| | | For more tips, alerts & inevitable bad puns follow Martin: |  |  |  | | I want you to have less money in your pocket. It may be good for budgeting and haggling, but cash isn't always king. Make your spending and saving safer, and make it pay ... | 1. | Don't stash cash under the mattress — it's only covered for £750. This tweet on the back of our recent "do you stash cash at home?" poll says it all.
"My grandad just passed away. Found £22,000 in his flat. £3k in various jacket pockets and drawers, £19k in a suitcase."
Not only is it forgoing interest, but most Home Insurance policies cover under £750 cash and require proof via a receipt / bank statement. And as fireman @ddukeofdarkness told us: "Money under the mattress makes a nice accelerant in house fires for us to deal with." (See Free Smoke Alarms.) | | | | | 2. |  Yet save in a UK bank & you're covered for up to £85,000. Money is safer in UK-registered savings accounts or cash ISAs than under the mattress at home. If the bank collapses, the Government promises to pay out up to £85,000 per person per financial institution. For full rules, see the Savings Safety guide. | | | | | 3. | Urgent. Save at 4% AER TAX-FREE. This year's cash ISA allowance closes on 5 April. If you don't use it, you lose it. A cash ISA is a savings account you can put up to £5,340/yr in, where interest is tax-free year after year-after-year.
If you're willing to lock cash away, Santander* pays 4% AER for 2 yrs (min £1), Halifax* 4.25% for 3yrs or 4.5% for 5yrs (min £500). The rate on last week's top easy access deal Cheshire BS* (min £1k) has risen for everyone (even if you've already applied) to 3.35% (was 3.16%), but if you've over £2,500 to save, The AA's new 3.5% beats it (both include 12-18 month bonuses). Full help: Top Cash ISAs. | | | | | 4. | Pay 1p on a credit card to protect a £5,000 purchase. A sad tweet: "My 86 yr old dad put a £120 deposit at a restaurant (he doesn't believe in plastic). It's gone into admin, what can he do?" Unfortunately, not much.
Paying by plastic is safer. Buy goods for £100-£30,000 on a credit card, and legally the card firm's jointly liable, so you can claim a refund from it. Surprisingly, even if you pay just 1p on the card, for, say, a £5,000 kitchen, it's still liable for the WHOLE amount (full info in Section 75 guide). As a last resort, debit cards also offer a lesser chargeback protection. | | | | | 5. | Get PAID £100s to spend on plastic too. Capital One's World Mastercard* pays a huge 5% back (£5 per £100) on all spending for the first 3 months (up to £100 cashback), then a tiered rate up to 1.25% after. Plus you currently get an extra £10 bonus via this link. ONLY do this if you set up a direct debit to repay IN FULL each month, or it's 19.9% representative APR. Full step-by-step help in the Cashback Cards guide (and see Official APRs). | | | | | | | 6. | Did you open savings over a year ago? Beware. Check your current interest rate. It's likely to be paltry, often less than 1%. So ditch & switch. If your ISA's used up, Coventry BS's 3.15% AER is the top easy access, though it only allows four annual free withdrawals and includes a year's bonus. If you can lock money away, deals include First Save 3.3% for 1yr (min £1k) or Halifax* 4% for 3yrs (min £500). See full Top Savings guide. | | | | | | | 7. | For pure safety and high returns, clear debts. If you used £1,000 saved at 3% to repay an 18% credit card, you'd be £150 a year better off. If you're thinking, "but I need the cash in the bank", read Repay Debts With Savings. It usually works with mortgages, some can gain £10,000s. Read Should I Overpay My Mortgage?, and try our Mortgage Overpayment calculator. | | | | | 8. | How to save large amounts in 100% safety. If you've got big savings (eg, from a house sale) the highest return comes from spreading £85,000 chunks in a number of top savings accounts at different institutions. Or, as it's 100% Govt-backed, there's NS&I's Direct Saver but at a low 1.5% AER. | | | | | | | | 9. | Don't store cash in current accounts. If you've got £1,000s in a current account and it usually pays paltry interest (see exceptions in Best Bank Accounts), get a high interest savings account instead. | | | | | 10. | Just because it's legal tender, shops needn't accept your cash. You may be surprised that NO bank notes are legal tender in Scotland. In England & Wales, only Bank of England notes are. Yet legal tender is meaningless in day-to-day life. Anyone can choose to accept or refuse any payment. Legal tender only means it can't be refused as settlement of court-ordered debt.
| | As a last warning, I once put a pair of jeans with £60 in the pocket in the washing machine. Then I worried I'd be arrested for money laundering... (sorry) | | Please help us spread the word Please forward this email to friends and suggest they
get it themselves via moneysavingexpert.com/tips | |  New. Cheapest mobile phone insurance
Cover your iPhone or smartphone from loss, accident and theft for £62 a year Mobiles no longer just for calls, they're diaries, contact books, games machines and more. Lose 'em, break 'em or have 'em nicked, and it can cause tears. We've a new Cheap Mobile Phone Insurance guide and best buys — here's a taster. -
 Before you get a policy ask yourself...
- Am I a loser? Think back. The more phones you've lost, the more vital insurance is.
- Should I self-insure? If problems are rare, consider 'just in case' savings.
- Is it covered on home insurance? Check. If it is, check how good the cover is.
- Is fast replacement crucial? If next-day's key, stick with your network's cover. - Best buy mobile insurance £62/yr. The cheapest policy we found with cover limits high enough for smartphones (£500), without nightmare feedback and a low £25 excess is Insure&Go*. For £62/year it covers accidental damage, loss, theft and the phone conking out (£40/yr for accidents & theft). For dirt cheap with low (£150) cover, Gadget Cover* is £16/yr for accidents, theft and liquid damage (£27/year for loss), though forum's feedback's bad.
- Cover four family phones + worldwide family travel insurance for £114/yr. Alternatively, switch to a fee-paying bank account with mobile cover. We're not normally big fans, but pick well and use ALL its facilities and it can be a winner. Our top pick's Co-op's Privilege account at £9.50/mth (£114/yr), which covers up to four handsets (£1,000 limit each) with good travel insurance. See mobile cover via bank accounts.
| Prepare for tax credits cuts now
Next month many will see income dive | TELL 'EM if your circumstances have changed Lots of families' incomes will dive in April as the Government overhauls the tax credit system. Letters have been sent to 1.25m homes, and many will see £545/year (£45/mth) cuts. - The big changes. Child tax credits worth £545+ a year are currently available to families with one to three kids with income up to £41,300. This falls to roughly £26,000 with one child, £32,200 with two, £38,800 for three. Plus the hours you need to work to get working tax credits change for some. Help in the tax credit changes news story.
 Not claiming? Do it ASAP. Claiming? TELL 'EM if things have changed. From 6 April new claims can only be backdated one month (was three) so if eligible, go quick. For existing recipients, it's based on your previous year's income but this year's working hours. If anything's changed TELL 'EM (call 0345 300 3900). If not, payments could stop or you could be forced to repay overpayments. See Tax Credit Help.
- Budget now: Sadly, if you'll lose income, little can be done. Plan now how you'll deal with it. Do a Money Makeover to find cash from elsewhere, and use the free Budget Planner to stick within your means.
- Do you pay for childcare? Cut costs. First, see if you're entitled to childcare tax credits which can be £3,000+ a year. Also, see if your employer offers childcare vouchers. They let you pay for childcare from pre-tax income, saving some £1,000s. If eligible for both, they can conflict with each other. More in the linked guides.
| New 6% APR loan or 6.3% flexible
Rates for big loans slashed | For smaller amounts Zopa gives 6.3% flexible deals Rates are tumbling. Yet as always, be wary. Only borrow if needed, keep it to a minimum, budget to ensure affordability and repay ASAP. Full help in the Cheap Loans guide, here's a summary. You'll be credit checked. See Official APR Examples. - Loans under £5,000: 8.5% APR Zopa flexible. Normal loans for this amount are hideous (at £2k, the cheapest's 14.9%). An alternative is the biggest peer-to-peer lender Zopa*. For lower amounts, it starts at 8.5% (incl fee) and allows you to overpay. For a decent rate, you need to be over 26 with a good credit score. Unlike normal loans it tells you the rate without marking your credit file. Alternatively, cheap Credit Card Loans can undercut it.
| Cheapest loans for OVER £5,000 | | | Lowest standard representative APRs | Zopa* rep APR | | £5k - 7.5k | Derbyshire BS* 7.8% (part of Nationwide)
Sainsbury's* 7.9% for 1-3yrs (requires Nectar card)
| 7.6% - 7.8% | | £7.5k - 15k | Derbyshire BS* 6% (part of Nationwide)
Sainsbury's* 6% for 1-3yrs (requires Nectar card) | 6.3% - 8% | | Representative rate means, annoyingly, only 51% of accepted customers get this. Others may pay (much) more. Worse still, the only way to find out is to apply, and that goes on your credit file. | | Did an energy salesman lie to you? Get £100s back
EDF agrees to pay out £4.5m | Take on your energy company's shoddy practices For years, energy sales reps have vied with banks to be mis-selling kings. Finally, recompense is now starting to drip out. Complain via our Energy Mis-selling Compensation guide. Here's a rundown ... - EDF to pay £4.5 million. As Ofgem found EDF's sales staff made misleading claims, it's agreed to automatically take £50 off bills for about 70,000 customers who get its Warm Homes Discount (it'll send vouchers if you're pre-pay). See EDF to pay £4.5m news.
 - Complain & get compensation via the energy Ombudsman. If you were unwittingly switched (eg, forged signature) or given false promises, you may be due cash. Complain to the supplier, if it rejects you, go to the free Energy Ombudsman. Template letters in the Energy Mis-Selling guide. For inspiration, here's a success:
"A salesman said I could save with his tariff. A year on, my direct debit was £60/mth more, locked in. The Ombudsman said the company didn't give accurate info. I got £250." - Compare and save up to £300/year on your energy bills. Don't listen to energy sales pitches. Use a comparison site to find the cheapest deal. Top Comparison: Energyhelpline* pays £15 cashback per switch, whether gas, electricity or both. Dual Fuel: MoneySupermarket* £30, uSwitch* a crate of wine
Also use a legally enforceable Free No Cold Callers Sign. Other reclaiming: Free PPI Reclaiming, Bank Charges, Council Tax | | | See all official APR examples | - Top Bank Accounts: Free £100 + top cust service: First Direct*. £5 per mth: Halifax*. Free European travel ins: Nationwide*. Up to 3% cashback on bills: Santander* (£2/month fee).
- Cheap Travel Insurance: Annual cover: Individuals from £17, family from £31, over-65s £36 and more
- Reclaim £1,000s: Free PPI Reclaims, Mortgage Fees, C'cil Tax, Endowments, Bank Charges, Mis-sold Energy
- Home Insurance: Use as many as poss of CompareTM*, GoCompare*, MoneySup*,& Confused* + Direct Line* & Aviva* that they miss
- Urgent. Perfect time to switch. Now's the moment to compare; full info in Cheap Gas & Elec. Top comparison site: Energyhelpline*
- Cheap Broadband: Plusnet* £6.49/mth (plus £25 connection), up to 10GB download
- Free Printed 30 page+ MSE Guides: Remortgaging, Mortgages, Annuities, Mental Health & Debt
| | | Did you get a Free Ideal Home ticket? Martin's speaking there this Friday at 11.30am in the How To Theatre. |  | Don't be a water waster
The Use Your Water Wisely campaign does exactly what it says on the watering can. After the dry winter, parts of the UK are in drought with others expected to follow. So the Consumer Council for Water's campaign is asking us to fix that dripping tap, shorten your shower, move to a water meter and follow the same water thrift rules at work as at home. Many water companies also offer water freebies. Suggest a campaign: This space is for MSE to support charities, community groups and other campaigners. Send your Campaign of the Week suggestion. | | | | | | | | | | | Thursday 15 March
Lorraine, ITV1, between 8.30 & 9.30am.
Real Deals.
Tuesday 20 March
Daybreak, ITV1, between 7 & 8.30am. Subject tbc. | | All Martin's Appearances | | | | | | UK's Best Currency Rates | | £100 will buy you: | | Best | Worst |  | € | 119.2 | 107.2 |  | $ | 156.2 | 140.49 |  | TL | 272.3 | 238.17 | | Rates correct at 9.30pm Tues | Find all top currency rates
Compare travel cash | | | | | | | | | | | | How does withdrawing from an ISA work? Do you have to pay tax on the interest earned in that tax year if you close the account? Dave, by email. MSE Sally's A: No, your interest is protected from tax as long as it's in the ISA. It doesn't matter when you take it out, you never have to pay tax.
If it's an easy access account, you can make withdrawals without penalty. Once you withdraw the cash, it can't be replaced. The max allowed is £5,340 this year, so if you'd put £3,000 in you'd still have room for £2,340. If you withdrew £3,000, you'd still only be allowed to deposit £2,340 this year. See Top Cash ISAs | | | | Take the 'create a photofit challenge' That's it for the week, but before we go, try this widget which allows you to create a photofit. Can you accurately create someone you know well? Photofit Challenge We hope you save some money, Martin & the MSE team | | |
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