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

High costs of living alone

Living without roommates or a partner is becoming more popular despite the high costs of living making this more difficult.

Within the last year the amount of people living alone has risen from 178,000 to 237,000.

Alan Boswell Group have compared the cost of living alone to the square footage of a 1 bed flat, studios and single room occupancies to determine the cheapest and most expensive areas of the UK to live alone.

The cheapest places to live alone

The cheapest places to live alone are in the North of England or in the midlands with an exception of Plymouth which sits at NO. 9 on the Alan Boswell list with the price per square meter at £11.77.

• Hull

Price per square meter is £8.85 making it the cheapest place to live as a single occupant.

• Bradford

Price per square meter is £9.17.

• Stoke on Trent

Price per square meter is £9.22

• Liverpool

Price per square meter is £9.91.

The most expensive places to live alone

Cities in the South of England are the most expensive to live alone with an average price per square meter of, £18.09 which is a 76.95% increase from the North which is, £10.22 per square meter.

• London

Price per square meter is £23.39.

• Bristol

Price per square meter is £19.33.

• Brighton and Hove

Price per square meter is £19.32.

• Reading

Price per square meter is £17.40.

The cost of living alone

Living alone will always be a more expensive option than sharing the cost of rent and household bill with a partner or roommate.

The average monthly costs of living alone are reported at £651 excluding the costs of rent. These costs include, council tax, household bills, groceries, phone bills and more.

Those who live alone are spending on average 92% of their disposable income on living expenses compared to 83% for couples.

Living alone also means spending on average, £15 more on grocery shops per week.

This explains the data that 47% of young singles have no savings at all.

How to cut down costs

There are a few ways in which you can reduce your spending including, lowering your energy bills through useful tips to lower your energy usage or installing a smart meter.

If you are on a low income then learn a few ways you can still budget and use you money efficiently to stay afloat.

Setting yourself a budget which prioritises rent and bills to help you keep track of your money. This can be done by using finance apps.

Don’t be defeated by high living costs and a low budget, learn ways to make your money work for you.

How much does the Royal Family earn?

The Royal Finance Report shows the monarchy have received an extra £45 million from the Crown Estate Profits, due to 6 new offshore wind farms which has increased the revenue for the crown.

The Crown Estate profits have increased to £1.1 billion which will lead to a rise in the Sovereign Grant, the body paying for the Royal Family’s costs.

How is the Monarchy funded?

The Monarchy is funded by the taxpayer money accumulated in the Sovereign Grant and given to the Royal family in exchange for the King surrendering the Crown Estate Revenue, of which the Monarchy only gets a percentage of the profits.

The Royal report reveals that the total Sovereign Grant of £86.3million equal £1.39 from each person in the UK.

The Crown Estate goes into the Treasury which then decides an income for the monarchy. The Crown usually receives 25% of the profits, however, last year it was reduced to 12%. The Monarchy grant is reviewed to ensure an appropriate level and income.

The grant directed to the monarchy pays for all official engagements conducted by the Royal Family, maintenance of Palaces and homes which includes paying Royal staff.

The King also receives an income from investments and inheritance which is not made public.

How much money has the Monarchy received?

The Crown profits have risen to £1.1 billion, this means their grant will now be rising from £86.3 million in 2024-25 to £132 million in 2025-26.

This grant will pay for all Royal costs.

This extra grant will be used to pay for the last of the restoration on Buckingham Palace. It was also reported in the Royal Financial report that the Monarchy will be purchasing 2 new helicopters to replace their 15-year-old ones which they use to visit locations in the UK for official engagements.

In the year April 2023 to March 2024 the total cost to the Sovereign Grant totalled £800,000 with £600,000 being spent on the coronation and surrounding events.

How much money does the Monarchy bring to the UK?

With such a high income you may be wondering what the Royal Family do to have such a high income, especially when the UK is facing a cost-of-living crisis with many facing poverty. Criticism has increased over the past few years towards the Monarchy and the lavish lifestyle they lead.

So, does the Royal Family help the UK’s revenue?

The Royal Family replicate the UK’s history and culture and this is the reason for a large number of tourists to the UK every year. Research suggests that 60% of tourists to the UK are likely to visit areas with significance to the Royal Family and their history, with more than a third listing Buckingham Palace high on their list of things to see.

In 2019-2020 the Royal Estate’s income from ticket admission rose to £49.9 million according to Statista.

Windsor Castle and Frogmore House reported 426,000 paying visitors in the year 2021-22. Visitors paying for tickets bring a great revenue to the UK. This includes not only admission tickets but also retail, hospitality, hotels and more which see an increase due to the attraction of the Royal Family to tourists.

Brand Finance estimates that the Royal Family contribute £2.5 billion to the British economy annually.

So, the Royal Family do contribute a significant amount to the UK but do you think this justifies their generous spending when it comes to their events and lifestyle?

Compare Streaming platforms

Streaming platforms are a popular way to watch our favourite films and TV’s and most people are subscribed to more than one platform.

Netflix remains the most popular streaming service with over 270 million subscribers and a revenue of over $9.4 billion in just the first quarter of 2024.

Amazon Prime Video has had the biggest boost in popularity since 2013 – 2023 subscribers increased by +1,025%.

Disney + subscribers have increased to a third of all households by 2023, considering this platform was introduced in 2021.

Cancelling your streaming subscriptions could save you money each month, especially if you are signed up to more than one. Some platforms offer saver deals on memberships which you can try too.

We will compare 5 of the most popular streaming platforms so you can decide which one is worth it, these will include, Netflix, Amazon Prime Video, NOW TV, Disney + and Apple TV.

Compare costs

Netflix

• Netflix have a range of different memberships which differ in cost and benefits.
• Pay £4.99 a month for access on one screen with ads as you watch.
• Pay £7.99 a month for 1 screen and no ads.
• Pay £10.99 a month for 2 devices in the same household and no ads.
• No free trial is available with Netflix.

Amazon Prime Video

• Pay £8.99 a month or £95 a year for 3 devices.
• A one week free trial before you commit to paying.

Now TV

• Pay £6.99 for 3 devices with a minimum term of 6 months.
• Or pay £9.99 for 3 devices and you are able to cancel the membership at any time.
• A 7 day free trial is available before paying.

Disney +

• £7.99 for standard membership with no ads.
• £4.99 for a membership with ads and access on 2 devices.
• Disney + does not offer a free trial.

Apple TV

• Pay £8.99 a month for an Apple Tv subscription with a 7 day free trial before payment begins.

Compare the content available

Netflix

• This popular streaming platform is a favourite for those who love to binge-watch shows with full seasons of shows available.
• Netflix also has the highest amount of original content which can only be found by having an account.
• All the content on Netflix if available with a membership, no further pay walls.

Amazon Prime Video

• Popular for those with a large household due to the smaller restrictions on screen usage and so more people in the family can use the platform at the same time.
• There are extra films and shows which are available to buy or rent.

Now TV

• You can find films and shows which have recently been released and those from Sky and HBO are available on Now TV too.

Disney +

• Great for families and young children. Fans of Disney, Marvel and Star Wars can find it all on this one platform. A wide range of content from children’s TV to dramas and comedies for adults too.

Apple TV

• Big Budget dramas and new releases as well as children’s shows so this platform can be good for everyone in the family. Apple TV’s library is increasing but remains smaller than other platforms.

Compare the cancellation policies

If you are looking to cancel one of your streaming services to save money then knowing the policy is important so you don’t get stuck paying for longer than you want to.

Netflix

You can cancel Netflix at any time through your account details. If you have time left on your billing period you can use the platform until the end, after this you won’t be charged.

You can also pause your membership for a month where you will not be charges and it will resume taking payments and access will be restored after a month. This is a great option if you will be a way for a period of time in a month or simply need to save the money that month.

Amazon Prime Video

To cancel you can go into you account and change your membership settings, contact customer service or use their cancellation form.

If you paid the membership fee in one large sum you will have 14 days to change your mind and will be able to claim a refund within that time limit.

If your subscription fee is taken through Apple you must cancel your membership 24 hours before it is set to be taken again to prevent paying for the next month.

Now TV

Sign into you NOW account to be able to cancel. If you have more than one account you will have to log in to each one you wish to terminate.

If you have signed onto a minimum term e.g. a term of 6 months as stated above then you can cancel your subscription but payment will be taken until the term ends. This is a contact in which you have agreed to pay for the full term.

Disney +

You can cancel on your account by clicking the ‘cancel membership’ option.

You will have access until the end of your payment plan but then will no longer be charged so if you cancel mid-month, you will have access until the end of the month before your next payment would usually be taken.

Apple TV

Sign into your account to cancel your membership.

If you pay for your account through Amazon then you will have to cancel through Amazon

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.

Universities are facing a financial struggle which the government have stated they cannot bail them out from. This means that either universities need to find new ways to make money and cut costs or face the threat of crippling debt into closure.

UCAS data shows that there have been 316,85 UK 18 years olds that have applied to universities or colleges this year which is a 0.7% increase from 2023.

There has been a 0.3% decrease of applicants of all ages including those over 18 since 2023.

Many people did put off beginning university due to COVID as online learning was not a sufficient replacement for most courses. Once normal teaching resumed applicants increased in numbers again although many find online teaching still being widely used in courses.

What action are Universities taking?

Unfortunately for staff and students, for universities to save the most there need to be cuts. This enables the rest of the Universities facilities to continue running.

Several Universities are planning to cut staff by 10% as well as cutting several courses to save.

Coventry Universities plans to make £100m worth of cuts over the next two years.

University of Kent has confirmed they are cutting 6 courses.

Staff at Goldsmith’s University in London are taking a marking boycott against the planned staff cuts.

Cutting course would mean many students lose the choice to follow this path and could be encourage to pursue other directions.

Why are universities struggling?

Due to Brexit as well as new migration laws making it more difficult and expensive for international students to gain a visa as well as study in England those from outside of the UK are opting out of this option. International students pay much high tuition fees giving Universities a large source of revenue. Limitations on international student being able to bring family with them to the UK also put people off the move.

Tuition fees have been frozen for around a decade and continue to be for a few more years. This is great for students but this means that universities are not able to keep up with rising inflation and the cost of maintaining the institutes.

The rising cost of living including student housing makes new students more unlikely to choose universities. Many choose paid work over further education. Research shows 1 in 10 students access food banks, living as a student for many is not worth it financially. If you are financially struggling at University then try these hacks to save money.

Summer holidays have begun and so has the panic for parents. Finding way to keep the kids entertained is always a summer struggle for parents and this year with rising costs it’s even more difficult.

It’s not a surprise that parents dread the summer holidays as childcare costs rise by 6% this year.

The cost of Childcare

Research by the children’s charity, Coram found that the average price of 6 weeks of childcare now costs over £1000.

The South-east of England are paying around £216 a week and those in Wales paying ££209 a week which is a 15% increase from the previous year.

Childcare programmes are having to turn people away due to being full and understaffed.

Only a handful of councils reported having enough holiday childcare for disabled children and children of parents who work full-time.

How to spend the 6 week summer?

If you are paying these high prices for childcare then you may be searching for free activities when you can spend time with your kids this summer. There are lots of options for this so you can keep costs down. Find free activities here.

You could be eligible for free childcare.

If your child is 3-4 years old then you are entitled to 38 hours of free childcare a week.

If your child is 9 months to 2 years old you could be eligible for 15 hours of childcare.

This is a government scheme so go on the Gov website to check if you could receive this and if your childcare provider can offer this.

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.

If you are getting serious about your savings and perhaps have a larger amount you want to keep safe and partially locked away then notice accounts might be for you.

It is likely you can earn a higher interest rates with a notice account than with other types of savings accounts.

You should only consider opening a notice account if you are certain you won’t need instant access to your money and that you will know in advance when you will need it. With a notice account you will have to give your bank advance notice of when you will need to withdraw any money. If you do withdraw money without notice then you may be charged the amount of the interest you could have earned within the set notice period.

Compare Notice savings accounts

Lloyds bank

• With this account you can earn interest daily and have this paid straight into the account letting your money constantly build.
• You can use this account for businesses.
• You have to be over 18 to open this account.
• With a 32 day account you can earn 2.53% AER. If you choose this account then you will be able to deposit money in at any time.
• With a 95 day account you can earn 4.08% AER.
• Lloyds has the right to change the interest rate at any point as this is not fixed.

West Brom building society

• They offer a 60 notice ISA account where you can earn a variable rate of 5.10% AER tax free. This can be paid either annually or monthly.
• You can open this account with just £1 and continue earning interest tax free up to £1,000,000.
• Give a notice of 60 days to withdraw money or be charged the equivalent of 60 days loss of interest.
• This account can be opened online only.

Monument bank

• A great choice for those big savings like a house deposit as this bank has a high minimum deposit of £25,000.
• Your interest rate of 5.13% AER will be paid into the account monthly. This is for the 7 day notice account.
• For a 45 day notice account the interest rate goes up to 5.20%. It goes up again to 5.27% for a 60 day notice period.
• Up to £85,000 of your savings will be FSCS protected and there are no fees for opening or managing the account. You will also be able to cancel any withdrawal requests if you change your mind before the day.
• Continue depositing into the account whenever you like to top it up and manage the account online including your withdrawal requests.

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%.

If you are saving up to buy your first home you might be finding it difficult to stay on track, most people find it a challenge to save for a long period of time as this could mean your lifestyle has had to be altered. You may have to change your mindset first so you can stay focused on your goals and the reason you are saving, whatever that may be for you.

Saving for your deposit will depend on the cost of the house you are looking at as mostly you will have a 10% deposit meaning you need to save 10% of the overall house price.

Mojo Mortgages have provided 12 hacks which you can use to save an extra £7,130 towards your house deposit on top of anything you already have.

12 money saving hacks