| | | For more tips, alerts & inevitable bad puns follow Martin: |  |  |  | | The clock's ticking. It's now less than a month till the ISA year ends. All the big players have now pushed out hot rates to draw in business. Cash is nicer in an ISA, so seize the moment. Opening an ISA can take time, so sooner's safer. | 1. | A cash ISA is just a tax-free saving account. Don't let the name fool you. Every UK over-16 can save up to £5,340 a year without the taxman chomping your interest. Otherwise it's just like a normal savings account - with easy-access ISAs you can take money out whenever you want. | | | | | 2. |  At 3% tax-free, it can beat 5% savings. In normal savings your interest is taxed so a basic taxpayer loses 20% of it, higher 40%, top 50%. In an ISA, you keep it all. So to earn the same interest as a 3.3% ISA, a basic rate taxpayer needs normal savings paying 4.1%, higher rate 5.5% and top rate 6.6% - and they're not out there. | | | | | 3. | Once in, it stays tax-free YEAR AFTER YEAR. Once the money's in an ISA, you never pay tax on it, until it's withdrawn, so it's protected from tax long term. | | | | | | | 4. | If you don't use it by 5 April, you lose it. Once midnight bongs on 5 April, that tax year's allowance vanishes like Cinderella, so if you have cash do it now. Admittedly, the next day you get a new, bigger £5,640 allowance, so you may ask "what's the rush?". Well even if that's more than enough, play safe, put it in THIS YEAR in case you get an unexpected windfall next. | | | | | 5. | Easy access best buys: Earn up to 3.3% AER tax-free. Here's a rundown:
Top online: Cheshire BS's* (part of Nationwide) is now 3.16% AER (min. £1k).
Top branch/phone: Santander 3.3% ISA (min £2.5k). Avail online next week.
Existing Barclays cust: Barclays* 3.05% (min £1) track base rates for 1 year.
Top clean deal from £1: Virgin* is 2.85% without an intro bonus.
All barring Virgin include a one-year bonus, so diarise to ditch and transfer then - full info in the Top Cash ISAs guide. | | | | | 6. | Lock cash away to get 4% AER+. With fixed rate cash ISAs you lock cash away in return for guaranteed higher rate. ISA rules do allow early access, though with heavy interest penalties. Top payers... 1 year: Aldermore 3.3% (min £1,000) 2 year: Santander 4% 3, 4 and 5 year: Halifax* 4%, 4.2% & 4.5% (min £500). | | | | | | | 7. | If your ISA's full, get 3.1% on your savings. The top easy access normal savings is Santander's* 3.1% AER eSaver (min £1), though it has a year's bonus so diarise to switch then. More options inc fixed deals, in Top Savings. | | | | | 8. | Opened an ISA this year but not maxed it? Still time. Most ISAs let you top up if you haven't used the full £5,340. Even if your account's rate isn't great, get the money in in-time, then you can always transfer it later. | | | | | | | 9. | It's what you put in that counts. No I haven't just gone all weirdy-beardy. You're allowed to PUT IN £5,340 before 5 April. Withdraw, and it can't be returned. An example should help... put £3,000 in and you've £2,340 more allowed. If you then withdraw £1,000, that's irrelevant, you can still only put £2,340 more in. | | | | | 10. | Regularly check old ISAs don't take the Michael. Many banks use the 'flog then flop' model, hoiking you in with flashy rates then dropping to 0.1% later. If so, you've a RIGHT to transfer old ISAs to get a better rate. To do it never withdraw the cash, ask your new provider to transfer it for you.
For those who've saved £30,000+ (you can add in this year's too) NatWest* boosts its rate to 3.5% on 16 April (you can open it now). If not Santander's 3.3% branch deal (min £2.5k) allows transfers in, as does Halifax at 3% (min £1). Full how-to, warnings & best buys in Top Cash ISA Transfers. | |
All accounts listed have the UK £85,000 per person savings safety gurantee. More info in Top Cash ISAs, and for stocks and shares info, read the full ISA Guide.
| Please help us spread the word Please forward this email to friends and suggest they
get it themselves via moneysavingexpert.com/tips | |  Should you extend your lease? New guide & calculator
Check how long you've got left | 80 years is the key | Free Lease Extension Calculator If you own a flat, letting your lease drop too low wipes its value quicker than dodgy stone-cladding. Yet in England and Wales, powerful laws let you extend leases for a fair price. We've a new, step-by-step Extend Your Lease guide. Here's a taster. - 80 years is the golden number. When leases have 80 years or less left, extensions become very costly and homes much more difficult to sell. Under 60 years, it's a nightmare. Everyone should think about their lease options at 83 years or less.
 - You've a legal right to extend at a fair price. Most flat-owners are legally entitled to get 90 years added at a fair price. Full guidance in our Extend Your Lease guide.
- Free Lease Extension Calculator. The Lease Extension Calculator does what it says on the tin. Put in your flat's details, and it gives a steer on how much it'd cost to extend (min 60 years left).
- COMING SOON - Buy the freehold. Some freeholders charge £10,000s extra for repairs as well as insurance which pays 'em commission. But flat-owners are often legally entitled to buy their freehold. Guide coming soon ...
FULL info in the New Guide & Calc: Extend Your Lease Related: Remortgage Guide, Should I Repay My Mortgage? | Freebies (freebies, freebies)
Huge compendium of 100s free things including nappies, gym passes, cat food and more The best things in life are freebies! As MSE's all about money for nothing and your tips for free (and dodgy song title puns) we've updated our Freebies, Freebies, Freebies compendium for 2012 - a treasure trove of pay-nowt giveaways:  Play freebie roulette. If you don't want to scroll through, try your luck with our fun Freebie Roulette tool. We've hand-picked over 50 of the best. Just spin the reels.- Why do they give freebies? It's to promote products, or build goodwill. The Freebies guide is our collection of long-standing giveaways, including e-books, beauty samples, organic baby food, recipe cards and more. It even stretches to Free Gym Passes, Free Anti-Virus Software, Free House Price Valuations, Free Office Software and more. Plus play plastic for nearly-free flights and more with Credit Card Freebies.
- Super-hot, short-lived freebies. Some of the best freebies are limited and end at speed. When possible we include them here, but to get serious the forum's Freebies (no spend) board has thousands of freebie fans swapping tips. If you're prepared to send a text, SAE or grab a mag, the Freebies (low spend) board is also crammed with goodies.
| Halifax & RBS hikes add £100s to mortgage costs
Will others follow? | Can you beat it? | Free calc to see costs | Time to consider switching Over a million mortgage holders will see a huge jump in their payments over the coming months, putting further pressure on many cash-strapped households. This is your key briefing on what's happening, and what to do....  What's happening? 850,000 Halifax mortgage holders' standard variable rates (SVR) rise from 3.5% to 3.99% on 1 May - those yet to revert to SVR will also pay this when they do. 200,000 RBS offset (not other) mortgage holders standard rates are now 4% (was 3.75%). See full Mortgage rate hikes news.- Find the cost of the rise & more with full mortgage calculators: The exact amount depends on your mortgage but as a rule of thumb... For every 0.25% rise, you pay £2 per month more per £10,000 of mortgage. For accurate answers, use our advanced free mortgage calculator, mortgage overpayment calculator, offset mortgage v savings calculator.
- Will others follow suit? Lenders blame the eurozone crisis pushing up rates at which banks lend to each other, and needing to pay savers relatively more (not sure savers are partying yet). Prominent mortgage brokers don't see other lenders following in a domino effect. Some C&G, Lloyds & Nationwide customers are locked into base rates and are enjoying a 2.5% SVR. But most lenders can up rates at a whim, and may see this as an excuse. See Will others raise rates? analysis.
- What can I do? Check if a lower rate is available, though you'll need at least 10% equity for that and factor fees in, especially with smaller mortgages. Best route's to use a Mortgage Broker supplemented with the best buy tables, as brokers often can't help with some direct deals. If you can't save money, use the Free Budget Planner to keep spending in check after the rise. Free MSE Remortgage Booklet: Instant PDF, Order Printed Copy
| New Santander 123 account - cashback on everyday bills
Does the novel new bank account live up to the hype? Full assessment of the new deal The current account price war is usually about shiny intro bonuses, or short-term hot rates, so a bit of kudos for a new idea. It's not a winner for all, but it does add a new long-term option to the platter of deals. | Santander 123* key features | | Fee | £2/month | | Min Salary | £6,050 paid into account | | Interest. | 3% if you've £3k-£20k | 2% for £2k-£3k | 1% for £1k-£2k | 0% for less. Applies to WHOLE balance | | Overdraft | 4 mths 0% then £1/day, max 20/mth. | | 1% cashback | Council tax & water direct debits | | 2% cashback | Gas & electricity DDs | | 3% cashback | Phone, mobile, b'band, digital TV DDs | - New Santander 123 account. Santander's* 123 account uniquely gives cashback on some direct debits, plus a huge 3% interest if you've £3,000 - £20,000 there (only just below its own best-buy e-Saver* 3.1% savings). So it's a strong long-term offering, though we can't ignore Santander's poor customer service record.
How does it add up? On typical bills, the cashback minus fee is £50 a year, though for those with larger homes it can be in the £100s. Plus there's savings interest - see full Santander 123 analysis. It's also a boon for those who use piggybank budgeting, though you must pay your salary in.
- Or just get a flat £100 and top customer service. For cash certainty, customer service winner First Direct* pays a £100 intro bonus (min. salary £23,100) which it'd take many people two years to beat with Santander, plus it gives a £250 0% overdraft (15.9% above). Alternatively, Halifax* gives a guaranteed £5 every month you pay in £1,000 (equiv £14,200 salary), but DON'T go overdrawn as its fees are huge.
Full info & comparison in the Updated Guide: Best Bank Accounts Related: Top Savings, Budget Planner | Cheap motorbike insurance - scoot up a deal
Combine comparisons | Fair weather rider temporary cover | Six-wheel policies Whether your bike's a summer season scooter special, or you're a true leather big bike all-rounder, it's often easy to slice the cost of cover. Just use our fully-updated Cheap Motorbike Insurance guide. Here's a taster... - For annual policies - combine the bike comparisons. Need year-round cover? To get large numbers of quotes speedily, combine as many comparison sites as you can (as they don't all cover the same insurers). The main ones are GoCompare*, TheBikeInsurer*, Confused* and MoneySupermarket*.
 - Short term insurance is available. If you only use it in nice weather, eBike* can provide a monthly policy (with a £6 admin fee). Remember, if your bike isn't insured, by law you need to declare it as SORN and keep it off the road. Always compare short-term insurance cost against the cheapest annual policy.
- £30 cashback or free RAC breakdown cover. Get cover through Swinton* and it pays £30 cashback, or via BeWiser* or MCE Insurance*, you get free RAC roadside assistance cover, which costs £29.99 as standard (though cashback can mean it's worth less - see Cheap Breakdown). Factor that in, and compare to comparison sites' cheapest.
- Got a car too? Try a six-wheel policy. A Six Wheel scheme is available through Carole Nash to cover both. But don't assume it's cheaper - always compare it with the cheapest standalone Bike & Cheap Car Insurance policies.
Full wheel-by-wheel help in the Updated Guide: Cheap Motorbike Insurance Related: Cheap Car Insurance, Young Driver Car Insurance | | I saved £812 on my 19 yr old son's car insurance "Your tips to add a driver with good history saved him £384 and getting his occupation title correct £429. Ridiculous but true. Hope my feedback helps others cut ridiculous premiums." Helen Thorpe, by email. Full Guide: Young Driver Car Insurance | | |  | Real Life MONEY MORAL DILEMMA:
Should I take the redundancy money?
This week's MoneySaver who wants advice asks...
My company's making people redundant, but I'm likely to be safe as my performance is good. But I'm expecting a job offer from another company, so am considering volunteering for the redundancy (payout c. £2,000). My view is the company (which is large) doesn't lose anything by making me redundant instead of someone else. I would go happily and quietly, and someone else gets to keep their job. Yet my colleague thinks I shouldn't take redundancy if I know I've a job elsewhere. Enter the Money Moral Maze: Should I take the redundancy money? Previous MMDs: View All Suggest: A Money Moral Dilemma | | |  | Do you live in a park home - or know someone who does?
Consumer Focus would like to hear about the good and bad experiences of living on a park home/mobile home. Whether it's about blocking sales, switching utilities or pitch fees, the investigation team is gathering evidence in order to protect older people from financial abuse. Get in touch via parkhomes@consumerfocus.org.uk. Suggest a campaign: This space is for MSE to support charities, community groups and other campaigners. Send your Campaign of the Week suggestion. | | | | | | | | | | | | Thursday 8 March
Lorraine, ITV1, between 8.30 & 9.30am.
Real Deals.
Shelagh Fogarty, Radio 5, 12-1pm.
Consumer Panel. Tuesday 13 March
Daybreak, ITV1, between 7 & 8.30am. Cash ISAs. | | All Martin's Appearances | | | | UK's Best Currency Rates | | £100 will buy you: | | Best | Worst |  | € | 119.70 | 104.92 |  | $ | 157.10 | 137.68 |  | TL | 274.00 | 238.61 | | Rates correct at 5pm Tues | Find all top currency rates
Compare travel cash | | | | | | | | A cash ISA is simply a tax-free savings account. You're allowed to put in £5,340 per tax year - this year ends on 5 April - so its close.
Which of the following is closest to your situation? I've already put cash in a 2011-12 ISA I've put the max £5,340 in | Vote | I've not maxed it out, but put as much savings as I've got in | Vote | I've not maxed it out. I put some in, but do have savings elsewhere | Vote | I've NOT used my 2011-12 cash ISA allowance yet I've no spare cash to go in one | Vote | I'm planning to, just not got round to it yet | Vote | I've got savings but couldn't be bothered | Vote | I used my ISA allowance for stocks and shares, not cash | Vote | I've got past years' ISAs and didn't know I could put more in | Vote | I'm a bit too scared/confused/don't know enough to do it | Vote | I'm not sure I can't remember if I've done it this year or not | Vote | | | | | | How much cash do you keep at home?
A staggering 63% of MoneySavers have chosen wisely to keep less than £50 at home and 17% between £50-£100. However 1% (311 votes) keep over £10,000 around the house (hopefully not all under the mattress!).
See Full Results | | | | | | | | Are free child places on packages as good as they seem? I'm trying to book a holiday with two free kids' places but the saving doesn't seem huge.
MSE Jenny's A: As you note, it's the total holiday cost that counts. When kids go free, tour operators sometimes inflate adult prices or charge under-occupancy fees for apartments, wiping out the discount. Always ask the travel agent to cost the holiday with and without the free child places (or do it yourself on the web).
Bizarrely, it can occasionally be cheaper for a family with two adults and two kids to book as four adults. This is because tour operators slash adult places by more than kids'. This is usually allowed within the tour operators' T&Cs, though always check. Plus bear in mind you may not be allowed to use the kids' club or créche. More help in Cheap Package Holidays. Please suggest a Question of the Week (we can't reply to individual emails). | | | | Play the "how much energy does that use?" game That's it for the week. But before we go, what uses more energy, a kettle or a Playstation? You may be surprised - try the Energy quiz, it could save you cash. We hope you save some money, Martin & the MSE team | | |
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