12 other charities, raising £377 million.
1 February: NS&I 4% Offer Highest Since 2010
NS&I, the government-backed savings bank, is offering one-year fixed rate bonds for the first time since 2019, writes Bethany Garner.
The one-year Guaranteed Growth Bond will pay 4.00% AER, while the one-year Guaranteed Income Bond will pay 3.97% AER.
Today’s new rates are the highest NS&I has paid on these products since 2010.
Savers can invest a lump sum of between £500 and £1 million into a bond. Interest is calculated daily and paid monthly — into the bond itself or a linked current account, depending on whether savers choose the Guaranteed Growth or Guaranteed Income Bond.
When 12 months have elapsed, the cash can be withdrawn or reinvested.
NS&I is also raising rates across its two, three, and five-year fixed rate products, which are only available to existing customers whose product is about to mature.
The bank’s two and three-year Guaranteed Growth Bonds will pay 4.20% AER from today, up from 3.56%, while its five-year Guaranteed Growth Bond rate will rise from 3.80% to 4.25% AER.
Ian Ackerly, NS&I chief executive, said: “It continues to be an exciting time for savers and I’m pleased that we are able to bring back on general sale our popular one-year fixed-rate Bonds with two new Issues.”
Mr Ackerly added that around 494,000 existing customers could also benefit from these rates should they choose to reinvest when their bond or certificate matures.
24 January: Rates Rise For NS&I Savers ‘To Highest In A Decade’
National Savings and Investment (NS&I), the government-backed savings bank that oversees premium bonds, is increasing the number of available prizes for the second time this year, writes Bethany Garner.
Interest rates have also increased on several of its savings accounts, reflecting the direction of rates across the market in recent months.
From February 2023, NS&I will add around £15 million to the premium bonds prize fund, creating almost 3,000 extra prizes in the monthly draw.
The majority of new prizes will be worth £50 and £100, but the number of larger prizes is also rising. There will be three additional £100,000 prizes, six more £50,000 prizes, and 12 more £25,000 prizes.
There will continue to be just two £1 million prizes in each monthly draw, and the odds of winning will remain at 24,000 to 1.
These changes will increase the effective prize rate from 3.00% to 3.15% – the amount of interest paid in total on the fund. It is possible, of course, to hold premium bonds and never win a prize.
Ian Ackeryl, NS&I chief executive, said: “Today’s changes will provide a welcome boost for savers of all ages across the country, with more premium bonds prizes and some of the highest interest rates we’ve seen in over a decade.”
NS&I has increased interest rates on four of its variable rate savings products from today, affecting roughly 870,000 customers.
The bank’s Direct Saver and income Bonds now pay 2.60% AER (variable) — up from 2.30% — while its Direct ISA rate has risen from 1.75% AER (variable) to 2.15%.
Its Junior ISA rate has also risen from 2.70% AER (variable) to 3.40%.
Myron Jobson, senior personal finance analyst at Interactive Investor, said: “NS&I savings rates have been given another shot in the arm following successive base rate increases.
“They represent marked increases, especially on the Direct ISA and Junior ISA, which bodes well for savers — but the rates are far from market-leading.”
January 17: Transactions And Amounts Withdrawn Increase In 2022
The number of cash machines fell last year, despite a rise in transactions and average amounts withdrawn, according to data from Link, the ATM network, writes Jo Thornhill.
The report from Link shows customers withdrew £83 billion from cash machines last year, compared to £79 billion in 2021. There was also a 5% increase in the total number of ATM transactions – rising from just over 1 billion to 1.024 billion.
But overall the number of cash machines fell from 52,547 to 51,253, driven by a fall in the number of charging ATMs. The number of free-to-use machines increased slightly by 13.
The average amount withdrawn during 2022 was £1,564 per person last year (up from £1,462 in 2021). Northern Ireland is the most heavily cash-reliant UK nation, where consumers withdrew an average of £2,266 last year (the figure was £2,070 in 2021).
The government announced plans to protect access to cash for all communities in May last year and is working with the Financial Conduct Authority and the banking industry to address cash access issues.
Graham Mott, director of strategy at Link, said: “These numbers aren’t surprising. It’s easy to forget that there was quite a significant lockdown at the beginning of 2021 and therefore 2022 was the first year we’ve had since 2019 where there were no interruptions.
“What we know is that our relationship with cash and ATMs has changed. While many people are now happy to use contactless or digital payments, our research shows there are very few people that are completely cashless. We also know that people are visiting cash machines less often, but on average take out more cash.
“It’s extremely good news that the government is introducing legislation to help protect free access to cash. There are still over five million people who rely on access to cash and face-to-face banking services.
“Digital payments and banking may be fantastic for some, but at the moment, they don’t work for all, which is why this legislation is so important.”
16 January: Upward Trend On Bond Rates Stalls As Stability Returns
Returns for savers looking to lock away their cash may be as good as they are going to get – for now, writes Laura Howard.
Average interest rates on fixed rate bonds failed to rise in January for the first time in 12 months, according to the latest savings trends report from Moneyfacts, the market analyst.
Returns on the average one-year fixed bond remained unchanged at 3.51%. Longer-term fixed bond returns dropped to 3.85% from 3.89% in December – the first fall since March 2021.
Rachel Springall, finance expert at the data provider, said: “The savings market appears to have entered a period of stability – a notable contrast from recent months of volatility.
“The average one-year fixed bond rate remained unchanged for the first time in a year and the average shelf life of fixed accounts overall rose by two days to 29 days.”
Variable savings rates – paid on easy access and notice accounts as well as the equivalent cash Individual Savings Accounts – continued to rise for the 11th consecutive month. However, the proportion of accounts that pay above the Bank rate – currently at 3.5% – fell.
The next interest rate decision will be taken by the Bank of England on Thursday 2 February.
11 January: Cash Withdrawals Fifth Higher Last Year
Cash withdrawals from Nationwide building society ATMs soared by 19% in 2022 – the first annual increase in 13 years, writes Jo Thornhill.
Nationwide data shows 30.2 million cash withdrawals were made from its 1,200 ATMs last year – up from £25.4 million in 2021 – as more households turned to using physical cash to help with budgeting in the cost of living crisis.
The average cash withdrawal amount was £105 – down 2% on the previous year, but an increase of 25% on 2019, before the pandemic.
The use of cash has steadily declined in recent years, most sharply at the start of the pandemic, when the number of withdrawals at Nationwide cash machines, for example, dropped by more than 40%.
Otto Benz, director of payments at Nationwide, said: “For the first time in years we are seeing a natural rise in cash withdrawals as people return to using cash to help avoid getting into debt from the rising cost of living.
“ATMs play a vital role in society, enabling people to easily access cash. However, over the years, they have offered greater capability for people to manage their money, whether that’s checking their balance or paying a household bill.
“Far from the end for cash, it shows that the future of money management is constantly evolving. Taking advantage of the additional services that ATMs provide can be a speedy and convenient experience.”
9 January: Post Office Reports Surge In Cash Withdrawals
The volume of personal cash withdrawals across the Post Office’s 11,500 branches increased by 6.7% in December compared to the previous month, writes Bethany Garner.
Account holders withdrew £892 million during December – 11% more than in December 2021, according to the latest Post Office Cash Tracker report.
The rise in cash withdrawals may be connected to the growing number of consumers using physical cash as a budgeting tool amidst the cost-of-living crisis.
According to a separate survey from LINK – the UK’s largest ATM network – 9% of shoppers expect to use more cash in the next six months, while 13% said that keeping track of their finances was more challenging when using card payments rather than cash.
As high street banks continue to close branches, consumers who rely on cash may also be turning to Post Office services. According to consumer group Which?, more than 5,300 branches have closed since 2015.
While the volume of personal withdrawals grew in December, business deposits have dipped. The value of deposits made by businesses at the Post Office dropped by 2% month-on month, from £1.11 billion to £1.09 billion.
The drop may be linked to the recent tightening of money laundering controls, which limit the amount of cash some businesses can deposit at its branches.
Martin Kearsley, banking director at the Post Office, said: “December was a torrid month for the hospitality sector amongst others, with strikes and freezing weather reducing footfall and cash takings across pubs, cafes and restaurants especially; and in turn contributing to a fall in deposits at Post Offices.
“Over-zealous limits imposed on the amount they are able to deposit is resulting in more businesses no longer being able to accept cash, impacting both their ability to trade as they would like, as well as their customers who need to or choose to budget using cash.”
Throughout 2022, the Post Office handled £32.1 billion in cash deposits and withdrawals — an increase of 19.6% compared with 2021.
A further 193 bank branch closures are scheduled for 2023.
20 December: Regulator Imposes £49m Sanction After Botched IT Project Harms Customers
Total fines levied by the Financial Conduct Authority (FCA) so far this year have reached £214m across 25 businesses that have fallen foul of its rulebook, writes Andrew Michael.
Nearly half this figure came from a £108 million penalty imposed on Santander UK earlier this month relating to the risk of financial crime in the retail banking sector.
The latest institution to face a hefty penalty is TSB, which has been fined a combined £48.65m by the FCA and its sister regulator, the Prudential Regulation Authority, for failures in risk management and governance following a botched IT upgrade that affected branches and blocked customers from accessing its services in 2018.
Although TSB completed a data transfer, the company’s IT platform immediately experienced technical failures. This led to disruption in the continuity of the bank’s services including branch, telephone, online and mobile banking.
All of TSB’s branches and a significant proportion of its 5.2 million customers were affected by the initial issues, and some customers continued to be blighted for several months after the initial problems arose.
TSB has already paid £32.7m in redress to those who suffered detriment from impaired services.
Mark Steward, the FCA’s executive director of enforcement and market oversight, said: “The failings in this case were widespread and serious which had a real impact on the day-to-day lives of a significant proportion of TSB’s customers, including those who were vulnerable.”
Other organisations fined by the FCA this year include Metro Bank (£10m), Citigroup Global Markets (£12m) and Julius Baer International (£18m).
According to the FCA, total penalties imposed last year totalled £568m, although nearly half of this, £265m, was a fine levied by the courts on NatWest Bank following the regulator’s successful prosecution of the bank for failing to comply with money laundering regulations.
The FCA levies fines according to a five-step formula laid out in the regulator’s handbook in a section on penalties.
The five steps cover ‘disgorgement’ – where the regulator seeks to deprive a firm from any benefit derived from a breach of the financial rulebook – along with the seriousness of the rule breach in question, mitigating and aggravating factors, adjustment for deterrence and a settlement discount.
Each FCA enforcement notice explains its reasoning for a particular level of financial penalty, plus a calculation about how it decides the final amount.
In terms of what is done with the money raised from the fines imposed by the regulator, an FCA spokesperson said: “We recoup some of our costs and the rest goes to HM Treasury.”
14 December: NS&I Ups Savings Rates And Increases Number Of Prizes
National Savings and Investment (NS&I), the Government-backed savings bank that oversees Premium Bonds, is increasing the number of prizes available from the New Year – and has hiked up savings rates on several accounts, writes Bethany Garner.
From 1 January 2023, NS&I will add around £80 million to the Premium Bonds prize fund, creating 15,750 extra prizes in the monthly draw.
Most of the new prizes will be worth £50 and £100, but the number of larger prizes is also rising.
The number of £100,000 prizes will increase from 18 to 56, while the number of £50,000 prizes will increase from 36 to 112. The number of £25,000 prizes will rise from 71 to 223.
There will continue to be just two £1 million prizes in each monthly draw, and the odds of winning will remain at 24,000 to 1.
The change will increase the effective prize fund from 2.20% to 3.00%.
Ian Ackerley, chief executive of NS&I, said: “The New Year increase to the Premium Bonds prize fund rate will mean that customers will have seen the prize fund rate triple in less than a year. This means a bigger prize pot and more higher value prizes for our customers.”
NS&I has also increased interest rates on three of its variable rate savings products with immediate effect affecting more than 570,000 customers.
The bank’s Direct Saver and Income Bonds now pays 2.30% AER (variable) — up from 1.80% — while its Investment Account rate has risen slightly from 0.40% to 0.60% AER (variable).
9 December: ‘Edinburgh’ Reforms Aim To Boost UK Competitiveness
Jeremy Hunt, Chancellor of the Exchequer, has unveiled wide-ranging plans to repeal and reform City regulations in a move that will significantly re-draw the UK’s financial services rule book, Andrew Michael writes.
Mr Hunt said that today’s proposals, dubbed the “Edinburgh reforms” after the location of a meeting between Mr Hunt and banking chiefs, are designed “to seize the benefits of Brexit”.
He added that the deregulation drive would help to “turbocharge growth” in the UK and place it in a strong position to compete with international rivals.
The Treasury believes that many of the proposed changes are only possible because of “freedoms” gained by the UK from leaving the European Union.
The Chancellor unveiled 30 reforms spanning a wide section of the UK’s financial services interests.
These include a relaxation of the so-called ‘ring-fencing’ rules that apply to banks – drawn up in the aftermath of the 2008 global financial crisis – to a consultation about the potential for a new central bank digital currency.
Ring-fence rules for banks that have both retail and investment arms were introduced after the 2008 crash to keep the two parts separate. This was designed to reduce risk and prevent banks from the risk of contagion and collapse.
Many problems in the 2008 financial crisis were caused by difficulties in investment banking operations resulting in unmanageable stresses in the retail equivalent, causing the whole bank to be damaged.
The current rules require lenders with more than £25 billion in deposits to formally split consumer operations from their investment banking subsidiaries to protect retail customers.
Implementing the rules has been expensive, with some lenders arguing that their introduction risked “ossifying” the banking sector. Ring-fencing itself has also been called into question, given that investment banking was virtually non-existent at several of the UK lenders caught up in the financial crisis.
Any relaxation, however, is also likely to attract criticism. Former deputy governor of the Bank of England, Sir Paul Tucker, told the Financial Times earlier this year that “ring-fencing helps protects citizens from banking Armageddon”.
Mr Hunt said there are also plans to change the tax treatment of investment trusts in the property sector, and to reform the rules around short selling, where traders bet that the price of an asset such as a company’s shares will fall.
The government also published today its first consultation on proposals to modernise the Consumer Credit Act with the intention of “simplifying the regime to encourage innovation in the credit sector and cutting costs for consumers and businesses”.
Matt Barrett, head of Adaptive Financial Consulting, said: “The government’s announcement of a loosening of financial services regulation to increase competition is welcome in principle. However, in practice, it will need to be executed carefully to ensure financial institutions that have spent many years and a significant amount of investment preparing for the implementation of EU-wide regulations are not caught offside.”
Chris Cummings, chief executive of the Investment Association, said: “The Investment Association shares the government’s vision for an open, sustainable and internationally competitive financial services industry that serves the interests of investors and the wider economy.
“Today’s Edinburgh Reforms are a very welcome acknowledgment of the need for reform to boost the UK’s place as a leading global financial services hub, and importantly, recognises the place of investment management at its heart.”
Myron Jobson, senior personal finance analyst, at Interactive Investor, says: “The reform of the Consumer Credit Act will mark the biggest shake up in consumer credit in generations. Attitudes to credit have changed since the Act was introduced half a century ago. The growth in digital lending is happening due to changes in consumer behaviour. Safeguards will likely be updated to account for this trend.
“It is also important that the language around credit is made clearer. The reason many borrowers get into difficulty is because they don’t fully understand the consequences of what they’re taking on.”
1 December: First Direct Doubles Regular Saver Rate To Market-Leading 7.00%
First Direct is doubling the interest rate on its Regular Saver account from 3.50% to 7.0% AER, writes Bethany Garner.
It is the highest savings rate the market has seen since January 2013, when a 8% regular saver was available, also from First Direct, according to Moneyfacts.
The new market-leading rate will be fixed for 12 months. It’s only available to First Direct current account holders, and to new customers who can currently earn a £175 incentive when they make a full switch of their current account.
The Regular Saver allows savers to pay in between £25 and £300 each month, with interest calculated daily and paid on the anniversary of the account’s opening. If savers don’t pay in the maximum £300 one month, they can carry over the unused subscription into future months.
It does not allow partial withdrawals. Customers who want to access their cash must shut down the account completely. If this is before the end of the 12-month period, savers only earn 0.65% AER, which is First Direct’s Savings Account Variable Rate.
First Direct is also raising rates across its other savings accounts. The rate on its easy access deal has been increased from 0.50% to 0.65% AER (variable), its cash ISA rate has risen from 1.40% to 2.30% AER, while its one-year Fixed Rate Saver now pays 3.50% AER – up from 2.25%.
Chris Pitt, chief executive of First Direct, said: “We are committed to giving savers a good return on their money, particularly in the context of the increases in the cost of living and the current high inflation environment.”
Rachel Sprignall at Moneyfacts, added: “Regular savings accounts are rigid than easy access accounts and harsh penalties can be applied if payments are missed or withdrawals are made, so they are most suitable for savers who need a strict savings plan and who wish to avoid dipping into their cash early.
“Savers will need to compare regular savings accounts carefully, as some are only available to current account customers or even local customers.”
Halifax is the latest bank to offer new current account customers a generous cash incentive when they switch, writes Bethany Garner.
From today until 19 December 2022, the bank will pay a welcome bonus of £175 to non-Halifax customers who switch to its Reward Current Account or Ultimate Reward Current Account.
In order to claim this incentive, customers must make a full switch using the Current Account Switch Service.
In launching the offer, Halifax joins several other providers vying for new customers with cash incentives.
At time of writing, HSBC is offering a £200 welcome bonus to new Advance Account customers — provided they have not held an HSBC account or opened a First Direct account since 1 January 2019.
Nationwide is also offering £200 to switch to its FlexAccount, FlexPlus, or FlexDirect accounts. To be eligible for the bonus, customers cannot have switched to a Nationwide current account since 18 August 2021.
First Direct is offering new customers £20 when they open a 1st Account, or £175 for a full switch. To qualify for the £175 bonus, switchers cannot have previously held a First Direct account, and cannot have opened an HSBC current account since 1 January 2019.
Cash bonuses are not the only perk banks are using to attract new customers. Santander, for example, recently launched a current account that offers cashback up to £20 a month.
The Santander Edge current account costs £3 a month to maintain, and pays 1% cashback on bills, and 1% cashback on groceries.
Customers can earn up to £10 a month in each category, and cashback is earned on both debit card spending and direct debits.
Account holders can also open a linked easy access savings account paying a competitive 4.00% AER on balances up to £4,000. This includes a bonus rate of 0.50% that expires 12 months after opening.
Santander Edge has replaced the bank’s 1|2|3 Lite current account.
Meanwhile, Lloyds Bank has launched two new package accounts — Silver, and Club Lloyds Silver.
The Silver account, which comes with a £10 monthly fee, includes European family travel insurance, AA roadside breakdown cover and mobile phone insurance for two devices.
The Club Lloyds Silver account offers the same benefits, as well as interest on balances up to £5,000 and occasional perks such as cinema tickets, magazine downloads or movie rental. Maintaining the account also costs £10 a month, plus a monthly Club Lloyds fee of £3.
The Club Lloyds fee is waived each month customers pay in at least £1,500.
29 November: Deposits in fixed rate savings accounts hit record
The nation’s savers paid a record £11 billion into fixed rate savings accounts in October – a huge increase from the £3 billion deposited in the previous month and the highest level on record, writes Jo Groves.
On average, interest across all fixed rate savings accounts – also known as fixed rate bonds – climbed to 3.3%, according to the latest Money and Credit report from the Bank of England, attracting savers seeking higher returns in the face of soaring inflation.
Laura Suter, head of personal finance at AJ Bell, said: “People made the most of a leap in savings rates and shifted their money into fixed-term accounts in their droves in October. Rates leapt up following the mini-Budget and fierce competition in the savings market.”
Fall in popularity of easy access accounts
However, October also saw a £5 billion net outflow from easy access savings accounts. And contributions to the government’s NS&I accounts fell to their lowest level since January as the cost-of-living crisis prompted households to dip into savings to make ends meet.
Returns on easy access savings accounts continue to lag behind the Bank rate, which currently stands at 3%.
The average interest rate on existing accounts in October was just 0.52%, a small increase from September’s average rate of 0.43%. However, much better returns are available for savers prepared to shop around.
Interest rates on fixed rate bonds
Savers are being rewarded for locking their money away, with the best returns on fixed rate bonds with terms of two years or more currently paying in excess of 4.50% AER.
Laura Suter said: “The average rate on two-year fixed-rate bonds hit 3.55% in October, the highest since 2009, while three-year bonds also hit a 13-year high.”
Some experts have suggested this may be ‘almost as good as it gets’ for fixed rate savings. Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said:
“Predictions of a recession may well mean interest rates don’t rise as much in the coming months, and are likely to fall as we go through a difficult year or so.
“This is factored into fixed rates, so there’s a growing chance that rates won’t go much higher from here.”
24 November: Rates Nudge Up On Tax-Friendly Savings Accounts
The interest rate lever is one of the few devices that the Bank of England can pull to head off the effects of steepling inflation on the UK’s finances, writes Andrew Michael.
More formally referred to as the ‘Bank rate’, this crucial figure affects both the cost of borrowing, as well as the returns on savings and it has increased no less than eight times over the past year.
In December 2021, Bank rate stood at a lowly 0.1%. Today (24 November), the figure is 3%.
While the worst of the economic turbulence – during the former Prime Minister Liz Truss’ time in office – has subsided, inflation rose in the 12 months to October to 11.1% which represents more than five times the government’s target.
Soaring inflation makes it more likely that the Bank’s rate-setting Monetary Policy Committee will impose a further interest rate rise when it next convenes on 15 December.
While this would be further bad news for mortgage customers on variable rates – as well as those coming to the end of their current fixed rate deal – it’s music to the ears of savers.
What’s more, amid all this year’s turmoil, cash individual savings accounts – often shortened to cash ISAs – have been making a comeback, with the top easy access accounts paying up to 2.80% AER with interest rates in excess of 4% available for customers prepared to lock away their cash for two years.
Large numbers of savers had abandoned these tax-friendly accounts when interest rates plunged in the wake of the 2008 financial crisis. But cash ISAs are now steadily regaining their appeal – and with good reason.
According to savings data from HM Revenue & Customs, 8.1 million cash ISAs were opened during the 2020/21 tax year (the latest figures available).
Although this figure was significantly down on 2019/2020, which saw 9.7 million accounts taken out, the figure was on a par with 2018/19 and a million more than the 7 million cash ISAs that were opened during the 2017/18 tax year.
Personal Savings Allowance
In recent years, government figures show that around one-in-10 people paid tax on the interest earned from their savings after the personal savings tax allowance was introduced in 2016.
This concession from HM Revenue & Customs means that around 27 million UK basic-rate taxpayers can earn up to £1,000 a year from a high street savings account without paying tax.
The allowance is reduced by half, to £500, for the UK’s five million or so higher-rate taxpayers. Additional tax rate payers do not receive a personal savings allowance which means they pay tax on all savings interest earned in traditional accounts.
With interest rates rising significantly this year, savers in regular high street accounts risk using up their personal savings allowance much more quickly compared with very recent history when interest rates were closer to zero.
This strengthens the case for cash ISAs because they allow savers aged 16 or over to shelter up to £20,000 each year from tax.
What is a cash ISA?
Cash ISAs come in a range of varieties including easy access, those which require some notice – say, 30 days – as well as fixed-rate accounts that can offer terms of between 12 months and five years.
Although you can spread your £20,000 allowance across several different types of ISA , you can only open one cash ISA each tax year.
There are various pros and cons associated with cash ISAs:
Pros
Easy to open and run
Provides fixed rates over up to five years
Allow you to avoid paying tax on savings interest worth £1,000 or more a year
Covered up to £85,000 by the Financial Services Compensation Scheme
Can be inherited by a partner or spouse without affecting their own ISA allowances.
Cons
Returns likely to fall short of those achieved by higher risk products such as stock and shares ISAs
Can offer inferior interest rates compared with regular savings accounts
If you earn less than £1,000 in interest a year, there’s no real tax benefit and a higher-rate regular savings account may be a better choice.
Choosing a cash ISA
The interest rate on offer is the main consideration for most savers choosing a cash ISA. But there are other factors to consider:
Withdrawal rules. Some products allow penalty-free withdrawals at any time, but those offering superior returns may impose a lock-in requirement of between two and five years
Rate and term. Fixed-rate cash ISAs with set terms tend to offer higher rates. But where interest rates are continuing to rise, it’s worth considering whether it makes sense to lock away your cash
Ease of use. Rules differ amongst cash ISAs from being opened and managed online, to requiring a branch visit. Other stipulations may include a minimum opening balance, the need to keep up regular payments, and the notice required for withdrawals
Many cash ISAs are described as ‘flexible’ which means you can replace any funds you withdraw in the same tax year without affecting your annual ISA allowance.
14 November: Savers See Interest Rates Rise For Ninth Consecutive Month
Saving rates have risen for the ninth consecutive month, with some accounts now paying decade-high rates, writes Bethany Garner.
The average easy access savings rate has surpassed 1% for the first time since 2012, while fixed rate bonds of 18 months or longer currently pay a 12-year high of 3.77%.
The data from Moneyfacts UK Savings Trends Treasury Report also revealed that one-year fixed rate bonds have reached 3.29% – their highest average rate since 2009.
Rachel Springall, finance expert at Moneyfacts, said: “The average longer-term fixed rate has risen to its highest point since February 2010, but considering consecutive rises in interest rates, whether savers are prepared to lock away their cash for longer than a year is debatable.”
But while rates climb across the board, ISAs (Individual Savings Accounts) continue to lag behind. The average notice ISA now pays an interest rate of 1.72%, compared with the 1.91% paid by non-ISA equivalents.
Similarly, the average one-year fixed rate ISA pays 2.98% — 0.79% lower than the average for one-year fixed rate bonds (3.77%).
Easy access cash ISAs are the exception, paying 1.26% on average compared with the 1.16% average paid by standard easy access accounts.
Ms Springall commented: “These are encouraging signs for savers who wish to utilise their ISA allowance.
“However, it remains the case that the rate gap between fixed ISAs and bonds is obvious, so savers will need to weigh up any tax-free allowance they have before they commit.”
While rate increases may be welcome, continued high inflation is eroding returns on savers’ cash. Annual inflation, as measured by the Consumer Price Index (CPI), hit 10.1% in September.
The onus is on savers to compare deals and find the highest-paying account for the access required to their cash.
25 October: Rates Rise For Over 2.7 Million NS&I Savers
National Savings and Investment (NS&I), the government-backed savings bank, is raising rates for over 2.7 million savers, writes Bethany Garner.
From today, the interest paid on its variable-rate Direct Saver and Income Bond accounts will rise by 0.60%, to 1.80% AER — the highest rate these accounts have offered in over a decade.
The rate NS&I pays on its Direct ISA has also risen from 0.90% to 1.75%, while its Junior ISA interest rate is up from 2.20% to 2.70% AER.
From 1 December, NS&I will increase rates on 10 fixed-rate accounts.
Every fixed-rate account NS&I has earmarked for an increase will see interest rates rise by at least 1%. Its one-year Guaranteed Growth Bond will see the steepest rise, from 1.85% to 3.60% AER.
Ian Ackerly, chief executive of NS&I, said: “The changes come in the same month that we increased the Premium Bonds prize fund rate. Some of the rates we’re now paying – including on Premium Bonds – are the highest they have been in over a decade, which is great news for our savers.”
21 October: Cash ISAs Make A Comeback
Amid all the recent economic turmoil, cash individual savings accounts – cash ISAs – have been making a comeback.
You can find out more about cash ISAs and the best rateshere.
Large numbers of savers abandoned these tax-free accounts when interest rates plunged in the wake of the 2008 financial crisis. But cash ISAs are now steadily regaining their appeal, and with good reason: savings elsewhere are becoming increasingly vulnerable to tax on the interest they generate.
Government figures show that only around one-in-10 people paid tax on the interest earned from their non-ISA savings accounts after the personal savings tax allowance was introduced in 2016.
This allowance means the UK’s 27 million basic-rate (20%) taxpayers can earn up to £1,000 a year from a high street savings account without paying tax. For five million higher-rate (40%) taxpayers, the allowance is reduced by half, to £500.
Additional tax rate (45%) payers do not receive a personal savings allowance which means they pay tax on all savings interest earned in traditional non-ISA accounts.
With interest rates rising significantly this year, savers in regular high street accounts risk using up their personal savings allowance much more quickly compared to when interest rates were closer to zero.
This strengthens the case for cash ISAs because they allow savers aged 16 or over to shelter up to £20,000 each year from tax.
When do I start paying tax on non cash ISA savings?
So how much can you have in a non-ISA cash account before your interest starts attracting tax?
Laura Suter, head of personal finance at AJ Bell, said: “When the Bank rate was 0.1% [as recently as last December], if your savings were earning that amount of interest, a basic-rate taxpayer would need to have £1 million in cash savings to hit their £1,000 tax-free limit.
“However, fast forward to today, and with the top easy-access savings account paying 2.35%, that same basic-rate taxpayer would only need to have £42,500 in savings to hit the limit. Someone in the higher-rate income tax bracket would only have a £500 tax-free savings limit, meaning they would need to have £21,250 in savings before they hit their limit.
“Those putting their money in fixed rate accounts are getting far higher rates, but this means they face a tax hit even with more modest savings. The top two-year bond at the moment pays 4.5%, meaning a basic-rate taxpayer with £22,200 would hit their tax-free limit, while a higher-rate taxpayer could only have just over £11,000 before they would have to pay tax.”
What is a cash ISA?
Cash ISAs come in a wide range of products, including easy-access, as well as variable-rate and fixed-rate accounts that usually offer terms that last between one and five years.
Although you can spread your £20,000 allowance across several different types of ISA , you can only open one cash ISA per tax year.
There are pros and cons associated with cash ISAs:
Pros
easy to open and run
good short-term (up to five years) home for savings that require
allow you to avoid paying tax on savings interest
covered up to £85,000 by the Financial Services Compensation Scheme
can be inherited by a partner or spouse without affecting their own ISA allowances.
Cons
over the longer term, returns may fall short of those achieved by products such as stock and shares ISAs
may offer inferior interest rates compared with regular savings accounts. If you earn less than £1,000 in interest a year, there’s no real tax benefit and a higher-rate regular savings account may be a better choice.
Choosing a cash ISA
The interest rate on offer is the main consideration for most savers choosing a cash ISA. But the right account will also depend on:
Withdrawal rules Some products allow penalty-free withdrawals at any time, but those offering superior returns may impose a lock-in requirement of between two and five years.
Rate and term Fixed-rate cash ISAs with set terms tend to offer higher rates. But where interest rates are continuing to rise, it’s worth asking if it makes sense to lock away your cash
Ease of use Rules differ amongst cash ISAs from being opened and managed online, to requiring a branch visit. Other stipulations may include a minimum opening balance, the need to keep up regular payments, and the notice required for withdrawals.
Many cash ISAs are described as ‘flexible’ which means you can replace any funds you withdraw in the same tax year without affecting your annual ISA allowance.
19 October: Savers Urged To Be Proactive As Inflation And Returns Rise
The top rate for easy access savings accounts has more than doubled since last year, but with inflation stubbornly high, savers must be proactive in finding the best deals, writes Bethany Garner.
Although rising interest rates are welcome news for savers, inflation — which hit 10.1% in the 12 months to September according to figures today from the Office for National Statistics — continues to erode the value of cash.
Rachel Springall at Moneyfacts, said: “It’s imperative savers do not become apathetic to switching at a time when competition in the top rate tables is rife.
“Top fixed rate bonds are reaching heights not seen for many years as challenger banks compete to entice savings deposits. But this has also seen deals change within a short time frame, so swift movement is wise to grab a top rate savings deal.”
The top rate easy access accounts currently pay 2.55% AER, while the highest rate savers could access a year ago was just 0.65% AER, according to Moneyfacts. Interest on the top one-year fixed rate bond is up 1.89 percentage points compared with October last year.
The latest provider to boost its rates is Nationwide. The building society is upping returns across a range of savings accounts by up to 1.20 percentage points for existing customers from 1 November.
Personal Savings Allowance
But higher savings rates are also pushing more savers beyond their Personal Savings Allowance – the threshold at which tax begins to be charged on interest earned.
Figures from investment platform AJ Bell show that, in December 2021, when Bank rate stood at 0.1%, basic rate taxpayers – who can earn £1,000 of interest tax-free a year – could hold £154,000 in a top easy access account before paying tax. As of 4 October 2022, this balance had dropped to just £42,500.
Higher rate taxpayers – who can earn £500 of interest tax-free a year – could hold up to £77,000 in a top-paying savings account, which compared to £21,250 on 4 October.
If the Bank of England continues to hike interest rates and institutions pass on the increase in full or in part to their customers, more savers will be hit with tax on their interest – many for the first time.
Laura Suter, head of personal finance at AJ Bell, said: “If the Base rate hits the 6% it’s expected to next year, and easy access savings rates matched that, then a basic-rate taxpayer could only have £16,650 in their account before they hit the limit — and for a higher-rate taxpayer this would drop to £8,300.”
To avoid paying tax on their interest, Ms Suter expects savers will turn to ISAs – a savings ‘wrapper’ in which individuals can save up to £20,000 each tax-free.
However, since ISAs typically pay lower interest rates, savers may be faced with the choice between higher rates or a lower tax bill.
13 October: First Direct To Double Cash ISA Rate
First Direct is doubling the interest rate on its cash ISA from 0.70% to 1.40% AER (variable) on 20 October, writes Bethany Garner.
The mobile-first bank is also raising rates across three other savings products. Its easy access Savings Account will pay 0.50% AER (variable) from 20 October — up from 0.40%.
Its Bonus Savings Account will pay up to 1.65% AER on balances below £25,000, and 0.75% AER on balances above £25,000. The account rewards savers for not accessing their cash. If they make a withdrawal, the new rate drops to 0.50% AER for that calendar month.
From the later date of 28 October, First Direct’s one-year Fixed Rate Saver will rise by a full percentage point, from 1.25% to 2.25% AER.
First Direct is the latest of several providers to increase rates on its savings accounts in response to consecutive Bank rate hikes.
While news of increases is welcome, stubbornly high inflation is still eroding any real returns on savers’ cash. With annual inflation running at 9.9%, the onus is on savers to compare deals and find the highest-paying account for the access required to their cash.
5 October: Barclays Rainy Day Saver Pays Up To 5.12% AER
Barclays has launched a linked savings account paying a top rate of 5.12% AER (variable), writes Bethany Garner.
The bank’s new Rainy Day Saver is an easy access account which allows eligible savers to make unlimited deposits and withdrawals – and can be opened with just £1.
At 5.12% AER, the returns on the account are more than double those offered by leading open-to-all easy access savings accounts.
However, only Barclays current account holders who are signed up to the Blue Rewards scheme are eligible. Blue Rewards charges a monthly fee of £5 but, providing your Barclays current account is credited with at least £800 a month and has at least two outgoing direct debits set up, this fee is repaid into your Rewards Wallet. This can be accessed and managed online or on the Barclays app.
The top rate of 5.12% AER only applies to balances of up to £5,000. Any balances above this threshold earns a much lower 0.15% AER (variable).
You can hold up to £10 million in the Rainy Day Saver but savers with more than £5,000 who don’t need access to their cash will find higher returns from a fixed rate savings account.
For example, £10,000 deposited in a fixed rate bond paying 4.50% AER would earn £450 in 12 months. The same deposit left untouched in Barclays’ Rainy Day Saver for 12 months would earn £263 of interest.
5 October: Headline Rate Hits 4.75%
Nationwide Building Society is launching three fixed rate online bonds and raising interest rates for several other accounts, writes Bethany Garner.
The UK’s largest building society is now offering:
one-year fixed rate bond paying 4.00% AER
two-year fixed rate bond paying 4.50% AER
three-year fixed rate bond paying 4.75% AER.
Each account can be opened and managed exclusively online or through Nationwide’s mobile banking app. The minimum opening deposit is £1.
Meanwhile, the interest paid on Nationwide’s existing fixed rate accounts is set to rise by 0.50%:
one-year fixed rate bond will now pay 3.25% AER
two-year fixed rate bond will now pay 3.50% AER.
Nationwide has also announced it will increase rates on its triple access savings accounts.
The One Year Triple Access Online Saver will pay 2.10% AER — up from 1.75% — and the One Year Triple Access Online ISA will now pay 2.00% AER, up from 1.50%.
These accounts allow up to three withdrawals throughout their 12-month term. If any additional withdrawals are made, the interest rate drops to 0.30% AER.
Nationwide’s Flex Instant Saver account, which allows unlimited deposits and withdrawals, will see rates doubled from 1.00% to 2.00% AER over the next 12 months. This account is available to Nationwide current account holders only.
The society is offering a £200 switching incentive to those who switch to its current accounts from other banking providers.
Tim Riley, director of banking and savings at Nationwide, said: “We understand there are plenty of savers who are happy to lock their money away for a period of time, which is why we will be offering highly competitive rates on our bonds.”
29 September: Family Building Society Offers Premium On Bank Rate
The Family Building Society has launched a Two Year Tracker Rate Bond — a savings account with a variable interest rate that moves in line with the Bank of England Bank rate.
Currently at 2.60% AER (gross), the account’s interest rate is set at 0.85% above the current Bank rate. It changes to track the Bank rate as it stands on the first day of each month.
The Bank rate rose from 1.75% to 2.25% in September, so the bond will pay 3.10% AER from 1 October.
To open the account, savers must deposit at least £5,000. Once 15 days have elapsed, no additional deposits can be made. Withdrawals are not permitted until the account matures two years after opening.
It’s worth nothing that some fixed-rate savings accounts are currently paying higher rates. For instance, the 2-Year Fixed Term Deposit from Investec offers an AER of 4.25% (gross) on balances from £1,000.
However, if the bank rate continues to rise – it has risen seven times since December 2021 – the Family bond could outpace these top-paying accounts.
With annual inflation at 9.9% eroding the value of savings, an account that passes on bank rate rises to consumers without requiring them to shop around could be beneficial.
If the bank rate goes down, though, savers locked into this two-year fixed term account could miss out on better returns elsewhere.
27 September: NS&I Adds £76 Million To Premium Bonds Prize Fund
National Savings and Investment (NS&I), the Government-backed savings bank that oversees Premium Bonds, is raising its prize fund from 1.40% to 2.20% from 1 October 2022.
The change will add around £76 million to the Premium Bonds prize fund, creating 97,752 new prizes in the monthly draw.
Most of these will be cash sums of £50 or £100, but the number of larger prizes is also rising. From October, the number of £100,000 prizes will increase from 10 to 18, while the number of £50,000 prizes will rise from 20 to 35.
There will continue to be just two £1 million prizes each month.
Overall, the odds of each Premium Bond being a winner will improve from 24,500 to 1, to 24,000 to 1.
Ian Ackerley, chief executive of NS&I, said: “This is the second increase to the Premium Bonds prize fund rate that we have made in less than six months.
“These changes have helped us ensure that Premium Bonds remain attractive, while also ensuring that we continue to balance the interests of savers, taxpayers and the broader financial services sector.”
Premium bonds are held by over 21 million people in the UK. Instead of earning interest, bond holders are entered into a monthly prize draw for tax-free cash sums, which range in value from £25 to £1 million.
Each £1 invested in Premium Bonds equates to one entry into the prize draw, but the minimum investment level is £25. Savers can choose to cash out all or a portion of their bonds at any time.
Although winning a large cash prize may help some savers beat inflation, they could equally win nothing.
Laura Suter, head of personal finance at AJ Bell, said: “Savers shouldn’t cling to the ‘projected prize fund figure’ as many Premium Bonds holders get zero return on their savings.“Most savers would be better off with a standard easy-access savings account that pays out a guaranteed rate of interest.”
26 September: Over 11 Million Brits Have Less Than £100 In Emergency Funds As UK Savings Week Gets Underway
An estimated 11.5 million UK adults have less than £100 in emergency savings, according to research by the Building Societies Association (BSA) – the organisation behind the inaugural UK Savings Week which starts today.
The campaign aims to raise awareness of the importance of saving habits, and offer guidance to consumers on reaching their saving goals.
Andrew Gall, head of savings and economics at BSA, said: “While the midst of a cost-of-living crisis might seem like an odd time to launch activities encouraging good savings habits, those who are able to save can benefit from building their resilience to future shocks.”
The BSA’s research, which surveyed 2,000 UK adults in August 2022, revealed that a growing number of consumers are dipping into savings to meet everyday expenses.
According to the survey, 36% of consumers are turning to savings to meet the mounting cost of essentials. A further 55% of savers say they are setting aside less due to cost-of-living pressures, while 35% have stopped saving altogether and 13% have no savings at all.
However, the research also found that 64% of respondents, who currently have no savings, say they would be able to set aside £10 a month.
A significant portion of consumers may not be getting the best returns, however. Almost a quarter (23%) of savers do not check interest rates before opening an account, while a third (33%) check rates but do not compare them with other accounts.
While some savings providers have begun passing on the benefit of the latest interest rate rise to savers in the form of more competitive savings accounts, many have yet to do so.
And with annual inflation running at 9.9%, effectively eroding the value of cash more quickly, the onus is on savers to compare deals and find the highest-paying account for the access required to their cash.
22 September: Returns Inch Higher But Savings Still Battered By Inflation
Savers were handed positive news today when the Bank of England’s rate-setting Monetary Policy Committee (MPC) raised interest rates for the seventh time in a row. At 2.25% the Bank rate is now at its highest level in 14 years.
Yorkshire Building Society was quick off the mark following the announcement. Within minutes of the news, it confirmed it will raise interest rates on all its variable rate savings accounts – but by 0.30 percentage points compared to the 0.50 percentage point increase in the Bank rate.
The society’s easy access Internet Saver Plus Issue 12 will pay 1.80% AER from October. The rate on its Loyalty Regular Saver Issue 2 will rise to 5.3% AER.
The rates will be applied to accounts automatically on 5 October. Other banks and building societies are expected to pass on rises to customers in the coming days.
Marcus by Goldman Sachs has also announced it will be raising rates on both its variable rate accounts — the Online Savings Account and Cash ISA – by 0.30%.
Both accounts are currently paying 1.80% AER, which includes a 12-month bonus rate of 0.25%. Remember this bonus rate will drop off on the anniversary of opening the account, so it may be worth checking whether better options are available after the first year.
While news of increases is welcome, stubbornly high inflation is still eroding any real returns on savers’ cash. Inflation, as measured by the Consumer Prices Index (CPI), hit 9.9% in the 12 months to August – which was over 14 times more than the average easy access savings rate over the same period, according to research from investment platform interactive investor.
Any delay between the latest hike and increase in savings rates will further widen the gap between inflation and returns.
Becky O’Connor, head of pensions and savings at interactive investor, said if the rise in the Bank rate is passed on to savers and has the effect of bringing down inflation, cash savings could, once again, start to look attractive: “This could be especially welcomed by older people, who often have more built up in savings, and also often prefer the lower risk of cash compared to the stock market for their life savings.
“People with savings have had years of low returns and this latest rate rise, which is significant, could really turn the tables back in their favour.”
21 September: Competitive Offers Prompt Increase In Guaranteed Rates
Savers are turning to fixed-term savings accounts to lock in increasingly competitive rates.
Investment platform Hargreaves Lansdown reported a 40% uptick in the number of new fixed-term deposits it has received over the last 12 months.
Fixed-term savings accounts offer guaranteed interest rates for a set period in exchange for forfeiting access to your cash.
Tom Higham, acting head of savings at Hargreaves Lansdown, said: “We’re seeing considerably more clients using fixed term deposits over easy access. Up to 80% of all new flows are heading into fixed term deposits, up from around 50% a year ago.
“People are cashing on fixed terms because the rates are higher than they’ve been for a decade or more.”
At 1.75%, the Bank of England Bank Rate currently stands at a 14-year high. Bank rate is expected to rise further tomorrow (September 22) when members of decision-making Monetary Policy (MPC) hold their next meeting.
Mr Higham expects banks and building societies to continue passing on increases in Bank rate to savings accounts.
However, he added that savers are only looking to fix in their cash for a maximum period of two years as they are anticipating interest rates to continue to rise until inflation starts to fall.
25 August: NS&I Pays 3% AER On Latest Green Bond Issue
National Savings & Investments, the government backed savings institution, has launched the third issue of its Green Savings Bond, which will pay interest at 3% a year for a three-year fixed term.
Higher rates are available for this length of fix – JN Bank is paying 3.45%, for example – but the NS&I bond guarantees that deposits will be used to help finance green initiatives as part of the UK Government Green Financing Framework.
This will include projects to tackle climate change, improve sustainability and increase renewable energy capacity.
Interest at 3% AER over three years on a £10,000 deposit would yield a profit of around £930. Deposits are permitted in the range £1,000 to £100,000 but it is important to remember that the money cannot be accessed during the term.
Customers need to be 16 or over to purchase the Bonds from NS&I.
The new rate compares to the 1.30% paid on the second tranche of Green bonds issued in February.
NS&I announced increased rates across its fleet of savings products in July after increasing the Premium Bonds prize fund in June.
The organisation contributed £1.3 billion to government coffers in the first quarter of the financial year 2022/23. All savings and investments lodged with NS&I benefit from a 100% government guarantee.
Its products rarely have market-beating rates so as not to unfairly disrupt competition in the commercial market.
24 August: One-In-Three Adults Have No Access To ‘Rainy Day’ Cash
More than half of UK adults are set to use money put aside for an emergency because of the worsening cost-of-living crisis, writes Andrew Michael.
Research from wealth manager Charles Stanley shows that nearly three-quarters of adult Brits (71%) have a ‘rainy day’ fund that would last the average saver just shy of five months.
But due to the challenging economic climate, more than half of respondents (54%) told the company they are worried about using up their emergency savings, leaving them unprepared for any future financial crises.
Charles Stanley found the average emergency fund would last its owner four months and three weeks. Just over a quarter of people (28%) said their reserves would cover them for between two weeks and two months, while 10% said they would run out of money after a fortnight.
Of those with emergency savings, a quarter (25%) of respondents said they have never needed it, while just under one-in-10 (9%) said they dip into it less than once a year.
One-in-eight people (12%) said they have never further topped up their reserves, although more than a third (36%) claimed they added monthly amounts to their savings. One-in-10 (10%) of respondents said they topped up their emergency stash on a weekly basis.
Charles Stanley said nearly one-in-three individuals (29%) do not have a reserve fund. Nearly two-fifths of workers (38%) earning less than £20,000 a year said they do not have a reserve fund. This proportion fell to just over a quarter (28%) of employees paid between £20,000 and £30,000 and reduced further for those earning commensurately higher amounts.
About a quarter of workers in employment said they did not have an emergency fund, while this figure rose to 46% of the job-seeking unemployed.
Lisa Caplan, director of OneStep Financial Planning at Charles Stanley, said: “Saving into a rainy day pot is not always people’s first priority, but those who have managed to prepare will be grateful for it during the cost-of-living crisis.
“As ever though, we are seeing common themes when we look at who slips through the net. The picture is less positive for women, low-earners, and those looking for work.”
23 August: Building Society Passes On Latest 0.5% Rate Hike
Nationwide Building Society has announced it will raise interest rates on all variable rate savings accounts from 1 September 2022.
These accounts are seeing interest rates rise by 0.50%, in line with the latest bank rate increase:
Flex Regular Saver rate rises to 3.00% AER
Start to Save 2 rate rises to 3.00% AER
Future Saver rate rises to 2.00% AER
Junior ISA rate rises to 2.00% AER
Child Trust Fund rate rises to 2.00% AER
Smart Limited Access rate rises to 1.50% AER
Flex Instant Saver rate rises to 1.00% AER
The 1 Year Triple Access Online Saver will offer a new rate of 1.75% AER for the next 12 months, while the 1 Year Triple Access Online ISA rate is set to rise to 1.50% AER.
Nationwide’s Flex Saver and Flex ISA accounts will see the largest increase of 0.55%, taking rates to either 0.65%, 0.70%, or 0.75% AER depending on the account balance.
The Help to Buy ISA will undergo a slightly more modest rate increase of 0.40% to 1.75% AER. The Loyalty Saver, Loyalty ISA and Loyalty Single Access ISA accounts will see rates rise by 0.35% to 1.60% AER.
Rates on Nationwide’s easy access accounts — the Instant Access Saver, Instant ISA Saver and Cashbuilder — are set to rise by 0.15% to either 0.25%, 0.30% or 0.35% AER depending on the account balance.
Tom Riley, director of banking and savings at Nationwide, said: “As a mutual we are always keen to support savers and pay the best rates we can sustainably afford, which is why we are increasing rates on all variable rate accounts, particularly regular savers, loyalty and children’s accounts as well as our popular Triple Access Accounts.”
Banks generally have been criticised in recent weeks for not passing on rate increases to their customers following increases in the Bank of England bank rate, which now stands at 1.75%.
There is speculation that the rate could rise to 2.25% when the Bank next announces its new level on 15 September – an increase that would heap more pressure on institutions to pay more to savers.
5 August: Bank Rate Rises – But Savers Still Battle Inflation
The Bank of England’s recent hike in interest rates from 1.25% to 1.75% will be welcome news to debt-free savers who have been battling against historically-low interest rates for well over a decade.
However, with inflation currently at a 40-year high of 9.4% – eroding the value of savings faster than at any time in the past four decades – it becomes especially important to shop around for the best deals, even if savings providers pass on the full rate increase.
Sarah Pennells, consumer finance specialist at Royal London said: “[Savers] will be encouraged that savings rates, if passed on fully, will see rates come out of the doldrums.
“But banks and building societies don’t necessarily raise interest rates on all their savings products and may not increase them by the same amount, so it’s worth waiting a few weeks before checking comparison websites and best-buy tables to see if you can get a better interest rate.”
Kevin Brown, savings specialist at Scottish Friendly, said: “Anyone still able to save should be encouraged to do so as rates are likely to rise. But be aware that if the gap to inflation widens, returns in real terms will continue to fall.”
He added: “The best way to combat that may be to consider investing some of your money”.
Newcastle Building Society has already announced it will pass on the full rate increase to ‘99% of its customers’, while Coventry Building Society has committed to increasing its savings rates from 1 September.
The latest 0.5 percentage point increase marks the biggest single leap the BoE has implemented since 1995, and takes the Bank rate to its highest level in 14 years.
21 July: NS&I Boosts Rates To Deliver Competitive Offer
National Savings & Investments (NS&I) has increased interest rates across a swathe of products to bring them into line with competitor offerings.
The interest rate paid on Direct Saver, Income Bonds, Direct ISA and Junior ISA, will increase from today (21 July 2022).
The interest rate paid on Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates will increase from 1 August 2022. These products are not currently on sale, so the new rates are only available to existing customers.
More than 1.3 million people will see a boost to their savings as a result of the increases.
The rate on the Direct Saver and Income Bonds products will more than double from 0.50% to 1.20%, the Direct ISA from 0.35% to 0.90%, and the Junior ISA from 1.50% to 2.20%.
More substantial increases are taking place on guaranteed and fixed interest products. For example, three-year Guaranteed Income Bonds are increasing from 0.36% to 2.50%.
Earlier this year NS&I increased the Premium Bonds prize fund, which improved the odds of winning from 34,500 to 1 to 24,500 to 1 and saw an additional 1.4 million prizes paid out in June.
11 July: Cost-Of-Living Crisis Bites Into Savers’ Lockdown Gains
Financial gains made by UK savers during lockdowns imposed on them by the Covid-19 pandemic have been slashed back as a result of the ongoing cost-of-living crisis and need to meet rising prices, according to wealth manager Quilter.
Research carried out on behalf of the company found that just over half (53%) of the nation set aside money in savings and investments during the spate of coronavirus lockdowns that were imposed on the country during 2020 and 2021.
Quilter said that baby boomers – those born between 1946 and 1964 – were most likely to have saved money during pandemic-enforced lockdowns. Of this cohort, well over half (59%) said they were yet to dip into those funds.
In contrast, the wealth manager found that around one-in-seven (15%) of those who had saved money during lockdowns had already spent the cash they had put to one side.
In addition, more than a third of people (39%) told Quilter that they had already made a significant dent in their savings, with many spending up to three-quarters of the money they had squirreled away.
Quilter added that nearly half (46%) of Brits with lockdown savings had needed to dip into their money in the second quarter of this year. This was a significant increase compared with the first three months of 2022, thanks mainly to rising food costs followed closely by soaring fuel prices.
Ian Browne, financial planning expert at Quilter said: “While many people were able to save during the lockdowns and have had those funds to fall back on during the cost-of-living crisis, almost half were unable to save in the first place and could be left in a financially vulnerable position.”
“Even those who were able to put some money aside have seen their savings rapidly swallowed up by rising costs, particularly on day-to-day bills such as food, car fuel and heating and electricity.”
16 June: Take Advantage Of Bank Rate Hike, Savers Told
Financial experts have urged savers to take advantage of today’s decision by the Bank of England (BoE) to raise the Bank Rate by a quarter of a percentage point.
As expected, the BoE hiked interest rates from 1% to 1.25% which means bad news for mortgage customers on variable rate deals, but offers a glimmer of hope to savers looking to make maximum use of their money held on deposit.
With the latest data showing that consumer prices rose by 9% in the year to April, finding the highest-possible rate is vital for savers if they want to partly offset high inflation levels.
Alice Haine, personal finance analyst at the investment platform Bestinvest, said: “For cash savers, an interest rate rise is always a good thing, as they can secure higher rates on their savings pots – that is of course if they have spare cash to save in the first place.
“Saving rates have been creeping up to the highest levels seen in a decade, with some accounts now offering up to 1.56% for easy access accounts and up to 3% for fixed-rate products.
“Every penny in additional interest is a bonus when high inflation is eating away at the purchasing power of incomes. With many households dipping into emergency pots to meet rising food, fuel and energy bills, you need to make sure your money is working as hard as it can.”
Myron Jobson, senior personal finance analyst at interactive investor, said: “Higher rates mean savings will earn more – although some banks and building societies have been fiendishly slow in passing on recent hikes to the base rate.
“With the rate of inflation now higher than the best savings deal in the market, any money in savings loses purchasing power over time – but it still pays to pick the most competitive account.”
Les Cameron, financial expert at M&G Wealth, said: “While today’s announcement is no surprise, what remains to be seen is whether this rise will translate to higher rates available to savers or to increased borrowing costs.
“Reviewing your finances to make sure you’re prepared for the future has never been more important and, for many, that will involve seeking some form of professional financial advice.”
15 June: UK Savers Rely On Savings In Summer
UK consumers are more likely to dip into their savings in August than in any other month of the year, according to Atom Bank.
The research, which analysed customer savings habits between May 2020 and April 2022, also found that the 1st is the most popular day of each month to make a savings withdrawal.
Since going on holiday was the ‘top savings goal’ among Atom customers, it is likely that many August savings withdrawals are being put towards topping up travel expenses.
Aileen Robertson, head of savings at the bank, said: “A common mistake people make when saving for a holiday is not accounting for enough spending money, which may result in unexpected additional expenses while you’re away.
“It’s useful to plan ahead — research which excursions you might want to take and how much on average they cost, factor in transport costs for the whole trip and consider what you’re likely to spend on food and drink.”
However, in the midst of the ongoing cost-of-living crisis, many others are likely to be using savings to make ends meet.
Ms Robertson said: “Many people with good intentions to save are likely feeling worse off right now, and tapping into savings may be seen as the only way to beat the current cost of living squeeze.”
The bank also found that savers tended to withdraw relatively small amounts, with 25% of customers taking out £80 or less.
8 June: 50,000 Lifetime ISA Holders Use Funds To Buy First Home
Sales of stocks and shares individual savings accounts (ISAs) surged during the pandemic, in stark contrast to cash ISAs, which saw their popularity plummet over the same period, according to the latest figures from HM Revenue & Customs (HMRC).
ISAs are tax-efficient wrappers that enable holders to shelter a certain amount of money each year – currently £20,000 – from income tax, dividend tax and capital gains tax.
HMRC says investors opened nearly 3.6 million stocks and shares ISAs during the 2020/21 tax year, a period that coincided with the most disruptive period of the Covid-19 pandemic.
This is an increase of around 860,000 accounts compared with the previous tax year, representing an extra £10 billion in investments year-on-year.
HMRC says the number of cash ISAs opened during 2020/21 fell by 1.6 million to just over 8 million. This meant that the share of cash ISAs as a proportion of the overall number of ISAs sold fell from 75% in the tax year 2019/20 to 66% in 2020/21.
Overall, around 12 million ISAs were taken out during the tax year 2020/21 equating to around £72 billion in cash terms. This compares with the 13 million accounts taken out in the previous tax year.
HMRC figures also reveal that 50,800 people made withdrawals from their Lifetime ISA (LISA) to buy a home in 2020/21, an increase of 15,000 on the previous tax year.
LISAs allow people over 18 and under 40 to save, tax-free, for their first home or to supplement their retirement earnings. HMRC says that the average LISA withdrawal was £13,192 in 2020/21, a £700 increase on the previous year.
Bestinvest’s Adrian Lowery says the figures show how households channelled lockdown savings towards investing: “During the pandemic savings boom many households looked towards investments, rather than cash savings, with the Bank of England having slashed interest rates to an all-time low of 0.10% in March 2020.”
24 May: NS&I Adds £40 Million To Premium Bonds Prize Fund
National Savings and Investment (NS&I), the Government-backed bank responsible for Premium Bonds, has announced an increase to its prize fund rate from 1.00% to 1.40%, with effect from next month.
It will mean an additional 1.4 million prizes will be issued in June’s monthly draw out of an increased prize pot worth £40 million.
The majority of these extra prizes will be valued at £25 or £50, but the number of higher value prizes is also increasing. For example, there will be 98 prizes of £10,000 in each monthly draw from June, compared with the current 58, and 40 prizes of £25,000 compared to the current 24.
The odds of each £1 Premium Bond number winning a Premium Bonds prize will also change from 34,500 to 1 to 24,500 to 1.
Ian Ackerley, chief executive of NS&I said: “The new prize fund rate ensures that Premium Bonds are priced appropriately when compared to the interest rates offered by our competitors.
“It also ensures that we continue to balance the interests of savers, taxpayers and the broader financial services sector.
Premium Bonds, which are held by over 21 million people in the UK, were first introduced in 1956 as an alternative way to invest money. Rather than earning interest every month like regular savings accounts, purchasing a Premium Bond means being entered into a monthly prize draw for cash sums.
These sums range in value from £25 to £1 million, which winners receive tax-free. Every £1 invested in Premium Bonds is equivalent to one entry into the prize draw, but the minimum investment level is £25. Savers can cash out a portion or all of their bonds at any time.
Although investors do not earn monthly interest, the total value of the prize fund increases at a fixed rate, which is occasionally adjusted in line with inflation and interest rates, both of which have been climbing.
11 May: More Than Half Of UK Adults Open Bank Accounts Without Checking Interest Rates
More than half (52%) of adults in the UK have opened a bank account without checking the rate of interest it pays, according to a survey by the savings platform, Raisin.
Little interest in rates
It found that while almost half of all adults do not have a savings account, of those who do, more than a third have never checked interest rates elsewhere to see if they could be getting a better deal.
The survey, which asked 2,000 adults about their banking habits, revealed that ease of access to their cash was more important to savers than interest rates.
Of the respondents with a current account, savings account, or ISA, just 25% said they opened it because of the interest rate.
By comparison, 37% opened their account because it was offered by their current provider through online banking. And with 23% of women and 25% of men using online banking daily according to the survey, savings offers are viewed by a significant number of customers.
Branch versus digital banking
Despite the popularity of online banking, Raisin’s survey found traditional banks and building societies — with physical branches — remain more popular than their digital counterparts.
Nationwide was the most popular, with 57% of customers responding that they liked the provider. It was followed by Halifax which was liked by 51% of customers.
The Raisin survey also revealed that, once UK savers have decided on a bank, they regularly stick with it for years. More than a third (35%) of respondents said they have the same bank account they opened with their parents as a child. People aged under 35 and under are even less likely to have changed banks, with 50% of them retaining the account opened with their parents.
Since banks and building societies often entice new customers with high initial interest rates and even cash bonuses, sticking with the same bank for years is unlikely to net you the best deal.
With the UK in the grips of record inflation and the cost-of-living crisis, finding the most competitive savings accounts is particularly pressing.
Commenting on the research Kevin Mountford, Raisin’s co-founder, said: “The market is incredibly competitive thanks to online and challenger banks vying for your money, [so] do your research to find the best deals and rates — making smarter moves with your money now could help you save a lot more in the long run.”
29 April: Coventry BS Launches Fixed Rate ISA Range
Coventry Building Society has today launched four fixed rate ISAs. The UK’s second largest building society is offering:
ISA paying 1.50% until 30 September 2023
ISA paying 1.75% until 20 September 2024
ISA paying 1.85% until 30 September 2025
ISA paying 2.00% until 30 September 2026
The four new products join Coventry’s existing Children’s, Additional Allowance, and Easy Access ISAs.
Tom Riley, director of banking and savings at Nationwide Building Society, said: “Many people will be searching for the best rates they can find, suiting their individual saving needs with the peace of mind that a fixed rate provides, so we expect these new ISA products will be very popular.
“ISAs are still an attractive option for those savers wanting to earn interest tax-free that doesn’t count towards their personal savings allowances.”
The Coventry rates stand up well against other providers, including Aldermore, which offers a one year fixed rate ISA paying 1.46% AER, and Skipton Building Society, which offers 2.00% AER on its three year Online Fixed Rate Cash ISA.
Nationwide Building Society is also increasing some of its ISA interest rates, including its Single Access ISA, by up to 0.25% from 1 May 2022.
14 April: Mistaken Savers Think Inflation Leaves Them Better Off
Nearly one-in-nine (13%) cash ISA savers believe that inflation will leave them better off, according to research from Legal & General (L&G). More than half (52%) do not know what impact inflation will have on the real value of their savings over time.
ISA stands for ‘individual savings account’, a tax-efficient financial product supported by the UK government.
UK inflation climbed to 7% earlier this week, its highest level for 30 years. Inflation has risen sharply in recent months due to a number of reasons, including, the worldwide economy waking up after the pandemic, a spike in global energy prices and the Russian invasion of Ukraine.
Despite this, and with inflation predicted to soar even higher later this year, L&G’s research suggested that a large number of Britons could be in for a financial shock.
L&G said that there was £136 billion sitting in cash ISA accounts paying an average interest rate of 0.26%. But it added that two-thirds (64%) of cash ISA savers have taken no action on their savings, even though the return on cash was being far outstripped by the rate of inflation.
The company calculated that a £1,000 deposit with an interest rate of 0.26% would effectively reduce in value by £243 over five years assuming inflation stayed at 6% over that period.
Emma Byron, managing director at L&G Retirement Solutions, said: “Inflation is at its highest rate for three decades and it’s worrying that savers don’t realise that it’s eating away at millions of pounds sitting in low-interest paying accounts. Understanding the impact of inflation is crucial to understand how much money you have in real terms.
“While it is essential to keep some cash in the bank for an emergency fund, savers might want to consider other options to make their money work harder.”
Chase, JP Morgan’s new digital bank, has unveiled a savings account for UK customers paying interest at twice the level of the Bank of England (BoE) Bank rate.
The Chase saver account is linked to the provider’s own current account and offers a competitive interest rate of 1.5% AER.
AER, or Annual Equivalent Rate, is the official method of calculating and showing the interest rate for savings accounts and is designed to allow easy comparisons across similar products.
Earlier this month, in a bid to stave off steepling UK inflation, the BoE raised its Bank rate from 0.5% to 0.75%, the third rise in four months.
The JP Morgan saver account is available to new and existing Chase current account holders and can be opened via the company’s app.
Chase said savers can deposit up to £250,000 in total at any time and can access their savings whenever they want, penalty-free and without loss of interest. There is no minimum opening balance.
Research from Chase found that UK consumers are looking for ways to segment their cash in order to better save for specific goals. Customers can open multiple Chase saver accounts to achieve this, each with a personalised name and featuring a unique account number.
The UK’s personal savings allowance (PSA), introduced in 2016, allows basic-rate (20%) taxpayers to earn £1,000 in savings interest tax-free, while higher-rate (40%) taxpayers are allowed to earn up to £500 before tax. Additional-rate (45%) payers receive no allowance.
A basic-rate taxpayer would be able to deposit just under £70,000 in the new Chase saver account without any tax liability at the product’s present rate. A higher-rate taxpayer could have around £34,000 on deposit with the account and not bust the £500 tax-free interest limit.
Shaun Port, Chase’s UK managing director for savings and investments, said: “With the cost of living increasing, we know that consumers want to maximise the interest they can earn with the reassurance of being able to access their savings instantly. We have designed the Chase saver account to provide our customers with maximum flexibility alongside a competitive rate.”
The UK’s Financial Services Compensation Scheme is a financial lifeboat arrangement that protects customers holding up to £85,000 across all accounts held within the umbrella of one banking group.
24 March: Monument Launches Trio Of Savings Accounts
New digital bank Monument has launched a trio of fixed-term savings products which, it claims, pay competitive rates of interest.
Accessible via its app, Monument’s 12-month, fixed-term savings account pays an annual equivalent rate (AER) of 1.80%. AER is the official rate for savings accounts and is designed to allow easy comparisons across similar products.
A two-year version of the account pays 2.05% AER, while Monument’s five-year, fixed-term product features an AER of 2.40%.
Depositors must be 18 over and resident in the UK. Customers are required to hold a minimum balance of £25,000 at any time across Monument savings accounts to qualify for the published rates.
Should they change their mind, customers can cancel an account within 14 days of opening one. Once up and running, however, withdrawals are not permitted.
Monument, which describes itself as the “first neo-bank launched in the UK specifically to meet the unmet demands of mass affluent clients”, received its banking licence last year.
John Saunders, Monument’s chief commercial officer said: “We’re pleased to be offering a range of savings choices to consider, all at competitive rates. Inflation is a real and growing feature of personal finance, so leaving savings in low, or no, interest-bearing accounts makes less sense than ever.”
1 March: Study reveals regional differences in UK saving habits
One in four people in the UK do not have enough cash for emergencies, according to investment platform Hargreaves Lansdown (HL).
The firm defines emergency cash as savings equivalent to at least three months’ worth of essential expenses.
Figures from its Savings & Resilience Barometer, a financial measure put together with consultants Oxford Economics, showed a wide regional disparity in UK savings habits at the start of 2022.
HL identified the North of England, Midlands, Devon and Wales as among 10 so-called ‘notspots’, or regions that featured large shortfalls for cash savings.
According to HL, more than a third (36%) of those in the West Midlands and Tees Valley and Durham reported that they don’t have enough cash set aside in savings.
The same scenario was also reported by a third of people (33%) in Northumberland, Tyne and Wear, Derbyshire, Nottinghamshire, Devon and West Wales.
This contrasted with parts of London and the Home Counties, including Hertfordshire and Bedfordshire, that HL dubbed as savings ‘hotspots’, where more than four in five people claimed they have sufficient amounts of emergency cash.
HL’s Sarah Coles said: “There’s a mountain to climb to level up financial resilience across the UK. The report shows a gulf between areas with plenty of savings and those with huge shortfalls. It’s not simply a North/South divide.”
Separately, financial coaching app Claro Money says more than a quarter (28%) of Brits are relying on nest-eggs to make good shortfalls when outgoings exceed their income, rather than using their savings for aspirational goals such as buying a car or taking a luxury holiday.
Sarah Brill at Claro Money said: “Savings are being called upon to meet the daily cost of living with inflation increases at a 30-year high. Previously, spending habits might have seen Brits save to spend on rewarding big ticket items, but it’s now the mounting cost of living that is nibbling away at Brits’ hard-earned savings.”
15 February: NS&I Doubles Green Savings Bond Rate
Government-backed National Savings & Investments has issued a second tranche of its green savings bond paying 1.3% over a three-year fixed term – twice the amount paid on the first issue of the bond at launch last October.
Someone buying £1,000 of the new bonds, which enable savers to put their money behind initiatives such as renewable energy and cleaner transport, will receive £1,039 at maturity.
Leading three-year bonds on offer from financial institutions are paying around 1.8%.
The latest issue has a minimum initial deposit of £100 and the maximum investment is £100,000 per person. As NS&I is backed by the UK Treasury, 100% of savers’ money is safe. Applicants need to be at least 16.
Once an initial deposit has been made, a 30-day cooling off period gives savers the opportunity to withdraw their cash. After that, savers are prevented from accessing their money until the bond reaches the end of its term.
Sarah Coles at Hargreaves Lansdown says NS&I’s decision to double the green bond’s interest rate is “a dramatic step that shows the old rate was a real disappointment”.
She says the higher rate “may be enough to see the bond flourish”.
Becky O’Connor at online platform interactive investor, says: “While this rate is not top of the best-buys for three-year bonds, which are currently around 1.8%, it is far more compelling than before for those wanting their money to be put to productive use in the UK’s growing low carbon economy, at no risk.”
10 February: NS&I Ups Rates On Direct Saver And Income Bond Accounts
NS&I, the government-backed savings provider, is raising the interest rates on its Direct Saver and Income Bond products to 0.5% gross Annual Equivalent Rate (AER) from today (10 February).
The increase in each case of 0.15 percentage points follows a rise from 0.15% to 0.35% last December. Last week, the Bank of England raised its official Bank rate to 0.5%, its second increase in three months.
The Direct Saver account can be opened with a minimum deposit of £1 with an upper limit of £2 million, while the Income Bond has a minimum investment of £500 and a maximum of £1 million.
Ian Ackerley, NS&I chief executive, said: “The new interest rates will ensure our products are priced in line with the broader savings sector.”
Helen Morrissey at financial advisor Hargreaves Lansdown said: “It is hugely positive to see NS&I boosting rates on these products, but they still remain some way off meeting the best rates available on the market.
“The best easy-access savings rate available is currently 0.71%, so savvy savers willing to shop around can still find better places to stash their cash.”
UK savers chose to squirrel away their money in easy-access accounts last year over fixed-rate products or Individual Savings Accounts (ISAs), according to Aldermore Bank.
Analysis by Aldermore of the latest Bank of England Money and Credit data showed that UK personal savings stood at £1.414 trillion in December 2021, a year-on-year increase of 6.5%, or £86 billion.
Aldermore attributed the rise to a continuation of the savings habits that Brits picked up during the 2020 lockdown when the pandemic was at its height. The figure excludes cash held in current accounts and NS&I products such as Premium Bonds.
The bank said the easy-access element of the savings market attracted an additional £99 billion in 2021, an increase of 11.3% year-on-year. The main advantage of easy-access accounts is that they allow savers to withdraw cash as and when they please.
In contrast, Aldermore said that the amount in fixed-rate savings products at the end of 2021 was £9 billion down on the previous year, a drop of 5.7%.
The research also showed that savers deposited £4 billion less in savings-based ISAs by the end of last year compared with 12 months earlier, with the attraction of tax-free benefits from these products failing to offset the depressed interest rates on offer.
Ewan Edwards, savings director at Aldermore Bank, said: “The value of savings cannot be underestimated. It’s very encouraging that the focus on savings we saw in 2020 has continued on and grown further in 2021 as people remain focused on building their financial wealth.”
Average Savings On The Rise
Separate research from Paragon Bank backed up the trend towards greater savings habits. According to the bank, the average non-ISA easy-access balance grew from £10,246 in March 2020 to £12,106 in October 2021.
But Paragon warned that most of these accounts continue to earn a very low interest rate, with 71% of easy-access balances offering an interest rate of 0.1% or less.
The bank added that the number of easy-access, non-ISA accounts with balances of £100,000 or more now makes up a record 2% of all accounts in this sector. This is up from 1.8% in October 2020 and 1.6% in October 2019.
Derek Sprawling, savings director at Paragon Bank, said: “The dominant trend we are noting in the easy-access space is that seven out of 10 savers continue to receive a really low return on their money.
“This is despite rates picking up across the board and best-buy deals offering people the opportunity to earn at least six times more interest than they currently are in a low-paying account.”
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ELIGIBLE Americans are in line to score monthly payments from a brand new program.
The City of Salem and UpTogether have just launched a guaranteed income program called Uplift Salem.
Sign up for the Money newsletterYour info will be used in accordance with our Privacy Policy Applications for Uplift Salem will open online on October 28 (stock image) Participants who live in Salem, Massachusetts , will receive $500 a month for one year with no strings attached.The program will choose 100 residents who will be able to spend the payments however they decide.However, each recipient will be evaluated by two Salem […]
Search 2 keywords found: basic income,guaranteed income
ELIGIBLE Americans are in line to score monthly payments from a brand new program.
The City of Salem and UpTogether have just launched a guaranteed income program called Uplift Salem.
Sign up for the Money newsletter
Your info will be used in accordance with our Privacy Policy
Applications for Uplift Salem will open online on October 28 (stock image)
Participants who live in Salem, Massachusetts, will receive $500 a month for one year with no strings attached.
The program will choose 100 residents who will be able to spend the payments however they decide.
However, each recipient will be evaluated by two Salem State University faculty members, according to a statement from the program.
Applications will open on October 28 and residents will have two weeks to apply or until 350 eligible applications have been received - whichever comes first.
“We want Salem to be an affordable place for everyone, and a guaranteed income program offers an innovative approach to help achieve that goal,” Salem Mayor Dominick Pangallo said in a statement.
To submit a form, be sure to check out the Uplift Salem website.
ARE YOU ELIGIBLE?
To qualify for the program, residents must meet two criteria.
Participants must reside in Salem, Massachusetts - this included unhoused residents who spend the majority of their time in Salem.
Second, they must have a household or family income at or below 100% of the federal poverty level based on household size.
Folks will be selected randomly from the group of eligible applications.
Once chosen, their first payments will be handed out by December 1.
A LITTLE HISTORY
UpTogether is a national nonprofit working to address and eliminate poverty.
The total cost of the pilot is $685,000 and is funded through the American Rescue Plan Act dollars.
A private contribution was also made through UpTogether.
WHAT IS GUARANTEED INCOME?
Guaranteed income is similar to universal basic income, UBI, where programs provide individuals with regularly fixed incomes.
These can be programs that use public funds or are funded by the government.
Each program looks to reduce poverty and may be implemented federally and statewide.
While guaranteed income is similar to UBI, it typically provides a smaller amount of money and is aimed at a specific group.
Fitch Ratings – London – 22 Oct 2024: Fitch Ratings has affirmed Just Retirement Limited’s Insurer Financial Strength (IFS) Rating at ‘A+’ (Strong). Fitch has also affirmed the Long-Term Issuer Default Ratings (IDR) of Just Retirement Limited and Just Group plc (Just), the group’s ultimate holding company, at ‘A’. The Outlooks are Stable.
A full list of rating actions is below.
The affirmation reflects our assessment of Just’s ‘Very Strong’ capitalisation and leverage, as well as its ‘Strong’ company profile, financial performance and earnings, and investment and asset risk. Key Rating Drivers Strong Company Profile: Just’s strong company profile is supported […]
Fitch Ratings - London - 22 Oct 2024: Fitch Ratings has affirmed Just Retirement Limited's Insurer Financial Strength (IFS) Rating at 'A+' (Strong). Fitch has also affirmed the Long-Term Issuer Default Ratings (IDR) of Just Retirement Limited and Just Group plc (Just), the group's ultimate holding company, at 'A'. The Outlooks are Stable.
A full list of rating actions is below.
The affirmation reflects our assessment of Just's 'Very Strong' capitalisation and leverage, as well as its 'Strong' company profile, financial performance and earnings, and investment and asset risk.
Key Rating Drivers
Strong Company Profile: Just's strong company profile is supported by its leading positions in the bulk and individual annuity markets and its strong expertise in medical underwriting. Its bulk annuity volumes rose 31% to GBP1.9 billion in 1H24 on strong structural growth in the UK bulk annuity market. Just wrote 55 bulk annuity transactions in 1H24 (1H23: 35), the highest among UK bulk annuity insurers, underscoring its competitive strengths in writing small-scheme transactions. Its individual annuity volumes also grew strongly by 28% to GBP600 million in 1H24.
Market Growth to Continue: Fitch expects bulk annuity volumes to remain strong over the medium term, supported by resilient demand from UK corporates to offload their pension liabilities. We also expect the UK individual annuity market to continue its growth momentum, driven by the improved demand for guaranteed income products and favourable annuity rates, although this could be partly offset by a moderation in annuity rates due to potential reductions in long-term interest rates.
Very Strong Capitalisation: Just scored 'Extremely Strong' in Fitch's Prism Global model at end-2023. The group's Solvency II (S2) coverage ratio was very strong at 196% at end-1H24 (end-2023: 197%), as organic capital generation was offset by a GBP16 million final dividend for 2023. Fitch expects Just's S2 ratio to gradually fall from the current very strong levels, primarily as the group grows its business; however, the S2 coverage ratio will remain commensurate with Just's ratings.
Just's S2 ratio is sensitive to changes in the UK residential property prices through its exposure to equity release mortgages (ERM). Sensitivity was stable in 1H24, where a 10% house price decline would result in a 10pp fall in the S2 ratio, which we view as neutral to our assessment of capitalisation.
Very Strong Financial Leverage: Just's Fitch-calculated financial leverage ratio (FLR) was 19% at end-1H24 (end-2023: 20%), supported mainly by the inclusion of net of tax contractual service margin, in the denominator of the FLR calculation. We expect Just's GBP400 million Tier 2 issue in September to be neutral to its FLR given the repurchase of its GBP250 million Tier 2 notes and a scheduled maturity of its outstanding GBP155 million Tier 3 notes in February 2025. We also assess Just's financial flexibility as strong.
Strong Underlying Performance: Reported underlying operating profit improved 44% to GBP249 million in 1H24, supported by stronger new business and in-force profits. Fitch expects underlying profitability to remain strong, helped by resilient new business margins and growing volumes. Just's IFRS pre-tax profits were GBP74 million in 1H24, down from GBP117 million in 1H23, due mainly to a positive investment variance in 1H23 that did not re-occur.
Conservative Investments; 'BBB' Concentration: Just follows a fairly conservative investment strategy on its GBP16.9 billion bond portfolio, with 99% of bonds rated investment-grade. However, its exposure to 'BBB' rated assets remained high at 42% at end-1H24.
Just's exposure to ERM as a proportion of its total investment portfolio continues to fall, reducing concentration risk. However, its ERM exposure at end-1H24 was GBP5.5 billion (22% of the investment portfolio), one of the highest proportions among its peers. Fitch expects ERM as a share of the investment portfolio to continue to decline as Just originates fewer new ERMs to back new business, but we expect the exposure to illiquid assets in general to grow as volumes increase.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
-A substantial weakening of capitalisation as underscored by a sustained fall in the Prism score to the 'Very Strong' category or a reduction in the S2 ratio to below 140%
-Deterioration in the FLR to above 28% on a sustained basis
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
-A significant increase in product and geographical diversification, although we view this as unlikely over the medium term
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
Today, NS&I has announced a number of rate changes for some of its variable and fixed term products as well as launching a new 2 year issue of British Savings Bonds
According to NS&I, the prize fund rate for its popular Premium Bonds will change to 4.15% for the December draw, along with odds of winning at 22,000 to 1, NS&I has announced today in response to a changing savings market.
Additionally, from Wednesday 20 November the interest rate for Direct Saver will change to 3.75% gross/AER, and Income Bonds to 3.69% gross/3.75% AER.A new 2-year Issue of NS&I’s British […]
Today, NS&I has announced a number of rate changes for some of its variable and fixed term products as well as launching a new 2 year issue of British Savings Bonds
According to NS&I, the prize fund rate for its popular Premium Bonds will change to 4.15% for the December draw, along with odds of winning at 22,000 to 1, NS&I has announced today in response to a changing savings market.
Additionally, from Wednesday 20 November the interest rate for Direct Saver will change to 3.75% gross/AER, and Income Bonds to 3.69% gross/3.75% AER.
A new 2-year Issue of NS&I’s British Savings Bonds has also gone on sale today offering 4.10% gross/AER for the Guaranteed Growth Bond option and 4.02% gross/4.09% AER for the Guaranteed Income option.
Andrew Westhead, NS&I Retail Director, said:
“As the savings market continues to change, we need to lower the rates on some of our products to help us meet our Net Financing target, while also ensuring we continue to balance the interests of our savers, taxpayers and the broader financial services sector.
“Even with the changes, we’re still expecting to pay out over 5.7 million prizes worth over £435 million in the December Premium Bonds draw.
“Our portfolio of both fixed and variable rate products, plus the unique position of Premium Bonds, continues to give savers the choices they need to help reach their savings goals, backed by the safety and security of our 100% HM Treasury guarantee.”
Premium Bonds
From the December 2024 draw, the prize fund rate for Premium Bonds will change to 4.15%, down from 4.40%. The odds of winning will reduce to 22,000 to 1 from the current odds of 21,000 to 1. The prize fund rate for Premium Bonds was last changed in March 2024.
The December Premium Bonds draw is expected to have over £435 million in the prize fund with over 5.7 million prizes ranging from two £1 million prizes to over 1.5 million £25 prizes.
Current prize fund rate (from March 2024)
Current odds (from March 2024)
New prize fund rate (from December 2024)
New odds (from December 2024)
4.40% tax-free
21,000 to 1
4.15% tax-free
22,000 to 1
Value of Premium Bonds prizes
Value of prizes
Number and total value of prizes in October 2024
Number and total value of prizes in December 2024 (estimate)
£1,000,000
2
2
£100,000
88
83
£50,000
177
167
£25,000
353
332
£10,000
883
830
£5,000
1,766
1,664
£1,000
18,452
17,426
£500
55,356
52,278
£100
2,212,098
2,072,099
£50
2,212,098
2,072,099
£25
1,490,033
1,509,458
Total:
Total 5,991,306 prizes £461,330,525
Total 5,726,438 prizes £435,686,300
Variable rate savings products
Product
Previous interest rate (from 23 May 2024 to 19 November 2024)
Interest rate from 20 November 2024
Direct Saver
4.00% gross/AER
3.75% gross/AER
Income Bonds
3.93% gross/4.00% AER
3.69% gross/3.75% AER
This is the first time that NS&I has reduced interest rates for Direct Saver and Income Bonds since November 2020.
British Savings Bonds
New Issues of 2-year British Savings Bonds went on sale today with a lower rate of 4.10% gross/AER for the Guaranteed Growth option and 4.02% gross/4.09% AER for the Guaranteed Income option. The 2-year Issues of the Bonds were brought back on sale in August this year to offer savers increased choice and longer-term security in a changing market.
Product
Previous interest rate (on sale from 11 September to 21 October 2024)
There will still be an estimated two prizes of £1 million in the December draw NS&I of their prize checker app on a phone(Image: NS&I/PA Wire) The odds of winning Premium Bonds are set to decline starting with the December draw, and some savings rates will be reduced by NS&I in response to a "changing savings market." The government-backed provider announced that the odds of winning Premium Bonds will shift from 1 in 21,000 to 1 in 22,000.
There will still be an estimated two prizes of £1 million in the December draw, the same as in October, but in […]
There will still be an estimated two prizes of £1 million in the December draw
NS&I of their prize checker app on a phone(Image: NS&I/PA Wire)
The odds of winning Premium Bonds are set to decline starting with the December draw, and some savings rates will be reduced by NS&I in response to a "changing savings market." The government-backed provider announced that the odds of winning Premium Bonds will shift from 1 in 21,000 to 1 in 22,000.
There will still be an estimated two prizes of £1 million in the December draw, the same as in October, but in total there will be an estimated 5,726,438 prizes worth £435,686,300 in December, down from 5,991,306 prizes worth £461,330,525 this month.
The prize fund rate for Premium Bonds will change to 4.15% in December, down from 4.40%. For the first time since November 2020, NS&I will reduce interest rates for Direct Saver and Income Bonds.
From November 20, the variable interest rate for Direct Saver and Income Bonds will change to 3.75% AER (annual equivalent rate), from 4.00% currently. A new two-year issue of British Savings Bonds has also gone on sale offering 4.10% AER for the Guaranteed Growth Bond option and 4.09% AER for the Guaranteed Income option, both down from previously offered rates of 4.25%.
The Bank of England base rate was recently cut and further reductions are expected to follow. NS&I, which is backed by the Treasury, has a duty to balance the needs of savers, taxpayers and the wider financial market.
Andrew Westhead, NS&I retail director, said: “As the savings market continues to change, we need to lower the rates on some of our products to help us meet our net financing target, while also ensuring we continue to balance the interests of our savers, taxpayers and the broader financial services sector.
“Even with the changes, we’re still expecting to pay out over 5.7 million prizes worth over £435 million in the December Premium Bonds draw.
“Our portfolio of both fixed and variable rate products, plus the unique position of Premium Bonds, continues to give savers the choices they need to help reach their savings goals, backed by the safety and security of our 100% HM Treasury guarantee.”
Computer Aided Manufacturing (now Precision Machining Technology) graduate Jacob Preston returned to TSTC’s Marshall campus to continue his education in the Automation and Controls Technology program. (Photo courtesy of TSTC.) (MARSHALL, Texas) – Texas State Technical College alumnus Jacob Preston recently returned to the Marshall campus to add Automation and Controls Technology to his resume that includes a TSTC degree in Computer Aided Manufacturing.
“I wanted to come back to further my knowledge in the career that I’m currently in,” Preston said. “Each year, I have a word of the year, and this year it’s ‘learn.’”
Computer Aided Manufacturing (now Precision Machining Technology) graduate Jacob Preston returned to TSTC’s Marshall campus to continue his education in the Automation and Controls Technology program. (Photo courtesy of TSTC.)
(MARSHALL, Texas) – Texas State Technical College alumnus Jacob Preston recently returned to the Marshall campus to add Automation and Controls Technology to his resume that includes a TSTC degree in Computer Aided Manufacturing.
“I wanted to come back to further my knowledge in the career that I’m currently in,” Preston said. “Each year, I have a word of the year, and this year it’s ‘learn.’”
Preston discovered that he was a hands-on learner early in life, regularly taking things apart and putting them back together. His grandparents lived a short walk from TSTC’s Marshall campus, making the college an ideal choice for him after he graduated from high school.
Preston earned his Associate of Applied Science degree in Computer Aided Manufacturing (now Precision Machining Technology) in 2008. Today, he is a computer numerical control (CNC) programmer for Kito Crosby, a manufacturer of securement products for rigging, lifting and material handling, at its Longview location where he has been employed for 14 years.
Preston saw an opportunity to continue learning when he discovered the company’s reimbursement program.
“I wanted to know the inner workings of all of the sensors and how to program the PLCs (programmable logic controllers) and the conveyors, and tie it into a CNC,” he said.
Monique Gray, a production supervisor for The Crosby Group, said Preston sets an example of what hard work and determination can achieve.
“Watching Jacob pursue furthering his education in automation and controls while maintaining such an exceptional level of dedication and reliability at work has been truly inspiring,” Gray said. “His commitment to furthering his knowledge and skills, all while excelling in his responsibilities, is a testament to incredible work ethic.”
Preston said juggling his full-time job, an education and an infant son is a challenge, but he loves manufacturing and seeing the new faces at TSTC that will one day join him in the workforce. He plans to graduate from the program in spring 2025.
“TSTC means a secure future with the education that they provide,” Preston said. “You don’t have to have a four-year degree to be successful.”
According to onetonline.org, CNC tool programmers earn a median salary of $62,160 in Texas, where the number of these jobs was projected to grow 47% between 2020 and 2030.
Spring registration begins Oct. 28. For more information on TSTC, go to tstc.edu.
# # #
About TSTC
With 11 campuses across the state, Texas State Technical College helps to strengthen the Texas workforce with highly skilled, technically competent graduates. Operating on a unique funding model based on student employment outcomes, the college celebrated 55 years of service to the state of Texas in 2020. For more information, visit tstc.edu.
Increasingly, AI is creating change across industries. As the technology improves, AI is able to accomplish more than ever.
United States Technology
Authors Increasingly, AI is creating change across industries. As the technology improves, AI is able to accomplish more than ever. If you work in accounting, chances are, you have two key questions. First, how can AI benefit you and make your job easier? Second, what is the negative impact and what are the odds that AI is going to end up taking accounting jobs or replacing you?AI, or artificial intelligence, is seeing increased use in the accounting industry. […]
Increasingly, AI is creating change across industries. As the technology improves, AI is able to accomplish more than ever. If you work in accounting, chances are, you have two key questions. First, how can AI benefit you and make your job easier? Second, what is the negative impact and what are the odds that AI is going to end up taking accounting jobs or replacing you?
AI, or artificial intelligence, is seeing increased use in the accounting industry. It can take care of basic data entry and analytics, expense and payroll processing, and reporting. In addition, AI can forecast trends based on a comprehensive analysis of multiple contributing factors.
The Rise of AI and its Impact on Accounting
Artificial intelligence has the potential to revolutionize many industries. It has been used to improve accuracy, decrease response time, and streamline daily business operations. In many cases, it can reduce the man hours needed to accomplish basic tasks, allowing many businesses to decrease payroll or making it easier for employees to focus on higher-order tasks that can make a huge difference in their overall productivity.
Current Trends
There are several ways AI is currently reshaping the accounting industry.
Automated processes, including payroll and data processing
Detection of outliers or incorrect data
Analytics
Commentary on financial reports
As a result of this increasing capability, many businesses are able to access more information about their financial outlooks and processes.
The Positive Impact of AI in Accounting
AI offers several essential benefits in accounting.
Increased efficiency
Enhanced accuracy
Cost savings
With these benefits, it comes as little surprise that more accountants and businesses than ever are choosing to use these tools to streamline operations and improve overall capability.
The Accounting Roles Most Likely to Be Replaced by AI
AI cannot provide the human touch that many accountants bring to their roles. Many higher-capacity roles cannot be replaced by artificial intelligence, though those tools can go a long way toward improving employee capability. However, some roles are closer to being replaced by AI than others.
Data Entry Clerks
Many data entry clerks complete primarily routine tasks that can be easily automated. As a result, they may be at more substantial risk of having their roles replaced by AI tools. For example, AI can handle automated data capture and processing, which means it can take on the role of several data entry clerks.
Bookkeepers
Bookkeepers are typically responsible for repetitive and rule-based tasks--the type on which AI thrives. They have to check over the numbers, take a look at sales and purchasing, and other key tasks. AI is able to easily take on those challenges. Automated bookkeeping software is already available that can manage many of the tasks traditional bookkeepers usually do.
Accounts Payable/Receivable Clerks
In accounts payable/receivable, clerks handle transaction processing that can typically be handled by AI systems, often much more inexpensively than with human workers handling those tasks. For example, many systems are choosing to use invoice processing automation that automatically manages invoices as they come in.
Payroll Clerks
Payroll clerks take on a number of standardized processes that can be managed by AI. For example, they are often responsible for processing hours worked and managing payroll. They may also need to check for accuracy and ensure that those checks go out on time. However, automated payroll systems can handle all of those tasks with little need for human intervention.
Accounting Roles Less Likely to Have a Negative Impact by AI
While there are many accounting roles that could potentially be replaced by AI, there are others that are more secure, even as the shape of the industry changes and AI is able to take on increasingly complex tasks.
Financial Analysts
Financial analysts take on tasks that require complex analysis and strategic decision-making. Some of the factors they look at are very difficult to automate. For example, they may handle the interpretation of financial data to provide insights to a company or individual. Financial analysts may make personalized recommendations about future spending and other tasks. These decisions are much more difficult to hand over to an AI.
Auditors
Auditors must exercise professional judgment and take ethical considerations into account when navigating their daily responsibilities. They are responsible for ensuring compliance and assessing risk: a task that AI may not be able to handle with the same degree of accuracy or subtlety. Furthermore, auditors often take the human element into account--something that AI is simply unable to do.
Management Accountants
Management accountants take on strategic planning and advisory roles. They handle budgeting, forecasting, and advising management: all tasks that simply need the human touch in order to be effective. AI is often unable to understand the full scope of the business's ethics and focus in the same way, which make s it more difficult for it to offer that essential advice.
The Future of Accounting: Collaboration Between AI and Humans
Increasingly, AI is showing up across the accounting industry. However, that doesn't mean that it's going to replace humans. Instead, the future is collaboration: humans interacting with AI in order to improve overall outcomes.
Augmented Intelligence
AI is often able to function in ways that humans cannot. It is highly accurate and able to take in large quantities of data quickly and effectively. At the same time, however, it is unable to replicate human thought patterns and processes, including gauging importance of a number of essential factors. As a result, while AI will likely continue to increase in importance and capability, it will be used to augment human capability, rather than replacing human input.
Skill Evolution - Overcoming Negative Impact of AI in Accounting
Increasingly, human accountants must learn new skills in order to function in an AI-driven environment. That may include:
Technical expertise, including knowledge of the latest AI systems
Creativity
Flexibility
As the industry continues to adapt to these new tools, accounting professionals must adapt along with it.
Human Oversight
Using AI can provide a number of potential advantages. However, human oversight is an essential part of that process. Human judgment is a key element in complex financial decisions. Without it, many businesses and accounting firms may find that they are unable to deliver the high standard of service needed.
Preparing for the AI Revolution in Accounting
The AI revolution is coming--and savvy accountants are preparing for it.
Upskilling and Reskilling
Look into accounting programs that will allow you to develop new skills and update your current ones, including those offered by local universities.
Embracing Technology
Take advantage of the latest AI tools and use them to enhance your work. Stay familiar with updates in the field and how they can help you in your daily responsibilities.
Mitigating the Negative Impact of AI: Adaptation Strategies for Accountants
Strive to incorporate AI over time, particularly as usage grows. Try:
Providing training for existing employees
Selecting tools that fit your needs
Working with accounting providers who use those essential tools
Over time, you'll find that AI tools become second nature, making it easier for you to accomplish your goals.
Harnessing AI for Accounting Excellence
As AI tools become increasingly common, accountants and accounting firms alike must stay aware of those trends. Stay informed, and be proactive about learning to use those tools and take advantage of them.
By understanding and addressing the potential negative impact, organizations can harness the full potential of AI in accounting. Personiv offers comprehensive financial services, to help businesses navigate the evolving accounting landscape.
Originally published by 09 August, 2024
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
With automation on the rise, it has never been more important to find AI-proof jobs that won’t be replaced by machines.
Some careers are far less likely to be taken over by robots. These high-paying roles rely on skills that artificial intelligence (AI) simply can’t replicate anytime soon — like creativity, human interaction, and critical decision-making.
Curious if your career made the list? Read on to discover the top 15 AI-proof jobs with high pay and how they’re staying ahead in an automated world. Key Takeaways AI-proof jobs rely on human abilities like creativity, empathy, and decision-making — skills that AI […]
With automation on the rise, it has never been more important to find AI-proof jobs that won’t be replaced by machines.
Some careers are far less likely to be taken over by robots. These high-paying roles rely on skills that artificial intelligence (AI) simply can’t replicate anytime soon — like creativity, human interaction, and critical decision-making.
Curious if your career made the list? Read on to discover the top 15 AI-proof jobs with high pay and how they’re staying ahead in an automated world.
Key Takeaways
AI-proof jobs rely on human abilities like creativity, empathy, and decision-making — skills that AI finds difficult to imitate.
Careers in healthcare, leadership, and engineering rank high among AI-proof jobs because they demand human judgment, hands-on skills, and emotional understanding.
The jobs listed below pay more than $75,000 a year and have 0% “official automation risk” — crowd-sourced opinions offer different ideas on how AI-proof each job is.
Leadership roles, like CEOs and security managers, are safe from automation because they require complex decision-making and ethical considerations.
Table of Contents
Top 15 AI Proof Jobs to Pursue in 2024
According to Will Robots Take My Job, the jobs we list below are considered “AI-proof” because they rely on skills that are difficult for AI to replicate, like creativity, human interaction, manual dexterity, or decision-making.
These jobs all pay over $75,000 a year and have been ranked by salary. While the official automation risk is 0% (calculated using a methodology we go into below), you’ll also see how people have voted on the perceived risk for each role.
1. Urologists
Salary: $236,000
Voted risk level: 23%
Why is it AI-proof? If you’re wondering what jobs are safe from AI, medicine remains one of the top contenders. For example, urologists perform surgeries and treatments that require precise manual skills and critical decisions. AI struggles with these hands-on tasks that involve real-life unpredictability.
2. Hospitalists
Why is it AI-proof? Hospitalists handle complex medical situations, working closely with patients and other healthcare professionals. This type of decision-making and coordination is something AI cannot easily manage.
3. Psychiatrists
Why is it AI-proof? Psychiatrists need emotional intelligence and empathy to help people with mental health issues. AI can’t offer the human connection that’s necessary in this field, meaning that psychiatry falls under the AI-safe jobs umbrella.
4. Neurologists
Why is it AI-proof? Neurologists diagnose and treat brain and nervous system disorders, which require both medical expertise and judgment — skills AI hasn’t mastered yet.
5. General Internal Medicine Physicians
Why is it AI-proof? General physicians treat a wide range of illnesses and manage patient care, which involves complex decision-making and personalized treatments that AI cannot fully provide.
6. Chief Executives (CEOs)
Why is it AI-proof? CEOs are responsible for making strategic decisions and leading people, balancing human factors with business needs. Leadership roles like this are safe from AI because AI lacks the leadership, human insight, and ethical judgment needed in them.
7. Physician Assistants
Why is it AI-proof? Physician assistants diagnose and treat illnesses, working directly with patients. Their job requires human touch, quick thinking, and medical expertise, making it difficult for AI to replace.
8. Nurse Practitioners
Why is it AI-proof? Nurse practitioners provide personalized healthcare, often making decisions on the spot – making such healthcare roles AI-safe jobs. This combination of empathy, medical knowledge, and human interaction is beyond AI’s capabilities.
9. Neuropsychologists
Why is it AI-proof? Neuropsychologists combine neuroscience with psychology to treat patients. This mix of emotional understanding and science requires human insight that AI lacks.
10. Education Administrators (Kindergarten through Secondary)
Why is it AI-proof? School administrators lead and manage educational institutions, which involves understanding human behavior and making complex decisions that can’t be automated.
11. Security Managers
Why is it AI-proof? Security managers oversee safety and security strategies, requiring both leadership and the ability to respond to unexpected situations. AI can’t yet handle the unpredictability involved in these decisions.
12. First-Line Supervisors of Police and Detectives
Why is it AI-proof? These supervisors lead law enforcement teams and make important decisions in fast-moving situations. The need for judgment, leadership, and handling complex human interactions makes it hard for AI to replace them.
13. Occupational Therapists
Why is it AI-proof? Occupational therapists are another example of jobs that are safe from AI, since they help people recover from injuries or disabilities by using hands-on care and empathy. This direct human involvement makes the role difficult for AI to automate.
14. Civil Engineers
Why is it AI-proof? Civil engineers design and oversee construction projects. They solve real-world problems with creative and technical solutions, which AI isn’t advanced enough to replicate.
15. Clinical Nurse Specialists
Why is it AI-proof? These nurses provide expert medical care, often in high-pressure situations. They need to think quickly and work closely with other healthcare professionals, skills that AI lacks.
How Automation Risk Determines Which Jobs Are Safe from AI
Various researchers from Will Robots Take My Job examined job features in detail to determine which jobs would be safe from AI.
Here’s how they evaluated the risk of automation, focusing on why some jobs are safer:
Data from O*NET and BLS: The O*NET database provides detailed information about job requirements, like creativity, social interaction, and manual skills. The Bureau of Labor Statistics (BLS) adds useful information, like salary ranges and job growth projections.
The 2013 Frey and Osborne Study: In 2013, researchers Carl Benedikt Frey and Michael Osborne studied over 700 jobs to predict how likely they were to be automated. They found that jobs needing creativity, human interaction, and manual dexterity were much harder for machines to replace. This inspired the authors behind the Will Robots Take My Job website to conduct their own research using the researchers’ process.
Machine learning models: The team used a machine learning model, the Gaussian Process Classifier, to predict how easily different jobs can be automated. Jobs with lower risk tend to demand high levels of creativity, physical skill, or emotional intelligence.
User feedback: Besides data, user feedback also helps refine automation risk scores. People can vote on how likely they think their job is to be automated, and this feedback is used to adjust the estimates.
The Human Skills That AI Struggles With
The jobs that are safe from AI are those that have to do with unique human qualities. AI struggles with jobs related to:
Creativity & originality: Jobs that require creative thinking and coming up with new ideas are hard for AI to replace. Professions like architects and art teachers, for example, rely on imagination and originality — which machines find difficult to replicate.
Complex human interaction: Roles that involve deep emotional understanding, such as psychiatrists or occupational therapists, depend on empathy and human connection. These qualities are essential in helping people, making it tough for AI to take over.
Manual dexterity & physical skill: Jobs that need precision and physical actions, like surgeons or firefighters, are challenging for robots to replace. While AI can manage routine tasks, real-life situations often require quick thinking and fine motor skills, which machines can’t match.
Ethical decision-making & leadership: High-level leadership roles, such as CEOs or emergency management directors, involve making judgments, dealing with ethics, and making complex decisions. These jobs require a mix of human factors and problem-solving, which AI isn’t capable of doing.
The Bottom Line
As AI continues to reshape the workforce, finding AI-proof jobs becomes more crucial than ever. However, whether it’s emotional intelligence, creative problem-solving, or hands-on expertise, there are roles that will always need a human touch.
Want to stay ahead of automation? The careers listed above not only pay well but also rely on skills that machines simply can’t replicate – so explore these high-paying AI-proof jobs and secure your future in an increasingly tech-driven world.
UiPath previews Agent Builder™, a tool for automation developers and business users to build, evaluate, and publish agents
NEW YORK & LAS VEGAS–(BUSINESS WIRE)– UiPath (NYSE: PATH), a leading enterprise automation and AI software company, today announced its new vision and strategic direction centered on the next evolution of enterprise automation – agentic automation.
UiPath, best known for its industry-leading robotic process automation (RPA) technology, is innovating customer automation journeys with agentic automation – a progressive leap from RPA that combines AI agents, robots, people, and models to deliver AI transformation enterprise wide for end-to-end processes. The value of agentic […]
UiPath previews Agent Builder™, a tool for automation developers and business users to build, evaluate, and publish agents
NEW YORK & LAS VEGAS--(BUSINESS WIRE)-- UiPath (NYSE: PATH), a leading enterprise automation and AI software company, today announced its new vision and strategic direction centered on the next evolution of enterprise automation – agentic automation.
UiPath, best known for its industry-leading robotic process automation (RPA) technology, is innovating customer automation journeys with agentic automation – a progressive leap from RPA that combines AI agents, robots, people, and models to deliver AI transformation enterprise wide for end-to-end processes. The value of agentic lies in its potential to efficiently tackle the long tail of complex and differentiated use cases across industries, while offering previously unseen potential for customization, adaptability, and cost-savings.
Agentic automation will use both robots and agents to complete work tasks. Robots are best for automating repetitive and rule-based tasks, improving efficiency, and reducing manual effort, while agents are best at adapting to changes, making intelligent decisions, and handling complex and dynamic processes. The combination of robots and agents extends the scope and impact of automation, unlocking business growth and empowering employees to focus on higher-value work. Agents complete critical business processes and tasks that were not previously possible to automate due to their ability to act independently and make dynamic decisions.
“Agentic automation is the natural evolution of RPA,” said Daniel Dines, Founder and CEO. “Since our inception, we have helped our customers revolutionize their businesses by emulating humans through robotic process automation. Now, we’re advancing enterprise automation with agents, allowing customers to automate entire end-to-end processes and orchestrate workflows seamlessly. The result is more substantial business outcomes, greater productivity, and more customer-facing direct benefits from automation.”
Agents can make use of the millions of automations developed by UiPath customers and leverage the same ecosystem of tools that enables these automations to integrate reliably with thousands of enterprise business applications. Agents benefit from the governance and control provided by the UiPath Platform and the precision-oriented robots that perform with high reliability as well as human-in-the-loop capabilities for critical decisions.
Maximizing the value of agentic workflows requires orchestration between agents, robots, humans, and models, but the complexity of integrating often-unpredictable models into business-critical workflows can be challenging. UiPath will address these challenges with agentic orchestration: a process that enables the design, implementation, operation, monitoring, and optimization of complex business processes from start to finish. Customers can manage the end-to-end process lifecycle—automation, intelligent process insights, modeling, monitoring, and management—all in one platform, allowing automation, AI agents, and humans to work together for better outcomes. By understanding all roles and responsibilities in workflows, agentic orchestration can ensure compliance and deterministic outcomes with the dynamic adaptability allowed by agents.
“Agentic automation will rapidly become the primary mechanism to converge AI with rules-based technologies to automate and augment knowledge work," said Maureen Fleming at IDC. "The combination of GenAI and AI agents represent the first-time knowledge workers will meaningfully gain the benefits of business automation to help them do their jobs, creating the next level of value from automation across enterprises."
New agentic capabilities in the UiPath Platform
At its annual FORWARD user conference in Las Vegas, UiPath announced a preview of Agent Builder™, a tool for automation developers to build, evaluate, and publish enterprise agents that work cooperatively with robots on UiPath’s automation platform. Agent Builder is part of the UiPath Studio family of developer tools, meaning developers can use Studio to develop and deploy workflows and apps that work with agents.
Agent Builder will allow users to build agents, either from scratch or from a pre-built agent in the UiPath Agent Catalog, that work in tandem with robots and humans. Customers will also be able to include third-party agents in their agentic workflows if they choose.
“Agents allow anyone to handle more complex tasks and brand-new scenarios, which provides tremendous value to our customers,” said Graham Sheldon, Chief Product Officer at UiPath. “Providing customers with the ability to build their own specialized agents in a simple, low-code integrated development environment or a pre-built template makes it easy for them to automate new use cases, avoid costs, and stay ahead of competitors."
Agent Builder is expected to be available for preview across the UiPath community in December 2024. All users are encouraged to register for the preview here.
Autopilot for everyone now available and free to start
UiPath also announced the launch of Autopilot for everyone - a cross-platform, GenAI conversational agent that helps every employee enhance productivity at work. Autopilot for everyone allows end users to take full advantage of UiPath’s agents and workflow automations, enabling any employee, regardless of technical ability, to complete complex tasks ranging from getting answers grounded with their own organization’s data, analyzing documents, automating copy-paste into apps, and running automations. Autopilot for everyone provides an intuitive LLM-based conversational experience, customizable prompts, vast automation libraries, and leverages specialized AI models for specific tasks such as document understanding and semantic copy-paste.
Customers also benefit from UiPath security and governance: Autopilot is built on the UiPath AI Trust Layer that enables organizations to easily manage and govern the rollout and data usage of AI models. It is a cross-platform solution that works on both Windows and Mac.
“At UiPath, we believe strongly in the democratization of this type of technology because we’ve seen firsthand how valuable it is for our customers,” said Sheldon. “We’re excited to help break down barriers to widespread agentic automation adoption so that everyone can take advantage of the numerous benefits that Autopilot brings to everyday work.”
About UiPath
UiPath (NYSE: PATH) develops AI technology that mirrors human intelligence with ever-increasing sophistication, transforming how businesses operate, innovate, and compete. The UiPath Platform™ accelerates the shift toward a new era of agentic automation—one where agents, robots, people, and models integrate seamlessly to enable autonomous processes and smarter decision making. With a focus on security, accuracy, and resiliency, UiPath is committed to shaping a world where AI enhances human potential and revolutionizes industries. For more information, visit www.uipath.com.
Experts at the Zero Project India Conference 2024 called for urgent interventions to boost job opportunities for disabled individuals. Synopsis India aims for inclusive employment by 2030, but challenges persist, stressed speakers and attendees at Zero Project India Conference 2024.
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India’s journey toward being an inclusive and equitable society hinges on creating meaningful job opportunities for people with disabilities, experts say. Despite progress in policies and technology, barriers such as social stigma, accessibility issues, and lack of employment opportunities continue to hinder the integration of people with disabilities into the workforce. By 2030, India aims to dismantle […]
India's journey toward being an inclusive and equitable society hinges on creating meaningful job opportunities for people with disabilities, experts say. Despite progress in policies and technology, barriers such as social stigma, accessibility issues, and lack of employment opportunities continue to hinder the integration of people with disabilities into the workforce. By 2030, India aims to dismantle these barriers, ensuring equal access to jobs for all.
According to the National Family Health Survey (NFHS-5) conducted by the Indian Council of Medical Research (ICMR) in 2019-21, 63.28 million people, or 4.52% of India's population, are living with disabilities. This is a significant increase from the 2011 Census, which reported 2.68 crore (2.21%) disabled individuals. The sharp rise in these figures calls for urgent intervention.
Regional disparities further highlight the uneven distribution of disability prevalence. For example, Sikkim reports a 2.98% prevalence rate, compared to just 0.9% in Daman and Diu. Notably, nearly 50% of the disabled population resides in five states: Uttar Pradesh, Maharashtra, Bihar, Andhra Pradesh and West Bengal.
To deliberate more on such pressing challenges and their potential solutions, the recently concluded Zero Project India Conference 2024 at The Leela Hotel, Gurugram, brought together global and national networks to discuss innovations and solutions for disability inclusion. The conference highlighted the urgent need to expand job opportunities for people with disabilities.
According to the 2011 Census, 1.7 crore disabled individuals were non-workers, with females accounting for 54%. In the private sector, workforce participation remains low — only five of the Nifty 50 companies employ more than 1% of disabled individuals. Public sector enterprises, despite the mandate under the Rights of Persons with Disabilities Act (2016) to reserve 4% of jobs for people with disabilities, also fall short of this target.
Experts stressed a key solution to these challenges lies in technology, particularly artificial intelligence (AI). AI-powered tools can revolutionise how people with disabilities access education and skill development programmes, enhancing their employability. For example, AI-driven voice recognition software, text-to-speech applications, and predictive text technology offer support for those with visual or physical impairments. Virtual reality (VR) and augmented reality (AR) tools can create simulated training environments, providing practical, real-world experiences for job seekers.
Remote work, another AI-enabled innovation, offers a viable solution for those with limited mobility or transportation challenges. According to experts, this flexibility has the potential to greatly expand employment opportunities for disabled individuals. AI platforms can also help match candidates with suitable jobs, improving productivity and job satisfaction through better alignment of skills and roles.
Speaking at the event, Meera Shenoy, founder and CEO of Youth4Jobs Foundation, highlighted the importance of grassroots innovations and collaboration. "While policy frameworks exist, we need more focused efforts to ensure implementation and accountability. Youth4Jobs has touched 15 million households and impacted over 590,000 disabled youth across South Asia. By working with the government, over 1,500 companies, and civil society, we aim to build a more inclusive society," she said.
Michael Fembek, CEO of the Zero Project, emphasised the role of collaboration in driving disability inclusion: "The Zero Project India Conference 2024 offers a unique opportunity to connect our global networks with India's emerging innovations. Scalable solutions shared here can push the boundaries of what's possible, ensuring that disability is no longer a barrier to employment."
Government representatives attending the event also echoed these sentiments. Rajesh Aggarwal, Secretary of the Department of Empowerment of Persons with Disabilities, underscored the need to scale up initiatives and improve daily infrastructure for people with disabilities. He stated that while the corporate sector has made strides, there is still a need to scale initiatives and improve infrastructure for day-to-day living for persons with disabilities.
Martin Essl, Founder of the Essl Foundation, called for continued innovation, particularly in education and employment, to drive inclusion. "Together, we can create pathways that ensure no one is left behind. The momentum we’ve built today must translate into actionable change to make the world more inclusive," he said.
The Zero Project India Conference 2024 laid the groundwork for collaborative action, but experts affirmed the path ahead is challenging. The job creation gap for people with disabilities is not only a moral issue but also a missed economic opportunity. With the aid of AI and technology, individuals with disabilities can become key contributors to the workforce, driving both social inclusion and national economic growth.
As India works toward its 2030 goals, the push for disability inclusion will require stronger partnerships, greater accountability, and innovations that ensure every individual, regardless of ability, has a place in the nation's workforce.
With extensive leadership experience in supply chain and operations management, Anupam Narayan has witnessed firsthand how technological advancements have revolutionized the logistics industry. Throughout his career, he has successfully led teams through the transition from traditional manual operations to highly automated systems, all while optimizing performance in distributed teams across various regions. His deep expertise, from integrating robotics and warehouse management systems to the emerging impact of artificial intelligence AI and machine learning ML, makes him an insightful voice in the field.
In this interview, Anupam reflects on the transformative journey of logistics and warehouse management, shares key strategies for […]
With extensive leadership experience in supply chain and operations management, Anupam Narayan has witnessed firsthand how technological advancements have revolutionized the logistics industry. Throughout his career, he has successfully led teams through the transition from traditional manual operations to highly automated systems, all while optimizing performance in distributed teams across various regions. His deep expertise, from integrating robotics and warehouse management systems to the emerging impact of artificial intelligence AI and machine learning ML, makes him an insightful voice in the field.
In this interview, Anupam reflects on the transformative journey of logistics and warehouse management, shares key strategies for managing distributed teams, and discusses the evolving role of AI in supply chain management. From balancing speed with cost efficiency to planning for peak demand surges, Anupam provides a comprehensive look into the future of logistics, drawing on his experience with large-scale technology rollouts and sustainable operations.
Anupam Narayan
Anupam, as a senior leader with extensive experience in supply chain and operations, how have you seen technology transform warehouse management and logistics over the past few years?
It’s been an interesting journey from witnessing and executing traditional manual operations to automation. The transformation I have seen in my career has been phenomenal and game-changing. Some facets include introducing robotics, warehouse management systems, the Internet of things, and more recently artificial intelligence and machine learning. Robotics in particular have proven to be a breakthrough. Several new technologies have emerged such as automated guided vehicles and robotic arms that have made repetitive tasks safer, faster, and more accurate. Software has played a big role especially in warehouse management systems further leading to more accuracy in planning and execution. IoT, AI, and ML are still in the works and, I’d say we are in nascent phases.
You’ve led teams across various geographical locations. What strategies have you found most effective for managing and optimizing performance in distributed teams?
Interestingly, based on my personal experience it’s more about people than technology, data, or analytics while working with distributed teams and across different geographies. Technology, data, and analytics are for the most part location neutral. However, cultural alignment and the people component play a bigger role. For instance, in certain geographies, and with certain cultures one has to explain the why in greater depth behind decision-making than others. On the flip side, working with certain other geographies and teams getting buy-in is quicker. Having said that, we have to embrace this diversity of thought and leverage the competencies, strengths, and skillsets of all stakeholders to get the best out of the combined team.
How has the integration of AI and machine learning changed the landscape of supply chain management, and what future developments do you anticipate in this area?
AI and machine learning have come a long way in reshaping how industries operate, from planning to execution. But honestly, we’re just getting started. There’s so much potential that hasn’t been tapped yet. These technologies really shine when they have massive amounts of data to work with, but right now, the available data isn’t always enough for them to reach their full potential. Still, the progress has been incredible, making supply chains more efficient, responsive, and data-driven. We’ve seen huge improvements in things like decision-making, forecasting, inventory management, predictive maintenance, risk management, and quality control—it’s been a game-changer.
Looking forward, the possibilities are endless. Not only will we keep improving in these areas, but we’ll also see exciting advancements in autonomous supply chains, blockchain integration, predictive analytics, and even how humans and AI can work together. It’s an exciting time.
How do you balance the need for speed and efficiency with cost management in your logistics processes?
It’s certainly a trade-off and somewhat linked to your business model whether you are for a profit or non-profit. Customers like speed and efficiency but often it comes at a cost. Economies of scale support sustainable and sometimes even lower costs at higher speeds and efficiencies, it’s hard to claim that it’s a norm. Hence, it boils down to a willingness to pay from the customer’s perspective. Depending on who your customer is and how much is their willingness to pay, you should decide what’s right for your business.
As someone who has been involved in network-wide roll-outs of new technologies, what advice would you give to companies looking to implement large-scale technological changes in their operations?
It’s all about buy-in, in my opinion. Leveraging the strengths of all key stakeholders while maintaining an eye for diversity of thought is the secret sauce. My advice would be to have a plan, goal, and vision; execute this plan; and celebrate wins and success while embracing setbacks. It is important to pivot when the plan is not working and make mid-course corrections as needed. Although, I would also caution by saying, many times it takes time to see the true results of the plan. Rushing to change the plan is not ideal till it’s substantially proven to not work. Also, shy always from false positives. Occasionally, short-term results of such large-scale technological changes in a confined environment and under controlled situations do not show the full picture. One has to rinse and repeat to understand what works and what does not.
The concept of sustainability is becoming increasingly important in logistics. How are you seeing this play out in warehouse operations and supply chain management?
It’s a really important topic that people often undermine. If we run out of resources at sustainable costs, operations will no longer be viable in the long term. A few things to look at are more energy-efficient buildings and equipment, waste reduction and recycling, sustainable transportation and shipment methods, and the use of clean technology. Over the past few years, this is increasingly becoming a focus area for several organizations. The combined efforts of the industry present a good picture ahead of us.
Looking ahead, what do you believe will be the most disruptive change in e-commerce logistics over the next decade?
This is an interesting question. It’s really hard to predict the future. However, I do foresee automation making operations safer, more accurate, and faster. Natural large language processing, edge computing, cognitive automation, and quantum computing are probably no longer a dream but a reality in times to come. This will certainly revolutionize how supply chains work driving down costs and increasing accuracy.
You’ve managed operations during peak periods like major shopping events and holiday seasons. What lessons can other industries learn from how e-commerce leaders handle sudden surges in demand?
I’d begin with a principle I learned from my long-time mentor, Barry Salzberg: “Proper Planning Prevents Poor Performance.” Flexibility is crucial when planning and managing surges in demand. It’s a delicate balance—being too conservative can drive up costs, while being overly optimistic can leave you without enough capacity. The key is to create plans that are flexible but strong enough to handle major fluctuations, whether demand is higher or lower than expected.
In my experience, it’s important to focus on a few key areas well in advance of any anticipated surges: safety, manpower, capacity, software, identifying potential bottlenecks, and revisiting lessons learned from past surges. All of these factors contribute to smoother, more effective execution when the demand hits
John Pierce is an entrepreneur with a focus on C-Suite consulting, M&A in the RIA segment, and a builder and leader of high-quality teams. A Women Reviews the Data Analysis of Marketing from Social Media Platforms. Technology has always had an impact on job markets. The efficiency it delivers often leads to reduced need for certain functions, no matter the industry. Considering some roles get eliminated entirely, it’s understandable that new tech tools cause employees to panic about their relevancy. The increasing adoption of AI is no exception.
For example, when I was growing up, two key jobs were in […]
John Pierce is an entrepreneur with a focus on C-Suite consulting, M&A in the RIA segment, and a builder and leader of high-quality teams.
A Women Reviews the Data Analysis of Marketing from Social Media Platforms.
Technology has always had an impact on job markets. The efficiency it delivers often leads to reduced need for certain functions, no matter the industry. Considering some roles get eliminated entirely, it's understandable that new tech tools cause employees to panic about their relevancy. The increasing adoption of AI is no exception.
For example, when I was growing up, two key jobs were in high demand: coding and copywriting. Both careers were considered safe bets for professional security. But today, more companies are leaning on automation for these functions because it's more cost effective. There's a chance that, in the long term, there won't be a need for human coders or copywriters.
As AI begins taking over non-core, non-critical activities, it actually opens the door for new job classes to emerge. People in at-risk professions can learn to pivot their existing skill sets so they can fill those roles. For example, copywriters can apply their creativity to crafting the prompts that train generative AI models to produce desired outcomes. So it's clear we must embrace AI and learn to leverage this new dynamic if we want to stay competitive.
4 Steps To Prepare For AI Disruption
In the face of this new reality, it's vital to envision how AI may impact your career. Does it have the potential to put your position, employer or industry in jeopardy? If so, how can you protect your future? These four steps can help you make the right decision as this technology continues to disrupt job markets.
The first step in preparing for the AI-driven future is adapting your skill set. For example, you may want to learn about data analytics or common programming languages. Then be sure to develop key soft skills that are more difficult to automate, like problem-solving and emotional intelligence.
2. Embrace Lifelong Learning
As further AI disruption comes our way, it's your choice to be proactive. But if you choose not to learn, you're limiting yourself. There are numerous benefits tied to lifelong learning, including enhancing your employment opportunities, developing personally and—my personal favorite after turning 60—improving your cognitive health and resilience to aging. Don’t just take my word for it. Back in 2007, Havard research associates Claudia Goldin and Lawrence Katz wrote a paper on how adapting to technological change can help narrow wage gaps.
Start pursuing academic opportunities, like certifications, that will prepare you for future tech advancements that could influence your career. See what educational opportunities your current employer offers—be sure to ask about any expense reimbursement policies—or take some free classes online.
3. Innovate Freely
Be open to technological innovation and its ability to improve your own efficiency and productivity. Even if your role doesn't sit in the CTO’s office, take the initiative to seek out AI solutions for current challenges at your organization. Experimentation can lead to innovative problem-solving, especially when you embrace collaboration and diverse thinking.
4. Network And Collaborate
Finally, start building a strong professional network that includes AI experts. Networking provides access to new information, diversity of ideas and, as needed, new job opportunities. We're all in the same proverbial boat related to AI. I've connected with AI experts so I can better understand the complexity—or, at times, the simplicity—of how this technology will impact our lives.
Am I concerned about AI? Yes. But am I also excited about where this leads us? Absolutely. Those who read my work know I'm both an optimist and a realist. It's amazing to be in the next business revolution, but we can't sit on our hands, waiting to see what happens. Participating in AI disruption is ultimately your choice, but choosing to embrace it will be your best bet for a secure future.
As AI automates routine tasks, entry-level roles will focus on quality assurance and strategic contributions.
Credit: BGStock72 – shutterstock.com Generative AI is on track to transform entry-level roles across industries, with 64% of leaders expecting these positions to evolve from creation to review and refinement of outputs within the next three years. The percentage of managers holding a similar view stood at 71%, according to new research from the Capgemini Research Institute.
The findings suggest the traditional model of junior employees manually creating content, data, or code is rapidly being replaced by generative AI , which can generate these […]
As AI automates routine tasks, entry-level roles will focus on quality assurance and strategic contributions.
Credit: BGStock72 - shutterstock.com
Generative AI is on track to transform entry-level roles across industries, with 64% of leaders expecting these positions to evolve from creation to review and refinement of outputs within the next three years. The percentage of managers holding a similar view stood at 71%, according to new research from the Capgemini Research Institute.
The findings suggest the traditional model of junior employees manually creating content, data, or code is rapidly being replaced by generative AI, which can generate these outputs in a fraction of the time. As a result, employees in these positions will focus more on quality control, critical analysis, and ensuring AI outputs meet business standards, the report added.
The findings are based on Capgemini Research Institute’s May 2024 survey that involved 1,500 executives and 1,000 entry-level employees from 500 organizations with over $1 billion in revenue, to explore generative AI adoption.
The report revealed that employees expect gen AI will manage an average of a third of their tasks (32%) within the next 12 months, indicating a potential productivity boost. This shift is expected to be felt most acutely in roles that traditionally involve manual content creation, data entry, or routine customer service tasks.
“Generative AI tools are becoming more adept at assisting with complex managerial tasks, which could challenge the status quo of organizational structure and ways of working,” Roshan Gya, CEO of Capgemini Invent and a member of the Group Executive Committee said in a press note. “This shift allows employees to focus on higher-value activities, unlocking new perspectives and challenging assumptions.”
Increased autonomy for junior employees
The widespread integration of AI into the workplace will not only change the nature of entry-level work but also grant more autonomy to junior employees.
According to the data, 52% of leaders and managers expect entry-level positions to gain greater independence as AI becomes more embedded in daily workflows. For example, in industries such as supply chain and logistics, AI will take on tasks like inventory management and order processing, allowing junior analysts to focus on strategic tasks and project management.
As AI continues to manage mundane tasks, junior employees will have more opportunities to make decisions that were previously the domain of higher-level staff. This will enable them to fast-track their careers and assume greater responsibilities early on, the report stated.
The report reveals that 51% of leaders believe AI will accelerate the career progression of entry-level employees. With AI automating routine functions, junior employees will gain exposure to more strategic elements of their roles, moving into management positions much faster than traditional career paths have allowed. AI will facilitate this shift by providing employees with the tools and data necessary to make informed decisions and take on supervisory roles.
“It should be noted that this shift depends on several factors: clarity on skills requirements at higher levels; the ability of junior employees to develop these skills (often tied to experience, which cannot be fast-tracked); and the availability of opportunities available for the shift,” the report pointed out.
It further added that “Organizations must prioritize building the skills and readiness of junior employees as part of a clear roadmap for employees’ journeys to people leadership or functional/technical leadership. This requires proactive steps around talent acquisition, development, skilling, and review and reward mechanisms.”
This transformation is already visible in fields such as marketing, customer service, and even technical domains like software development.
“We’re seeing AI take over foundational tasks in these sectors, and junior employees are becoming curators of AI work, rather than creators,” the report said.
With AI’s involvement, the proportion of managers within teams could expand from 44% to 53%, reflecting a broader move toward specialized roles that focus on managing AI-human collaborations.
Productivity gains but upskilling gaps remain
The findings from the report suggest that while AI adoption promises significant productivity gains — potentially saving 18% of time for entry-level workers — there are concerns about the readiness of employees to leverage these tools.
Despite the optimism about AI’s role in career acceleration, the report highlights a significant gap: only 16% of employees feel they are receiving adequate training in AI-related skills from their organizations. This gap poses a major challenge for companies that want to fully harness the benefits of AI, especially at the entry level.
“Without the proper training and resources, employees won’t be able to maximize the potential of AI,” the report cautioned, urging organizations to prioritize formal training programs to ensure their teams are ready for the AI-driven future​.
The path ahead
Despite the promise of Gen AI, adoption remains nascent. While 64% of workers already use Gen AI tools, the report stated that only 20% use them daily.
This gap between AI’s potential and actual usage underscores the need for clearer guidelines, comprehensive training, and better integration of AI tools into existing workflows. As organizations continue to explore AI’s capabilities, defining roles and responsibilities for human-AI collaboration will be key to ensuring accountability and cohesion across teams.
With 81% of leaders expecting new roles like AI ethics specialists and data curators to emerge, the landscape of entry-level work is on the verge of a significant transformation. The future of work, it seems, will be less about replacing human effort and more about enhancing it through strategic collaboration with AI.
Workers in Woolworths warehouses claim they are increasingly being pushed to comply with unrealistic and risky productivity standards. The supermarket giant has increased pressure on employees with a new framework that warehouse staff describe as ‘bullying’ and unsafe Get our breaking news email , free app or daily news podcast
Tim* has worked in a Woolworths warehouse for more than a decade. He’s helped load trucks and done other jobs, but mostly he “picks”.
When he arrives at work, he puts on a headset that tells him where to go, what items he needs to take from the shelves […]
Tim* has worked in a Woolworths warehouse for more than a decade. He’s helped load trucks and done other jobs, but mostly he “picks”.
When he arrives at work, he puts on a headset that tells him where to go, what items he needs to take from the shelves and pack and how long it should take him to do it. All the while, the company measures his productivity and pushes him to go faster.
For years, the company has tracked almost every minute of his day. Take a long bathroom break and a team leader might ask where he’s been. His performance percentage out of 100 appears on the screen when he clocks off, based on an algorithmic management system that predicts how long it should take to do each task.
With a market capitalisation of about $40bn, Woolworths is one of Australia’s largest companies. This kind of tracking and time pressure isn’t unique to the supermarket chain, but workers who are responsible for keeping shelves stocked claim they are increasingly being pushed to comply with unrealistic and risky standards.
Late last year, the company introduced a new framework to enforce an efficiency rate for picking of 100%. Workers who weren’t meeting the standard would be put into a coaching program. Some were directed to “stop all time wasting and non-productive behaviors”, according to warning letters seen by Guardian Australia. Failure to improve could lead to disciplinary action and even loss of employment. One worker described it as a “bullying” tactic.
Tim, who is over 60, said he was pushed to improve his rating. He got it to more than 80%, then 90%, then 100%, he said, but in his effort to work harder, faster, he was injured.
“You might get someone that’s … 20 years old and goes to the gym every day. And someone like me. I’m getting the average between him and me,” Tim said. “Obviously, I can’t keep up with him.”
“We’re going down the same path as Amazon,” said another worker, Ross*. “We’re not robots, we’re humans.”
A spokesperson for Primary Connect, Woolworths’ supply chain arm, said its coaching framework helped “to ensure a fair approach to the standards is applied to any personal circumstances or abilities”.
“As the country’s largest private sector employer, we are committed to ensuring that our workplaces are safe and productive for our teams and customers,” she said.
Efficiency v reality
Work in a Woolworths warehouse can be relentlessly physical: stacking products and boxes that can weigh up to 18kg on to pallets, wrapping them and getting it all into trucks. Much of this is timed.
The amount of time workers have to complete a task is meant to reflect how long it would take “a person with reasonable skill, applying reasonable effort”, a baseline of performance known as “engineered standards”, according to a memo issued by Primary Connect.
But Guardian Australia spoke to a dozen current and former workers for Woolworths and Primary Connect, who claim the standards are unfair and putting their safety at risk. All requested anonymity for fear of losing their jobs.
As more people shop online, there’s been growing attention to the treatment and tracking of workers in warehouses run by e-commerce conglomerates like Amazon. In June, the state of California fined the company for failing to properly disclose its productivity targets to workers – a decision the company is reportedly appealing. But Australian warehouse workers have long been subject to this style of control. Engineered standards were introduced by Australian supermarket chains in the late 1980s and 1990s and were the target of industrial action.
“It’s a fantasy of total efficiency,” Christopher O’Neill, a research fellow at Deakin University who studies workplace automation, said of engineered standards. “The argument was: this was a ‘scientific’ way of rationalising work and eliminating wasted time,” he said.
“It’s basically a pseudoscientific veneer over this kind of fantasy of being able to control every second of every day.”
This year, Woolworths workers told the United Workers Union (UWU) that safety “could be jeopardised if pressure is placed on workers to work faster”.
According to the union’s submission to the Australian Competition and Consumer Commission’s supermarkets inquiry, the standards don’t adequately take into account “gap times” – moments when a task cannot be completed because there is congestion in an aisle, a product is missing, or a spillage.
One worker described a recent job to Guardian Australia where she was told it should take 14 minutes to pick 96 items from multiple locations, which she said was “not achievable”. Others say the times don’t adequately take into account the need for longer bathroom breaks, variations in physical ability or worker fatigue throughout the day. The rates are meant to be reviewed every two years to reflect changes in the warehouses.
Senator accuses Woolworth CEO Brad Banducci of dodging profit questions - video
While 100% has long been the target, workers said this wasn’t strictly enforced until recently, so long as they were consistent and not taking long breaks. Older workplace documents state that “100% is our goal, not our minimum expectation”.
The new “Coaching and Productivity Framework” included “Glidepath”, a new “timeline” to push workers to improve and reach 100% performance, according to documents seen by Guardian Australia. If they didn’t meet the required targets and there were no mitigating factors, the worker would be “counselled and may be disciplined”.
After strong worker pushback, the framework was “paused” before it was rolled out to all sites – but workers are concerned it will be reintroduced.
According to the Primary Connect spokesperson, the standards that outline how long it should take to complete a task are based on a person “working at a safe and conscientious pace that can be maintained for the duration of a shift”, while the framework helps provide a “consistent approach” for its teams.
They said the company has listened to feedback from workers and the union on the framework, “and will engage our teams in the distribution centres in due course”.
Susannah* was picked for the program and warned after being told her performance was less than that of others on her team. She said she was told she would have to be retrained, despite working at the site for years, and was expected to climb to about 90% in just a few weeks. She said it was “humiliating” to be followed around the warehouse by a “coach”, just as it causes daily embarrassment to have your efficiency score shown on the screen for anyone to see when you clock off for the day.
The framework documents say that the engineered standards have not changed, but according to the UWU’s research and policy officer Lauren Kelly it represents “a sharp break” from how they were enforced as recently as last year.
“My worry, and the worry of the members, is that the response will be that we just need better data on how long it takes to do these tasks,” Kelly said. She claims the system is designed to be “disciplinary and coercive”.
‘It’s just pressure, pressure, pressure’
It’s difficult for some to reach 100% without rushing or taking shortcuts, workers say. Some jobs might be simple, but others are like “playing Tetris on a pallet”.
There’s also congestion – the forklifts and other items clogging the aisles. In the warehouse where Tim works, several workers say the standards don’t sufficiently account for the building’s layout, including the location of bathrooms. Neither are glitches in the voice pick technology itself. According to a memo introducing the new framework, seen by Guardian Australia, any unexplained “gap time” should not exceed five minutes on top of the expected standard.
“They say, ‘Oh, it’s all built [into] the standards’, but the problem is it doesn’t cover that gap,” Tim said. Exemptions to the 100% standard are “rare”, according to the Primary Connect memo, and for situations where a worker is pregnant or has a disability.
The recent push for 100% led to injuries as well as mental stress, workers say. “These people go a bit harder and those little niggles that they’re managing are now injuries,” Tim said. “It’s just pressure, pressure, pressure.”
According to preliminary data from Safe Work Australia, there were 1,283 serious claims in grocery, liquor and tobacco product wholesaling in 2022-23 – accepted workers’ compensation claims that resulted in an absence from work of one working week or more (this data precedes the new framework). That’s a frequency rate of 13.5, compared with food manufacturing, which was 11.4, or coal mining at 11. The frequency rate is calculated by the number of claims per million hours worked.
In June 2023, warehouse worker Basel Brikha was killed after pallets collapsed on to him at a Woolworths site in western Sydney. A SafeWork NSW spokesperson said the investigation was ongoing. Guardian Australia understands Brikha was not working under engineered standards at the time of his death.
Workers say Safe Work numbers are unlikely to reflect true rates of injury, as casuals may not report incidents for fear of losing shifts.
Some workers said they stopped working at a Woolworths Perth warehouse over the demand for unrealistic pick rates.
Sammy* has worked at a Woolworths distribution centre for about four years. First as a casual with a recruitment agency and eventually full-time. Each roster, he might be sent to a different part of the warehouse: manual pick, for example, or salvage, where they sort through returned goods from the stores.
He felt his back getting weaker and sore. Eventually he was diagnosed with bulging discs in his spine, aggravated by work, but treatments like cortisone injections haven’t helped. For a while he had no complaints about how he was treated. He had workers compensation, and was put on light duties, but after about a year, he was back to normal work, he said.
“If they’re sending me to salvage or maybe manual pick … I’m scared that I’m going to be feeling pain after I finish work.”
Automation on the horizon?
Some workers leave because of the pressure. Jake* worked at a Woolworths distribution centre in Perth about three years ago, via a labour hire firm. He was a pick-packer, and even then he felt the engineered standards were often unrealistic.
In one section with dog food or soft drinks, for example, the pick rate might be fairly reasonable. But in another, say alcohol, the beer and wine boxes were heavy and all different sizes. Nevertheless, they all had to fit together on the pallet.
“I remember getting a pick estimated time for two pallets that was mostly cartons of beer and it was something like 19 or 21 minutes and I ended up doing it in 45,” he said. “And so of course, that dropped my efficiency percentage way down.”
Jake did receive training in the safe ways to pick things up, but said once you’re on the floor and have efficiency percentages hanging over your head, that goes out the window. “You’ve got the time limits, you’re rushing, you’re panicking. You’re not thinking. And so … the risk of injury is there,” he said.
Phil* worked at the same Perth distribution centre with Jake. “It was pretty difficult to achieve 100% efficiency,” he said, “even after working my arse off and completing the job as quickly as I could.”
Eventually they both left, partly because of the frustration over pick rates. “I was like, I can’t do this. There’s no way I can get to that level without physically hurting myself,” Jake said.
There are fears the new enforcement of standards and workplace surveillance could be a way to push some workers out. In recent years, Woolworths has announced plans to close three warehouses in Sydney and Melbourne and replace them with two new sites with more automation – a move that will see hundreds of job losses.
“If a warehouse just materialised with full robots that could do the work, they wouldn’t hesitate to get rid of us,” Tim said.
* Names have been changed
Do you know more? Contact ariel.bogle@theguardian.com
Call for consultancy for a study on « The introduction of a basic income to combat nutrition insecurity during the first 1,000 days »
Deadline for submission of offers : 08/11/2024 at 23:59 CEST (Paris)
Entity : ACF France Subject : « The introduction of a basic income to combat nutrition insecurity during the first 1,000 days » ACF Publication Reference : [FR-PA-DEP-202412] Brief description : A child’s first 1,000 days are a key period in the fight against nutrition insecurity. Nutritional deficiencies during this period threaten the survival of both mother and child. Social protection systems […]
Call for consultancy for a study on « The introduction of a basic income to combat nutrition insecurity during the first 1,000 days »
Deadline for submission of offers :08/11/2024 at 23:59 CEST (Paris)
Entity : ACF France
Subject : « The introduction of a basic income to combat nutrition insecurity during the first 1,000 days »
ACF Publication Reference : [FR-PA-DEP-202412]
Brief description :
A child’s first 1,000 days are a key period in the fight against nutrition insecurity. Nutritional deficiencies during this period threaten the survival of both mother and child. Social protection systems are essential to combat poverty and inequality at every stage of life. In this context, ACF wants to gather datas and illustrations about basic income policies or programs and their impact on nutrition security during these first 1000 days.
This study aims to review the scientific literature on the issues surrounding a basic income and the work of other civil society organisations on the subject, in order to come up with a definition of a basic income and the main ways in which it could be implemented.
–> The different steps are presented in details in the Terms of Reference attached.
The offer must include the following information :
Names and professional status of the person or organisation responding to the call for tenders.
A detailed CV mentioning experience in a similar and/or relevant field.
At least two references from consultancy work for possible contact by our organisation.
A technical proposal including the following elements: work schedule, data collection methodology, etc.
A financial proposal indicating the daily rate for the consultant(s), the number of working days invoiced, other planned costs and the total cost (including taxes) of the proposal.
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State Street Corporation Senior Python Developer, AVP – Onsite
Who we are looking for We are seeking a highly skilled Senior Python Developer with extensive experience working with data to join our team. The ideal candidate will have a strong background in Python, Spark, and PySpark, as well as experience in shell scripting, SQL while following the Software Development Life Cycle (SDLC) processes. You will be responsible for ensuring high-quality code through rigorous testing practices and be involved in designing and developing scalable data solutions. You will use your knowledge of object-oriented design best practices to solve challenging […]
Who we are looking for
We are seeking a highly skilled Senior Python Developer with extensive experience working with data to join our team. The ideal candidate will have a strong background in Python, Spark, and PySpark, as well as experience in shell scripting, SQL while following the Software Development Life Cycle (SDLC) processes. You will be responsible for ensuring high-quality code through rigorous testing practices and be involved in designing and developing scalable data solutions. You will use your knowledge of object-oriented design best practices to solve challenging problems in the trading systems space.
ONSITE: Due to the role requirements this job needs to be performed primarily in the Boston office OR Canada Office with some flex work opportunities available.
Interview: 1st interview will be via Video and second interview will be onsite
What you will be responsible for
Work independently and within team settings to analyze, design, develop, test, and debug large and complex software enhancements and solutions
Design, develop, and maintain scalable data processing applications using Python and PySpark
Participate in all phases of the Software Development Life Cycle (SDLC), including requirements gathering, design, development, testing, deployment, and maintenance
Implement best practices in coding, testing, and documentation, ensuring high-quality code delivery
Develop and maintain unit tests, integration tests, and automated test suites to ensure the robustness of data solutions
Work closely with data engineering teams to build and optimize data pipelines on distributed systems (e.g., Spark, Hadoop)
Leverage your expertise in shell scripting to automate data workflows and ensure system reliability
Write and optimize complex SQL queries for data extraction, transformation, and analysis
Collaborate with data scientists, analysts, and other developers to implement robust data solutions
Lead code reviews, provide mentorship to junior developers, and advocate for test-driven development (TDD) and continuous integration (CI/CD) practices
Monitor, troubleshoot, and improve the performance of existing framework and python code
Ensure proper documentation and testing of all data solutions developed
What we value
These skills will help you succeed in this role
5+ years of professional experience in Python development, with a focus on data-intensive applications
Proven experience with Apache Spark and PySpark for large-scale data processing
Strong hands-on experience with shell scripting (e.g., Bash) for automating tasks and data workflows
Solid understanding of SQL and experience working with relational databases (e.g., Oracle, sparkSQL) and query optimization
Experience in SDLC, particularly in applying software development best practices and methodologies
Experience in creating and maintaining unit tests, integration tests, and performance testing for data pipelines and systems
Familiarity with big data platforms like Hadoop, Hive, or Databricks
Experience with cloud platforms such as AWS for data infrastructure and services is preferred
Familiarity with version control systems like Git and CI/CD pipelines for automated testing and deployment
Excellent problem-solving skills and the ability to work independently and collaboratively in a team environment
Strong communication skills and the ability to present technical concepts to both technical and non-technical stakeholders
Excellent object-oriented design skills
Education & Preferred Qualifications
Masters or B.S. degree in Computer Science or related field
8+ years' experience developing object-oriented software such as Java
Experience in financial industry or trading systems is a plus
Additional requirements
Knowledge of data formats like AVRO, Parquet, and working with complex data types
Experience with Apache Kafka for real-time data streaming and Kafka Streams for processing data streams
Experience with Airflow for orchestrating complex data workflows and pipelines.
Expertise or interest in Linux
Exposure to data governance and security best practices in data management.
Are you the right candidate? Yes!
We truly believe in the power that comes from the diverse backgrounds and experiences our employees bring with them. Although each vacancy details what we are looking for, we don't necessarily need you to fulfil all of them when applying. If you like change and innovation, seek to see the bigger picture, make data driven decisions and are a good team player, you could be a great fit. Why this role is important to us
Our technology function, Global Technology Services (GTS), is vital to State Street and is the key enabler for our business to deliver data and insights to our clients. We're driving the company's digital transformation and expanding business capabilities using industry best practices and advanced technologies such as cloud, artificial intelligence and robotics process automation.
We offer a collaborative environment where technology skills and innovation are valued in a global organization. We're looking for top technical talent to join our team and deliver creative technology solutions that help us become an end-to-end, next-generation financial services company.
Join us if you want to grow your technical skills, solve real problems and make your mark on our industry.
About State Street What we do. State Street is one of the largest custodian banks, asset managers and asset intelligence companies in the world. From technology to product innovation, we're making our mark on the financial services industry. For more than two centuries, we've been helping our clients safeguard and steward the investments of millions of people. We provide investment servicing, data & analytics, investment research & trading and investment management to institutional clients. Work, Live and Grow. We make all efforts to create a great work environment. Our benefits packages are competitive and comprehensive. Details vary by location, but you may expect generous medical care, insurance and savings plans, among other perks. You'll have access to flexible Work Programs to help you match your needs. And our wealth of development programs and educational support will help you reach your full potential. Inclusion, Diversity and Social Responsibility. We truly believe our employees' diverse backgrounds, experiences and perspectives are a powerful contributor to creating an inclusive environment where everyone can thrive and reach their maximum potential while adding value to both our organization and our clients. We warmly welcome candidates of diverse origin, background, ability, age, sexual orientation, gender identity and personality. Another fundamental value at State Street is active engagement with our communities around the world, both as a partner and a leader. You will have tools to help balance your professional and personal life, paid volunteer days, matching gift programs and access to employee networks that help you stay connected to what matters to you.
State Street is an equal opportunity and affirmative action employer.
Salary Range:
$100,000 - $160,000 Annual
The range quoted above applies to the role in the primary location specified. If the candidate would ultimately work outside of the primary location above, the applicable range could differ.
Job Application Disclosure:
It is unlawful in Massachusetts to require or administer a lie detector test as a condition of employment or continued employment. An employer who violates this law shall be subject to criminal penalties and civil liability.
More and more Dutch companies are facing a shortage of drivers ‒ especially for repetitive operations such as shunting, loading, and unloading at distribution centres, in ports, and on industrial estates. This is not the only challenge in logistics, argues Jorn Gijsbers, Business Development Smart Vehicles at TNO.
‘The growth of e-commerce will put further pressure on the logistics chain over the coming years, increasing the need for efficiency. Yard automation will allow us to perform the same operation flawlessly and safely 100 times over, making the logistics process more stable, predictable, and manageable. This offers great savings potential for […]
More and more Dutch companies are facing a shortage of drivers ‒ especially for repetitive operations such as shunting, loading, and unloading at distribution centres, in ports, and on industrial estates. This is not the only challenge in logistics, argues Jorn Gijsbers, Business Development Smart Vehicles at TNO.
‘The growth of e-commerce will put further pressure on the logistics chain over the coming years, increasing the need for efficiency. Yard automation will allow us to perform the same operation flawlessly and safely 100 times over, making the logistics process more stable, predictable, and manageable. This offers great savings potential for companies. With CEYAS, we want to demonstrate that automation can be deployed in a cost-effective and scalable way in simple use cases.’
A single operator for multiple trailers
CEYAS is a vehicle-independent automation concept that automates repetitive operations at yards. It was first demonstrated at Automotive Week in April 2023, where TNO used the automated driving technology developed with major OEMs for the first time on an electric trailer mover: Verhagen Leiden’s V-Move. Thanks in part to an angle sensor from WENOVA.EU, the trailer managed to complete a challenging test course automatically.
The V-Move is capable of moving standard trailers in enclosed areas, such as when loading, unloading, parking, or electric charging. An operator oversees the movements and can take control if necessary. Because a single operator can operate multiple V-Moves, employee productivity is boosted and logistics movements are made safer and faster.
What is more, the trailer operator does not need to have a driving licence to operate the system, which lowers the qualification requirement. The concept is also scalable, as the trailer does not need to be modified. Finally, the trailer movers are operated electrically, reducing the yard’s environmental footprint.
Ron Wouters quote
‘In the use cases envisaged by TNO, the V-Move can be operated either manually or automatically, all done from the control tower that has been added.’
Ron Wouters
Senior System Engineer at TNO
Substantial further development
Following the initial demonstration, CEYAS has been developed further by the innovation partners, says Ron Wouters, Senior System Engineer at TNO. ‘Since the first demonstration, we’ve made a number of reliability and safety improvements. In the use cases envisaged by TNO, the V-Move can be operated either manually or automatically, all done from the control tower that has been added. This consists of two screens: one for remote operation and another for automated driving.’
‘The remote operation system is a tried-and-tested development by partner V-Tron. In automatic mode, the V-Move follows a pre-programmed route. Moreover, we’re now using LiDAR technology for localisation, which works much more reliably in a built-up environment than the GPS we previously used.’
Convincing demo
A year and a half after the first CEYAS demo, a second one took place at the Automotive Campus in Helmond in front of over 60 potential users and technology partners. They had the chance to see for themselves the added value that this form of yard automation can bring. The remote operator started by manoeuvring the V-Move under the trailer into the dock. Once coupled, the trailer mover travelled along a pre-programmed route across the shunting yard fully automatically. The V-Move performed a turning manoeuvre independently and proved itself capable of docking the trailer in a narrow doorway with great precision.
Wouters: ‘We can see in practice that there is a kind of an interaction between the automated driving and the remote operation. When approaching pedestrian crossings or performing special manoeuvres, for example, it may be safer to operate manually.’
Ron Wouters quote
‘We want to know what there’s a need for, and how the technology will eventually be integrated into a user’s logistics processes.’
Ron Wouters
Senior System Engineer at TNO
Testing is crucial
Verhagen Leiden, V-Tron, and TNO have already taken the technology to a late stage of development. However, to get to an even higher technology readiness level (TRL), an end user is needed to step in, as Ron Wouters explains: ‘We could explore this concept a lot further – but to do this most effectively, we’d need to work closely with an end user as an innovation partner.
‘After all, we want to produce a solution that will actually be used. We want to know what there’s a need for, and how the technology will eventually be integrated into a user’s logistics processes. If you really want to add value, you need to embed technology in your logistics process. And you can only do that by testing that technology in real-life situations.’
Rick Verhagen of Verhagen Leiden agrees with Wouters. ‘Testing is who we are. We always want to deliver a solution that works in practice, so we often sell machines on a ‘no cure, no pay’ basis. Of course, it would be nice if a client purchased 50 trailer movers in one go – but I’d be equally happy to have a partner on board that wants just a single one, simply to build experience together.’
Learning by doing
What does the ideal innovation partner and use case look like? Jorn Gijsbers: ‘We’re looking for a partner that sees the problem for what it is and wants to work with us towards an innovative solution. A partner that understands that this technology is not completely ready yet, but is confident that something good will come out of it.’
‘In addition, the use case should be clear. I can see a lot of experiments with yard automation in the market that I think are too complex, such as in mixed-traffic situations. Let’s start with simple use cases. Learning by doing is very important at this stage. I can’t see anything that we can’t solve. I envisage us really working on a use case together with a partner on site. In that sense, it helps that TNO has specific knowledge of logistics processes.’
Gijsbers stresses that there is no time to lose and the time for action is now. ‘We need to get going. The Netherlands won’t be able to remain an important logistics hub in the future without some form of yard automation. Eventually, this will become part of a highly automated chain – but the place to start is in the yard, which is where the biggest gains can be made in the short term. Of course, you have to be willing to invest to be among the frontrunners, but that lead will be worth a lot in the end. Of that I’m sure.’
5 - 7 november 2024 | Discover CEYAS at Logistica Next
During Logistica Next and ICT & Logistiek from 5 to 7 November at the outdoor area of the Jaarbeurs in Utrecht, we will present a groundbreaking demonstration. You will see how our vehicles with trailers drive autonomously on a new terrain. Additionally, we will introduce you to the advanced Tele-operations and Control-tower functionalities of CEYAS. These technologies not only improve efficiency but also enhance safety in the logistics sector.
Paving the way for safe Autonomous Driving with Software-Defined Vehicles
Informatietype:
Insight
7 October 2024
The future of Cooperative, Connected, and Automated Mobility (CCAM) hinges on the development of Software-Defined Vehicles (SDVs) that are both safe and reliable.
Public sector managers’ views on their organisations’ management practices, administration, technology and innovation, and on how these affect productivity.
This is the latest release.
View previous releases Contact: Insights and Research Projects team Release date: Table of contents> Main points Overview Views on productivity Management practices Administration Artificial intelligence (AI) to improve productivity Glossary Data sources and quality Related links Cite this article Print this Article Download as PDF 1. Main points Across the public sectors, managers that described their organisation as creating a collaborative working environment […]
Public sector managers’ views on their organisations’ management practices, administration, technology and innovation, and on how these affect productivity.
Across the public sectors, managers that described their organisation as creating a collaborative working environment felt encouraged to make improvements through innovative methods.
Managers from across the sectors felt that while their organisations were open to change, innovation was challenging when there was pressure to be productive in day-to-day tasks.
Managers in more public-facing sectors said they and their staff found it difficult to reserve time specifically for administrative tasks and sometimes needed to work out of hours.
Managers in central and local government sectors were more likely to use automation and Artificial Intelligence (AI), to be open to taking risks and experimenting with new technology, and to be open to taking on costs to invest.
Managers in more public-facing sectors tended to be more cautious and uncertain about the use of AI, particularly using virtual assistants as first point of contact with vulnerable groups, such as mental health patients or victims of crime.
!
The findings in this article are based on qualitative analysis. Therefore, it is not possible to quantify their importance and they cannot be applied to wider population groups. Quotes represent participants’ views only.
This qualitative research complements the PSMPS with the aim to explore public sector managers’ views on their organisations’ management practices. The research particularly explores views on the types of administrative tasks carried out and their impact on productivity. It also explores opportunities and barriers to innovation, including the use of automation and artificial intelligence (AI), to improve productivity. This research also complements findings from the further analysis of the public sector time use survey released by the Office for National Statistics on 21 October 2024.
The findings are based on 15 in-depth interviews and four focus groups with managers in the public sector, and five interviews with former civil servant managers who had left the Civil Service within the last two years. Throughout this article, the education, health, fire, and police sectors are referred to as “more public-facing sectors” or those with “frontline” duties.
Managers offered different views on the meaning of productivity. Often it was highlighted that there was not a single definition or understanding of productivity, but rather several that depended on the different roles and responsibilities of staff and teams, within a setting or organisation.
Some managers advised against framing staff performance in terms of “productivity”. They felt that staff were already working “hard” within a context of staffing shortages, and that too much emphasis on productivity in terms of numbers and targets over quality could put undue pressure on staff and could undermine staff morale, retention and achieving positive outcomes.
It's all about how many you can get in and not really about the quality of the care. It's more about that list is so high and that list needs to come down.
Health sector focus group
Some managers also felt that human resource (HR) departments and trade unions should be involved in workforce planning to consider the type of workforce and skills needed to improve focus on task prioritisation (related to core job elements) and work-life balance. For example, one manager in central government said productivity was not just about using new technology, but also having a “people” strategy in place:
So, one of the reasons I have a digital director is, it's [their] job to deliver the benefits we've decided we want to realise from technology… and, actually, [my HR manager] then has the problem of wondering how do we redeploy and reskill the colleagues that become free as a result of technology taking their jobs.
This section focuses on management practices such as decision making, problem solving and approach to innovation when considering ways to improve productivity.
Decision making and problem solving
Managers who have more ability to influence decision making, particularly when supported by data, felt they were better placed to identify issues and take action to improve productivity. However, the extent to which they felt able to make and contribute to decision making varied and was linked to structural and cultural factors. This included the size of the organisation and proximity of staff to senior decision makers, levels of autonomy and whether organisations encouraged and supported staff to provide feedback and collaborate.
Managers in larger and more dispersed organisations (such as NHS trusts and fire service who were accountable to national services but organised on a more local basis) said they lacked shared spaces where they could interact regularly with senior decision makers, making it more difficult to communicate ideas and influence decisions.
Similarly, managers from the health, fire, and police service said that although they had some autonomy in decision making, particularly related to productivity, it was difficult to communicate problems and ideas for change because of the remoteness of senior managers.
Some managers felt empowered to influence decision making and take action to improve productivity where their organisation encouraged and supported staff to provide feedback and work collaboratively. This was more common in central and local government.
We've set a five-year corporate plan of what we're trying to achieve strategically, and then we set, with the support of the board, and in quite a consultative and collaborative way with senior colleagues in the organisation, we set a plan for what are we trying to deliver each year.
Central government interview
Approaches to innovation
Managers described both informal processes built on discussions and reflections on existing practice to make continuous improvements and more formal “transformation-type” projects led by senior leaders involving data-driven performance monitoring and consultation phases. Those adopting the more formal approaches tended to be based in the central and local government and health sectors.
Managers discussed multiple approaches to promoting innovation, including a collaborative culture where staff were encouraged to think about how they could do things more efficiently, and where there were regular opportunities to share their views and lead changes. They discussed carefully piloting (and providing clear rationales for) any proposed innovation to increase organisational commitment, and providing adequate training where any innovation or new technology was introduced.
We have local team meetings. The team, all the time, are like, can we try this, can we try that, even if it's just local stuff… So, we have a senior team meeting every week, so we'd take it to the senior team that the team wish to implement this or try this. It'll always be a discussion and unless someone's got a glaring reason why it's unsafe or illegal.
Health sector interview
Yes, [in the Civil Service] they did encourage people to get involved in changes and improvements, if you wanted to work on something like that, then they'd probably be quite happy for you to get involved, and I did do that.
Former civil servant interview
Managers in central government talked about how they encouraged recruitment of ambitious staff to bring new energy, expertise and ideas related to innovation.
We recruit bright [staff] that have used lots of clever computer kit, and we encourage them to try and apply those to the technical problems we're trying to solve.
Central government interview
However, managers also identified barriers that could affect an organisation’s ability to encourage innovation, described under the following subheadings.
Lack of communication
Some managers described little to no regular contact between middle managers and senior leaders.
Resistance to change
This was particularly mentioned in the health sector, where managers identified resistance from staff to do things differently often because they believed that staff did not want to take time out to learn something new.
I think with the resistance [to innovation and technology], particularly [this is at] lower levels, I think a lot of it is, a lot of, they don't want their job to be harder with learning something new or doing it in a new way. It's easier to do what you've always done.
Health sector focus group
I think in public sector, you do have a bit of a barrier when it comes to introducing new technologies and having to go through either some sort of a procurement process or there simply not being a will to change.
Former civil servant interview
Slow decision making
Some managers in the education sector talked about how drawn-out decision making made it difficult to plan ahead and allocate budgets for setting salaries, and investing in innovations, technology or training.
It's like playing Russian roulette every year… The later we find out [about budget allocations], the more difficult it is for us to plan, and then we're making people redundant, or we haven't taken people on that we could have done, because we were working on a higher percentage. It's really difficult, and when 80% of your budget is on staffing.
Education sector interview
Lack of capacity and financial resource
Some managers felt that innovation-focused interventions could take a substantial amount of time to implement and noted that new technology is expensive. Managers in the education, police and fire sectors reported lacking the necessary resource to make and implement purchases.
Well, yes, cost is a concern, but it's more to do with the fact that we've only got a finite budget. I think when you look at the way budgets are broken down, particularly I'm quoting figures that – of the budget that we get as an organisation, I think 90% of our budget goes on staff wages. We haven't got the capacity to spend money freely on developing software solutions in the way that you have bespoke written products. We have to buy products off the shelf.
Fire service focus group
While many managers felt their organisations were open to change, innovation was challenging when there was pressure to be productive in day-to-day tasks. Mid-level managers in more public-facing sectors expressed the challenges of being innovative when departments set targets that were seen as being often unachievable. For example, because of the demanding nature of policing, managers said it was more important for them to prioritise the basics of their roles and achieve productivity in that respect. They felt that they did not have time to think about how they could improve productivity.
Managers described a wide range of administrative tasks, a lot of which involved a degree of “paperwork”, such as printing forms, manual data entry and filing. Other administrative tasks mentioned included emails, people management, planning and project management. These tasks were either carried out by dedicated roles or as part of a wider role. These findings align to those from the ONS public sector time use survey where it was found that 60% of public sector workers’ time was spent on 'non-sector specific' activities, which include specialised tasks such as data analysis, research and project management, and tasks such as meetings and events.
There were some variations on administrative tasks by sector. While all managers’ roles included email correspondence, this was more prominent in the central and local government sectors. Administrative tasks within the education sector involved correspondence with parents or students, and within the health sector, this included booking appointments and managing patients.
Impact on productivity
The number of staff dedicated to administration was often described as being limited or when available, they were too centralised (for example, in parts of the health service). Therefore, managers said they often undertook these tasks themselves, which could be time-consuming. These findings align with those published in our ONS public sector time use survey, where frontline workers reported that 47% of their time spent on 'non-sector specific' tasks was perceived as being very important.
Within the central and local government sectors, managers felt they were able to manage administrative tasks as part of their workload. However, managers in sectors that are more public facing found it difficult to allocate time specifically for administration. Some said it took up 10% to 30% of their time, while others felt it was a much higher proportion of their time.
I always try to be very positive. However, it is very difficult with the police because I think the expectation, what they expect from you is far more than you can deliver really. When I think of the admin involved in my role, it's a full-time job in itself.
Police service focus group
Feelings of being particularly “overwhelmed” by administration were reported in schools, health, and the police service. Managers in these sectors felt that administrative tasks took them away from other parts of their roles and as a result they sometimes needed to work out of hours, including evenings and weekends.
If I'm perfectly honest, I would say most of my day is administration, and when it comes to strategic thinking, I think in our school, if I have something important to do, I'll take a day or a half-a-day out of school… Or else I find in evenings or at weekends, or during the holidays… All that kind of top-level thinking, you just haven't got the time in school.
Education sector focus group
The use of delegation to reduce the impact of administration on productivity was not discussed in detail. Some managers did talk about how they would like to delegate tasks, such as placing orders for basic equipment. However, junior managers did not always have the access permissions to undertake these tasks, or in other circumstances, delegation was not possible because staff were simply not available.
As an officer, we're given certain permissions where we're able to make certain changes and do certain things on our intranet system. So often, I will want something done and I'll need some assistance, and I'll say, 'Right, look, can you just go and fill these in for me?' and they don't have the permissions to do it. Then you're left banging your head against a brick wall and doing it yourself in the end.
Fire service focus group
Opportunities to automate administrative tasks
Some managers said they made regular use of automation to streamline processes to save time and improve communication (for example, sending letters to parents or generating and sending invoices automatically). Other managers discussed the possibilities of automation to reduce the impact of administration on productivity. Although managers thought there was an appetite for more automation, its adoption within organisations and across sectors varied.
Within the central and local government sectors, managers described an approach that was focused on reducing or eliminating processes involving paper forms and manual data entry. Other examples of automation included:
using electronic forms that could be checked by a machine
doing pupil registers using iPads
using speech-to-text applications, instead of typing up information
However, some managers felt that parts of the public sector are “behind the curve” in the adoption of automation.
Managers discussed some of the barriers surrounding automation of administrative tasks. Some managers pointed out that services were still reliant on old, centralised technology that did not integrate well with other systems, which led to duplication of data entry and to services being unfit for purpose at a local level.
I would probably describe us as being 20 to 30 years behind the curve. The favourite term that we seem to use in our in our IT world in services is ‘workaround’. Everything has a 'workaround' of some description because one thing doesn't talk to another. There's no two systems that can talk to each other, it doesn't appear.
Fire service focus group
Additionally, where there was investment in technology including automation, managers felt that it could be difficult to find the time for staff training. This was especially the case where staff would need to be taken away from frontline duties.
Training for anything that's new also can be quite difficult, because if you're a busy team, getting people trained in anything - getting them to do the training they have to do regularly anyway is hard enough.
6. Artificial intelligence (AI) to improve productivity
Existing use and knowledge of AI
Current use of new technologies, automation and AI varied across and within sectors. Some organisations were in the early stages of introducing AI. Informally, managers were often “looking into” using AI. They described small-scale implementation with AI use restricted to particular operations, for example, testing AI for recruitment purposes. More formally, managers described AI pilots, where specific programmes, such as Microsoft CoPilot, were being rolled out with the aim of assisting with administrative tasks, such as minute taking and summarising documents. These formal pilots were common in central and local government, and within academy trusts in the education sector.
The use of generalised AI tools, such as ChatGPT, was often done at an individual level rather than an organisation-wide level. For example, using AI to synthesise meeting notes to assist with report writing. However, this would often be done “offline” and without departmental instruction.
Mid-level managers in frontline positions within health and policing were particularly unsure about the definition and use of AI. Some managers were unable to see how AI would help them and felt that there was no software available that would change their existing databases and platforms.
Our [School Information Management System] (SIMS) is quite clunky, but it's what we have, and you get used to it and make the most of it. School data have got to be sent in a specific form to the local authority. In the past, some schools have moved away from [SIMS] and then moved back again, so there is nothing really to replace [this platform] that's satisfactory.
Education sector interview
Additionally, mid-level managers in frontline sectors such as education, health, policing, and fire service, talked about the difficulty of being innovative when departments and individuals have targets to meet that are often perceived as unrealistic. They felt that they did not have time to think about how they could improve productivity through AI.
Managers acknowledged the benefits of using AI in helping to free up staff time, reducing the administrative “burden” and improving the accuracy and speed of reporting. Within the education and fire sectors, the introduction of handheld devices, such as iPads, enabled the live inputting of data, improving reporting accuracy and removing the task of extracting data manually. For managers who had been testing out AI tools, the trialling period was felt to have increased confidence for future implementation.
One challenge of using AI included a lack of time to receive adequate training when new technology was introduced. Additionally, lack of communication and consultation with frontline workers was seen as a challenge. When a new technology was introduced, there was often no consideration about whether the decision would benefit those who use it, and managers felt that this made their working lives harder rather than leading to increased productivity.
On the other end of the scale, some managers had little knowledge of AI and therefore had no current use of AI or automation in their roles.
Managers who were aware of AI but not currently using it understood its potential benefits for future use. There was a sense of inevitability from these participants about the eventual rollout of AI. Some managers in the health sector expressed views that, while they would like to use AI, the technology was not yet ready to be applied within their workplace setting, mostly because of a lack of technical expertise. Often participants had learnt about AI and automation from external sources. For example, some managers reported receiving emails from outside their organisations that had been written by AI.
Differences between sectors were apparent with some managers in more public-facing sectors being more cautious and uncertain about the use of AI and were therefore less likely to be using it already. These sectors had concerns over the safety of their pupils, patients, or members of the public, which led to many managers thinking about regulations and the barriers to AI, instead of how it could be implemented. By contrast, managers in central and local government reported having greater capacity to experiment with new technology.
Potential and future uses of AI
Where managers considered how AI could be used to increase productivity, reasons given mostly centred on a desire to reduce the administrative “burden” of their roles. Managers reflected on how AI could remove “laborious” tasks, freeing up their time. Even those who were more wary of AI were open to technology that could help to automatically produce minutes of meetings.
I know that they [the associate directors within the organisation] have been exploring AI. Particularly, obviously, in relation to automation, there is a lot of – and a lot of it is quick wins in terms of process and systems that are focused on operations. Yes, I think there is a strong focus within the business of, particularly around the processing bit of it, in terms of quality and timeliness about the opportunities that AI and automation can bring.
Central government interview
Managers suggested that the implementation of new technology and AI is dependent on the management structure of their organisation, particularly in the more dispersed organisations, such as the police force or NHS trusts, where decision making takes place at a local level. Some managers from the police and health sectors suggested that the use of AI existed but it was not rolled out at the national level.
Risks and barriers to using new technology and AI
Participants from across all sectors expressed reservations over the implementation of AI and new technology.
One of the main barriers to introducing new technology and AI was cost. Those in central and local government sectors were generally more open to these costs, managers in organisations, such as schools and hospitals, were more apprehensive about the financial commitment. Some managers, particularly those in sectors such as health and policing, questioned why the money needed for AI could not be invested into people instead.
The amount of money that it would take to invest in AI and implement it in hospitals and wards, and the maintenance of it because you'd need to employ somebody to maintain that massive system, why can't it be put into people? Why can't they employ more nurses? Why is it even up for discussion to replace a person with personal care over a computer that could possibly go wrong?
Health sector focus group
There were also suggestions that fewer senior staff were apprehensive towards change and therefore were not ready to adopt AI and new technologies. While managers in health suggested that they will always need people, they described the process as being a change management issue, where senior staff would need to provide reassurance over job losses. However, other managers did not see staff readiness as a barrier, not because they felt ready for AI, but because management decisions were often implemented regardless of wider staff opinion. Some middle managers, particularly in the police service, felt that senior leaders’ main priority was cost saving and not whether people were positively engaged with an idea.
Other barriers to using technology and AI were around trust in accuracy of outputs and data security. Some managers were against the idea of using AI because they believed that they would still have to check for mistakes and therefore would not be saving any time. For managers in more “high-risk” sectors, such as health, this lack of trust was amplified where they were worried about potential errors that could put patient lives at risk. Managers were concerned over adherence to General Data Protection Regulation and the increased risk of cyber-attacks or data breaches when using an unfamiliar and untested software. This concern was held most strongly within the health, education, police and fire service sectors, where the risk to public data was perceived to be stronger.
People are using AI but then they're checking it and editing it. Why are we using AI? You might as well just write it yourself in the first place. There is no productivity [gain] if you're using an AI package which you're then having to check and edit… I don't get the logic of that.
Education sector focus group
Some managers felt that automated technology, such as virtual assistants, were not appropriate in some circumstances, for example, when dealing with victims of crime. There were concerns that vulnerable groups might not be served effectively by an automated service. Humans leading first contact were able to pick up on non-verbal cues or “read between the lines” in ways that machines could not, which was considered important by managers in terms of delivering good outcomes.
I definitely think there's a place for technology in health, but sometimes I find going towards this very digitalised world is, I think there's a lot of negatives that we're not necessarily thinking about in terms of communication, human connection. In mental health, loneliness is huge, social isolation is huge. I just sometimes wonder what that world might look like if we become very digital.
Health sector focus group
These barriers were suggested across all sectors, however, those in education, health, fire and policing sectors described these more seriously than managers from central and local government. They viewed their sectors as high risk and thought that consequences of bad technology would be much higher. Former civil servants also said that the stakes of making poor investment decisions were higher for them in the private sector compared with the public sector, because of the increased accountability over costs.
I'm at a new start-up so obviously, one of the things, it is impeding in terms of full automation or the whole system, how you run the business, is capital. We don't have the huge capital yet.
Computer programs or machines that can learn from data and perform tasks usually completed by humans. Artificial Intelligence (AI) is currently used in a variety of ways, including:
online product recommendations
facial recognition
self-driving vehicles
medical diagnostic tools
chatbots that interact in a conversational way and can answer complex questions
Automation
A set of technologies that can substitute routine, non-cognitive tasks or jobs (for example, the introduction of the telephone switchboard replacing switchboard operators, or accounting software).
The National Centre for Social Research (NatCen) carried out this research on behalf of the Office for National Statistics (ONS). NatCen conducted in-depth individual and focus group interviews with senior managers in the public sector. Interviews took place between August and September 2024. They were carried out online, using semi-structured topic guides agreed with the ONS. Interviews lasted around 60 minutes and focus groups lasted around 90 minutes.
Vignettes about possible uses of automation and technology were used in the focus groups to stimulate discussion. All interviews and focus groups were audio recorded with consent and transcribed verbatim. They were then analysed thematically according to the aims of the study (using a top-down approach).
Sampling and recruitment
Public sector managers in executive level management positions (responsible for an organisation or service), or service delivery managers (responsible for a team or department) were recruited for this research.
Participants were recruited in the following ways.
Those who had taken part in the public sector management practices survey (PSMPS) and agreed to take part in further research carried out by third-party organisations. This involved 15 in-depth interviews with:
six participants from central government (including a paired interview, involving two participants)
one participant from local government
five participants from the health sector
four participants from the education sector
Participants recruited from a recruitment agency. This included four focus groups with managers in the following sectors (number of participants shown in each sector group):
education – 7 participants
health – 8 participants
police – 7 participants
fire – 6 participants
There were also five in-depth interviews with managers who had left the civil service in the last two years to work in the private sector. This group was included to enable additional insight and to understand whether experiences in management practices differed between the public and private sector.
Public Sector Management Practices Survey pilot
Statistical Bulletin | Released 21 October 2024
The Public Sector Management Practices Survey (PSMPS) is a new survey of management practices in public sector organisations. These are official statistics in development.
Management practices in the UK: 2016 to 2023
Statistical bulletin | Released 13 May 2024
Review of management practice scores for firms in the production and services industries across the UK in 2023 and Great Britain from 2016 to 2023. These are official statistics in development.
The global cryptocurrency landscape has evolved significantly in recent years, with Worldcoin emerging as one of the most intriguing projects in the decentralized space. Co-founded by Sam Altman in 2021, Worldcoin (WLD) aims to create a decentralized global currency and digital identity system that can be used by anyone, anywhere. The project’s vision revolves around universal basic income (UBI), privacy-preserving digital identity, and fostering inclusion in the global economy. As we head into 2024 and 2025, the performance and prospects of Worldcoin will depend on several factors ranging from regulatory developments to technological innovations. This article provides an in-depth […]
The global cryptocurrency landscape has evolved significantly in recent years, with Worldcoin emerging as one of the most intriguing projects in the decentralized space. Co-founded by Sam Altman in 2021, Worldcoin (WLD) aims to create a decentralized global currency and digital identity system that can be used by anyone, anywhere. The project's vision revolves around universal basic income (UBI), privacy-preserving digital identity, and fostering inclusion in the global economy. As we head into 2024 and 2025, the performance and prospects of Worldcoin will depend on several factors ranging from regulatory developments to technological innovations. This article provides an in-depth analysis of the likely trajectory of Worldcoin for the upcoming years.
Market Performance: 2024 to 2025
Worldcoin's early adoption period has been characterized by both enthusiasm and skepticism. The project’s promise of distributing WLD tokens to over a billion people by scanning their irises for a unique digital identity has attracted considerable attention. As of late 2023, Worldcoin has seen moderate success in rolling out its Orb-based identity verification devices and distributing tokens. However, the token’s market price has been highly volatile, driven by broader market conditions, investor sentiment, and ongoing debates about privacy and ethics.
Looking ahead to 2024 and 2025, Worldcoin's market performance will likely be shaped by a few key factors:
1. Adoption and Distribution Progress: One of the core pillars of Worldcoin is its ambitious goal of global distribution. If the project successfully scales its iris-scanning operations and reaches a broad user base in underdeveloped markets, it could gain significant momentum. However, achieving this at scale requires overcoming logistical challenges, gaining public trust, and ensuring security, particularly in regions where digital identity systems are not well-established.
2. Market Sentiment and Macroeconomic Factors: Cryptocurrency markets tend to be influenced by global economic conditions, including inflation, interest rates, and geopolitical events. As central banks across the world tighten monetary policy or shift toward central bank digital currencies (CBDCs), the role of decentralized assets like Worldcoin will be subject to increased scrutiny. Any fluctuations in the broader crypto market—especially in Bitcoin and Ethereum—will likely impact WLD’s price dynamics as well.
3. Partnerships and Integrations: For Worldcoin to succeed, its ecosystem needs to be integrated with broader digital and financial services. Strategic partnerships with payment providers, digital wallets, and e-commerce platforms will be critical to driving demand for WLD tokens. Progress in these areas will likely spur adoption, while delays could hinder growth.
Regulatory Environment
The regulatory landscape surrounding cryptocurrencies continues to evolve rapidly, and Worldcoin will need to navigate this complex environment to succeed. Governments worldwide are drafting legislation on digital assets, with a particular focus on data privacy, identity verification, and anti-money laundering (AML) regulations.
1. Data Privacy Concerns: Worldcoin’s reliance on biometric data—specifically iris scans—has raised concerns among privacy advocates. Although the project claims its system is privacy-preserving, regulators may impose stricter guidelines on how such sensitive information is collected and stored. Worldcoin will need to ensure that its technology adheres to privacy regulations like the European Union’s General Data Protection Regulation (GDPR) and similar laws elsewhere.
2. AML and Know Your Customer (KYC) Compliance: As Worldcoin continues to expand globally, it will be crucial to comply with AML and KYC requirements in different jurisdictions. Failure to comply with such standards could lead to significant legal hurdles or sanctions that may slow its adoption and negatively impact the token's value.
3. Government Responses to Universal Basic Income (UBI): The concept of UBI remains controversial, with proponents arguing that it can help alleviate poverty and inequality, while opponents worry about its economic feasibility and societal impact. If Worldcoin can demonstrate its viability as a platform for distributing UBI, it may gain favor in jurisdictions exploring social safety net reforms. However, strong government pushback could stymie progress, especially if policymakers view Worldcoin’s model as a threat to traditional welfare systems.
Technological Innovations and Infrastructure
Worldcoin’s success will also hinge on the robustness of its underlying technology and its ability to keep pace with innovations in the blockchain space. Key areas of focus for the project in 2024 and 2025 include scalability, security, and user experience.
1. Scalability: To serve a global population, Worldcoin will need to demonstrate that its platform can scale efficiently. Given the potential demand for biometric verification and digital identity services, any bottlenecks or inefficiencies in the system could undermine user confidence. Layer-2 scaling solutions, cross-chain interoperability, and partnerships with other blockchain ecosystems may help Worldcoin meet this challenge.
2. Security: As with any blockchain-based system, security remains a top priority. Worldcoin’s biometric verification system introduces additional attack vectors, such as potential misuse of iris scans or attempts to forge digital identities. Ensuring the highest standards of security, both at the blockchain level and within its hardware devices (the Orbs), will be critical to maintaining trust.
3. User Experience: The broader success of Worldcoin will depend on how easily users can interact with the system. Simplifying the onboarding process, reducing the friction of using decentralized applications (dApps), and improving the overall user interface will be key to mass adoption. In particular, Worldcoin must make it as easy as possible for individuals in developing countries—who may have limited access to sophisticated technology—to access and benefit from its platform.
Conclusion
The outlook for Worldcoin in 2024 and 2025 is filled with both promise and uncertainty. The project’s unique approach to combining digital identity with cryptocurrency distribution makes it one of the most innovative and ambitious players in the space. However, its success will ultimately depend on its ability to overcome regulatory challenges, scale its technology effectively, and build a broad user base.
As the global economy continues to shift towards digital finance and decentralized systems, Worldcoin has the potential to become a key player in the future of global currency. However, its path will be shaped by the evolving regulatory landscape, technological advancements, and market conditions that define the crypto sector as a whole. Investors and stakeholders should remain vigilant, keeping an eye on adoption trends, regulatory developments, and Worldcoin’s ability to deliver on its bold promises over the next two years.
World Coin Analysis: Outlook for 2024 to 2025
The global cryptocurrency landscape has evolved significantly in recent years, with Worldcoin emerging as one of the most intriguing projects in the decentralized space. Co-founded by Sam Altman in 2021, Worldcoin (WLD) aims to create a decentralized global currency and digital identity system that can be used by anyone, anywhere. The project's vision revolves around universal basic income (UBI), privacy-preserving digital identity, and fostering inclusion in the global economy. As we head into 2024 and 2025, the performance and prospects of Worldcoin will depend on several factors ranging from regulatory developments to technological innovations. This article provides an in-depth analysis of the likely trajectory of Worldcoin for the upcoming years.
Market Performance: 2024 to 2025
Worldcoin's early adoption period has been characterized by both enthusiasm and skepticism. The project’s promise of distributing WLD tokens to over a billion people by scanning their irises for a unique digital identity has attracted considerable attention. As of late 2023, Worldcoin has seen moderate success in rolling out its Orb-based identity verification devices and distributing tokens. However, the token’s market price has been highly volatile, driven by broader market conditions, investor sentiment, and ongoing debates about privacy and ethics.
Looking ahead to 2024 and 2025, Worldcoin's market performance will likely be shaped by a few key factors:
1. Adoption and Distribution Progress: One of the core pillars of Worldcoin is its ambitious goal of global distribution. If the project successfully scales its iris-scanning operations and reaches a broad user base in underdeveloped markets, it could gain significant momentum. However, achieving this at scale requires overcoming logistical challenges, gaining public trust, and ensuring security, particularly in regions where digital identity systems are not well-established.
2. Market Sentiment and Macroeconomic Factors: Cryptocurrency markets tend to be influenced by global economic conditions, including inflation, interest rates, and geopolitical events. As central banks across the world tighten monetary policy or shift toward central bank digital currencies (CBDCs), the role of decentralized assets like Worldcoin will be subject to increased scrutiny. Any fluctuations in the broader crypto market—especially in Bitcoin and Ethereum—will likely impact WLD’s price dynamics as well.
3. Partnerships and Integrations: For Worldcoin to succeed, its ecosystem needs to be integrated with broader digital and financial services. Strategic partnerships with payment providers, digital wallets, and e-commerce platforms will be critical to driving demand for WLD tokens. Progress in these areas will likely spur adoption, while delays could hinder growth.
Regulatory Environment
The regulatory landscape surrounding cryptocurrencies continues to evolve rapidly, and Worldcoin will need to navigate this complex environment to succeed. Governments worldwide are drafting legislation on digital assets, with a particular focus on data privacy, identity verification, and anti-money laundering (AML) regulations.
1. Data Privacy Concerns: Worldcoin’s reliance on biometric data—specifically iris scans—has raised concerns among privacy advocates. Although the project claims its system is privacy-preserving, regulators may impose stricter guidelines on how such sensitive information is collected and stored. Worldcoin will need to ensure that its technology adheres to privacy regulations like the European Union’s General Data Protection Regulation (GDPR) and similar laws elsewhere.
2. AML and Know Your Customer (KYC) Compliance: As Worldcoin continues to expand globally, it will be crucial to comply with AML and KYC requirements in different jurisdictions. Failure to comply with such standards could lead to significant legal hurdles or sanctions that may slow its adoption and negatively impact the token's value.
3. Government Responses to Universal Basic Income (UBI): The concept of UBI remains controversial, with proponents arguing that it can help alleviate poverty and inequality, while opponents worry about its economic feasibility and societal impact. If Worldcoin can demonstrate its viability as a platform for distributing UBI, it may gain favor in jurisdictions exploring social safety net reforms. However, strong government pushback could stymie progress, especially if policymakers view Worldcoin’s model as a threat to traditional welfare systems.
Technological Innovations and Infrastructure
Worldcoin’s success will also hinge on the robustness of its underlying technology and its ability to keep pace with innovations in the blockchain space. Key areas of focus for the project in 2024 and 2025 include scalability, security, and user experience.
1. Scalability: To serve a global population, Worldcoin will need to demonstrate that its platform can scale efficiently. Given the potential demand for biometric verification and digital identity services, any bottlenecks or inefficiencies in the system could undermine user confidence. Layer-2 scaling solutions, cross-chain interoperability, and partnerships with other blockchain ecosystems may help Worldcoin meet this challenge.
2. Security: As with any blockchain-based system, security remains a top priority. Worldcoin’s biometric verification system introduces additional attack vectors, such as potential misuse of iris scans or attempts to forge digital identities. Ensuring the highest standards of security, both at the blockchain level and within its hardware devices (the Orbs), will be critical to maintaining trust.
3. User Experience: The broader success of Worldcoin will depend on how easily users can interact with the system. Simplifying the onboarding process, reducing the friction of using decentralized applications (dApps), and improving the overall user interface will be key to mass adoption. In particular, Worldcoin must make it as easy as possible for individuals in developing countries—who may have limited access to sophisticated technology—to access and benefit from its platform.
Conclusion
The outlook for Worldcoin in 2024 and 2025 is filled with both promise and uncertainty. The project’s unique approach to combining digital identity with cryptocurrency distribution makes it one of the most innovative and ambitious players in the space. However, its success will ultimately depend on its ability to overcome regulatory challenges, scale its technology effectively, and build a broad user base.
As the global economy continues to shift towards digital finance and decentralized systems, Worldcoin has the potential to become a key player in the future of global currency. However, its path will be shaped by the evolving regulatory landscape, technological advancements, and market conditions that define the crypto sector as a whole. Investors and stakeholders should remain vigilant, keeping an eye on adoption trends, regulatory developments, and Worldcoin’s ability to de
liver on its bold promises over the next two years.
The James S. McDonnell Foundation has given $1 million to keep St. Louis’ guaranteed income program going through the end of this year, it said.
Additional private funders have contributed another $250,000, the foundation said.
A state-court judge in August halted the government program, in which 500 households were receiving $500 monthly payments as part of the federal pandemic American Rescue Plan Act funding. The judge had said that the injunction was based solely on the question of the program violating the Missouri Constitution and the St. Louis City Charter. The president of the James S. McDonnell Foundation, Jason Purnell, said […]
The president of the James S. McDonnell Foundation, Jason Purnell, said in a statement Monday that its focus "is on ensuring that families receive the resources promised to them and that the program can continue to gather valuable data on how (guaranteed basic income) might contribute to St. Louis’s economic growth."
"Our priorities are the well-being of these local families and the insights that could emerge to inform more inclusive growth strategies," he said.
The organization said the move aligns with its broader mission to promote "inclusive growth."
It also said it believes that the city's program has the potential to show that a guaranteed basic income improves children's educational outcomes and their future earnings; enhances the health of children and parents; reduces health care costs; and reduces crime statistics.
The program was set to end in mid-2025, and a foundation spokesman said it is soliciting more funds in a bid to keep the program going beyond this year.
An attorney who brought the lawsuit against the city's program previously said that "gratuitous payments to private individuals are not allowed and there’s good reasons for that."
The James S. McDonnell Foundation was founded in 1950 by James S. McDonnell — an aviation pioneer who founded McDonnell Aircraft Corp. The private foundation in 2022 had $30.1 million in revenue, $33.3 million in expenses and total assets of $499.9 million, according to its most recent available filing with the Internal Revenue Service.
The foundation ranked as the ninth-largest charitable trust and foundation in the St. Louis area based on contributions, grants and gifts paid of $22.8 million, according to Business Journal research published in December.
October 23, 2024 · · Topic: Basic Income · Relevance: not sure 
