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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.

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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.

The Financial Implications of Universal Basic Income: What a Recent Experiment Reveals: This piece explores the financial outcomes of a recent UBI experiment, highlighting the economic benefits and challenges of implementing such a program. This article is critical for understanding the economic feasibility and potential 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.

This Tiny Country is Giving $2,000 to Every Household as an Exxon Oil Boom Supercharges Its Economy: This article covers how a small country is using its oil revenue to provide $2,000 to every household, showcasing a unique approach to wealth distribution and financial stability. This piece is significant for understanding innovative funding mechanisms for UBI.

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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.

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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.”

2 October: Market-Leading Switch Incentive Launched

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.”

2 August: Maximum £210 Available Over First Year

TSB has launched a current account switching offer worth up to £190, plus a choice of reward, writes Brean Horne.

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).

2 May: Virgin Money Launches 12% Interest Account – With Catches

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.”

18 January: TSB & Co-op Launch £100+ Switching Bonuses

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.

6 December: Fixed Rate & Notice Account Deposits Soar £57Bn

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.

19 September: YBS Launches Regular Saver Paying 7%

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.”

5 September: Limited Edition Account Tops Easy Access Market

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.

It follows today’s Bank Rate decision, which saw the Bank of England raise rates from 5% to 5.25%.

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.

7 July: HSBC, Coventry BS, Yorkshire BS Boost Returns

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:

• Offers that seem too good to be true
• Communications that do not appear genuine
• Pressure to act quickly
• Requests to use an unusual payment method
• Communications that request personal information.

5 June: 12-Month Deal Accepts £250 Monthly Deposits

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.”

7 March: ‘Forgotten’ Funds Remain Accountholders’ Property

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.”

29 November: Halifax Launches £175 Switch Incentive

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%.

Details of the changes can be found here.

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.”

29 March: JP Morgan’s Chase Offers 1.5% Savings Account

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.

Savings with other providers are protected up to £85,000 per person under the Financial Services Compensation Scheme.

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.”

8 February: Easy-Access Products Dominate 2021 Savings Market

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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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.

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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.

Click here to view original web page at www.fitchratings.com

Search 2 keywords found: guaranteed income

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.

Additional information is available on www.fitchratings.com

APPLICABLE MODELS

Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).

• Prism Global (ex-U.S.) Model, v1.8.1 (1)

ADDITIONAL DISCLOSURES

• Dodd-Frank Rating Information Disclosure Form
• Solicitation Status
• Endorsement Policy

ENDORSEMENT STATUS

Click here to view original web page at ifamagazine.com

Search 2 keywords found: guaranteed income

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)	New interest rate from 22 October 2024
Guaranteed Growth Bonds (2-year)	4.25% gross/AER	4.10% gross/AER
Guaranteed Income Bonds (2-year)	4.17% gross/4.25% AER	4.02% gross/4.09% AER

Click here to view original web page at www.liverpoolecho.co.uk

Search 2 keywords found: guaranteed income

There will still be an estimated two prizes of £1 million in the December draw

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.

READ MORE: DWP to withdraw cash directly out of bank accounts and wages in major benefit updateREAD MORE: Italy travel warning as Foreign Office warns of 'severe' conditions

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.”

Click here to view original web page at www.coordinationsud.org

Search 2 keywords found: basic income

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.

How to apply for this call for consultancy :

The offer must be submitted by Friday, 8 November 2024 at 23:59 CEST (Paris) and must be sent by email to Flore Ganon fganon@actioncontrelafaim.org and Léa Cros lcros@actioncontrelafaim.org

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.

Vous souhaitez déposer un appel d’offre ?

Déposez vos appels d'offres pour vos recherches de prestations visant à renforcer votre organisation, faciliter vos projets...

Publier un appel d’offre

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Click here to view original web page at www.binance.com

Search 2 keywords found: basic income

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.

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Search 2 keywords found: basic income,guaranteed income

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 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 in October 2022 named Purnell as its new president, succeeding Susan Fitzpatrick. Before taking his new post in February 2023, Purnell was BJC HealthCare's vice president of community health improvement.

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.

St. Louis' largest charitable trusts and foundations

Contributions, Grants and Gifts Paid in Most Recent Fiscal Year

Rank	Prior Rank	Organization / Prior Rank (*not ranked)
1	1	St. Louis Community Foundation
2	2	Enterprise Holdings Foundation
3	3	The Foundation for Barnes-Jewish Hospital

View this list

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Search 2 keywords found: basic income

Philosophy With Basic Income But Without Professional Academic Incentives.

Mr Nemo

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11 min read

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9 hours ago

By Robert Hanna

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Philosophy With Basic Income But Without Professional Academic Incentives

For eleven years, the core members of the Against Professional Philosophy circle (APP, 2013–2024) have been consistently, critically, and sharply distinguishing between (i) philosophy pursued and practiced authentically and seriously for its own sake, as a full-time, lifetime calling, i.e., real philosophy and (ii) philosophy pursued and practiced as a money-making career that’s conducted according to the set of strict coercive authoritarian and moralistic and neoliberal expectations, norms, policies, and rules — which Jeff Schmidt aptly calls ideological discipline (Schmidt, 2000) — governing the activities of research-&-publication, teaching, and so-called “admin” or “service,” that’s characteristic and indeed partially constitutive of recent and contemporary higher education at colleges and universities, i.e., professional academic philosophy. Susan Haack has also dubbed these two diametrically opposed alternatives philosophy as a calling and philosophy as a profession (Haack, 2021). To be sure, there are some people working outside the professional academy who also pursue and practice philosophy as a money-making enterprise: perhaps they’re paid editors of popular philosophy journals; or perhaps they write and sell popular philosophy books; or perhaps they write and sell popular philosophy articles to magazines; or perhaps they appear as philosophy talking-heads on TV or YouTube; or perhaps they write paywalled philosophy blogs or other kinds of paywalled philosophy social media; and so-on. For the purposes of this essay, I’ll classify these people as professional non-academic philosophers, because they’re pursuing and practicing philosophy as a money-making enterprise, but are not also engaged in a career that’s conducted according to the ideological discipline that’s characteristic and indeed partially constitutive of recent and contemporary professional academic philosophy. Correspondingly, I’ll then refine our original critical sharp distinction so that it holds between (i) real philosophy, on the one hand, and either (iia) professional academic philosophy or (iib) professional non-academic philosophy, on the other hand. Granting that, what follows in this essay are three interlinked thought-experiments motivating an overall argument that explores some important implications of that refined critical sharp distinction.

For the purposes of this essay, let “basic income” be shorthand for the package consisting of (i) a regular, yearly stipend, with adjustments for cost-of-living increases, that’s minimally sufficient for the purposes of everyday life for one or more people in a household, for example, the equivalent of $80,000.00 USD, which is currently the median yearly household income in the USA, (ii) adequate healthcare — noting that in the USA, where healthcare is not a universal right, as it is in many countries, the cost of this would be subtracted from the yearly stipend, and (iii) adequate public education from pre-school through higher education — also noting that in the USA, where free higher education for all qualified students is not a universal right, as it is in many countries, this would also be subtracted from the yearly stipend.

And again for the purposes of this essay, let “professional academic incentives” be shorthand for the package consisting of (i) a yearly salary determined by neoliberal professional academic market values, (ii) annual three-month free time/vacations included under your yearly salary, (iii) a tenure-and-promotion stream with at least three ranks of professorship, two of them tenured ranks, each rank tied to regular salary bonuses and/or permanent increases, often but not always depending on so-called “merit,” or on seniority, but in any case also increasingly high professional-social status conferred for each higher rank, and a special ultra-high professional-social status conferred for special endowed (“named”) professorships or Chairs, (iv) regular paid sabbaticals every few years for all tenured professors, (v) yearly research funds and travel funds, especially at the higher-ranked colleges and universities, (vi) a rigid hierarchical system of rankings among colleges and universities, so that professors receive proportionally higher professional-social status by being employed at higher-ranked institutions, right up to the world-ranked top ten institutions, for example:

(v) a rigid hierarchical system of rankings among departments of philosophy, as per the Philosophical Gourmet Report overall rankings, part of which is displayed at the top of this essay, so that philosophy professors receive proportionally higher professional-social status by working at higher-ranked departments, (vii) a set of more-or-less competitive disciplinary or trans-disciplinary fellowships and grants, from the post-doctoral level up through all higher professorial ranks, with high professional-social status awarded to the winners of such competitions, and so-on and so forth, the total collection of which Susan Haack has aptly dubbed perverse incentives (Haack, 2022; see also Hanna, 2022a).

So, in short, philosophy with basic income but without professional academic incentives provides you with the opportunity to pursue and practice philosophy authentically and seriously for its own sake as a full-time, lifetime calling, autonomously, hence in a self-determining and rationally-guided way, independently of the ideological discipline that’s characteristic and indeed partially constitutive of professional academic philosophy, without all the incentives — i.e., goodies — that professional academic philosophy so effectively employs in order to addict you to that way of life and to normalize its ideological discipline, but also in a way that won’t starve you or make you homeless, won’t prevent your access to adequate healthcare, and won’t prevent any children you might have from getting a perfectly adequate education, all the way from pre-school through higher education.

Indeed, philosophy with basic income but without professional academic incentives is today’s equivalent of Socrates’s audacious, edgy, and radical proposal in the Apology that instead of being put to death by his Athenian accusers and persecutors, he should in fact be rewarded with “free maintenance by the state” for his full-time, lifetime labors as a philosophical gadfly (Plato, 1982: p. 22, 37a). Or in other words, philosophy with basic income but without professional academic incentives provides you with the opportunity to do real philosophy, as opposed to professional academic philosophy, with all its professional academic incentives and all its ideological discipline. In another essay, I’ve discussed the hard problem of how a basic income without professional academic incentives and ideological discipline, that’s then used for doing real philosophy, really could be secured in the contemporary real world (Hanna, 2022b: section IX); here, I’ll simply assume, for the purposes of argument, that it’s somehow really possible to secure this in the contemporary real world, and also briefly describe one mode of that near the end of the essay.

Now, what about professional non-academic philosophy? On the one hand, if it were done primarily so that the opportunity of philosophy with basic income but without professional academic incentives could be realized, then professional non-academic philosophy could also be real philosophy. But on the other hand, if it were done primarily as a money-making enterprise, then professional non-academic philosophy would be sophistry, not real philosophy.

Now for the three interlinked thought-experiments.

In the first thought-experiment, let’s suppose that you’ve recently received a PhD in philosophy and have also decided to pursue and practice philosophy thereafter. Then you’re offered the following triadic option: either (i) philosophy with basic income but without professional academic incentives, or (ii) professional academic philosophy, or (iii) professional non-academic philosophy? If you choose (i), or if you choose (iii) primarily so that the opportunity for basic income without professional academic incentives can be realized, then you could be, and indeed you very likely are, a real philosopher, and if so, then you should be heartily applauded by all who love real philosophy, even if they happen to disagree with your philosophical views. But if you choose (ii), then you’re nothing but a careerist and a sophist. And if you choose (iii) primarily as a money-making enterprise, then, although you’re not a careerist, you’re still nothing but a sophist.

In the second thought-experiment, let’s suppose that you’re currently either a professional academic philosopher or a professional non-academic philosopher, and that you hadn’t ever actually self-consciously recognized the real possibility of pursuing and practicing philosophy with basic income but without professional academic incentives, and then you were informed of that real possibility — say, by reading this essay. Now, in order to enrich that opportunity, let’s further suppose that any opportunity for philosophy with basic income but without professional academic incentives also includes the opportunity to teach philosophy to a fairly small number of truly interested, engaged, self-disciplined, and talented students, every year. Then, assuming the existence of that enriched opportunity for philosophy with a basic income but without professional academic incentives, and also assuming that you were offered that enriched opportunity, would you then exit your professional academic philosophy job or your professional non-academic philosophy job in order to take up that enriched opportunity, yes or no? If yes, then you could be, and indeed you very like are, a real philosopher, and if so, you should be heartily applauded by all who love real philosophy, even if they don’t happen to agree with your philosophical views; but if no, then you’re nothing but either a careerist and a sophist, or else not a careerist but still nothing but a sophist.

Finally, in the third thought-experiment, which focuses on professional academic philosophy alone, let’s assume that you’re currently a professional academic philosopher working either at a top ten university as per the Times Higher Education world university top ten rankings displayed above, or at a top ten philosophy department, as per the Philosophical Gourmet Report top ten rankings displayed at the top of this essay. For convenience, let’s call the top ten universities, elite universities, and the top ten philosophy departments, elite philosophy departments. So you’re currently a professional academic philosopher who is working at either an elite university or an elite philosophy department (or, obviously, at both). Moreover, you also explicitly and publicly profess a strong commitment to diversity, equity, and inclusion in higher education, perhaps under the rubrics of social justice theory and/or identitarianism. Then you’re offered the opportunity to give up your elite professional academic philosophy job, in order to give that very job to a deserving and qualified young philosopher who belongs to some or another oppressed minority group, in return for which you’re also offered the enriched opportunity of philosophy with basic income but without professional academic incentives. So would you do this, yes or no? If yes, then not only could you be, and indeed you very likely are, a real philosopher, and if so, then also you have integrity, and therefore you should be heartily applauded by all who love real philosophy that’s conducted with integrity, even if they don’t happen to agree with your philosophical views or with your moral and sociopolitical beliefs; but if no, then you’re nothing but a careerist, a sophist, and a “woke” hypocrite.

Now, attentive readers might have already noticed that if you’re currently working as a professional academic philosopher, then the enriched opportunity for philosophy with a basic income but without professional academic incentives can actually be realized in the contemporary real world simply by means of taking early retirement, or at least retirement-at-age-65, and then also continuing to engage philosophically with some of your best former students, since your professional academic pension income and healthcare benefits, social security income, and medicare, taken together, will easily provide adequate funds for that. Correspondingly, I have an audacious, edgy, and radical two-part proposal that, in the contemporary real world, is effectively equivalent to Socrates’s proposal to his Athenian accusers and persecutors, that he be rewarded with “free maintenance by the state” (Plato, 1982: p. 22, 37a): hence I’ll call it the neo-Socratic proposal.

The first part of the neo-Socratic proposal is that any professional academic philosopher — but especially those working at elite universities or at elite philosophy departments — should take early retirement or at least retirement-at-age-65 and thereby realize the opportunity for philosophy with basic income but without professional academic incentives, so that they can do real philosophy. And the second part of my two-part neo-Socratic proposal is that any professional academic philosopher who is working at an elite university or an elite philosophy department who also explicitly and publicly professes a strong commitment to diversity, equity, and inclusion in higher education, should take early retirement or at least retirement-at-age-65 and thereby realize the opportunity for philosophy with basic income but without professional academic incentives, not only so that they can do real philosophy, but also so that they can give up their elite professional academic philosophy job in order to give that very job to a deserving and qualified young philosopher who belongs to some or another oppressed minority group. Given the ideological discipline that’s characteristic and indeed partially constitutive of professional academic philosophy, it’s easily conceivable that most or even all professional academic philosophers — especially those working at elite universities or at elite philosophy departments — who are approaching, or who have already passed, the age of early retirement or retirement-at-age-65, will not have self-consciously recognized either the existence of the neo-Socratic proposal or its rational compellingness.

But now, Dear Reader, you do self-consciously know that the neo-Socratic proposal exists and also that it’s rationally compelling: therefore, if you fail to act on it now or when the appropriate time comes, then you’re nothing but either a careerist and a sophist, or — what’s even worse, if you also explicitly and publicly profess a strong commitment to diversity, equity, and inclusion in higher education — nothing but a careerist, a sophist, and a “woke” hypocrite.

REFERENCES

(APP, 2013–2024). W, X, Y, & Z, aka Hanna, R. Against Professional Philosophy: A Co-Authored Anarcho-Philosophical Diary. Available online at URL = <https://againstprofphil.org/>.

(Haack, 2021). Haack, S. “Philosophy as a Profession, and as a Calling.” Syzetesis 8: 33–51.

(Haack, 2022). Haack, S. “Universities’ Research Imperative: Paying the Price for Perverse Incentives.” Against Professional Philosophy. 25 September. Available online at URL = < https://againstprofphil.org/2022/09/25/a-guest-essay-by-susan-haack-universities-research-imperative-paying-the-price-for-perverse-incentives/>.

(Hanna, 2022a). Hanna, R. “A Radical Solution For Haack’s ‘Perverse Incentives’ Problem: Liberating Real Philosophy From The Professional Academy.” Against Professional Philosophy. 2 October. Available online HERE.

(Hanna, 2022b). Hanna, R. “Six Studies in The Decline and Fall of Professional Academic Philosophy, And a Real and Relevant Alternative.” Borderless Philosophy 5: 48–130. Available online at URL = <https://www.cckp.space/single-post/bp-5-2022-robert-hanna-six-studies-in-the-decline-and-fall-of-professional-philosophy-48-130>.

(PGR, 2024). “Overall Rankings.” Philosophical Gourmet Report. Available online at URL = <https://www.philosophicalgourmet.com/overall-rankings/>.

(Plato, 1982). Plato. “Socrates’s Defense (Apology).” Trans. H. Trendennick. In E. Hamilton and H. Cairns (eds.), Plato: Collected Dialogues. Princeton NJ: Princeton Univ. Press. Pp. 4–26.

(Schmidt, 2000). Schmidt, J. Disciplined Minds: A Critical Look at Salaried Professionals and the Soul-Battering System That Shapes Their Lives. New York: Rowman & Littlefield.

(World University Rankings.ch, 2024). “Times World University Rankings.” Available online at URL = <https://www.universityrankings.ch/results/Times/2024>.

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AGAINST PROFESSIONAL PHILOSOPHY REDUX 939

Mr Nemo, W, X, Y, & Z, Monday 21 October 2024

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Search 2 keywords found: basic income

Popular MMA personality Joe Rogan recently had journalist and media executive Shane Smith over in his podcast, the Joe Rogan Experience. Smith co-founded VICE Media, formerly known as VICE Magazine, back in 1994. VICE focuses on lifestyle, arts, culture, and politics-related content, topics Smith has been known to explore in the most honest and investigative ways.

In his return to the Joe Rogan Experience, Smith talked about the importance of universal basic income and how it can change the world. Universal basic income or UBI is a concept of a government program that grants every adult citizen a set amount of money regularly to alleviate poverty.

Smith said:

"There's this big, chaotic time right now and you're exactly right and people are getting anxious about it and everything. And we got to use that as a time to say, 'Hey, why don't we have a f**king economy where there is a universal basic wage and/or living wage and we take that to doing sh*t where you do something that you like and you're happy about [it]."

To this, Rogan replied with:

"I guarantee you it will cause less crime. I think crime will dip substantially. I think there will be less civil unrest. People's needs will be met. It'll give everyone that feeling of, 'Oh, I don't have to worry about my bills anymore'".

Check out Joe Rogan and Shane Smith's conversation below (59:14):

Shane Smith explains to Joe Rogan how VICE changing prompted him to step down as CEO

VICE as a media company, at least when Shane Smith started it as a magazine back in the 90s, was aimed to challenge the status quo of mainstream media and elevate independent, free-thinking journalism. VICE became one of the most-viewed news programs in the world, reaching new heights in viewership once it expanded to video content in 2011.

The media company went on a decline from 2018 to its filing of bankruptcy in 2023, however. Smith talked about this on the podcast, saying (via Joe Rogan Experience):

"I actually called in from the beginning. I said, 'Look, we're going to get too big and at that point, we're gonna become the thing that we're [going up against]. We were a challenger brand and we're gonna become the status quo and then we're gonna get our a**es kicked."

Check out Shane Smith's comments below (3:36)

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Search 2 keywords found: guaranteed income

Total Administrative Services Corporation (TASC)
2302 International Ln
Madison, Wi 53704-3140
T: 888.595.2261

TASC is excited to work on the Guaranteed Income pilot program and in addition to the partnership with Give Back Foundation, TASC has donated money and resources to help the program be a success for the Madison area.

TASC is committed to bettering our community and being a part of this pilot program is an important step in that journey.

TASC is a for-profit, privately held tech-enabled financial and administrative subscription-as-a-service organization designed to handle the needs of the role of an MGI Guaranteed Income Disbursement Partner.

“This is an amazing opportunity to provide financial assistance to those in need in the City of Madison.” Said TASC CEO Dan Rashke. “This partnership speaks to the core of TASC’s mission to improve the health, wealth and wellbeing of our customer, employees and communities.”

The Guaranteed Income pilot program is showing immense signs of success in other cities and TASC is eager to be a part of bringing that success to Madison. The benefits of this program will reach far beyond immediate recipients of this program, it will benefit entire communities.

About TASC

Since 1975, we have evolved to meet the ever-changing needs of our clients and their employees and work with them to provide benefit options that feel like benefits every day and in times of great need. Headquartered in Madison, Wisconsin, TASC is the nation’s largest, privately held, third-party administrator for employee benefits programs. A philanthropy-driven, family-owned business, TASC delivers innovative quality solutions that help protect the rights of more than 65,000 sole proprietors, family farmers and business owners of all sizes all over the country. www.tasconline.com

About the Give Back Foundation

The GiveBack Foundation is a 501(c)(3) offering a unique solution that encourages more people, giving more, more often, to more charitable organizations. With access to more than 1.5 million IRS approved charities, the GiveBack Foundation the peace of mind that their generosity goes where you expect and will make a difference. www.giveback.org

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Search 2 keywords found: guaranteed income

Post Office MIS 2024: After every 5 years, there will be an option to take your principal amount or continue the scheme. The interest received on the account is paid every month in the post office savings account.

Post Office MIS 2024: The new year has begun. Along with this, a new plan should also be prepared for savings. For saving, it is most important that the investment amount is safe and it gets guaranteed returns. For this, the government-backed Post Office Scheme becomes the first choice. Because here you get safe and guaranteed returns on savings. Along with the trust of the government. The figure of guaranteed return is more than the FD of banks. One such saving scheme is Monthly Income Scheme, in which income is generated every month on lump sum deposit.

Post Office MIS 2024 Calculation

Investment: Rs 9 lakh
Annual interest rate: 7.4%
Tenure: 5 years
Interest income: Rs 3,33,000
Monthly income: Rs 5,550

Post Office MIS: Important points

In this scheme of Post Office, you can deposit up to Rs 9 lakh in a single account and Rs 15 lakh in a joint account. If you want, your total principal amount will be returned after a maturity period of 5 years. At the same time, it can be extended for another 5 years. After every 5 years, there will be an option to take your principal amount or extend the scheme. The interest received on the account is paid every month in the savings account of the post office. TDS is not deducted on investment in Post Office Monthly Income Scheme. However, the interest that comes into your hands is taxable.

Post Office MIS: Rules for pre-mature closure

If you need to withdraw money before maturity in Post Office Monthly Saving Scheme, then you get this facility after one year, but if you want to withdraw the amount before that, then it is not possible. However, in case of pre-mature closure also you have to pay penalty. If you withdraw money between 1 to 3 years, then 2% of the deposit amount is deducted and returned.

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Search 2 keywords found: guaranteed income

In a world where financial stability and future security are crucial, investing in the best guaranteed income plan becomes essential. If you are looking for a risk-free investment option that not only ensures a secure future for you and your family but also guarantees a steady flow of income, then Guaranteed Return Plans are the perfect solution. These plans offer a blend of life insurance and assured returns, making them a reliable choice for long-term savings. Let's explore the best guaranteed return plans in India for 2024, their features, benefits, and why they are the go-to option for risk-averse individuals.

What Is A Guaranteed Income Plan?

A Guaranteed Income Plan is a type of insurance policy designed to provide you with guaranteed returns on your investment after a specified period. These plans help you save a fixed amount of money over the long term while offering a guarantee that you’ll receive those savings plus an additional return. You can choose whether to receive this payout as a lump sum, in regular intervals, or as a lifelong income.

These plans are ideal for individuals who prefer stability and certainty over market-linked investments, which may offer higher returns but come with risks. By investing in a guaranteed return plan, you not only secure your future but also ensure that your loved ones are financially protected in case of unforeseen circumstances.

List Of Top 5 Best Guaranteed Income Plans In India

Plans Name	Entry Age	Maturity Age	Policy Term	Minimum Annual Premium
ICICI Pru ASIP	18-57 Years	18-72 Years	10-15 Years	Rs. 50,000
Bajaj Allianz Assured Wealth Goal	18-50 Years	18-75 Years	5-12 Years	Rs. 50,000
TATA AIA Guaranteed Return Insurance Plan	18-65 Years	18- 85 Years	5-12 Years	Rs. 24,000
HDFC Life Sanchay Plus	30 days - 45 Years	18-70 Years	15-25 Years	Rs. 30,000
Bajaj Allianz Goal Suraksha	18-50 Years	28-65 Years	10-20 Years	Rs. 3,000

Why Choose A Guaranteed Income Plan?

Guaranteed return plans offer stability, financial security, and peace of mind. These plans are best suited for individuals who prefer to save and grow their money without the risks that come with other market-dependent investments. Here are the core benefits of choosing a guaranteed return plan:

• Risk-Free Returns: Unlike mutual funds or stocks, where returns depend on market fluctuations, a guaranteed return plan provides 100 percentage certainty on the income you'll receive.

• Customisable Payout Options: You can tailor the payout structure as per your needs, whether you require a lump sum for large expenses or a steady income stream to meet ongoing financial commitments.

• Life Cover: Along with the assured returns, guaranteed return plans offer life insurance coverage, ensuring your family is taken care of in your absence.

Invest In Guaranteed Income – Find & Compare Now!

Features Of Guaranteed Income Plans In India

• Guaranteed Income: These plans assure you a guaranteed income plan for a fixed term. You can choose to receive your payout as a lump sum, in regular intervals, or as lifelong income, depending on your financial goals.
• Flexibility in Returns: You can opt for a guaranteed lump sum amount or set up long-term or short-term income plans. This flexibility ensures that your investment aligns with your specific needs, whether it’s saving for your childs education, buying a house, or planning for retirement.
• Life Insurance Coverage: A guaranteed life insurance policy provides financial protection to your family in the event of your untimely demise. This means your loved ones will receive not only the guaranteed returns but also a life cover benefit.
• Premium Payment Options: You can pay premiums at your convenience. The plan offers single, annual, half-yearly, quarterly, or monthly premium payment modes, allowing you to manage your finances more effectively.
• Tax-Free Maturity: The payouts received from a guaranteed return insurance plan are tax-free under Section 10(10D) of the Income Tax Act 1961, ensuring that your earnings are exempt from tax.

Who Can Buy Guaranteed Income Plans?

Guaranteed return plans are available to individuals aged between 18 and 60 years. The policy term can range from 5 to 30 years, offering flexibility based on your financial needs and goals. Whether you are a young professional starting your career or someone planning for retirement, these plans cater to a wide range of age groups and financial aspirations.

Benefits Of Guaranteed Income Plans

• 100 % Guaranteed Returns: These plans offer complete certainty of return on your investment. You receive a predetermined amount at the end of the policy term, ensuring that your financial goals are met without any risk.
• Maturity Benefit: At the policy maturity, you receive the guaranteed sum along with any applicable bonuses, ensuring your savings have grown during the term of the policy.
• Death Benefit: In the unfortunate event of your demise, your family receives the sum assured along with any bonuses. This offers financial protection to your loved ones in your absence.
• Optional Riders: To enhance your policy coverage, you can opt for additional riders like accidental death benefit, critical illness cover, or waiver of premium, ensuring that you’re comprehensively protected against life uncertainties.
• Simplicity and Accessibility: Guaranteed return plans are easy to understand and simple to manage, making them accessible to all types of investors, even those who are new to financial planning. You do not need to be an expert in finance to benefit from these plans, as they offer straightforward investment options with clear, guaranteed returns.
• Diversification and Risk Mitigation: While guaranteed return plans themselves are risk-free, they serve as an excellent way to diversify your investment portfolio. By including a guaranteed return plan in your investment mix, you mitigate the risks associated with market-linked investments like mutual funds or stocks, ensuring that a portion of your wealth is always safe and growing steadily.

Tax Benefits Of Guaranteed Income Plans

One of the significant advantages of the best guaranteed income plans is the tax benefit they offer, making them an even more attractive investment option.

• Premium Deductions Under Section 80C: The premiums you pay towards your guaranteed return plan are eligible for tax deductions under Section 80C of the Income Tax Act 1961, up to a maximum of Rs1.5 lakh per annum. This helps you save on taxes while securing your future.
• Tax-Free Maturity Payouts Under Section 10(10D): The maturity benefits you receive at the end of the policy term are tax-free, provided the premiums do not exceed 10% of the sum assured. This ensures that your returns remain untaxed, allowing you to maximise your savings.
• Tax-Free Death Benefit: In case of the policyholders demise, the death benefit paid to the nominee is also exempt from taxes under Section 10(10D), offering further financial security to your family.

Compare & Choose The Best Guaranteed Return Plans Now – Click Here!

How Does A Guaranteed Income Plan Work?

A guaranteed return plan works by requiring you to pay premiums for a specified period, after which you are guaranteed a payout. Here how the process typically works:

• Choose the Policy Term and Premium Payment Mode: You select a policy term (which can range from 5 to 30 years) and decide how you wish to pay the premiums—either as a lump sum, annually, or at shorter intervals.
• Pay Regular Premiums :Throughout the policy term, you pay regular premiums to the insurance provider. These premiums are invested by the insurer in safe, secure instruments that guarantee fixed returns.
• Receive Payouts: At the end of the policy term, or at the intervals specified, you receive a guaranteed payout, which can be in the form of a lump sum or periodic payments. Some policies even offer the option of lifetime payouts, ensuring a steady flow of income post-retirement.
• Death Benefit: In the unfortunate event of the policyholders demise during the policy term, the nominee will receive the death benefit (the sum assured) along with any accrued bonuses, ensuring the familys financial security.
• Bonus Additions (if applicable): Depending on the type of plan, you may also receive bonuses such as reversionary bonuses or terminal bonuses, which are declared by the insurer based on their performance.

Factors To Consider Before Buying An Income Return Plan

Before investing in the best guaranteed income plan, it’s essential to consider certain factors to ensure the plan aligns with your financial goals.

• Your Financial Goals :Determine why you need the plan. Are you investing to secure your child's education, buy a house, or plan for your retirement? Choosing the right plan depends heavily on understanding your financial objectives and matching them to the features and benefits of the policy.
• Investment Horizon: These plans typically require a long-term commitment, ranging from 5 to 30 years. Ensure that the investment horizon matches your savings goals. If you’re saving for a short-term goal, these plans might not be the best fit due to the long lock-in period.
• Premium Payment Capacity :You need to assess how much premium you can comfortably pay without straining your finances. Choose a plan with flexible premium payment options (monthly, yearly, or single premium) that align with your financial situation.
• Risk Tolerance: Guaranteed return plans are ideal for risk-averse investors who want stable, predictable returns. If you are looking for higher, market-linked returns and are willing to take some risk, you may want to explore other investment options.
• Surrender Value: Consider whether you need extra coverage like critical illness or accidental death riders. These can provide enhanced protection but come with additional costs, so weigh the necessity of these riders against your current financial situation.
• Surrender Value :While these plans offer guaranteed returns, exiting the policy prematurely can result in a loss of benefits. Make sure you understand the surrender value of the plan and the penalties associated with early termination before committing.
• Tax Implications :Evaluate the tax benefits associated with the plan, especially the deductions available under Section 80C and the tax-free nature of payouts under Section 10(10D). This can significantly impact your overall savings.

Why OkBima Is A Trusted Partner For Guaranteed Income Plans?

When it comes to choosing the right guaranteed return insurance plan, OkBima stands out as a trusted insurance agency. At OkBima, we understand that your financial goals and future aspirations are unique. That's why we offer personalised insurance solutions that are tailored to your specific needs. Our experienced team provides expert guidance, helping you choose the best guaranteed income plan that not only secures your future but also offers life protection to your loved ones. With transparent processes and a client-first approach, OkBima is committed to helping you achieve financial peace of mind.

Summing It Up…

In today uncertain financial climate, having a secure investment option is crucial. By choosing a guaranteed return plan, you're not only safeguarding your future but also ensuring financial protection for your family. Whether you're looking to build a retirement corpus, save for your child education, or simply want a reliable income stream, guaranteed return plans are the safest option for risk-averse investors. So, take control of your financial future today and make the smart choice with a guaranteed return plan.

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After giving birth to her first child early last year, ABC 13 Houston anchor Rita Garcia is now expecting her second. The weekday morning anchor took to social media on Friday to make the big announcement. "I'm usually the one delivering the news, but today, Jordan, the future big sister, has the honor," Garcia wrote on Facebook. "Exciting times ahead as we get ready to become a family of four!"

In a slideshow included in the post, Garcia and her husband Sergio Selvera hold hands with their daughter Jordan Renee, who wore a "big sis" T-shirt. The couple, who wed in 2021, welcomed Jordan on Jan. 21, 2023.

Prior to joining ABC 13 in 2021, Garcia worked as a morning anchor in Los Angeles on FOX 11's Good Day LA. While on maternity leave last year, she took some time out to appear on the show to congratulate her former co-anchor Tony McEwing on his retirement during his final day at the channel. Before her time on the West Coast, Garcia was previously an anchor at FOX 26 Houston. Born in Austin, she is a Texas State University graduate. She kicked off her career in TV in the Rio Grande Valley at ABC's KRGV-TV, where she was Cameron County bureau chief.

Garcia isn't the only local TV news personality to announce a baby on the way next year. Last week, KPRC 2 meteorologist Caroline Brown revealed she and her husband Jack Chadderdon will be welcoming their first child, a baby boy, in February. The couple has decided to name him Jack Jr. and his nickname will be J.J.

More News

Battle | Ken Paxton sues Harris Co. over guaranteed income program
Moves | Texas A&M begs people to stop breakdancing in art galleries
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Threshold | UT-Austin announces new cut to automatic admission

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If you’re a Canadian senior, you might have heard about the October 2024 Old Age Security (OAS) payment of up to $2,254. This payment is making headlines, especially as it offers significant financial relief for many Canadians in their retirement years. But what does this payment entail? How can you ensure you’re eligible? And what steps do you need to take to receive it? n this article, we’ll dive into the Old Age Security (OAS) program, explain how seniors can claim the October 2024 OAS payment, and provide a step-by-step guide to ensure you get the most out of your retirement benefits.

Canadians Can Claim October $2254 OAS Payment in October

Topic	Details
Payment Amount	Up to $2,254 for eligible recipients
Eligibility	Canadians aged 65+, lived in Canada for at least 10 years post-age 18
Payment Date	October 29, 2024
How to Apply	Automatically applied if already enrolled; new applicants apply via Service Canada
Additional Benefits	Guaranteed Income Supplement (GIS) and provincial top-ups may be included

The October 2024 OAS payment offers much-needed financial support to Canadian seniors, with some receiving up to $2,254. Whether you’re already receiving OAS or planning to apply, it’s essential to understand the eligibility criteria, payment amounts, and the additional benefits available to you. Make sure to check your eligibility, gather the necessary documents, and apply through Service Canada if you haven’t yet. For seniors already enrolled, expect the increase in your payment at the end of October, no extra action is required.

What is the Old Age Security (OAS) Program?

The Old Age Security (OAS) program is a monthly pension available to Canadians who are 65 years or older. Unlike the Canada Pension Plan (CPP), which is based on your contributions during your working years, OAS payments are available to almost all seniors, provided they’ve lived in Canada for a certain period.

In 2024, the OAS program is set to increase payments to seniors, with some individuals able to receive up to $2,254 this October. This figure can include additional supplements, like the Guaranteed Income Supplement (GIS), which offers extra financial help to low-income seniors. For those aged 75 and older, an automatic 10% boost to their OAS payments is already in place.

Why is the OAS Important?

For many retirees, OAS is a vital source of income. Combined with other programs like CPP and private savings, it helps seniors meet their living expenses, such as housing, healthcare, and daily necessities. The October 2024 payment increase is designed to adjust for inflation and provide seniors with more purchasing power.

How Much Can You Get in October 2024?

As mentioned earlier, the maximum OAS payment for October 2024 could reach up to $2,254, though this amount may vary. Here’s how the payment breaks down:

• The basic OAS payment for seniors aged 65 and over is expected to be around $630 to $640.
• Seniors aged 75 and older get a 10% boost, making their payment exceed $700 per month.
• The Guaranteed Income Supplement (GIS) can add to this amount for low-income seniors, potentially pushing the total payment closer to the $2,254 mark.

It’s important to understand that not all seniors will receive the full $2,254. The actual amount you receive depends on your income, marital status, and whether you qualify for additional benefits like the GIS.

Example Calculation:

Let’s say you’re a 78-year-old senior with a low income. Your OAS payment could look something like this:

• Base OAS Payment (with 10% boost): $700
• Guaranteed Income Supplement: $850
• Provincial Top-up (if applicable): $200
• Total October Payment: $1,750

If you qualify for additional supplements or have unique circumstances, this amount could increase, but not all seniors will see payments as high as $2,254.

How to Claim the October $2254 OAS Payment in October

If you’re already receiving OAS benefits, there’s good news—you don’t have to do anything extra. The increase will be applied automatically to your October 2024 payment, which is expected to be deposited by October 29, 2024.

Step-by-Step Guide for New Applicants:

1. Check Eligibility:
   • You must be 65 years or older.
   • You must have lived in Canada for at least 10 years after turning 18.
2. Gather Necessary Documents:
   • Proof of age (birth certificate or passport).
   • Proof of residency in Canada (tax returns, utility bills, etc.).
3. Apply Through Service Canada:
   • Visit the Service Canada website to submit your application online.
   • You can also apply by mail using the paper form available on their website.
4. Wait for Approval:
   • Processing times can vary, but you should receive confirmation of your OAS payment eligibility within 6-12 weeks.
5. Start Receiving Payments:
   • Once approved, you will begin receiving monthly payments automatically. Your first payment will include any back payments owed to you, depending on when you became eligible.

Can You Receive Retroactive Payments?

Yes, if you’re late applying for OAS, you can receive retroactive payments for up to 12 months, assuming you were eligible during that period. However, it’s best to apply as soon as you turn 65 to avoid delays.

Additional Benefits You Should Know About

In addition to the OAS pension, there are several other benefits you may be eligible for:

1. Guaranteed Income Supplement (GIS)

The GIS is an additional payment for low-income seniors. To qualify, you must already be receiving OAS and have an income below a certain threshold. The exact amount you can receive depends on your income and whether you are single, married, or living with a partner.

2. Allowance for the Survivor

If your spouse or partner has passed away and you’re between the ages of 60 and 64, you might be eligible for the Allowance for the Survivor. This payment is meant to provide financial support to low-income seniors who have lost their partner.

3. Provincial and Territorial Top-Ups

Several provinces and territories offer top-ups to the OAS payment, designed to help seniors with specific needs or living costs. Check with your provincial government to see if you qualify for any additional support.

Old Age Security (OAS) Changes 2024: New Eligibility and Payment Increases

Financial Relief 4 CRA Benefits Increased In Canada: Check Out Enhanced Benefits in 2024

Canada $1546 OAS Direct Deposit October 2024: Will you get it? Check Eligibility and update on payment date

Frequently Asked Questions (FAQs)

1. When will I receive the October 2024 OAS payment?

The October 2024 OAS payment is expected to be deposited on October 29, 2024. Payments typically arrive toward the end of each month.

2. How much will I receive in October 2024?

The exact amount varies based on your age, income, and whether you qualify for additional benefits like the GIS. Some seniors may receive up to $2,254, but the average payment will likely be lower.

3. Do I need to reapply to receive the increased October 2024 payment?

No, if you’re already receiving OAS payments, the increase will be applied automatically. If you’re not yet receiving OAS, you’ll need to apply through Service Canada.

4. What if I’m outside of Canada?

You can still receive OAS payments if you’re living outside Canada, provided you’ve met the residency requirements. However, the amount may be adjusted depending on your location.

Hey there! I'm Anjali Tamta, hailing from the beautiful city of Dehradun. Writing and sharing knowledge are my passions. Through my contributions, I aim to provide valuable insights and information to our audience. Stay tuned as I continue to bring my expertise to our platform, enriching our content with my love for writing and sharing knowledge. I invite you to delve deeper into my articles. Follow me on Instagram for more insights and updates. Looking forward to sharing more with you!

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Over the years, we have seen many shows based on the culture and themes of Philadelphia and North Jersey. But the writers seem to never get it right whenever popular Television and Streaming Programs highlight South Jersey.

Cherry Hill High School East Graduates Adam and Craig Malamut decided to create a show that would accurately portray the people in South Jersey. Debuting on FOX with over Four Million live viewers on September 8th, this new Animated Comedy has already been renewed for a second season.

What Is This New Animated Sitcom Based On South Jersey?

Universal Basic Guys is a show featuring brothers Mark and Hank Hoagies who lost their jobs at the local Hot Dog Factory due to technological advances. As a result, the brothers begin receiving monthly "Universal Basic Income" checks worth $3,000 and the program follows along with their different adventures now they have no jobs.

One of the most popular Animated Comedy Shows on TV and Streaming, Universal Basic Guys is a fun depiction of South Jersey themes and the mentality of Philadelphia Sports fans. Co-Creator Adam Malamut joined "GameNight with Josh Hennig" on 973 ESPN South Jersey and he spoke about how important it was for this program to be true to his South Jersey Roots:

"It has to be authentic to South Jersey. In fact, the show is Animated in Australia and I'm like 'no, no, that's not what the street signs look like here, it's gotta look like this' and (I'm telling them) 'This looks like way too cute of a downtown, okay? Where I'm from, you gotta have strip malls and stuff like that'."

"(The characters) go to PJs, which in our (fictional) world is TJ Wooderhan's and we got 'WoWos' which is our (fictional world version) of WaWa. For us, we wanted to overdo it and just lean into it because part of (who we are) is where we grew up and we wanted to get the accents the way we hear them"

On popular shows such as The Sopranos, Always Sunny in Philadelphia, and Jersey Shore, the portrayal of South Jersey has always been inaccurate and the Malamut Brothers recognized this. While they wanted to make a great Animated Sticom, it was important for them to be authentically South Jersey.

In my conversation with Adam Malamut, he talked about how Sports Talk Radio was part of his inspiration for the fictional brothers Mark and Hank Hoagies:

"I grew up listening to Sports Talk Radio back in the day...I listened late at night to all these (callers saying) 'You gotta run the ball' and all that stuff - The idea was to build this character and what happens when (Mark Hoagies), who is going to run his mouth a lot, has to actually try and do these certain things."

"Then Hank (Hoagies) is like the sweet, simple brother, sort of based on my little brother when he used to look up to me before he realized I was an idiot. (Hank Hoagies) is more of a Phillies fan, likes the Phanatic, he likes to eat hot dogs....There's a little more positivity to the vibe (of Hank's character), he's the happy Philly Sports Fan, happy to eat a hot dog at a ballgame while Mark (Hoagies) is like the angry 'I know everything' type (of sports fan); He's got a Philly Sports fan opinion about everything."

October 20th is the next episode of Universal Basic Guys with Mark and Hank Hoagies going to an Eagles-Giants game. The new episode is debuting the same day at the Philadelphia Eagles and New York Giants play for the 186th time in the history of their rivalry.

The Brothers Adam and Craig Malamut are self-taught animators who have received Sports Emmy nominations for their hit web series Game of Zones on Bleacher Report. New Episodes of Universal Basic Guys are Sunday Nights on FOX and streaming the next day on Hulu.

Universal Basic Guys has already been renewed for a second season so you can continue to follow the adventures of Mark and Hank Hoagies. Will the Hoagies join this list of the Best Fictional Characters from New Jersey?

The Best Fictional Characters From New Jersey

While New Jersey is surrounded by two of the most famous cities in the United States, there are some incredible people with connections to The Garden State. Yes, Rocky Balboa is from Philadelphia and Spider-Man is from Queens, New York but New Jersey has some great characters who have a history with NJ.

Check out out list below to see if your favorite characters made our list:

Gallery Credit: Josh Hennig/Townsquare Media

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Advance payments under the eco-scheme, worth €206 million, are underway, the Minister for Agriculture, Food and the Marine announced today (Monday, October 21).

According to Minister Charlie McConalogue 110,450 farmers will receive advance payments under the scheme.

“Eco-scheme payments are a vital support for farmers and the payment rate in 2024 will be €66.50 per eligible hectare.

“The €206 million payment made today, which is €22 million more than in the advance payment in 2023, builds on the Basic Income Support for Sustainability (BISS) advance payment last week to over 110,000 farmers meaning that total advance payments on BISS, Complementary Redistributive Income Support for Sustainability (CRISS) and eco-scheme over the last week amounts to over €712 million,” Minister McConalogue added.

Eco-scheme

To qualify for the eco-scheme payment, farmers have to undertake specific agricultural practices on their farms.

The eco-scheme has eight agricultural practices to choose from and three of these practices also have an enhanced option.

According to the Department of Agriculture, Food and the Marine (DAFM) the aim of the eco-scheme is to “reward farmers, from all farming sectors and from different levels of intensity, for undertaking actions that are beneficial to the climate, environment, water quality and biodiversity”.

Minister McConalogue said: “I know how important these payments are and have been steadfast in my resolve to ensure that all scheme payments issue to farmers in the most efficient and timely manner possible.

“I am therefore pleased that with 94% of all 2024 eco-scheme eligible applicants being paid today, the department is meeting its commitment under the Farmers’ Charter to pay 90% of eligible applicants.”

According to the minister the eco-scheme advance payments starting today at are at a rate of 70% – which is the same rate it was paid at in 2023.

“Payments will be visible in farmers’ bank accounts in the coming days and the department will continue to process, all remaining cases for payment as they meet scheme criteria.

“I would however urge any farmers with outstanding requests for documentation from my department, to return them to allow payments to issue as soon as possible,” he added.

Minister McConalogue also detailed that advance payments under the 2024 Areas of Natural Constraints Scheme (ANC) which started last month and 2024 BISS payments that began last week are continuing “as more cases are cleared for payment”.

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Do you want to get regular income on your savings, Post Office Monthly Savings Income Scheme can be a great option for you. By investing in this scheme, you can definitely get a fixed amount in your account every month.

Benefits of the scheme

Regular income: Get a fixed amount every month.

Attractive interest rate: The interest rate of this scheme is higher than other investment options.

Safe investment: Post office schemes are completely safe.

Flexibility: You can invest in this scheme from a minimum of ₹ 1,000 to a maximum of ₹ 9 lakh (for a single account) or up to ₹ 15 lakh (for a joint account).

How to Invest

To invest in the Monthly Income Scheme, you first have to open your savings account at the post office. After this, you will have to submit the filled form for National Savings Monthly Income Account. Also, you have to deposit the amount to be deposited in the account through cash or cheque along with the form. After this, your Post Office Monthly Income Account will be opened.

Interest Rate and Returns

The interest rate of the Post Office Monthly Income Scheme changes from time to time. Currently, the interest rate is 7.4%. If you invest ₹15 lakh in this scheme, you will get an income of around ₹12,333 every month.

Investment Limit

You can invest up to a maximum of ₹9 lakh when opening a single account.

You can invest up to a maximum of ₹15 lakh when opening a joint account.

Additional Information

You can open a single or joint account in this scheme. The maturity period of this great scheme is about to 5 years. You can withdraw your investment in this scheme at any time, but certain conditions may apply. If you want to invest in this scheme for more than 5 years, you can extend it in blocks of 5 years.

Invest Now

Monthly Savings Income Scheme is a great way to secure your future and get regular income. If you want to invest in this scheme, visit your nearest post office today and find out more.

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Old Age Security Payment Coming for Seniors: As the cost of living continues to rise, Canadian seniors are looking forward to the $3,500 Old Age Security (OAS) payment in October 2024. This one-time boost aims to help seniors cope with financial challenges, especially those on low or fixed incomes. In this article, we’ll break down who is eligible, how much you could receive, and how to apply for this significant benefit.

Topic	Details
Maximum Payment	Up to $3,500 in October 2024
Eligibility	Canadians aged 65 and above, meeting residency and income requirements
Payment Date	October 29, 2024
Application Process	Most seniors are automatically enrolled; others must apply via the Canada OAS Portal
Income Clawback Threshold	Income exceeding $90,997 (2023) could lead to partial or full repayment of OAS benefits
Guaranteed Income Supplement (GIS)	Additional support for low-income seniors, offering up to $1,086.88 per month
How to Apply	Visit the Service Canada website to apply or check your eligibility.

The $3,500 Old Age Security payment in October 2024 is a critical boost for many Canadian seniors, helping them cope with the rising cost of living. If you meet the eligibility criteria, you can look forward to this one-time payment automatically deposited into your account. For those not yet enrolled, it’s essential to apply through the Service Canada portal to ensure you receive your benefits on time.

What is the $3,500 OAS Payment?

The $3,500 payment is part of Canada’s Old Age Security program, designed to support seniors facing financial challenges. The government periodically adjusts these benefits to help retirees cope with inflation and other economic pressures. This October, a one-time OAS payment is expected to provide significant relief to eligible seniors.

Eligibility for $3500 October Old Age Security Payment

To be eligible for the October 2024 OAS payment, you must meet specific criteria:

1. Age Requirement: You must be at least 65 years old.
2. Residency: You should have lived in Canada for at least 10 years after the age of 18. For full benefits, 40 years of residency are required. If you reside outside Canada, you must have lived in the country for 20 years after turning 18.
3. Income: The amount you receive depends on your income. Seniors with an annual income over $90,997 in 2023 may see their benefits reduced or eliminated through the OAS clawback. If your income is lower, you could be eligible for the full payment, including additional support like the Guaranteed Income Supplement (GIS).

How Much Will You Receive?

While the maximum payment is $3,500, the exact amount may vary depending on factors like age and income. Seniors aged 75 and older receive an additional 10% of their OAS benefits due to a permanent increase introduced in 2022. Additionally, if your income exceeds a certain threshold, your OAS benefits may be reduced by 15% for every dollar above the limit.

The GIS offers further financial aid to low-income seniors, adding up to $1,086.88 per month on top of OAS payments.

October Old Age Security Payment Date and Schedule

The $3,500 payment is scheduled to be deposited on October 29, 2024. This is part of the regular OAS payment cycle, which includes monthly deposits made at the end of each month.

For the remainder of 2024, OAS payment dates are as follows:

• November 27, 2024
• December 20, 2024 (early payment due to the holiday season)

How to Apply for Canada $3500 October Old Age Security Payment Coming for Seniors

For most eligible seniors, no action is required. The Canadian government automatically enrolls citizens in the OAS program when they turn 65. If you’re already receiving OAS, you should receive this payment automatically. However, if you’re not yet registered, or if you believe you are eligible but haven’t received any OAS payments, here’s what you need to do:

1. Go to the Canada OAS Portal: Visit the Service Canada OAS portal to access the application form.
2. Provide Required Documentation: Ensure you have identification, proof of residency, and your Social Insurance Number (SIN) handy.
3. Submit Your Application: You can complete the application online or submit a paper form. It typically takes a few weeks to process the claim.

If you live outside Canada but meet the residency requirements, you can still receive OAS payments. Ensure you update your personal information, such as direct deposit details, to avoid any delays.

Canada $1546 OAS Direct Deposit October 2024: Will you get it? Check Eligibility and update on payment date

Canada Child Benefit Payment Coming This Week—Important Details Every Family Should Know

New Policy Allows Canadian Adults to Qualify for Up to $250,000—Find Out If You’re Eligible

Additional Support: Guaranteed Income Supplement (GIS)

The GIS provides extra financial help for low-income seniors who are already receiving OAS. This benefit can add up to $1,086.88 per month to your income, depending on your marital status and other income sources. Unlike OAS, GIS payments are non-taxable, offering much-needed relief to those on limited incomes.

Frequently Asked Questions (FAQs)

Q: When is the October OAS payment due?
A: The October OAS payment will be deposited on October 29, 2024.

Q: How do I know if I’m automatically enrolled in OAS?
A: If you’re eligible, you should receive a notification from Service Canada confirming your enrollment. If not, you’ll need to apply manually via the OAS portal.

Q: Can I receive OAS payments if I live outside Canada?
A: Yes, as long as you’ve lived in Canada for at least 20 years after turning 18.

Q: Are OAS payments taxable?
A: Yes, OAS payments are considered taxable income, and you’ll need to declare them on your tax return. GIS, however, is non-taxable.

Q: What if my income exceeds the clawback threshold?
A: If your income is higher than $90,997, you may have to repay part or all of your OAS payments through the OAS Recovery Tax, often called the “OAS clawback.”

Hey there! I'm Anjali Tamta, hailing from the beautiful city of Dehradun. Writing and sharing knowledge are my passions. Through my contributions, I aim to provide valuable insights and information to our audience. Stay tuned as I continue to bring my expertise to our platform, enriching our content with my love for writing and sharing knowledge. I invite you to delve deeper into my articles. Follow me on Instagram for more insights and updates. Looking forward to sharing more with you!

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Get a daily rundown of the top stories on Urban Milwaukee

Every day at The Overhead Wire we sort through over 1,500 news items about cities and share the best ones with our email list. Each week, we take some of the most popular stories and share them with Urban Milwaukee readers. They are national (or international) links, sometimes entertaining and sometimes absurd, but hopefully useful.

Use the subway for transit: Every few decades there’s a new movement to make something out of Cincinnati’s abandoned subway tunnels that were only partially finished due to the inflationary pressures of WWI and killed entirely by the Great Depression. Joshua Lawrence Junker suggests that as the water main that exists there comes to the end of its useful life, perhaps it’s time to revive the idea of a subway for transit again. (Joshua Lawrence Junker | Cincinnati Enquirer)

Day Zero never came but reforms needed: The headlines had stated Mexico City was perilously close to running out of water but a good fortune of timely rainfall and better water management have relieved the pressure for now. The near miss and attention it garnered also started larger discussions about what the city should be doing better to manage its water systems which were more salient due to a national election for president. (Maya Averbuch | Bloomberg CityLab)

Creating Dreamtroit: Two artists have taken an old car factory in Detroit and transformed it into a haven for artists including studio space and affordable housing. Half the units in the space called Dreamtroit are reserved for artists making less than $40k per year and some of the spaces rent for just $365 a month. And as the area around the factory gets redeveloped by major institutional investors, Dreamtroit stands out as “a point of resistance.” (Patricia Leigh Brown | New York Times)

Oregon voters to consider a state basic income rebate: In Oregon, voters will be asked whether the state’s minimum tax on large companies should be increased to give every resident of the state a $750 tax rebate and for some residents with low incomes it could be a direct cash payment. But not everyone is a fan of the idea of universal basic income programs. A lot of elected officials including the governor have come out against it and other states have even written laws banning the practice. (Erika Bolstad | Pew Stateline)

Traffic models and highway spending: Ben Ross and Joe Cortright argue that billions of dollars have been wasted on highway expansions sold to the public through black box traffic models trained to get results that point towards expansion. They use two examples of projects they have been following closely, the I-5 Columbia River Crossing plan in Portland and Maryland’s toll lane expansion to show how the process has been perverted, and pushed actual solutions to congestion to the side. (Ben Ross and Joe Cortright in Dissent Magazine)

Get a daily rundown of the Milwaukee stories

Quote of the Week

Those who don’t see themselves in those images or who live in built-up areas may feel as if cycling is not for them because they are not also white, slim, or able-bodied and do not have widespread access to green spaces and calmer roads on which to cycle.

-A report by the UK charity Possible shared in Forbes on how there’s a lack of diversity in cycling imagery.

This week on the Talking Headways podcast we’re joined by Cassidy Boulan and Thom Stead of the Delaware Valley Regional Planning Commission (DVRPC).

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If you think stories like this are important, become a member of Urban Milwaukee and help support real, independent journalism. Plus you get some cool added benefits.

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Search 2 keywords found: guaranteed income

Post Office Monthly Income Scheme (POMIS): Single and joint accounts can be opened in MIS. Its maturity is within 5 years from the date of opening the account. From January 1, 2024, this scheme is getting 7.4 percent annual interest.

Post Office Monthly Income Scheme (POMIS) calculator: Do a job, earn money, then invest and earn from interest. But, in most schemes, there is a long wait for your money due to the maturity period. How would it be if there is a scheme in which you invest money once and forget about it but the income keeps coming home every month? Post Office solves this problem of yours. Guaranteed income on investment without risk. Post Office Monthly Income Scheme is the best option. You have to deposit money once in MIS, then there will be guaranteed income every month for the next 5 years. There is an option of single and joint account in MIS. From January 1, 2024, 7.4% annual interest is being given on MIS.

Post Office MIS: What is it and how is it beneficial

In this scheme of post office, you can deposit up to Rs 9 lakh in a single account (POMIS account) and Rs 15 lakh in a joint account. If you want, your total principal amount will be returned after a maturity period of 5 years. At the same time, it can be extended for another 5 years. After every 5 years, there will be an option to take the principal amount or extend the scheme. The interest received on the account is paid every month in your savings account.

POMIS: Guaranteed income will be Rs 66,600

Suppose you open a single account in Post Office MIS and deposit a maximum of Rs 9 lakh. The interest rate on this is 7.4 percent per annum. In this way, there will be an income of Rs 5,550 every month. In this way, the income in 12 months will be Rs 66,600. In this way, there will be a total guaranteed income of Rs 3.33 lakh from interest in 5 years.

What is the rule regarding joint account?

According to the rules, two or three people can open a joint account in MIS. The income received in exchange for this account is given equally to each member. A joint account can be converted into a single account at any time. A single account can also be converted into a joint account. To make any change in the account, all the account members have to give a joint application. There may be premature closure in this. But then there is a tax deduction.

Account can be opened with just ₹ 1000

An account can be opened in the POMIS scheme with a minimum investment of Rs 1000 and investment can be made in multiples of Rs 1000. According to India Post, interest is paid in MIS every month. Any Indian citizen can invest in Post Office Monthly Income Scheme (POMIS).

Which documents will be required?

To open an MIS account, you must have an Aadhaar Card or Passport or Voter Card or Driving License as ID proof. You will have to provide 2 passport size photographs. Utility bills will be valid for address proof. Apart from this, you will have to fill the Post Office Monthly Income Scheme form. You can also download it online. Nominee details are necessary.

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Search 2 keywords found: guaranteed income

In October 2024, the Canadian government is introducing an extra $1,518 payment aimed at helping low-income seniors manage the rising cost of living. This initiative is part of a broader effort to provide relief to seniors who depend on fixed incomes like Old Age Security (OAS) and the Guaranteed Income Supplement (GIS). With inflation increasing the cost of essentials such as housing, groceries, and utilities, this one-time payment is designed to provide financial relief.

For eligible seniors, this payment will be automatically added to their existing OAS or GIS benefits. In this article, we will break down who qualifies, how to claim this payment, and important dates you need to be aware of.

Canada Extra $1518 Payment for Low-Income Seniors in October

Key Points	Details
Eligibility	Seniors aged 65+, receiving OAS, with an income between $23,495 – $33,015
Amount	$1,518 (one-time payment)
Distribution Date	Expected in October 2024
How to Claim	Automatically added to OAS payments—no additional application required
Purpose	To help low-income seniors manage the rising costs of living, including inflation impacts on daily expenses
More Information	Visit Canada.ca or the My Service Canada Account portal for updates.

The extra $1,518 payment for low-income seniors is a vital relief effort from the Canadian government to support seniors during these challenging economic times. By automatically including this payment in OAS distributions, the government aims to reduce the financial burden caused by inflation and rising living costs. Seniors who meet the income and residency requirements should ensure their personal and tax information is up to date to receive this additional support.

Understanding the Canada Extra $1518 Payment for Low Income Seniors

This extra payment of $1,518 is part of the Canadian government’s support for seniors struggling with rising costs, especially due to inflation. Unlike other benefits, such as the Canada Pension Plan (CPP), which is contribution-based, this payment is primarily tied to Old Age Security (OAS) and Guaranteed Income Supplement (GIS) recipients. These two programs are pivotal for providing financial security to seniors, particularly those in low-income brackets.

Why is this Payment Important?

The increasing cost of living, driven by inflation, has made it difficult for seniors on fixed incomes to cover essential expenses like housing, groceries, transportation, and healthcare. The $1,518 payment is intended to provide short-term relief, helping seniors maintain their quality of life without having to rely on debt or external assistance.

Who is Eligible for Extra $1518 Payment for Low Income Seniors?

To qualify for the extra $1,518 payment, seniors must meet specific criteria:

• Age: You must be 65 years or older.
• Income: Your annual net income should be between $23,495 and $33,015.
• OAS Recipient: You must already be receiving Old Age Security (OAS). Low-income seniors who also receive the Guaranteed Income Supplement (GIS) are particularly targeted.
• Residency: You must be a permanent resident of Canada and registered with the Canada Revenue Agency (CRA).

This payment is specifically aimed at low-income seniors who are most affected by rising living costs, and it will be automatically added to OAS payments for those who qualify.

How to apply for Canada Extra $1518 Payment for Low Income Seniors in October?

The $1,518 payment is expected to be rolled out in October 2024. Seniors who qualify will see this amount included in their regular OAS payments. There is no need to apply separately for the payment, as it will be processed automatically by the Canada Revenue Agency (CRA).

If you’re already receiving OAS and GIS, the payment will be deposited into your account alongside your regular benefits. Be sure to check your My Service Canada Account (MSCA) for updates or to verify the payment status.

Important Payment Dates

• October 27, 2024: First distribution date of the extra payment.
• Subsequent payments will follow the regular OAS and GIS payment schedule for those who qualify for multiple distributions over the year.

Maximizing Your Benefits

To ensure you’re receiving the maximum benefits available to you as a senior, it’s important to stay informed and proactive:

1. File Your Taxes: The CRA uses your annual tax return to determine eligibility for benefits like OAS and GIS. Even if you have little or no income, it’s crucial to file your taxes every year to ensure you’re not missing out on payments.
2. Apply for the GIS: If you qualify for OAS but haven’t applied for GIS, do so immediately. The GIS is a critical supplement for low-income seniors and is key to accessing additional financial support, such as this $1,518 payment.
3. Check for Other Benefits: In addition to federal benefits, provinces and territories often provide supplementary programs, including housing subsidies, utility rebates, and healthcare credits. These programs can help further reduce your expenses and improve your financial security.

⁠CRA $1870 Canada Disability Benefit Payment in October 2024, How to Claim it? Payment Date, Claim & Fact

Canada Grocery Rebate Scheme 2024: Will justin trudeau government release it in 2024? Check Update

Canadians Can Claim October $2254 OAS Payment in October: Check Complete Process, Date & Fact

Frequently Asked Questions (FAQs)

1. Who qualifies for the $1,518 extra payment?
Low-income seniors aged 65 or older, receiving Old Age Security (OAS), and with an annual income between $23,495 and $33,015.

2. Do I need to apply for this payment?
No, the payment will be automatically added to your regular OAS payments if you meet the eligibility criteria.

3. When will I receive the payment?
The payment is expected to be distributed starting in October 2024, with exact dates announced by the Canadian government.

4. Will this payment affect my other benefits?
No, this is a one-time payment and will not impact other benefits like CPP or GIS.

5. Can I receive both CPP and OAS?
Yes, you can receive both CPP (which is based on contributions during your working years) and OAS. However, having a high CPP payment may reduce your eligibility for GIS.

Hey there! I'm Anjali Tamta, hailing from the beautiful city of Dehradun. Writing and sharing knowledge are my passions. Through my contributions, I aim to provide valuable insights and information to our audience. Stay tuned as I continue to bring my expertise to our platform, enriching our content with my love for writing and sharing knowledge. I invite you to delve deeper into my articles. Follow me on Instagram for more insights and updates. Looking forward to sharing more with you!

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Search 2 keywords found: basic income,guaranteed income

Ben Earle is general manager of the Basic Income Canada Network and provides coordinating support to UBI Works. Sheila Regehr is chair of the Basic Income Canada Network and a former federal public servant. We caught up with Sheila and Ben at the 23rd Basic Income Earth Network Congress, recently held at the University of Bath, to discuss the importance of child credit programmes for basic income campaigning, the art of the compromise in Canadian politics, and the need to not let the great be the enemy of the good.

This interview was edited for length and clarity.

Beyond Trafficking and Slavery: Please start by describing the tone of the Canadian conversation around basic income these days. Is there openness to the idea?

Sheila Regehr: There is openness. It's not universal, but it's gaining ground among advocates and people working in sectors like food security, health and mental health.

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We recently gained some sponsors from organised labour. That was a new and exciting development, because there are mixed views about basic income within the labour movement. I think there’s a growing sense that we need solutions to some really serious problems, and it’s bringing people towards the idea. It’s a struggle though.

Ben Earle: We have some political support too, but it's not broad political support. There are bills being put forward in parliament at the moment, mostly by junior and backbench politicians. They may not pass, but they’re helping us gain traction in the political realm.

There isn’t support yet at the level of party leadership, at least not publicly. Basic income is in the background of the political sphere right now in Canada. But it’s gaining ground in various sectors and across civil society.

Sheila: That said, I worked inside government. It's not a monolith. Different departments don’t always speak to each other, and sometimes there are advantages to that.

For example, an environmental ministry recently gave us funding for a major project linking basic income and the environment. A government gender equality office is helping fund a basic income project for women fleeing domestic violence. And we got government research funding for a conference we recently held in Canada.

So there’s some support. But from a political decision-making perspective, we’ve got a long way to go.

BTS: It sounds like you’ve got your work cut out for you when campaigning on a national level. Is it easier to find support on a provincial level?

Ben: We’re seeing both support and programming for basic income on the provincial level. Some provinces have also started to use the language of basic income for their social assistance policies.

Some of our most successful work over the last ten years has been done on a provincial level. The Ontario Basic Income pilot is one of them. However, in true political fashion, as soon as an opposing government was elected, they cancelled it.

It's very volatile. If you don't build the policies into legislation, or if a government doesn’t start working on it right at the beginning of a term, it all just ends when the next government comes in.

We’re having these conversations at all different levels of government, but we don’t focus on working with local governments. Municipalities in Canada don’t have much power to implement these policies – not like in the US, for example. We’re focusing on advocacy at the federal level, since we want to see a national policy. And we still have a struggle there.

That said, a growing number of municipalities are becoming allies in pushing for a national policy. More and more are recognising the value of a basic income to them and making that known to more senior levels of government.

Sheila: National policymaking in Canada means federal, provincial and territorial. It can't just be federal, which is why there's an added layer of complication in Canada.

One key thing we have going for us is that we have done this before. Our child benefits structure is basically a guaranteed income for families with children under 18. And there are a couple of really important things about that.

The child benefits policy was developed in the late 1990s as a federal, provincial, territorial framework. So, there's a model for how to do this. That model also gives the provinces some flexibility, which is important because they generally don't like the federal government telling them what to do.

The child benefits structure is a hugely successful programme that's grown enormously since it was first established. This means we've got really good results from an actual programme. It's not a pilot. It's a programme. It's been running for roughly two generations of kids now.

Ben: And we have the infrastructure to support it, including the tax infrastructure to easily support the distribution.

Sheila: Exactly. So it’s possible. It's just a really difficult thing to actually make happen.

BTS: So there are around 25 years of lessons learned from existing programmes. Does this help you to market basic income as a viable program?

Sheila: Absolutely. One of the early successes of the Basic Income Canada Network was helping people to understand this concept. We’ve done a lot of work to show people that this idea is not foreign or radical. We already do this.

We've actually done it for seniors even longer and better than for families with children. Those policies have so many features of a basic income. People need to understand that these things already exist and we can build on them.

Ben: The challenge coming out of it, though, is that those are fairly easy calls. People are happy to support families with children because they see them as a deserving group. They're happy to support seniors because they've worked their whole lives, and they're happy to support people with disabilities because they’re unable to work.

The paradigm of deservingness is a massive stumbling block in the discussion in Canada. If you're meant to be tied to the labour market, then you supposedly don't need this help. How do we convince people that we need a programme available to everybody, regardless of age, gender, ability and status? This is one of the biggest challenges we’re facing.

Sheila: It feeds into the neoliberal paradigm that fetishises employment over everything else. People are forced to build their whole lives around paid labour. And if they’re fortunate, they might get some support on either side of their working lives. It’s a kind of religious orthodoxy that we’re challenging.

People have been searching for decades to try to prove that these kinds of benefits disincentivise employment. And it's just not there

BTS: Deservingness comes up a lot in basic income discussions. Have you found ways to respond?

Ben: UBI Works, who I also work with, is a good example of this. The organisation was started by a colleague of ours, Floyd Marinescu, who's a successful business owner in the tech sector. His argument is that, in this stage of capitalism, we can't expect everybody to get wealthy from work anymore.

We've engaged with this argument by showing the great divide that happened in the mid 1970s. This is when you start to see the split between wealth and incomes in countries like Canada and the United States. The wealth of the countries increases, but incomes stay stagnant.

There remains this religious orthodoxy to it, but the systems we’ve built aren’t working for the majority of Canadians. The social assistance system in Canada, for example, was built 50 years ago when full and secure employment was assumed. But we don't have that environment anymore.

It’s getting harder and harder to deny the challenges. And that's why we now have businesspeople like Floyd and other colleagues, who are saying, you know what? We're business owners. We've made money. But we realise that the model that helped us do this is not sustainable. It's not available to everybody.

Sheila: Part of our job is to help people understand how current child benefits work too. The money doesn't go to the kids. The money goes to working age adults. Yes, the group that we're all afraid is somehow going to misspend or drop out of the labour force.

One of the clear, publicly articulated policy goals of the child benefit was to help parents maintain paid labour force participation. And yet some people still respond to us by saying they’re worried basic income will be a disincentive for work.

People have been searching for decades to try to prove that these kinds of benefits disincentivise employment. It's just not there. In Canada, more and more people are seeing this on the ground now. There are tent encampments across the country, and the demand on food banks and the non-profit and charitable sector is just huge.

There are plenty of incentives to work – yet work isn’t working out for people. I think we just have to keep doing a better job, over and over again, of helping people to understand the evidence before their very eyes.

BTS: Are you finding any traction when it comes to arguments based on poverty levels?

Sheila: For a lot of people, arguing from a perspective on poverty hasn’t really resonated. The response would be, ‘I'm not one of those people’. And it goes back to all these questions of deservingness.

But I think things are beginning to change with this argument. People are realising more and more how commonplace income insecurity is in this economic climate. We are all, to a certain extent, quite seriously economically insecure. I think this realisation is bringing people to the movement from outside the sector.

When I worked in federal government, I was also involved in issues around the recognition and valuation of unpaid work. Our economic system pretends to assume that only employment is work, but work is much bigger than that. If you don't allow the rest of it to happen, society falls apart. Democracies fall apart. Economies fall apart. This argument is also driving a need for solutions.

BTS: How did Covid-19 affect these conversations? Did you see a significant shift in peoples’ understanding when the lockdowns hit?

Ben: I think we’ve seen a broader understanding of these issues because of Covid, or at least a broader recognition of them. People have told us they realised their lives are more precarious than they thought. And we’ve seen people making different choices to the ones they might have made otherwise.

In Canada – and probably in the US as well – people are choosing to change the way they work. As a result, they're turning to ideas like basic income as a way to support them through those changes. At UBI works and Basic Income Network Canada, we talk a lot about providing choice in the economy. Basic income isn’t a substitute for employment income. It’s a tool for choice and empowerment.

Sheila: And a tool to help someone manage transitions. Because transitions happen.

Ben: Covid also showed us how things could work on a practical level. Within just a month of the pandemic starting, Canada created benefits for people who were out of work because of the pandemic. Of course there were some hiccups, especially in hindsight. But it was frankly a fairly seamless operation, considering how quickly it was done.

Sheila: Yes, one of the really irritating technical criticisms we get in Canada is that the tax system is so slow. And yet, it took the government nine days to roll out the pandemic benefits. They proved that we've got the administrative capacity, it’s just been hidden.

But then, like almost everywhere else in the world, as soon as the worst of the pandemic was over, things went back to how they had been. The lessons that could have been learned from the new benefit administration and structure were just left by the wayside.

I also think our government did a particularly terrible job of talking about its own policies. Of course there was some blowback, because things weren't perfect. When you roll something out that fast in the middle of a huge unexpected health and economic crisis, you're bound to make mistakes. There are bound to be criticisms.

The government got defensive in the face of those criticisms, and that was a mistake. Instead of getting defensive, they could’ve highlighted the fact that they turned around the lives of roughly 20 million people. Or that they saved the economy. Yes, it wasn't perfect, but they did something amazing. They completely missed the opportunity to emphasise that.

Trying to implement this in any country is too complicated to have an ‘all or nothing’ approach

BTS: What have you learned about the art of compromise in this context?

Ben: Canada is a country made up of compromise. Ever since the country was founded by the French and the British, we've compromised. We have regions that are very diverse, Quebec being the starkest example of that. They often want nothing to do with federal programmes, and have their own strong identity.

So federal policymaking involves deep discussions with all the provinces and territories about how it's going to be administered. Our constitution technically doesn't allow the federal government to create a policy like basic income without having the provinces on board.

Sheila: We're also a country founded on the colonialist exploitation of indigenous peoples. We've got a lot of work to do to heal that. And we're a huge immigrant receiving country. So we've got people from all over the world coming from different political and cultural systems. If our politicians are going to win elections, they have to understand all those different constituencies. It simply does involve a lot of compromise.

Ben: When it comes to basic income, we’ve developed a consensus statement using the concept of collective impact. We’re essentially asking, what is our common agenda? What are the key points that we're going to argue for together?

That doesn’t mean all our organisations are fully aligned. They differ on many points, but all found that they could support this common agenda. For example, the ‘Universal’ in UBI Works is quite contentious – we think of basic income a bit differently than others. But the organisation still chose to endorse the consensus statement, even though its ambitions around scope are more limited than ours, because it’s all about incrementalism. We’re working towards these early stages, and then we go from there.

Agreeing on the consensus statement took a long time. It was over a year of conversations with national leaders in the basic income movement. But we all came together. We've all recognised this is what we agree on. There might be groups with other ideas or nuance to add. But this is our compromise.

Some groups chose not to sign the consensus statement, even though they were supportive of the general process. They may change their mind eventually, but for now, they're still part of the movement and supportive. It's been decades of work to get to this point. And of course, we still have arguments, and we still disagree at times. But we don’t let that break the movement apart. This is what compromise looks like.

BTS: It sounds like there are lots of differing views about the best way to do basic income. How have you managed to agree on a collective vision for the movement?

Sheila: Before the development of the consensus statement, we published a policy options document that includes different ways of doing a basic income. We were trying to figure out exactly how to do it. Then Covid hit. All of a sudden we went, okay, we needed this yesterday. We chose Option 1, a basic income model that focuses on 18 to 64 year olds to fill the gaps. It’s the most feasible in Canada.

Covid had a huge impact on this process, because it showed us that we could do it any of these ways and arrive at similar results. That includes this universal model where every individual gets a certain amount, but that’s a hard sell in Canada at this point in time.

Ben: I think that's good. The ‘all or nothing’ argument is actually hindering us sometimes. Trying to implement this in any country is too complicated to have an ‘all or nothing’. You need to start with something, and then have the right conversations about what's going to work in your context.

We truly believe this is the type of basic income that will work for us. But that doesn't mean it's not a stepping stone to what's next. It doesn’t mean it can’t lead us towards another way of doing social policy in general. But you've got to start somewhere. Because if we argue for the ‘all or nothing’, we'll get nowhere – in our context at least.

Sheila: Yes, Getting started is the key thing. Again, the child benefit example is a good one, because the benefit actually started quite small. It tended to help two parent families more in the beginning because the benefit was low. But it still made it easier for many parents to get by, and kept people from needing to access other social assistance programmes.

Gradually, as it got larger, it brought in single parents. It helped them make their way through a combination of child benefits and paid labour. And a huge percentage of the Canadian population with families now receive varying levels of that benefit. It’s shown where you can get to if you just start with something.

To take it to the political level, you need recognised institutions and organisations that are backing it. Informal movements can’t have the conversations with the prime minister's office

BTS: Can you tell us about other lessons you’ve learned along the way?

Ben: Basic income has the potential to be the most transformative social policy of a generation – if it's done right. But you can't do that if you're not going to talk to and think about different interest groups, and if you're not going to fully address their concerns.

What are the concerns of employers in the labour market? What are the concerns of civil society? What are the concerns of government, and how are they going to pay for it? You have to address all of that head on.

Another thing we’ve learned is the value of private pilots. There are a lot of programmes running in the US right now, and they’re a good way to build evidence. But they're not going to turn into a permanent benefit.

A basic income will never be funded through private sector investment. This has to be public. It has to be collective. There are ways to provide people with money, but you can't do something transformative if it's not led collectively. We need a national policy. And it needs to be run at the federal level.

Sheila: Country context really matters too. You have to analyse your own situation and figure out what's going to work. One of the incredible advantages the US has is the sheer amount of pilots there. Some might say they're all different and you can't compare them. But that's the great thing. We want that diversity and flexibility.

Some pilots are focused on people leaving the criminal legal system. Others are focused on people fleeing domestic violence. Still others are focused on black and minority populations. More and more, the evidence pops up showing the same pattern.

But the way you get it into policy has to be based on your own country's context. We try to focus on the leverage points in Canadian policy and history that allow us to do that. You have to adapt to fit it into something pragmatic within your own country.

Ben: The only other thing I'll add is that this movement needs core organisations. We're lucky we've got a small group of organisations that work very well together leading the work in Canada. We’ve learned that movement building can only go so far without structure.

You do need the informal movement. That's absolutely a key component. You need the grassroots component. But to take it to the political level, you need recognised institutions and organisations that are backing it, because informal movements can’t have the conversations with the prime minister's office. Organisations and policy leaders can.

Sheila: We formed an organisation, and we became a federally-registered non-profit corporation. I think that's been critical for the movement. And it's allowed other smaller regional and local organisations to form around that nexus.

Ben: It's been a long struggle. But I think that's a key lesson – how you organise matters.

Explore the rest of the series

This series looks at the specific challenges that campaigners face when arguing for universal basic income in highly individualised and neoliberal contexts like the United States and the United Kingdom, and how they work to overcome them.

Part 1 | Getting on with it

• UBI in the US ‘not just an idea’ – it’s achievable
  Shafeka Hasash, Economic Security Project
• 'Hope goes a long way': BI as a lifeline for ex-prisoners
  Kevin Scott, Community Spring
• Could a guaranteed income pave the way for racial justice?
  Rachel Pyon, Deon Hodrick and Matthew Harvey, Equity and Transformation

– Coming soon –

• Antonio Gisbert, Oregon Rebate
• Zea Malawa, University of California, Berkeley Public Health

Part 2 | Widening the politically possible

• UBI could mean justice for everyone. How do we get there?
  Philippe Van Parijs, UCLouvain
• Basic income ‘won’t stop people working’: lessons from CanadaBen Earle and Sheila Regehr, Basic Income Canada Network
• Basic income could put food banks out of businessDavid Beck, University of Salford and UBILab Food
• Basic income: why we need to start talking about moneyCleo Goodman, Autonomy and the Basic Income Conversation

– Coming soon –

• Leandro Ferreira, Brazilian Basic Income Network

Part 3 | Getting the policy mix right

• Contributor list coming soon

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Search 2 keywords found: guaranteed income

10 Years Out: What’s with the Bear in the Middle?

[NB: Check the byline — it’s me, Rayne. I am not a registered financial representative or a lawyer; this post is based on my own observations and opinions. As always, your mileage may vary.]

On a chilly March evening ten years ago tonight, I was yelling at loved ones: Sell. For gods’ sake, SELL.

My own household had moved its investments from a number of mutual funds to guaranteed income. Every fund in the portfolio to that point contained a chunk of an investment bank and was therefore exposed to what I felt was sure to come.

It was obvious to anyone who was really paying attention that something was really off. Trying to buy a house in 2004 was almost impossible where I live, in spite of the ongoing migration of manufacturing jobs offshore. In the target price range for a 2000-square foot house, there were only a handful of homes listed and they all needed more than $50K in improvements. The nearby farmers’ fields were full of a new crop: single-family homes, mostly 3-bedroom and up, had eaten acres and acres in less than a year. It was insanity — there was no way this pace could be maintained, not with my state’s problematic over-reliance on the automobile industry.

Instead of buying an existing home, I built a new one. It didn’t make sense to spend $50K on improvements requiring a lot of construction if I couldn’t guarantee I could hire a contractor when new construction was so hot. I didn’t build in the top end neighborhood, either. I left myself some room in case I had to leave the area quickly for a new job; I also left room for the market to improve.

Except it didn’t. The last landscaping contractor must have pulled away from my new home in 2005 just as the bubble began to deflate. There were signs it was going to get worse, too, what with fuel prices skyrocketing. Banks increasingly offered crazy terms on mortgages just so they could something, anything, not taking the hint the market was saturated. Given the number of people relying too heavily on adjustable rate mortgages with ridiculously low entry rates, the increased gasoline price costing the average family more than $1000 a year was certain to cause credit card defaults and foreclosures.

Something ugly was coming.

~ ~ ~

In March 2008 — almost exactly a month after the Washington Post published an op-ed by New York’s then-Governor Eliot Spitzer exhorting action on subprime mortgages — 85-year-old American investment bank Bear Stearns crashed and burned.

After urgent, fancy foot work by the Federal Reserve Bank, J.P. Morgan and other key investors, settlements were made with bail out money and remnants of the firm were ultimately snapped up by J.P. Morgan for what amounted to the cost of Bear Stearn’s headquarters building, about $2 per share. By St. Patrick’s Day, Bear Stearns was no more, completely subsumed.

It would be another six months before the next large investment bank crashed — Lehman Brothers — taking the global economy with it.

~ ~ ~

At the time the crash was blamed on lax controls on lending to home buyers, encouraging an excess of subprime mortgages, combined with investment banks’ more recent taste for collateralized debt obligations bundling mortgages into tranches for slicing up and trading.

But not all of the trash loans were residential mortgages stuffed into tranches. Some of the loans were to developers and contractors who were building commercial facilities and multi-family buildings. Some of these loans were packaged into funds which were more like offshore corporations.

The two funds triggering Bear Stearns’ meltdown were just that: offshore funds incorporated in the Cayman Islands in 2003, holding various assets including tranches of poorly-collateralized mortgages, managed by Bear Stearns Asset Management (BSAM). What mortgages were in these two funds the public doesn’t really know; were they single-family residential mortgages or commercial facilities mortgages, or some combination? The information is out there somewhere but it’s not at the public’s fingertips.

The financial media still paints a messy picture even a decade later, blaming Bear Stearns management but not its own persistent failure to provide a more comprehensive and accessible picture of the financial industry’s health.

These two funds collapsed because too many mortgages within their CDOs failed; the effect on the bank was like pulling out two critical load-bearing pieces in a game of Jenga. The cascading demand for cash to resolve the failures may have pushed other investment banks’ equally sketchy funds to fail as well, crashing the entire heap nearly a decade ago.

~ ~ ~

It was a surprise blast from the unpleasant past to see Bear Stearns’ name pop up in the middle of recent testimony before the House Permanent Subcommittee on Intelligence. Fusion GPS’ Glenn Simpson cited the investment bank as a source of financing for Donald Trump and some sketchy condominium development.

[SIMPSON]… There’s the Trump vodka business that was earlier. And then ultimately, you know, what we came to realize was that the money was actually coming out of Russia and going into his properties in Florida and New York and Panama and Toronto and these other places.

And what we, you know, gradually begun to understand, which, you know, I suppose I should kick myself for not figuring out earlier, but I don’t know that much about the real estate business, which is I alluded to this earlier, so, you know, by 2003, 2004, Donald Trump was not able to get bank credit for — and if you’re a real estate developer and you can’t get bank loans, you know, you’ve got a problem.

And all these guys, they used leverage like, you know, — so there’s alternative systems of financing, and sometimes it’s — well, there’s a variety of alternative systems of financing. But in any case, you need alternative financing.

One of the things that we now know about how the condo projects were financed is that you have to — you can get credit if you can show that you’ve sold a certain number of units.

So it turns out that, you know, one of the most important things to look at is — this is especially true of the early overseas developments, like Toronto and Panama — you can get credit if you can show that you sold a certain percentage of your units.

And so the real trick is to get people who say they’ve bought those units, and that’s where the Russians are to be found, is in some of those pre-sales, is what they’re called. And that’s how, for instance, in Panama they got the credit of — they got a — Bear Stearns to issue a bond by telling Bear Stearns that they’d sold a bunch of units to a bunch of Russian gangsters.

And, of course, they didn’t put that in the underwriting information, they just said, we’ve sold a bunch of units and here’s who bought them, and that’s how they got the credit. So that’s sort of an example of the alternative financing. … [bold mine, excerpt pages 95-96]

The timing mentioned, 2003-2004, is very close to the time that Bear Stearns launched the two Cayman-based funds which failed first. Is it possible Trump’s financing provided by Bear Stearns ended up in the funds’ CDOs? Probably not — Simpson refers to bonds. But let’s look at a financial statement from one of the subject funds:

It’s difficult to tell what’s in any of the CDOs listed in this summary. Who knows what mortgages are in them or from where they originated without access to more details?

Note the bonds at the bottom — again, what’s in them? What percentage of these bonds consisted of dicey or outright fraudulent financing for construction related to money laundering? Again, we can’t tell without access to more granular details. We don’t know whether bond(s) offered to Trump developments were in Bear Stearns’ first two failed funds or if they helped cause the eventual financial pyroclastic flow toward Bear Stearns’ end.

~ ~ ~

Another thing sticks in my craw — a bit from Michael Lewis’ The Big Short:

The bond market, because it consisted mainly of big institutional investors, experienced no similarly populist political pressure. Even as it came to dwarf the stock market, the bond market eluded serious regulation. Bond salesmen could say and do anything without fear that they’d be reported to some authority. Bond traders could explore inside information without worrying that they would be caught. Bond technicians could dream up ever more complicated securities without worrying too much about government regulation — one reason why so many derivatives had been derived, one way or another, from bonds. … [bold mine]

In other words, nobody would look askance at all at bonds sold to finance a condominium development with rather thin commitment to payment. Nobody looked askance at the ratio of CDOs to bonds, either, though Bear Stearns would try to offset the CDOs’ losses by liquidating bonds. This fund as an example couldn’t manage this offset based on the ratio alone; it would have been catastrophically worse if the collateral beneath the bonds was as fraudulent as many subprime adjustable rate mortgages in CDOs were at the time.

The root cause of the 2008 crash remains the collapse of poorly collateralized as well as fraudulent mortgages. But I have to wonder:

— With so much attention on CDOs and mortgage defaults combined with a lack of bond market adequate monitoring, how much did crappy bonds, based on fraudulent representations of collateral, contribute to the crash?

— If there was so little regulation and oversight of the bond market, how much sketchy or fraudulent project financing was in bonds on the banks’ books — including projects like Trump’s, based on promises to pay made by offshore vehicles or non-U.S. citizens?

— With so little regulation and oversight, would it have been possible for one or more nation-states using offshore finance vehicles to “weaponize” banks’ books? How many of the crappy bonds contributing to the 2008 crash were based on poorly collateralized pre-sales to Russian oligarchs and gangsters?

— What assurances do we have today — especially with Mick Mulvaney defunding the Consumer Finance Protection Bureau and knocking off an opportunity to look more deeply into credit reporting by killing off the Equifax investigation — that investment banks have changed their practices and ensured legitimate projects are financed?

—What assurances do we have that our legislators see the slippery slip when they approve legislation like S. 2155 just this week, weakening Dodd-Frank reforms?

~ ~ ~

Recall the state of the economy between Bear Stearns’ and Lehman Brothers’ crashes. Oil prices rose to over $150/barrel, resulting in $4/gallon gasoline. Other commodity prices rose in tandem with fuel prices. The home buyers who could least afford any change in their household expenses were the same ones targeted for subprime mortgages with shady terms; it came down to paying for gas to get to work and feeding the family, or making the mortgage payment.

The price of oil at the time had been driven up by excess speculation. Legislation passed in June 2008 requiring all commodity futures trading to require a minimum of 30% margin upfront rather than 10%. Oil prices dropped drastically and reduced in volatility almost overnight, but it was already too late. Too many home buyers could no longer afford their payments and mortgage defaults began to snowball.

Which brings me to yet another question: if the bond market could have been “weaponized” at that time, could a volatile commodities market likewise have been used as a trigger?

Are there any other weak points in our market which could be “weaponized,” for that matter?

~ ~ ~

On this tenth anniversary after the crash began with Bear Stearns’ collapse, I feel more secure about my retirement portfolio. There were no frantic phone calls to family members exhorting moves to safety this evening. My exposure to the remaining weaknesses of investment banking have been minimized as much as possible, though I remain vulnerable because I have a mortgage. Real estate isn’t the sure return it once was. Only uber-wealthy investors buying into certain urban markets come out on top. But wealthy real estate investors can still cause self-inflicted damage.

Atlanta, Georgia’s market has turned around since the crash — but it was home to another failed Trump real estate project, a 363-unit Trump Tower which went into foreclosure with pre-sales of only 100 units. (In January 2017, Trump ranted about Atlanta as Rep. John Lewis’ district, calling it “falling apart” and “crime infested.” One wonders what crime he meant…)

Hollywood, Florida had a brush with a failed Trump project:

In 2006, he and billionaire condo king Jorge Perez began selling a 23-story apartment building near Mar-a-Lago, but the project was abandoned a year later because of slow sales. Another Perez-Trump deal, the 200-unit Hollywood oceanfront tower, was foreclosed in 2010 after selling less than 15% of its units. (The building eventually opened, still Trump-branded, but without Perez.)

So did the Miami, Florida area:

Trump Sunny Isles, a three-tower residential complex outside Miami, has also struggled. Trump partnered with Perez again and another developer named Gil Dezer to build the project, which targeted wealthy Latin Americans. . . .

Unfortunately, the last two towers of the development opened in the middle of the financial crisis, and Perez bailed on them. . . .

And Puerto Rico, too, was home to a Trump-branded golf course which failed in 2015.

Though with so many failures followed by continued attempts, it’s worth asking if this is a business model. How does Trump continue to benefit from so much failure? How do the backers he has benefit from staking Trump money or title?

Trump’s business alone wasn’t the cause of the 2008 crash. There were far more players involved — millions, if we want to blame residential homeowners who were misled by banks to believe they could safely contract a mortgage in spite of either inadequate collateral or income and ultimately forced into foreclosure. But at least one of Trump’s business projects was in the mix if Fusion’s Simpson’s testimony is truthful; what would keep Trump or real estate investors like Trump from contributing to (if not causing) another crash today?

We must ask when we see that Trump’s former campaign manager Paul Manafort and his former son-in-law Jeffrey Yohai were engaged in sketchy real estate development projects the community/regional Banc of California may have deterred by forcibly shutting their accounts.

And ask again when we see a community bank like The Federal Savings Bank of Chicago involved in another of Manafort’s bank frauds.

The damage could be even worse, in the case of Trump’s son-in-law Jared Kushner, who is over his head in debt on 666 Fifth Avenue and whose family business is distressed, possibly causing geopolitical turmoil to shakedown new financing.

How many of these flimsy real estate deals and junky mortgages, loans, and bonds are there in the system when we can now see these affiliated with the president and his campaign advisers? How many of them will it take to cause another crash if legislators continue to pick away at safeguards?

Let’s hope I’m not writing another financial postmortem like this one in March 2028.

Copyright © 2024 emptywheel. All rights reserved.
Originally Posted @ https://www.emptywheel.net/page/123/?s=barr

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Good morning. I feel bittersweet about the WNBA season ending, but I’m excited that the NBA regular season kicks off tomorrow night. Today, we’re looking at a guaranteed basic income program in Salem, Halloween costume ideas, and the social media accounts of Boston sports teams.

But first, we’re examining the continuing struggles of CVS and other pharmacy giants.

To continue reading, please login or subscribe to Globe.com

THE STARTING POINT

CVS, with dreams of becoming a comprehensive health care behemoth, is struggling. It’s cutting 2,900 corporate jobs nationwide. It’s ending some of its core infusion services and closing or selling 29 pharmacies that provide those services. On Friday, the company ousted its CEO.

For the past few years, the Rhode Island-based corporation has been trying to build itself into a one-stop-shop for all things health care: drug stores, in-store primary health clinics, health insurance (Aetna), and a pharmacy benefit manager.

But it’s been difficult to tie those business pieces together. CVS even considered spinning off Aetna and breaking itself into two smaller companies; it ultimately decided not to.

Even though CVS’s troubles are very specific to that company, turmoil is roiling the pharmacy industry: Rite Aid recently emerged from bankruptcy, and Walgreens is closing one-fourth of its 8,600 stores.

What’s happening?

After the pandemic, customers simply didn’t return to brick-and-mortar pharmacies in the same numbers, preferring to order online, which often is cheaper. The problem is that many pharmacies are closing in places where residents have low incomes, making it difficult for them to get the medications they need.

It’s a problem that affects nearly 15,000 Bostonians — and counting. Since 2017, at least 26 pharmacies in the city and about 200 statewide have closed, according to data from the Massachusetts Department of Public Health.

A Globe analysis found that many of these so-called pharmacy deserts overlap with vulnerable communities that are already poorer, sicker, and less well resourced than the rest of the state.

With CVS floundering, health care inequalities could grow worse.

POINTS OF INTEREST

MIDDLE EAST How Israel decimated Hamas and Hezbollah leadership in three months. The sprawling decapitation operation has little precedent in modern history. (Axios)

NEW ENGLAND Stop & Shop is closing 14 stores around the region between Oct. 31 and Nov. 2. The chain will offer a 15 percent discount at those stores starting Friday. (The Patriot Ledger)

SAUGUS, Mass. Too many close encounters between people walking their dogs and coyotes has residents on edge. There are ways to avoid unwanted encounters with the wild animals. (The Boston Globe)

TD GARDEN The Celtics open the 2024-2025 season tomorrow night against the New York Knicks. It’s also Banner Night to celebrate their 18th championship. (NESN)

CAMBRIDGE The American Repertory Theater is selling 20,000 pieces from its historic costume collection — just in time for Halloween (photo above). The sale continues this weekend. (The Boston Globe)

SALEM, Mass. The city launched a guaranteed basic income program for residents who live at or below the poverty line. The pilot program will give 100 residents $500 per month with no strings attached. (The Boston Globe)

ON SOCIAL MEDIA Boston sports teams are relying on social media to reach a younger generation of fans. The new-age sports marketing includes game day fits, skits, and fast-paced highlight reels. (Boston Magazine)

AT WORK Bostonians are more likely to skip their midday meal than the national average, according to an annual lunch report. Their reasons are related to money and time. (The Boston Globe)

IN YOUR CLOSET This global fashion business quiz tests your knowledge of how people around the world shop for their clothing. (Rest of World)

IN YOUR MAILBOX The third biggest print magazine by circulation is published by ... Costco. The top two spots are held by AARP: The Magazine and The AARP Bulletin. (The New York Times)

BOSTON The city is packed with things to do this Halloweekend and beyond. There’s a candy crawl, nightmare bash, drag dinner, and more. (The Boston Globe)

ELECTION INSIGHTS | 15 days until the presidential election

We’re using five Election Insights to explain each of the questions on the Massachusetts ballot this fall. Today, we’re tackling Question 3: Unionization for Transportation Network Drivers. Here are the others we’ve done: Question 1 and Question 2.

This Question 3 analysis is from the Globe’s Voter Guide. It was written by reporter Katie Johnston.

What this question would do

Question 3 would give Uber and Lyft drivers the right to organize a union. The companies consider the drivers to be independent contractors, a classification of workers not typically allowed to unionize under federal law. This ballot initiative would create a new framework for drivers to do so under state law.

Forming a union would require support from a quarter of the most active half of Massachusetts drivers for both companies, or 25 percent of the drivers who have given at least the median number of rides in the past six months.

A yes vote would allow Uber and Lyft drivers to form a union.

A no vote would maintain the current law, which prevents Uber and Lyft drivers from unionizing.

Why vote yes

Drivers are in need of a voice and the ability to bargain for more rights, just as most employees are entitled to, according to SEIU 32BJ. Granting drivers the ability to organize does not preclude the fight for drivers to be recognized as employees.

Why vote no

The Massachusetts Fiscal Alliance says the measure creates a “radical labor category that is inconsistent with federal labor law” and could raise prices for riders. Drivers were also just granted a number of new protections in a settlement between the state and the companies, the alliance noted, which guarantees them a minimum wage of $32.50 an hour before expenses, paid sick leave, a healthcare stipend, and more.

– Katie Johnston

Here’s what the polls say

Around 59 percent of Massachusetts voters want this ballot measure to pass, according to a Suffolk University/Boston Globe poll.

The bottom line

Uber and Lyft drivers have been in a tug-of-war with their employers for a long time, especially in Massachusetts. We have some of the strongest labor laws in the country, so this vote would set the tone for the rest of the country.

NOTE: The Boston Globe Editorial Board, which is independent of the Globe newsroom, endorsed Question 3. The board’s opinions do not reflect those of reporters in the newsroom nor do they influence our coverage. Here’s an explanation of how we operate separately.

Elsewhere

There’s a very real scenario where Donald Trump loses and takes power anyway. Here’s how the former president could overturn the 2024 election. (Politico Magazine)

Vice President Kamala Harris turned 60 yesterday, older than the median age of a US president at inauguration (55). She’s still a political generation younger than President Biden (81) and Trump (78). (Axios)

Door-knocks, texts, and ads, ads, ads: Life on the swing-state battlefield. (The New York Times via the Globe)

POLAROID DIARIES

Where we share our adventures around New England and rate them for Starting Point readers.

Rating: Bagged (�) | Tagged (�️) | Dragged (❌)

This is a quintessential Chinatown bakery, and they’re serving some of the best egg custards and Portuguese egg custards around. The pastries melt in your mouth if you’re lucky enough to catch them fresh out of the oven, and most standard items are under $5 each (but keep in mind that the bakery is cash-only!). Rating: Bagged 9/10 (�)

This early-to-open, early-to-close diner serves creative omelets and adjusts its menu seasonally. Their portions are massive and come with equally large sides (peep the pancake in the top left corner). Hot coffee keeps flowing here, and it’s a great place to fuel up before exploring the nearby Dover Community Trail. Rating: Bagged 8/10 (�)

� Want this sent to your inbox? Subscribe to Starting Point here.

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Sort by:

Pyroechidna1

• 19h ago •

Wasn’t Monopoly created as a critique of rent-seeking landlordism?

icelandichorsey

• 19h ago •

Yes it was created to showcase the dangers of capitalism and then stolen and turned into this capitalist behemoth. Plenty of podcasts on this topic.

howtofindaflashlight

• 16h ago •

The Landlord's Game was originally concieved by Elizabeth Philips who designed it to teach people about the principles of Henry George. See r/georgism. Henry George advocated for a land value tax (LVT) to eliminate rentier capitalism and deliver a universal basic income, which he called a citizens dividend.

modulus801

• 21h ago •

And it's enough to buy property and build a house.

creepy_doll

• 15h ago •

It says right on the tile it’s salary.

There’s plenty of great arguments for ubi. An ancient board game that was designed as a criticism of capitalism isn’t one

HehaGardenHoe

• 15h ago •

A salary for doing what, working? Landlords don't work.

stompinstinker

• 10h ago •

It also had a luxury tax, community chest, and you were a short walk from a rail line.

robbmerchant

• 13h ago •

And this game was made to mock unfettered capitalism.

SL_1983

• 9h ago •

But it stays stagnant while costs rise astronomically.

warm-midnight

• 21h ago •

Hah. Never thought of this, great meme...

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Canada $1546 OAS Direct Deposit October 2024: As we approach October 2024, many Canadians are eagerly anticipating their Old Age Security (OAS) payments. For some, this month’s deposit might bring good news—an amount of up to $1,546. But before you celebrate, it’s important to understand the specifics of the OAS program, including how eligibility works, what influences payment amounts, and when you can expect your deposit.

In this comprehensive guide, we’ll break down the details of the OAS payments in October 2024, including eligibility, how to check if you qualify, and the important payment dates. Whether you’re new to OAS or just looking for a refresher, this article will provide all the information you need to stay informed and prepared.

Canada $1546 OAS Direct Deposit October 2024

Topic	Details
Maximum OAS Payment	Up to $1,546 (for those eligible for both OAS and Guaranteed Income Supplement [GIS])
Age Requirement	65 years and older
OAS Payment for Ages 65-74	$727.67 (October-December 2024)
OAS Payment for Ages 75+	$800.44 (October-December 2024)
Payment Date for October 2024	October 29, 2024
Income Threshold for Clawback	$90,997 (for 2023 tax year)

The Old Age Security program is a vital part of retirement planning for Canadians, offering financial support to seniors. With payments of up to $1,546 possible in October 2024 for those who qualify for both OAS and GIS, understanding your eligibility and how to apply is essential. Be sure to track payment dates and consider your income to avoid the OAS clawback. For more information, you can visit the official Government of Canada OAS page.

What is Old Age Security (OAS)?

The Old Age Security (OAS) program is a monthly payment provided by the Government of Canada to eligible individuals who are 65 years or older. The goal of the program is to provide financial support to retirees, ensuring that seniors have a reliable source of income as they age. Unlike the Canada Pension Plan (CPP), OAS is not based on your employment history or contributions. Instead, it is funded through general tax revenues, which means most Canadians who meet the residency and age criteria can qualify for it.

In October 2024, some Canadians could receive up to $1,546 if they are eligible for both OAS and the Guaranteed Income Supplement (GIS). However, the basic OAS payment for those aged 65-74 is $727.67, and for those aged 75 and over, it increases to $800.44.

Who Is Eligible for OAS?

To receive OAS, you must meet specific eligibility criteria:

• Age: You must be 65 years old or older.
• Residency: You must have lived in Canada for at least 10 years after turning 18. For those living abroad, 20 years of Canadian residency after age 18 is required to receive OAS.
• Citizenship or Legal Status: You must be a Canadian citizen or legal resident when your application is approved.

If you meet these requirements, you are likely eligible for OAS payments. However, to receive the maximum amount, your income must fall below certain thresholds, which we’ll discuss further.

How Much Will You Receive in October 2024?

The amount of OAS you receive depends on your age and your income level. Here’s a breakdown:

• Ages 65-74: The maximum monthly OAS payment is $727.67.
• Ages 75 and over: This amount increases to $800.44 per month.

For those eligible for additional benefits like the Guaranteed Income Supplement (GIS), the total payment could reach up to $1,546. GIS is designed to support low-income seniors, providing a top-up to the base OAS amount. To find out if you qualify for GIS, you’ll need to assess your income levels (more on that below).

OAS Clawback: Will You Have to Pay Some Back?

While OAS is a helpful benefit, it’s important to know that high-income earners may face a reduction in their OAS payments. This is commonly known as the “OAS clawback” or “OAS recovery tax.”

For the 2023 tax year, if your net income exceeds $90,997, you will need to repay part of your OAS benefits. For every dollar over this threshold, your OAS is reduced by 15%. If your income is high enough, it could result in your entire OAS being clawed back.

Key Payment Dates for OAS in 2024

If you’re expecting OAS payments, you’ll want to mark your calendar with the official payment dates. OAS payments are typically issued alongside Canada Pension Plan (CPP) payments. For the remainder of 2024, the OAS payment dates are as follows:

• October 29, 2024
• November 27, 2024
• December 20, 2024

If you’ve set up direct deposit with Service Canada, your OAS payment will automatically be deposited into your bank account on these dates. If you haven’t, it may take a few more days to receive a cheque in the mail.

How to Apply for Canada $1546 OAS Direct Deposit October 2024

If you’re turning 65 soon or have just become eligible for OAS, here are the steps to apply:

1. Check Your Eligibility: Use the Government of Canada’s OAS eligibility tool to confirm that you meet the age and residency requirements.
2. Apply Online or By Mail: You can apply for OAS up to 12 months before your 65th birthday. The easiest way to apply is through My Service Canada Account. Alternatively, you can complete a paper application and mail it to Service Canada.
3. Wait for Approval: After you apply, Service Canada will review your application and send you a letter notifying you of their decision.

Canada Child Benefit Payment Coming This Week—Important Details Every Family Should Know

Extra $4200 Every Month CPP 2024: Check Eligibility, Payment Dates & Facts

Seniors will get $713.34 Old Age Security Pension In October 2024: Check Claim Process, Credit Date

How to Check the Status of Your OAS Payments

If you’ve already applied for OAS and want to check the status of your payments, you can log into your My Service Canada Account. This portal allows you to track your application status, view upcoming payments, and make any necessary changes to your personal information, such as updating your bank account for direct deposit.

Frequently Asked Questions (FAQs)

Q1: Can I defer my OAS payments?
Yes, you can choose to defer your OAS payments for up to five years after you turn 65. For each month you defer, your payment increases by 0.6%. This means if you defer for a full year, your payments will be 7.2% higher. Deferring until age 70 can result in up to a 36% increase in your monthly OAS.

Q2: What happens if I live outside Canada?
If you live outside Canada and meet the residency requirements (at least 20 years of residency after age 18), you can still receive OAS. However, your payments will be made in Canadian dollars, and any income tax obligations will depend on the tax treaty between Canada and the country where you reside.

Q3: What if I’m still working at 65?
You can still receive OAS while working, but if your income exceeds the clawback threshold ($90,997 for 2023), your benefits will be reduced. Additionally, your earnings could affect your eligibility for the GIS, which is based on income.

Hey there! I'm Anjali Tamta, hailing from the beautiful city of Dehradun. Writing and sharing knowledge are my passions. Through my contributions, I aim to provide valuable insights and information to our audience. Stay tuned as I continue to bring my expertise to our platform, enriching our content with my love for writing and sharing knowledge. I invite you to delve deeper into my articles. Follow me on Instagram for more insights and updates. Looking forward to sharing more with you!

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PORTLAND — The pitch intrigued nearly everyone who encountered a petition-gatherer seeking signatures in Oregon: Would you like a $750 annual rebate from the state, for each member of your household? Paid for “by making giant corporations pay their fair share”?

Voters signed on to the concept in droves, catapulting the initiative commonly known as the Oregon Rebate to November’s ballot. If passed, it would make Oregon the first state to increase the minimum tax on large businesses and send the cash to all residents, guaranteeing them a minimum income.

“I’m not exaggerating here, but we got an extremely positive response,” said Antonio Gisbert, a spokesperson for the Yes on Measure 118 campaign behind the Oregon Rebate. “The secret sauce is that it’s a pretty clear concept.”

But Oregon’s measure has drawn significant bipartisan and business opposition. And even supporters of basic or guaranteed income programs worry that Oregon’s broad measure, if passed, would expose budgetary pitfalls that will doom its success and deter other states from starting their own programs.

Interest in basic or universal income programs has grown in recent years as policymakers and activists have sought ways to fight poverty by giving people regular cash payments. Guaranteed income programs generally focus on specific populations in need, and universal income programs give everyone the same amount of basic cash, regardless of income or other socioeconomic status. States such as Minnesota and Washington have considered statewide anti-poverty pilot programs to study the effects of paying people cash; more than 150 such programs or pilots have launched nationwide.

Many of the pilot programs target specific populations, including single mothers, homeless youth and those who’ve faced historic disadvantages. Advocates say that giving residents no-strings-attached cash improved people’s lives by allowing them to spend government and philanthropic aid as they see fit, often on housing, medical emergencies or necessities.

Several cities, including San Francisco, have piloted guaranteed income programs for the arts. In Seattle, it’s part of an effort to address growing affordability issues that continue to have an effect on the vibrancy of the city’s arts scene.

Silicon Valley entrepreneurs have been especially big proponents of universal income programs. Sam Altman, the CEO of OpenAI, the parent company of ChatGPT, has sponsored a study of such efforts, in part to allay concerns about the effect of artificial intelligence on employment. The study yielded largely positive results, with some caveats. The programs had no measurable effects on physical health, for example.

But those who oppose universal income programs argue they’re handouts that discourage people from working, or that they’re costly endeavors that apply mere Band-Aids on complex social issues and don’t do enough to address their systemic roots.

In a 2022 study, for example, researchers examined the financial, psychological and physical health effects of giving people one-time cash grants of up to $2,000. They concluded that the money did not significantly improve the recipients’ lives — in fact, it “made participants’ (unmet) needs more salient, which caused distress.”

But that was a one-time grant. Basic and guaranteed income programs got a boost from a 2019 experiment in which researchers observed improved financial stability and health among 125 people who lived in low-income neighborhoods in Stockton, Calif., and received $500 per month for two years. The idea got a big lift as well from entrepreneur Andrew Yang, who ran for president in 2020 on the “Freedom Dividend,” a universal basic income proposal that would have paid all U.S. adults $1,000 a month.

Tax rebate, money

If the Oregon Rebate passes, the state would increase by 3 percent the minimum tax on corporations with in-state sales greater than $25 million to pay everyone the rebate, regardless of income. From the proceeds, most Oregon residents would receive an annual tax rebate, but some people with lower incomes could opt for a direct cash payment.

The state estimates 84 percent of people would choose a rebate via a refundable tax credit on personal income tax returns, reducing their tax bill. Rebates were estimated at $750 when proponents first began seeking signatures to put the issue to voters; a new state analysis estimates the rebate is likely to be as much as $1,160 in 2026 and $1,605 by 2027.

Despite the allure of cash, the ballot measure has met with widespread opposition, including from the Democratic governor, the legislative leadership of both parties, most of the state’s major labor unions and nearly all of its major business organizations. Gov. Tina Kotek told one news outlet, Willamette Week, that the proposal “would punch a huge hole in the state budget.”

It faces opposition as well from organizations that generally support guaranteed income programs and oppose regressive tax policies that fall unduly on people with lower incomes.

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The Department of Agriculture, Food and the Marine (DAFM) has issued over €512 million in outstanding scheme payments to farmers in the week ending on Friday, October 18.

On Wednesday (October 16), advance payments under the 2024 Basic Income Support for Sustainability (BISS) and Complementary Redistributive Income Support for Sustainability (CRISS) started issuing.

The DAFM’s latest weekly payment update shows that a total of €510.46 million has been paid out under BISS and CRISS to 110,758 farmers this week.

Targeted Agricultural Modernisation Scheme (TAMS 3) payments worth €1.63 million have been paid this week, bringing the total amount issued to date to €19.694 million.

A total of 18,269 TAMS 3 approvals have been issued to date, with 3,589 payment applications submitted and 2,056 payments made. Outstanding TAMS 2 payments worth €241,701 have also been issued this week.

Scheme payments

2024 Areas of Natural Constraint (ANC) and Areas of Specific Constraint (ASC) payments of over €532,024 have also been issued by the DAFM. This brings the total amount paid out to 93,549 farmers to €196.4 million.

The DAFM’s latest weekly payment update also shows that 3,920 farmers have now received their 2023 payment under the Organic Farming Scheme. A total of €9,077 has been paid this week, bringing the total amount paid to €48.1 million.

Payments outstanding under the Sheep Improvement Scheme 2023 have also been paid this week, with a total of €6,352 issued. In total, 17,262 farmers have now received €21.1 million under scheme.

This week, over €6,179 has been issued by the DAFM under the Fodder Support Scheme 2023. This brings the total amount issued to 71,383 farmers to €52.75 million to date.

Payments outstanding under the Straw Incorporation Measure (SIM) 2023 worth €13,098 have been issued this week. This brings the total amount paid to 3,387 farmers to €15.51 million.

No payments have been issued this week under the Eco Scheme, the National Dairy Beef Welfare Scheme, the National Beef Welfare Scheme, the Suckler Carbon Efficiency Programme, or the Tillage Incentive Scheme.

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In recent years, SSA stimulus checks have become an important subject of discussion, especially in response to economic challenges caused by the COVID-19 pandemic. Many Americans received short-term financial help through federal stimulus checks, but more specific and reliable financial support is now available by more recent programs.

One such initiative is the $725 Stimulus Checks provided under the Sacramento Family First Economic Support Pilot (FFESP), which aims at reducing inequality in the economy by providing guaranteed monthly payments to communities with limited resources.

$725 Stimulus Checks 2024

The Sacramento Family First Economic Support Pilot is a local initiative that provides $725 monthly stimulus checks to African American and Native American families in Sacramento County, California. Unlike federal one-time stimulus payments tied to the pandemic, this guaranteed income program focuses on long-term support for communities in need.

In order to create a more sustainable safety net, the $725 payments have the goal of helping these families in meeting basic expenses like housing, food, and childcare.

$725 Stimulus Checks 2024 Deatils

The Sacramento Family First Economic Support Pilot provides qualified low-income Native American and African American families with young children in certain zip codes a monthly $725 stimulus check. The program aims to reduce income gaps and enhance long-term financial stability by offering regular support for basic needs.

$725 Stimulus Checks Eligibility Criteria

• Families must be members of African American or Native American communities and live in certain Sacramento County zip codes in order to be eligible for the $725 stimulus check.
• Additionally, the household must have at least one child under the age of five living with them for at least half of the time and meet the low income limit.
• These requirements ensure the $725 payments support families facing additional financial burdens from raising young children.

Other Payment Programs

The $725 stimulus check from the Sacramento Family First program is part of a larger movement in the U.S. to deal with poverty through guaranteed income initiatives. Cities like Stockton, California, and Chicago have implemented similar programs, providing residents monthly payments to reduce their financial problems.

For example, Chicago’s Resilient Communities Pilot provides low-income households with $500 per month, while Stockton’s Economic Empowerment Demonstration paid out $500 monthly for 18 months. Instead of providing one-time support, these programs like the Sacramento initiative aims to provide suffered financial support.

How to Claim $725 Stimulus Checks 2024?

• Families must first confirm their eligibility in order to be eligible for the $725 stimulus check under the Sacramento Family First program.
• This can be done by visiting the program’s official website and confirming their residence in one of the eligible zip codes.
• After submitting their $725 stimulus application online, applicants must submit supporting documentation, including proof of income, proof of residency, and proof of the age of their child.
• Applicants will receive an email confirming their enrollment status as soon as their application is submitted.
• Families who require support with the $725 stimulus check application process can receive it.

FAQs

Who is eligible for the $725 stimulus check?

African American and Native American families in specific Sacramento County zip codes with at least one child under five and low income.

How long are the $725 monthly payments provided?

The $725 Monthly Payments are given for a set period to support basic living expenses.

What documents are needed to apply?

Proof of income, residency, and child’s age are required to apply for $725 payments.

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Search 2 keywords found: basic income

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Search 2 keywords found: basic income,guaranteed income

Source: The Hindu

General Studies-3; Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Introduction:

• The International Labour Organization (ILO) has highlighted global issues of jobless growth, worsened by automation and Artificial Intelligence (AI).
• Rising inequality and youth unemployment, particularly in India, have reignited debates around UBI as a tool to provide a social safety net.

Background:

• UBI gained momentum in India after the 2016-17 Economic Survey, which proposed considering UBI to replace inefficient welfare schemes.
• The development of JAM (Jan-Dhan, Aadhaar, Mobile) infrastructure has enhanced the feasibility of implementing Direct Benefit Transfers (DBTs) for UBI.

UBI as a Safety Net Policy:

• UBI should be viewed as a social safety net policy rather than a solution to employment growth or economic development. It helps individuals manage the consequences of unemployment and poverty.
• Policies need to be evaluated based on their objectives. UBI is designed to provide basic income support, not directly solve structural economic issues like job creation.

key benefits of Universal Basic Income (UBI):

• UBI provides a direct cash transfer to all citizens, ensuring a minimum income floor. This can lift people out of poverty, particularly in regions with high poverty rates, by providing basic financial security.
• Universal transfers ensure fewer intermediaries, reducing administrative costs and minimizing exclusion errors.
• With basic income support, individuals, especially in lower-income groups, will have more purchasing power. This can stimulate aggregate demand, boosting consumption and potentially driving economic growth, especially in times of economic downturn.
• UBI can provide essential financial support to vulnerable populations like the elderly, disabled, and unemployed, who may not benefit from work-based welfare programs like MGNREGS.
• With guaranteed financial support, families are more likely to invest in better healthcare and education for their children, improving overall human development indicators in the long run.
• A guaranteed basic income can reduce the stress and mental health issues associated with financial insecurity. It can also reduce crime rates, as people with stable income are less likely to resort to criminal activities out of desperation.

Feasibility vs. Desirability of UBI:

• Feasibility: UBI may not be financially viable for India, given budgetary constraints.
• Desirability: UBI is desirable as it can provide universal income support, reducing inequality and offering a minimal consumption guarantee.
• A key question is whether a modified UBI that is less ambitious but financially feasible can be explored.

State and Central Government Schemes:

• Rythu Bandhu (Telangana) and KALIA (Odisha) are state-level schemes providing unconditional payments to farmers. The national-level PM-KISAN scheme offers ₹6,000 per year to farmers, aiming to cover 10 crore farming households.
• Challenges: These programs face issues like inclusion and exclusion errors due to logistical challenges (Aadhaar verification, bank rejections).

Financial Feasibility of UBI in India:

• Large-scale UBI proposals range from 3.5% to 11% of GDP, requiring significant budgetary resources or cutting other anti-poverty programs.
• A more feasible approach is a limited UBI, pegged at 1% of GDP, providing around ₹144 per month to every citizen (or ₹500 per household). This amount, while small, can be scaled up gradually, building on programs like PM-KISAN.

Concerns and challenges associated with implementing a Universal Basic Income (UBI)

• One of the primary concerns about UBI is the significant financial burden it places on the government.
• If UBI is implemented by replacing current welfare schemes, there’s a risk that targeted programs that are crucial for vulnerable populations (such as food distribution via the Public Distribution System or MGNREGS) might be eliminated, leaving certain groups worse off.
• Providing a universal cash transfer could potentially lead to inflation, particularly in rural or underdeveloped areas where an increase in demand for basic goods might outpace supply.
• There is concern that UBI could create a disincentive to work, as individuals receiving guaranteed income may opt out of the labor force.
• Biometric failures and network issues have already plagued existing welfare schemes in India, such as PM-KISAN, leading to exclusion errors.
• While UBI may provide short-term financial relief, it does not address the structural issues related to unemployment, education, healthcare, or inequality in the long run.

Way Forward:

• Implementing a full-scale UBI may not be feasible in India due to financial constraints. Therefore, a modified UBI, starting with specific vulnerable groups (such as women, the elderly, the disabled, and landless laborers), could be an effective compromise.
• UBI can be integrated into existing frameworks like MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) and Public Distribution System (PDS) to ensure comprehensive coverage.
• The JAM (Jan-Dhan, Aadhaar, Mobile) infrastructure is crucial for the smooth rollout of UBI. The government must continue improving banking access in remote areas, addressing issues with Aadhaar-based verification, and ensuring stable internet and mobile connectivity.
• UBI is not a solution to structural unemployment; hence, it must be paired with policies that promote job creation and boost economic growth.

Conclusion:

• UBI has merit as a tool to address poverty and inequality, but its large-scale implementation faces budgetary challenges.
• A modified UBI, gradually rolled out and combined with existing programs, offers a viable strategy for India, ensuring a balanced and comprehensive social safety net for all citizens.

Practice Question:

Universal Basic Income (UBI) has often been seen as a potential solution to address rising inequality and jobless growth in India. Discuss the relevance of UBI in the context of global trends like automation and Artificial Intelligence. How can UBI contribute to India’s social safety net? (250 words)

UPSC Static Quiz – Polity : 19 October 2024 We will post 5 questions daily on static topics mentioned in the UPSC civil services preliminary examination syllabus. Each week will focus on a specific topic from the syllabus, such as History of India and Indian National Movement, Indian and World Geography, and more.We are excited to bring you our daily UPSC Static Quiz, designed to help you prepare for the UPSC Civil Services Preliminary Examination. Each day, we will post 5 questions on static topics mentioned in the UPSC syllabus. This week, we are focusing on Indian and World Geography.

Why Participate in the UPSC Static Quiz?

Participating in daily quizzes helps reinforce your knowledge and identify areas that need improvement. Regular practice will enhance your recall abilities and boost your confidence for the examination. By covering various topics throughout the week, you ensure a comprehensive revision of the syllabus.

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Stay Consistent

Consistency is key in UPSC preparation. By making the UPSC Static Quiz a part of your daily routine, you will steadily improve your knowledge base and exam readiness. Join us every day to tackle new questions and make your journey towards UPSC success more structured and effective.

Introducing QUED – Questions from Editorials (UPSC Editorials Quiz) , an innovative initiative from InsightsIAS. Considering the significant number of questions in previous UPSC Prelims from editorials, practicing MCQs from this perspective can provide an extra edge. While we cover important editorials separately in our Editorial Section and SECURE Initiative, adding QUED (UPSC Editorials Quiz) to your daily MCQ practice alongside Static Quiz, Current Affairs Quiz, and InstaDART can be crucial for better performance. We recommend utilizing this initiative to enhance your preparation, with 5 MCQs posted daily at 11 am from Monday to Saturday on our website under the QUIZ menu.

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If you’re a farmer looking to generate extra income, the Native Tree Area Scheme (NTAS) is a great opportunity to earn up to €44,900 over 10 years.

Planting a forest can be a valuable long-term investment. The Department of Agriculture, Food, and the Marine (DAFM) covers 100% of the establishment costs, all annual premium payments are income tax-free, and you can continue to claim the Basic Income Support for Sustainability (BISS) on your forested land.

The NTAS encourage small-scale tree planting up to 2ha, without requiring an afforestation license, making it a practical and convenient choice for farmers.

Whether you want to support biodiversity, protect water quality or help meet Ireland’s climate goals, the scheme offers the ideal combination of flexibility and financial support.

Native Tree Area Scheme

One of the key benefits of the NTAS is its ease of access. You can plant an area as small as 0.1 hectares using a very simple approval process which, on average, takes less than six weeks, allowing you to get started quickly.

The scheme offers two options:

1. Creation of Small Native Forests (NTA 1):
This option supports the planting of up to 1 hectare of native forests on farmland, helping to combat climate change and promote biodiversity.

2. Creation of Native Forests for Water Protection (NTA 2):
NTA 2 focuses on the planting of up to 1 hectare of trees near water bodies, in order to protect water quality and ecosystems, prevent soil erosion and reconnect native habitats.

Financial support

The NTAS provides grants and premiums to cover the costs of planting and maintaining these forests.

Grants are paid in two instalments under each of NTA1 and NTA2 – you can receive up to €5,058 for the first instalment and €1,686 for the second.

Annual premiums are also available, with NTA 1 offering €2,206/ha each year for up to 10 years, and NTA 2 offering €2,284/ha. Over a 10-year period, these income tax-free premiums amount to €22,060 and €22,840, respectively.

An especially attractive aspect of the Scheme is that a landowner can plant both NTA1 and NTA2 (where suitable water bodies are present). This combination could yield up to €44,900 over 10 years.

How to get started

To begin, contact your local farm advisor, a Teagasc Forestry Advisor, or a registered forester.

They will help to determine whether your land is suitable*, and will assist with the application.

Your forester will handle the paperwork and once approved, you can start planting. After planting, you can apply for your annual forestry premium via agfood.ie.

Next steps

By planting a forest, you’re not only diversifying your farming activities and generating extra income – you’re also contributing to a more sustainable future.

Whether your focus is on climate change, biodiversity or water protection, the NTAS makes it easy to take that first step.

For more information, contact the Department of Agriculture’s Forestry Approvals Section, at 053 916 3400, or email forestryinfo@agriculture.gov.ie.

*The scheme is designed to ensure that all tree planting works are undertaken in a legally compliant and sustainable manner, and for this reason some lands are not eligible for inclusion in the scheme (e.g. organic soils and areas above 200m in elevation). Even if you don’t fit the criteria for NTAS, lands may be considered for planting under the other forest creation options of the Forestry Programme 2023-2027.

This post is sponsored by the Department of Agriculture, Forestry and the Marine

Click here to view original web page at insurancenewsnet.com

Search 2 keywords found: guaranteed income

DES MOINES, Iowa – American investors are keeping a close eye on the economy and the nation’s capital according to a new survey from F&G Annuities & Life. F&G’s fifth annual Risk Tolerance Tracker asked American investors how the events of the past 12 months have impacted their views on retirement and risk, as well as the issues they are concerned about for the year ahead.

Inflation continues to rank as the top stressor, with 80% of respondents saying they are worried about it having a negative impact on their financial future. This was followed closely by worries about the U.S presidential election, which were cited by nearly three quarters (72%) of American investors. More specifically, nearly half (48%) said they expect the presidential election to have an impact on their retirement plans.

Worries about a recession are also top of mind at 72%. Additionally, cybercrime/fraud (63%), geopolitical risks/tensions (61%), historically high debt (59%), stock market volatility (59%) and the impact of Generative AI on finances (50%) are other leading concerns when people evaluate factors impacting their financial future.

Americans’ risk tolerance over time

When it comes to how American investors see overall risk tolerance and the mindset around their financial future, there are some signs of improvement, although many fears remain.

• 73% of respondents say the events of the last 12 months made them less likely to take financial risks. This is down from the past two years when 78% of respondents said they had become more financially risk averse.
• Worries about retirement income still persist as 66% are worried about retirement income due to the events of the last 12 months, down only 3% from 2023.
• Fewer people (53%) feel like their financial safety net was ripped away as a result of the past 12 months compared to 60% in 2023 and 67% in 2022.

The generational risk gap

When it comes to how different generations view risk, Baby Boomers are the most worried about the U.S. presidential election having a negative impact on their financial future (79%), compared to Generation X (72%) and Millennials (64%).

Meanwhile, GenX respondents are most worried about the U.S. entering a recession (76%), compared to Millennials (72%) and Baby Boomers (69%).

All generations continue to cite inflation as the top worry that may affect their financial future.

Despite this, well over half (58%) of respondents stated that they don’t currently use a financial professional. More concerning is that the two generations that are either in or approaching retirement may not be getting appropriate advice. Over half of Baby Boomers surveyed (53%) and nearly two-thirds of GenX (63%) don’t use a financial professional.

The opportunity for guaranteed income products

In addition to overlooking advice, American investors are also overlooking guaranteed income products as a way to hedge these unpredictable times as only 14% of respondents noted owning an annuity.

When asked about how important various factors were when considering their investments for retirement income, 88% noted guaranteed income for life as important just behind maximizing their accumulated income (91%).

“Our fifth annual survey shows that while risk tolerance is modestly increasing, uncertain economic factors continue to weigh on the minds of American investors,” said Chris Blunt, CEO of F&G. “Yet at the same time, many investors are not taking advantage of the tools they need to plan for the long term, such as leveraging an advisor and building a balanced portfolio that includes guaranteed income products. Being proactive now can give investors more peace of mind in the months and years to come.”

For more information on F&G’s latest survey, please visit fglife.com/research

Survey Methodology

The survey was conducted online by ROI Rocket, a MarketOnce company and an industry leader in consumer and B2B research. It was fielded from August 22 to September 9, 2024 among a nationally representative sample of 1,678 U.S. adults 30 years of age and older who have sole or shared financial decision-making responsibility for their household, and own financial products valued at $10,000 or more.

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Search 2 keywords found: basic income

Wisconsin’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs are ramping up for the 2025 tax season and they need volunteers.

Whether you are a student, retiree or anyone looking to serve your community, the VITA and TCE programs offer a unique opportunity to engage with and help people in a meaningful way while building valuable skills.

“Volunteers are the heart and soul of our tax preparation assistance programs,” said Wisconsin Department of Revenue Secretary Designee David Casey. “Their dedication and expertise provide invaluable support to countless Wisconsin residents, helping them navigate the complexities of tax filing. We are incredibly grateful for their commitment to serving our communities.”

The VITA and TCE programs offer free tax preparation services to qualifying Wisconsin taxpayers. Site coordinators and tax counselors are needed for both programs.

Who can volunteer?

Anyone. There is need for help in several positions, including site coordinators, reception greeters, document intake and income tax preparation. Accounting or finance experience is not necessary to volunteer. Those helping clients, coordinating sites, and providing tax preparation services will receive formal training, making this a good opportunity to learn about federal and state tax laws and the preparation process while serving the communities where they live and work.

How to apply

Anyone interested in giving their time to either the VITA or TCE programs during the tax season from January through April 2025 should complete the following steps before November 18, 2024:

• Fill out a Community Volunteer Information form on the Department of Revenue website.
• Contact DOR’s VITA-TCE Program Coordinator Juan Carlos Reyes at reyes@wisconsin.gov.

Last tax season, volunteers with the VITA and TCE programs prepared nearly 69,500 tax returns at about 180 locations statewide. The VITA program is a cooperative effort by the IRS and many individual states, including Wisconsin. Volunteers trained by the IRS and DOR prepare basic income tax returns for free. The TCE program is supported by AARP. The AARP’s Tax-Aide volunteers train in cooperation with the IRS and DOR to prepare basic income tax returns for free during tax season. Most of these sites offer free electronic filing.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.

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The Factory: how a Detroit car manufacturing plant was transformed into a place for people to create and live. A writer posits that an abandoned system of subway tunnels in Cincinnati could be used for transit, finally (or—hear us out—a Bond villain lair). Traffic models have been used for decades to justify highway spending, which deepened car dependence and pushed real congestion solutions to the side.

Programming note: National Links will be off next week. See you on November 1!

Use the subway for transit: Every few decades there’s a new movement to make something out of Cincinnati’s abandoned subway tunnels that were only partially finished due to the inflationary pressures of WWI and killed entirely by the Great Depression. Joshua Lawrence Junker suggests that as the water main that exists there comes to the end of its useful life, perhaps it’s time to revive the idea of a subway for transit again. (Joshua Lawrence Junker | Cincinnati Enquirer)

Day Zero never came but reforms needed: The headlines had stated Mexico City was perilously close to running out of water but a good fortune of timely rainfall and better water management have relieved the pressure for now. The near miss and attention it garnered also started larger discussions about what the city should be doing better to manage its water systems which were more salient due to a national election for president. (Maya Averbuch | Bloomberg CityLab)

Creating Dreamtroit: Two artists have taken an old car factory in Detroit and transformed it into a haven for artists, including studio space and affordable housing. Half the units in the space called Dreamtroit are reserved for artists making less than $40k per year and some of the spaces rent for just $365 a month. And as the area around the factory gets redeveloped by major institutional investors, Dreamtroit stands out as “a point of resistance.” (Patricia Leigh Brown | New York Times)

Oregon voters to consider a state basic income rebate: In Oregon, voters will be asked whether the state’s minimum tax on large companies should be increased to give every resident of the state a $750 tax rebate and for some residents with low incomes it could be a direct cash payment. But not everyone is a fan of the idea of universal basic income programs. A lot of elected officials, including the governor, have come out against it. Other states have even written laws banning the practice. (Erika Bolstad | Pew Stateline)

Traffic models and highway spending: Benjamin Ross and Joe Cortright argue that billions of dollars have been wasted on highway expansions sold to the public through black box traffic models trained to get results that point towards expansion. They use two examples of projects they have been following closely, the I-5 Columbia River Crossing plan in Portland and Maryland’s toll lane expansion, to show how the process has been perverted, and pushed actual solutions to congestion to the side. (Ben Ross and Joe Cortright in Dissent Magazine)

Quote of the Week

“Those who don’t see themselves in those images or who live in built-up areas may feel as if cycling is not for them because they are not also white, slim, or able-bodied and do not have widespread access to green spaces and calmer roads on which to cycle.”

A report by the UK charity Possible shared in Forbes on how there’s a lack of diversity in cycling imagery.

This week on the Talking Headways podcast we’re joined by Cassidy Boulan and Thom Stead of the Delaware Valley Regional Planning Commission (DVRPC).

Continue the conversation about urbanism in the Washington region and support GGWash’s news and advocacy when you join the GGWash Neighborhood!

Tagged: arts, bicycling, cincinnati, dc, detroit, development, equity, highway expansion, housing, links, maryland, mexico city, poverty, public spaces, roads, subway, sustainability, toll lanes, traffic, transit, water, weather

Jeff Wood is the Principal of The Overhead Wire, a consulting firm focused on sharing information about cities around the world. He hosts a weekly podcast called Talking Headways at Streetsblog USA and operates the daily news site The Overhead Wire.

Click here to view original web page at womensway.medium.com

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Closing the Gender Wealth Gap

Advancing Gender Equity Through Guaranteed Income

WOMEN'S WAY

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5 min read

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3 hours ago

To close the gender wealth gap we need an economy that is truly equitable and inclusive. Unfortunately, our current system is far from that ideal. Wealth disparities continue to grow, leaving women, especially women of color, more likely to live in poverty, work in low-wage jobs, and face barriers to essential healthcare.

If you’re curious about wealth inequality and how it intersects with gender, don’t miss this foundational discussion featuring WOMEN’S WAY’s Chief Disruptor Diane Cornman-Levy in conversation with Marjorie Kelly, author of “Wealth Supremacy.”

It’s clear that it’s time to uplift new solutions that will ensure our economy offers the same opportunities to all of us. That’s why WOMEN’S WAY’s 2024 Closing the Gender Wealth Gap Forum series focused on exploring alternative approaches and solutions that can build an economy where we all thrive.

In this blog, we spotlight one such approach— guaranteed income — and its potential to impact the gender wealth gap.

Guaranteed Income Basics

Guaranteed income has shown it can make a difference in the lives of women through regular, no-strings-attached cash payments. Unlike other assistance programs, guaranteed income participants can use the money however they see fit — whether it’s for rent, groceries, or other necessities.

Dr. Amy Castro from the University of Pennsylvania explains,

“The idea behind guaranteed income is really based on the thought that people are experts of their own lives and they know best where they can leverage that money to help smooth income volatility and help their family achieve upward mobility.”

The RISE guaranteed income program in Cambridge, Massachusetts is one example of guaranteed income in action. A recent study showed that the program’s $500 monthly stipend helped 130 single caregivers (96% women, 62% African American) achieve greater stability. It did this by improving their financial health, employment opportunities, self-care, and parenting opportunities.

This case study shows that guaranteed income is much more than just a financial boost — it alleviates stress, improves health, and creates opportunities for long-term stability, all of which are critical for closing the gender wealth gap.

Local Spotlight

Closer to home, Philadelphia’s Philly Joy Bank is a powerful new example of a recently launched guaranteed income program in our own backyard.

Created by the Philadelphia Community Action Network (CAN), the Philly Joy Bank launched this past summer (July 2024) to support pregnant Philadelphians, fight the maternal and infant mortality crisis, and reduce racial and gender health disparities. 250 participants from the Cobbs Creek, Strawberry Mansion, and Nicetown-Tioga neighborhoods are set to receive $1,000 each month for 18 months through this pilot. Program participants will be able to choose how, when, and why to use the cash — no questions asked.

When pregnant people do not have access to quality healthcare, there is a ripple effect on the individual, their family, and the economy. The Philly Joy Bank aims to address that. In an article for The Inquirer, the Philly Joy Bank’s Program Manager, Nia Coaxum, shares:

“The idea is that providing folks with extra cash during their pregnancy will lower stress, which also has negative impacts on the body, especially health-wise. We’re really hoping that participants can use this money to address their basic needs, which will then, in turn, improve their health outcomes and birth outcomes.”

With the Philly Joy Bank as the newest addition to the growing number of guaranteed income pilots nationwide, Philadelphia advocates eagerly await the results and impacts of this exciting new program and the model it can set.

Challenges and Opportunities

Even with documented positive results from guaranteed income programs nationwide, opposition remains strong. Opponents believe that no-strings-attached payments discourage work and lack oversight on spending. These unfounded concerns stem from longstanding myths about who deserves help, especially when it comes to women and welfare.

“[Guaranteed income has] gone from the radical to the mainstream, but I think a lot of the opposition that we’re experiencing is still the same. It’s really rooted in these racist and sexist tropes about what poor people do when they’re given money, who is poor, and why they’re poor in the first place,” explains Cambridge RISE Director Sukhi Samra in an article for The 19th.

This past spring, WOMEN’S WAY hosted a Closing the Gender Wealth Gap Forum that delved into this topic in greater depth with panelists and moderator Anne E. Price, Co-President and Founder of The Maven Collaborative; Dr. Amy Castro, Associate Professor, University of Pennsylvania, and Co-Founder of the Center for Guaranteed Income Research; William Hall, Deputy Executive Director for Policy and Programs, City of Philadelphia’s Office of Community Empowerment and Opportunity; and Nia Samuels, Co-Chair of the Philly Joy Bank Steering Committee.

During the forum, panelists emphasized the urgency of changing the narrative around guaranteed income and addressing other barriers that advocates are facing. Here are some key take aways our panelists outlined:

1. Guaranteed income has the potential to address gender and racial wealth gaps by empowering women, especially women of color, and giving them more bargaining power and the ability to make choices about their own economic security.
2. Implementing guaranteed income programs requires careful consideration of narratives and community collaboration to avoid perpetuating harmful stereotypes or top-down solutions. Elevating the voices and experiences of program participants is crucial.
3. There is bipartisan interest in guaranteed income, but the motivations and perspectives of advocates from different sides of the political aisle. Building diverse coalitions to advocate for guaranteed income and address systemic inequities is important.
4. Guaranteed income alone is not a silver bullet, and must be coupled with efforts to address low wages, predatory lending, and other extractive economic practices that perpetuate poverty and wealth inequality.
5. Guaranteed income programs are facing increasing political backlash, requiring advocates to be in it for the long haul and prepared to contend with narratives that seek to undermine or limit the reach of these initiatives.

Want to hear more from our panelists and dig deeper into this conversation? You can watch the entire session below to learn more!

For Further Reading

Community Resource Closing the Gender Wealth Gap Forum 4/24/24

https://www.urban.org/urban-wire/banning-guaranteed-income-programs-undermines-american-values

https://www.phillyvoice.com/philly-guaranteed-income-assistance-500-dollars-monthly-low-income-parents-grow-study/

https://msmagazine.com/2021/03/25/welfare-is-a-womens-issue-ms-magazine-spring-1972/

https://gicp.info/resources/

https://www.stocktondemonstration.org/about-seed