What is compound interest?

Compound interest is interest which applies to the whole amount earnt or owed.

Compound interest uses the original deposit or borrowed amount as well as any interest previously accumulated to continue earning interest. In comparison simple interest only generates on top of the original deposited or borrowed amount.

Who does this benefit?

Compound interest is a popular tool used for investors as this is a great way to grow your money at a faster rate than just using simple interest. Having compound interest on any savings will also build up the amount faster and earn you more.

When borrowing money, compound interest works against you and for the lender. Compound interest on any borrowed money will only increase the amount you owe back often leading to unpayable debt.

Compound interest periods

This is the time intervals between interest being added to an account. This can be done annually, monthly, semi-annually, quarterly, daily or continuously.

The higher number of compounding periods the greater the interest which is great for the investor and not great for a borrower.

Use our Compound Interest calculator to work out how much you could generate…

When you’re watching your favourite show you may forget what went into making it and the large budgets that were set to bring it to your screen.

Some TV shows such as Game of Thrones, we expect to have a large budget which it did, of $15 million per episode by season 8. The show's success is shown in how much they made.

There have been some unexpectedly expensive shows to produce recently and each season tends to increase in price as the show gains popularity and expects to be even better for the next seasons.

4 of the most expensive shows

Do you want to cancel your TV license?

More people are deciding against having a TV license due to the rising cost as well as the declining need due to alternative streaming platforms.

The rate of TV license evasion jumped to 10.31% in 2022-23 from 9.38% in 2021-22, the highest figure recorded.

A TV license allows you access to huge range of entertainment services including over 400 TV channels. All households needs a TV license if they watch live showings on TV or streaming platforms and to watch BBC iPlayer too. TV licenses pay for the BBC fees of their shows and services including any app, streaming services, radio and live channels.

The cost of  TV license is £169.50 per year and covers all devices in the household. If you do not have a TV license you will be sent letters, if you do not respond then they could send an inspector to your address to find out if you are illegally watching TV. If they find you are using the services without the necessary License then they could fine you up to £1000 as well as court costs.

You can cancel your license if;

• You do not watch live broadcasts
• Do not watch anything on BBC iPlayer
• You no longer watch TV channels including BBC, Channel 4, ITV and more
• You do not watch live showings on streaming or paid for services such as, Youtube, Amazon, Sky, BT and any others

You do not need a TV license if you are only watching on demand programmes on paid for subscriptions like Netflix, Amazon, Disney + and others except BBC iPlayer.

To Cancel;

If you are paying by direct debit or you paid all in one go you can cancel online on the TV license website. You will then have to cancel your direct debit with your bank.

If you pay by using a payment card then you will have to contact the TV license company to cancel this.

You will need your personal TV license number to cancel which you should be able to find on any letter or email you have received from them.

The BBC experiencing a decline of users

The BBC have reported a drop in the number of people paying for a TV licence and record a drop of 500,000. Among 16-34 years olds only 71% used the BBC on average per week in 2023-24. In England there has been a decline year on year from 88% to 85% of people using BBC services. In Scotland the drop was 87% to 84%.

With fewer people paying for a TV licence it proves that you too could go without.

You are entitled to compensation

One of life’s inconvenience’s and a very stressful part of going on holiday is when your flight is delayed or cancelled. Already having got to the airport hours ahead of take-off, waiting to be called to your gate only to be waiting further for any information, then the dreaded announcement that the wait is extended or worse, that the flight is not going at all.

When this happens you are entitled to certain compensation dependent on the situation including, where you are flying and how long the delay has been.

My flight has been delayed

If your flight has been delayed by 3 or more hours you are legally entitled to compensation. This is when the delay was due to the airline such as, technical problems or booking issues.

Citizens Advice reports that if the delay was caused by something outside of the airlines control, such as bad weather then you could be unlikely to claim compensation.

If your flight is delayed 5 or more hours then you can decide not to take the flight at all and claim further compensation. If you do not board on the delayed flight then you can get a full refund of that flight as well as a connecting flight which you missed due to the original delay. You should also receive support with a flight back to your original airport you flew from.

If you decide to wait and take the delayed flight you can claim up to £520 compensation. The amount you can claim back depends on the flight distance, for shorter distances compensation is usually around £220.

My flight has been cancelled

You are entitled to a full refund of a cancelled flight as well a replacement of any connecting flights or a replacement flight to your destination.

You should also be provided food and drink as well as accommodation if the cancellation was overnight.

You will not be compensated for any alcohol, luxury meals or accommodation your pay for during the delay or waiting for your next flight. You will often be given vouchers to use on food and drink which limits what you can get.

Ensure you keep all receipts of money spent during your time delayed at the airport or location as this will be needed to claim back with the airline.

What will you not be compensated for?

• Delays under 3 hours
• Loss of earnings if the disruption causes you to be late or miss work
• Expensive and luxury food and accommodation including alcohol
• If the delay or cancellation was due to anything outside of the airlines control

If an airline has caused disruption to your travel plans then don’t hesitate to contact them and claim compensation.

Now schools have broken up for the summer many parents are panicking over how to entertain the kids for 6 weeks. You may be planning some days out or holidays but it’s not sustainable to spend money everyday for 6 weeks so having some free activities that you can pull together easily can make summer feel fun every day.

Enjoy the summer without being too stressed about how much it all costs.

Having a fixed saving account is a great option for you if you are saving for a big purchase like a house deposit. With a fixed term you will choose the length, common ones include 1 to 5 years, this is the time you won’t be able to have access to your money. From setting up the account you will need to deposit the overall sum and then won’t be able to withdraw or deposit anymore until the end of the term.

The longer term you choose you will often have a higher interest rate, you should assess when you will need to withdraw your money so you know which term to choose. If you do request to withdraw money you may be charged.

The interest rate will be fixed for the length of your term so the bank cannot change this whether the base rate goes up or down.

If Fixed term doesn’t sound right for you check out the other types of savings accounts.

Compare Fixed term Savings Accounts

Natwest

• Interest will paid each month, this can go into your fixed term account or into a sperate nominated account which also must be with Natwest.
• You can deposit a maximum of £5000 into this account. This account will activate from a deposit of just £1. You can open this account as a new Natwest customer but will have to do so online before setting up the app. 
• For a 1 year fixed term the interest rate will be 4.45% AER.
• For a 2 year fixed term the interest rate will be 4.10% AER.
• When your term ends they will notify you so you can decide to lock in a new term at a competitive rate or to withdraw the money. 

Lloyds

• You can earn 4.40% AER for a 1 year term and 4.05% for 2 years which will be paid at the end of each year.
• There is a minimum deposit amount of £2000.
• If you are already a customer of Lloyds you can earn an extra 0.10% for 1 year and 0.05% AER for a two year term.
• You can only have one 1 year term account however you can have five 2 year accounts making it simple to save for separate goals.

Halifax

• To open this fixed saver account you will need a minimum of £500. You will have 10 days from opening the account to make your deposits, once the 10 days is over the account will be locked to earn interest for the chosen term.
• For 1 year fixed term you can earn 4.40% and 4.05% for a two year term.
• For a 5 year term you can earn 3.80%.
• Choose to have you interest paid annually or monthly.

Barclays

• Deposit a minimum of £500 for a term of around.
• For a 1 year term you will earn 4.45% and will not be able withdraw any money.
• For a 2 year term you will earn 4.15% with the ability to withdraw from the account 3 times up to the amount of 10% of the balance. This account has a minimum deposit of £1.
• Barclays savers accounts are great for those trying to save a large amount as you can deposit up to £1000.

Having an easy access or instant access account is great if you will need to withdraw your money at any point. You will have the freedom to reach your money whenever you need it.

Finding the right type of savings account to suit you is important before beginning.

Best easy access accounts for you

HSBC Flexible saver

• You can earn 2% AER on anything over £1 so there is no minimum deposit amount.
• You can choose whether you save money through standing order or just depositing how much you want each month.
• Use the mobile app to set up your savings goal.
• You can open multiple Flexible saver accounts.
• You can set this account up as a new HSBC customer by registering online.

Co-operative bank

• With a regular saver you can earn 7% interest on your savings helping you earn more with your money. This account is only for customers with a pre existing current account with Co-op bank.
• When you save up to £250 each month for a year you can receive a higher interest rate.
• You won’t be able to deposit more than £250 each month.
• You will have instant access to withdraw and deposit into your account.
• This account is great if you are wanting to save small amounts regularly as you cannot deposit more than £250 a month.

Natwest Digital saver

• With this account you can earn 6/6.17% interest on any amount up to £5000. Once your balance reaches £5000 the interest will drop t0 1.74%.
• This is great for those beginning their savings to help earn great interest.
• You will be able to withdraw and deposit freely.
• Interest will be paid monthly.

Barclays Rainy day saver

• Earn and interest rate of 5/5.12% on the first £5000 you save. Once you deposit over £5000 your interest rate will drop to 1.15%.  Barclays are able to change the interest rate as they wish so keep an eye out for this.
• You can only have one Barclays Rainy day saver account so once you reach the £5000 limit you will have to deposit the rest in another account to keep the high interest benefits.
• You can access your account easily through an app.
• You can only have this account if you are already a Barclays Blue Rewards member.

Barclays Everyday Saver

• Once you reach the limit of £5000 on the Rainy day saver you can open up this account to keep earning interest on extra savings.
• You can open this account as a new Barclays customer by having an appointment at a branch.
• There is no minimum deposit amount for this account so you can start saving from £1.
• Earn an interest rate of 1.66% AER on any amount up to £10,000. Any amount over this the interest rate will decrease to 1.16%.

Aldi was nominated as the UK’s cheapest supermarket with the average price of a weekly shop costing £118.41 for 65 items compared to £151.01 in Waitrose.

The cheapest way to shop has been suggested as shopping in multiple supermarkets to find the best deals and to use loyalty cards too.

Make sure you are shopping effectively to help your money go further.

Compare supermarkets in the UK

Aldi Prices

Aldi skips branded items providing low cost items which have little difference to the original. Many other supermarkets have taken on an ‘Aldi price match’ where you can find your favourites for the same cost as Aldi’s. Skipping the premium brands means skipping the marketing fees too delivering their customers with a weekly shop for less.

Lidl Prices

A close second cheapest UK supermarket is Lidl with very little difference in price between most items. So this is another great option if you have a Lidl near you rather than an Aldi.

The average price for a shop of 65 items came to £121.31.

Tesco prices

The third cheapest was Tesco in the survey done by Which. This shop was conducted with the use of  a Tesco Clubcard so make sure to sign up if you shop here.

The average price for a shop for 65 items came to £130.90.

For 174 items shopping with a Clubcard at Tesco was the cheapest costing, £439.58.

Asda Prices

Asda came in as the fourth cheapest only just being beaten by Asda.

The average price for a shop for 65 items came to £131.42.

For a large grocery shop Asda came in second with an average price of £442.12 for 174 items.

Waitrose Prices

It may not come as a surprise that Waitrose ranked as the most expensive UK supermarket.

The average price for a shop for 65 items came to £151.01.

Managing personal finances can be a challenging task, especially when it comes to borrowing and investing money. With so many financial options available, it's easy to feel overwhelmed and make decisions that may not be in your best interest in the long run. In this guide, we'll discuss 6 essential financial tips that you should follow when it comes to borrowing and investing money. These tips will help you make informed and responsible decisions with your finances, leading to better financial stability and success. So whether you're looking to take out a loan or invest in the stock market, these tips will serve as a useful guide to help you make the most out of your financial decisions.

Set Clear Financial Goals

Setting clear financial goals is one of the first steps toward managing your finances effectively. According to Plenti Australia, a good place to start is to ask yourself whether the goals you've previously set are still relevant. This means evaluating your current financial situation and determining what you want to achieve in both the short and long term. By setting specific and achievable financial goals, you can have a clear direction for your borrowing and investing decisions. It also helps you stay motivated and focused on your financial journey.  Take some time to assess your goals and make any necessary adjustments before making any major financial decisions.

Understand Your Credit Score

Understanding your credit score is important when it comes to borrowing money. This three-digit number is a reflection of your creditworthiness and can greatly impact the interest rates and terms you receive on loans. Make sure to regularly check your credit report for any errors or discrepancies that may be negatively affecting your score. If you have a low credit score, take steps to improve it before applying for any loans or investments. This may include paying off outstanding debts, making payments on time, and keeping your credit card balances low. Understanding and actively working to improve your credit score can save you thousands of dollars in the long run.

Comparison Shop for Loans

When it comes to borrowing money, shop around and compare different loan options before making a decision. The interest rates and terms can vary greatly between lenders, so do your research and find the best deal for your specific needs. Start by identifying your borrowing requirements, such as the amount you need, the repayment period, and any specific benefits you’re looking for. Then, look into multiple lenders, including banks, credit unions, and online lenders, to gather information about their offerings. It's worth considering the reputation and customer service of the lenders you’re evaluating. Read reviews and seek recommendations to ensure that you're dealing with a reliable institution. Don’t just focus on the interest rates; also pay attention to other factors such as loan terms, repayment flexibility, and additional fees. Negotiate with lenders, as they may be willing to offer better terms to earn your business. Be upfront about your needs and don’t hesitate to ask for lower interest rates or waived fees. Lenders often have some flexibility, especially if you have a good credit score or can provide collateral. Also, make sure to read all the fine print and understand any fees or penalties associated with the loan before signing on the dotted line. Look out for hidden charges such as origination fees, late payment penalties, or prepayment penalties that could affect your overall cost of borrowing.

Credit: Katie Harp on Unsplash

Diversify Your Investments

Putting all your money into one investment can be risky as you're essentially putting all your eggs in one basket. By diversifying your investments, you spread out the risk and increase the likelihood of achieving a positive return on your overall portfolio. This means investing in a variety of assets such as stocks, bonds, real estate, and even alternative investments like cryptocurrencies or precious metals. However, note that diversification does not guarantee against losses, but it can help minimize them. Regularly review and rebalance your portfolio to ensure that it aligns with your risk tolerance and financial goals. Do thorough research and seek professional advice before making any investment decisions.

Keep an Emergency Fund

Unexpected expenses, such as medical emergencies or job loss, can occur at any time and can greatly impact your finances if you're not prepared. It's recommended to have at least 3-6 months' worth of living expenses saved in an easily accessible account. This will provide a safety net and give you peace of mind knowing that you can handle any unforeseen circumstances without going into debt or liquidating your investments. Start small by setting aside a portion of your income each month and gradually build up your emergency fund over time. It may also be beneficial to keep this fund in a separate account to avoid any temptation of dipping into it for non-emergency purposes. Your emergency fund should only be used for true emergencies and not for discretionary spending.

Seek Professional Advice

When it comes to making significant financial decisions, seeking professional advice can be extremely beneficial. Financial advisors, accountants, and lawyers have the expertise and knowledge to help you make informed decisions that align with your personal goals and risk tolerance. They can also provide valuable insights into complex financial matters such as taxes, estate planning, and investment strategies. However, do your research and choose a reputable and qualified professional who has your best interests in mind. Make sure to ask for referrals from trusted sources and thoroughly review the credentials of any potential advisor before working with them. Seeking professional advice may come at a cost, but it can potentially save you from making costly mistakes and help you reach your financial goals faster and more effectively. It's never a sign of weakness to seek professional help when it comes to managing your finances.

Managing your finances when it comes to borrowing and investing money requires careful consideration and planning. These tips are not only applicable in the short term but also in the long run as they promote financial stability and success.  With these tips in mind, you can confidently manage your finances and pave the way for a brighter financial future.

The Department for Work and Pension oversee the payments which are provided for those who may need extra financial support. This is called Personal independence payments (PIP) and you could qualify if you suffer from a long-term illness, disability or mental health condition which affects your ability to continue with everyday tasks.

The Department for Work and Pensions report that there are 3.4 million people in the UK who receive PIP.

You could receive payments for living components as well as mobility if you struggle to do necessary travel yourself.

Mostly you will be given a 3 year fixed time of receiving these payments before getting a review to determine any changes.

Some people qualify for a ‘indefinite award’ in which they will be placed on a 10 year plan before they are reviewed.

If you have any changes to you condition whether it becomes worse or improves you must tell the Department for Work and Pensions as this could affect your payments. If your situation worsens you could be eligible for a higher allowance.

How much are the payments

If you qualify for PIP you will receive your payments weekly, below is the amount you could be paid weekly. These payments are not subject to tax.

• For the living component

The lowest allowance come to £72.65

The maximum allowance is £108.55

• For the Mobility component

The lowest allowance is £28.70

The maximum allowance is £75.75

Do I qualify for extra financial support?

To receive PIP you will have to apply to the department of work and pensions who will require personal information before conducting a review of your condition.

For both the living and mobility components you must be above 16 but below the state pension age.

To qualify for the living component you would struggle with the below,

• Preparing food
• Eating and drinking
• Managing medicines and treatments
• Washing
• Going to the toilet
• Managing your finances
• Reading
• Getting dressed and undressed
• Socialising and being around others

To qualify for the mobility component you would struggle with the below

• Setting a route and following it
• Physically moving around
• Leaving your home

Check to find out if you qualify for extra financial support to help you with day to day living.

If you are looking to get into investing to make more from your income then make sure you are financially ready to begin. Are you ready to start investing?

There are various types of investments and deciding which one suits you best will help you begin your investing journey clearly. Set some goals, what do you want to get out of this, will you set yourself some rules of when to withdraw money and how you will navigate investing.

Many experts recommend to invest around 10-15% of your post tax annual income to see the greatest return. However, it is best to begin low and work up to this amount when you can.

Types of investing

With only a few days to go until the 2024 UK Election held on Thursday 4^th July we take a look into the polls which aim to keep track of how the public plans to vote on the day.

The BBC polls show that Labour are distinctly ahead of the other parties with predictions placing Conservative 100 seats behind this year.

From 14 years of a Conservative government the UK could be ready for a change this year and the polls are showing it. Voting is open until 10pm at your local voting stations, if you are registered to vote you will have a voting card to tell you where to go, if not you should be able to search for your local voting station.

Each vote from each constituency matter, these are all counted and an MP from each party will sit in the House of Commons to represent a majority vote from a constituency. The party with the most MP representative in the House of Commons will form the next government.

The manifestos have all been published for the public to review their policies and decide which one serves best. Reading the policies rather than focusing on the personality of each candidate to make an informed decision this election can help you change the government and enable change that you want to see.

Policy Overview

Your vote matters for your own financial needs and the UK economy.

If you are looking to buy a house this year, you might be looking at party polices such as the Conservative policy of making the stamp duty threshold of £425,000 permanent stated in their manifesto. In the final days of their campaign, Rishi Sunak repeats his promises and fights off the other parties, refusing to admit that Reform party are a true opposition to Conservative or even the Labour party.

If you are a teacher or have children of school age then it might be important to you to hear that Labour intend to end tax exemptions for private school and will start to charge them VAT. This will increase fees at private schools for their plan to increase funding into state school including mental health professionals in each school. Keir Starmer continues campaigning this week reeling off his argument that if you want change you have to vote for it.

With various promises focusing on improving the NHS from all the parties including Liberal Democrats declaring their pledge to increase funding by £9.4 billion. This is the largest funding promise of any of the parties and some say they are aiming too high for real action to be done here.

The political parties are aiming to appease as many people as possible this year with the cost of living increase being a large factor in voters decisions. The Green Party also promise to be focused on bringing down costs, they pledge to do this through increase national insurance for the top earners where Labour have stated they will not be raising national insurance.