The Sunday Times December 2, 2018 17 MONEY Best Buys CURRENT ACCOUNTS FOREIGN MORTGAGES CREDIT INTEREST CURRENCY 2-YEAR FIXED RATES Provider Account name Account fee Interest rate 1 Balance Contact Lender Rate Scheme Deposit Fee Notes Contact These are the interbank Co-operative Current with Everyday Rewards None £4 a month – 0345 721 2212 1.59% Fixed for 2 years 35% £490 LV 0800 482 448 rates at 5pm on Friday, TSB Classic Plus None 5% £1-£1,500 0345 975 8758 which show where the Sainsbury’s 1.69% Fixed to 31.12.20 15% £995 LVS 0345 111 8010 Nationwide FlexDirect None 5% 2 £0.01-£2,500 0800 302 010 market is trading. HSBC 1.79% Fixed to 31.01.21 10% £999 LV 0800 494 999 They are not indicative OVERDRAFTS * 3-YEAR FIXED RATES of the rate you will be Provider Account name Account fee Interest rate 3 0% overdraft limit Contact able to get. Lender Rate Scheme Deposit Fee Notes Contact First Direct 1st Account £10 a month 4 15.9% £250 0800 242 424 HSBC 1.69% Fixed to 31.01.22 40% £999 LV 0800 494 999 M&S Bank Current Account None 15.9% £100 0345 900 0900 EURO Coventry 1.89% Fixed to 31.12.21 15% £999 LV 0800 121 8899 Current Account None 15% £0 starlingbank.com GBP>EUR Hanley Economic 2.24% Fixed to 30.11.21 10% £299 V 01782 255 000 FUND FOCUS 1 Based on funding of £1,000 a month. 2 Introductory rate for one year, then 1%. 3 Equivalent annual rate. 4 Fee waived if minimum funding of £1,000 is met. LONG-TERM FIXED RATES STANDARD LIFE * Based on overdraft of £500 for 15 days a month. INVESTMENTS PROPERTY Some accounts require minimum funding/direct debits to open or receive rates shown. Lender Rate Scheme Deposit Fee Notes Contact Source: Moneyfacts.co.uk INCOME TRUST Skipton 1.89% Fixed to 31.01.24 40% £995 LV 0345 850 1755 1.13 M&S Bank 2.04% Fixed to 31.01.24 15% £1,094 LV 0800 923 1536 Property trusts buy First Direct 2.25% Fixed for 5 years 10% £490 LV 0800 482 448 AMERICA buildings and make CREDIT CARDS GBP>USD TSB 2.39% Fixed to 31.01.29 40% £995 LV 0800 056 1088 money from renting out the space to tenants, as INTRODUCTORY RATES TRACKERS */ DISCOUNTS well as from any rise in 1 Lender Rate Scheme Deposit Fee Notes Contact Provider Card type Introductory purchase APR Reward Contact the value of the property. Sainsbury's Bank Dual Offer Mastercard 0% for 29 months 19.9% Yes 0808 540 5060 Leeds 1.38% Tracker +0.63% to 31.01.21 25% £999 LV 0345 045 4049 Post Office Money Online Platinum Mastercard 0% for 28 months 18.9% No 0345 607 6500 Skipton 2.05% Tracker +1.3% for 2 years 10% £995 ELV 0345 850 1755 What the trust does 1.28 Nationwide 2.14% Tracker +1.39% for 5 years 40% £999 AELV 0800 302 010 Standard Life Investments MBNA All Round 28/28 Visa 0% for 28 months 19.9% No 0345 606 2062 SWITZERLAND Hanley Economic 1.99% SVR -3.45% for term 40% £999 ELV 01782 255 000 Property Income Trust BALANCE TRANSFERS GBP>CHF owns 100 UK buildings, FIRST-TIME BUYER / LOW DEPOSIT with 58% of its assets in Provider Card type Introductory purchase Transfer fee 2 APR 1 Contact Lender Rate Scheme Deposit Fee Notes Contact the industrial and logistics MBNA Platinum 33-month Visa 0% for 33 months 1.99% 19.9% 0345 606 2062 Monmouthshire 2.55% SVR -2.69% for 2 years 5% £0 PVE 01633 844 351 sector and 28% in offices. Post Office Money Online Mastercard 0% for 32 months 2% 19.9% 0345 607 6500 Post Office 3.06% Fixed to 31.01.21 5% £0 PV 0800 077 8033 MBNA Platinum 31-month Visa 0% for 31 months 1.1% 19.9% 0345 606 2062 What it invests in 1.28 Nationwide 1.64% Fixed for 2 years 25% £999 AFPV 0800 302 010 Manager Jason Baggaley CASHBACK CARDS BUY TO LET currently favours Provider Card type APR 1 Cashback Contact AUSTRALIA Lender Rate Scheme Deposit Fee Notes Contact industrial space and is American Express Platinum Cashback 28.2% 1%-1.25%. Intro 5% for 3 months 0800 917 8047 GBP>AUD starting to offload Coventry 2.49% Variable for term 35% £999 LV 0800 121 8899 warehouses, which have American Express Platinum Cashback Everyday 22.9% 0.5%-1%. Intro 5% for 3 months 0800 917 8047 Ipswich 3.15% Fixed to 31.12.20 20% £1,149 R 0330 123 0773 risen sharply in value as Santander All in One Mastercard 21.7% 0.5% 0800 389 9905 Post Office 2.61% Fixed to 31.01.24 25% £995 LV 0800 077 8033 demands soars amid the 1 APR = annual percentage rate, dependent on credit rating. 2 Fee charged on the amount of each balance transfer during the introductory period. Early repayment charge applies unless otherwise stated. * Most deals track Bank of base rate. Notes: SVR = Standard variable rate; shift to online shopping. Source: Moneyfacts.co.uk A = £500 cashback for first-time buyers; = £500 cashback; E = No early repayment charge; F = Help to Buy or shared-equity scheme; “I don’t understand why 1.75 L = Free legal work for remortgages; P = Purchases only; R = Free valuation and legal work for remortgages; S = £250 cashback for purchases; V = Free valuation. everyone is trying to sell Source: landc.co.uk — 0800 373 300 retail properties today. We sold ours two years ago because we could SAVINGS ACCOUNTS see the problems INSTANT ACCESS coming,” he said. Provider Account name Min deposit Interest rate Contact CASH ISAS Performance Easy access account (Issue 31) £1,000 1.5% kentreliance.co.uk INSTANT ACCESS The trust has returned 1 Virgin Money Double Take E-Saver (Issue 10) £1 1.5% uk.virginmoney.com Provider Account name Min deposit Interest Transfers in Contact 68% over the past five 2 years, against a sector Marcus Online savings account £1 1.49% marcus.co.uk Virgin Money 1 Double Take E-Isa Issue 5 £1 1.45% Yes uk.virginmoney.com average of 48%. Its Leeds Limited Issue Online Access Isa (Issue 8) £1,000 1.38% Yes leedsbuildingsociety.co.uk NOTICE ACCOUNTS yield is 4.6%. 1 Maximum of two easy access withdrawals a year. Provider Account name Notice period Min deposit Interest rate Contact What the manager says 3 FIXED RATE 120-day Notice 120 days £1,000 1.83% securetrustbank.com “Everything is changing Secure Trust Bank 3 90-day Notice 90 days £1,000 1.81% securetrustbank.com Provider Account name Term Min deposit Rate Transfers in Contact in retail and in offices, too, Charter Savings Bank 95-day Notice (Issue 20) 95 days £1,000 1.81% chartersavingsbank.co.uk Fixed-rate Cash Isa 1 year £5,000 1.65% Yes shawbrook.co.uk as the way we work is Bank of Cyprus UK Fixed-rate Cash Isa 2 years £500 1.82% Yes bankofcyprus.co.uk changing,” Baggaley said. FIXED-RATE BONDS Source: Savingschampion.co.uk — 0808 178 5354 “I want to understand Provider Account name Term Min deposit Interest rate Contact every building we own.” Tandem Bank Fixed Saver 1 year £1,000 2.05% tandem.co.uk What the experts say Fixed Term Deposit 2 years £25,000 2.35% investec.com Rob Morgan, analyst at Tandem Bank Fixed Saver 3 years £1,000 2.4% tandem.co.uk the fund supermarket 1 Maximum of two easy access withdrawals a year. 2 Rate includes 0.15% bonus for first 12 months. 3 Maximum three capital withdrawals a year. CHILDREN’S ACCOUNTS Charles Stanley Direct, DEALS ARE LISTED ONLY IF THEY ARE COVERED BY THE UK COMPENSATION SCHEME (FSCS) OR A EUROPEAN EQUIVALENT Provider Account name Account type Min deposit Interest rate Contact said: “This is different Source: Savingschampion.co.uk — 0808 178 5354 Kids’ Monthly Saver Regular saver £10 4.5% halifax.co.uk from many other property funds because it focuses Santander 1 123 Mini Current Account Current account £300 2.96% santander.co.uk on smaller lots so has a Cambridge 3-year Fixed-rate Bond Fixed-rate bond £1,000 2% cambridgebs.co.uk broader range of tenants. 1 Interest rates are tiered: 1% on balances of £100-£199; 1.98% on £200-£299; 2.96% on £300-£2,000. It is a higher-risk option JUNIOR ISAS because it borrows money ENERGY DEALS Supplier Average annual bill Rate Contact Provider Account name Min deposit Interest rate Rate Contact to invest, but investors have been rewarded with Table shows the cheapest tariff from the 3 cheapest Pure Planet £920 V purepla.net (app only) Coventry Junior Cash Isa (1) £1 3.6% V coventrybuildingsociety.co.uk suppliers.Excludessuppliers. Excludes fixed fixed tariffs tariffs of of less less than than 12 12 a higher yield and greater months’ duration. Excludes tariffs that do not have People’s Energy £946 V 0131 285 5510 TSB Junior Cash Isa £1 3.25% V tsb.co.uk potential for returns.” national coverage. Excludes tariffs where payments Toto Energy £980 F 0333 210 7070 are taken in advance of the customer coming on Darlington Junior Cash Isa £1 3.25% V darlington.co.uk Holly Black supply. F=Fixed ratesrate V=Variable V=Variable rate rates Source: TheEnergyShop.com — 01259 220 270 V = variable rate. Source: Savingschampion.co.uk — 0808 178 5354 ICONS BY JAMIE JONES And relax . . . If skittish markets are making you nervous, try a bond CONFIDENT YOUR

Holly Black are poor for the next few Even if a business does PENSION IS ON TRACK? months, that 4% yield could HOW BONDS GAVE A STEADIER RETURN THAN THE FTSE default, bondholders are first Investors spooked by the very quickly become 2%.” in line when it comes to UK corporate bonds (LHS) FTSE All-Share (RHS) recent stock market sell-off Bonds may be particularly dividing up the assets, as was could find that bond funds attractive to investors who 350 4,500 the case with Peabody. offer relief from the volatility. have retired and need an Bonds are, in effect, IOUs income from their savings. Know the risks from a government or Lloyd Harris, manager of Bond investing is not without company. Investors lend the Merian Corporate Bond 300 4,000 risks. A key consideration is them cash in return for an fund, looks for strong how long the bond has to run agreed annual rate of interest businesses that do not have before it matures. The longer — known as a coupon — for a big debts. He holds bonds 250 3,500 it is, the more time there is set time. At the end, investors from companies including for the price to fall or the get their money back. HSBC, Microsoft and AT&T. business to default. Bond funds invest in All three have high ratings When interest rates are hundreds of such bonds. from the credit agencies, 200 3,000 rising, managers tend to stick Unlike equity funds, there is which score on a scale from 2012 2013 2014 2015 2016 to bonds with a shorter no hope of doubling your AAA, indicating almost zero Source: Bloomberg duration to improve the money, but they should chance of default, to D, chances of the yield deliver a steady return. known as junk bonds. The Investor sentiment considers are out of favour continuing to beat Bank rate. These funds have been out latter pay higher coupons, Bonds are similar to shares in without good reason. For Another thing to watch is of favour recently, however. but their risk of default — not that their price goes up or example, she invested in the liquidity — the danger of not That is partly because rising being able to pay money down depending on investor US telecoms company Sprint, being able to get your money Get a personalised Pension Plan interest rates have made the owed — is far greater. sentiment — and that creates which other investors are back when you want it. This is coupons less attractive; a 5% Jones said: “Yield is usually opportunities. concerned about because its true of any investment but from a top rated Independent Financial yield is great when interest based around the risk you’re After the 2008 crisis, for potential merger with may be worse with bonds; for Planner on VouchedFor.co.uk. No need rates are near zero, less so taking. You don’t get a 10% example, building societies T-Mobile is being investigated every seller there needs to be when central raise coupon for nothing; there’s such as Nationwide issued by competition authorities. a buyer and sometimes it to commit to ongoing advice. their benchmarks to 2% or 3% some real junk out there.” bonds with a 10.25% coupon Lynn said: “The merger takes longer to find one. and inflation also creeps up. To meet his fund’s ethical because investors had been is more than likely to go Harris said: “I’ve been ✔ Goal setting - get clarity on your ✔ Cashfl ow forecast - fi nd out Quantitative easing has remit, businesses must fulfil scared away from the through and then the price of running this fund for three retirement goals if you’re on track also pushed bond yields criteria such as promoting financial services sector and the bonds will go up again.” years and have had no ✔ Clear answers - Lump sum? ✔ Action list - get ideas that may lower because there has been gender equality or making a had to be well rewarded for She also likes energy defaults.” Annuity? Drawdown? Brexit? improve your retirement such high demand for them positive contribution to the lending it any money. companies, which are out of Darius McDermott, from central banks. environment. He avoids Today the industry is back favour because of concerns managing director of the Only £300 (worth £700*) In addition, investors have tobacco companies and likes in favour and the Nationwide about the oil price. “We investment firm Chelsea been enjoying tidy dividends those involved in social bond prices have soared, invested in [the US coal giant] Financial Services, likes the from companies listed on the housing, renewable energy or according to Harris. Equity Peabody right before it went Royal Corporate Request your Pension Plan today stock market — the FTSE 100 community projects. The investors cannot benefit from bankrupt. We bought bonds Bond fund, which invests in currently yields about 4% — Rathbone Ethical fund has the change of sentiment, worth $1 for 8 cents, then we high-quality company debt, at Vouchedfor.co.uk/pension-plan so have not needed bonds for returned 14.3% over three because Nationwide is not had the right to the firm’s and Rathbone Ethical, which income. If profits fall at these years and yields 4.3%. listed on the stock exchange. assets after it defaulted. We offers a higher income than or call 0208 115 0559 companies, however, they Harris at Merian avoids Ashley Lynn is an analyst ended up selling the bonds most of its peers. could slash dividend payouts. retail companies because of for the Orbis Global Balanced for 65 cents.” He said: “You need a bond * Only 50 Pension Plans available. Off er ends 31st December 2018. £700 value based on 4 hours Bryn Jones, manager of the the fierce competition in the Standard fund, which holds This is an important quirk fund manager with the work at £180 hourly rate. VouchedFor.co.uk is a fi nancial adviser rating site. For full terms and Rathbone Ethical Bond fund, sector, but he likes financial 20% of its money in bonds. of bond investing. Unlike experience and flexibility to conditions please visit VouchedFor.co.uk/terms-and-conditions. said: “Bond coupons are and technology firms. His The fund has returned 41% equities, you are going to get navigate their fund through guaranteed but a company fund has returned 11.1% over over three years. your money back unless the tougher times, which may be dividend is not. If earnings three years and yields 2.3%. Lynn likes bonds that she company goes bankrupt. coming as interest rates rise.”