16 The Sunday Times November 24, 2019 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 Bank Current with Everyday Rewards None £4 a month – 0345 721 2212 Barclays 1.21% Fixed to 31.01.22 40% £999 LV 0333 202 7580 rates at 5pm on Friday, 2 Nationwide FlexDirect None 5% £0.01-£2,500 0800 302 010 which show where the HSBC 1.49% Fixed to 31.01.22 20% £999 LV 0800 494 999 Halifax Reward None £2 a month – 0345 720 3040 market is trading. Leek United 2% Fixed to 28.02.22 10% £0 V 0808 169 6680 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 None 15.9% £250 0345 600 2424 HSBC 1.44% Fixed to 31.01.23 40% £999 LV 0800 494 999 M&S Bank Current Account None 15.9% £100 0800 756 7777 EURO HSBC 1.84% Fixed to 31.01.23 15% £999 LV 0800 494 999 Starling Current Account None 15% £0 starlingbank.com GBP>EUR Virgin Money 1.99% Fixed to 01.03.23 10% £995 R 0345 605 0500 FUND FOCUS 1 Based on funding of £1,000 a month. 2 Introductory rate for one year, then 1%. 3 Equivalent annual rate. * Based on overdraft of £500 for 15 days a month. LONG-TERM FIXED RATES MITON GLOBAL Some accounts require minimum funding/direct debits to open or receive rates shown. Source: Moneyfacts.co.uk Lender Rate Scheme Deposit Fee Notes Contact OPPORTUNITIES Santander 1.49% Fixed to 02.03.25 40% £999 LV 0800 100 802 What it does 1.16 Coventry 1.89% Fixed to 31.12.24 15% £999 LV 0800 121 8899 This investment trust is AMERICA Virgin Money 2.25% Fixed to 01.03.25 10% £995 R 0345 605 0500 exposed to private equity, CREDIT CARDS GBP>USD Barclays 1.89% Fixed to 31.01.27 40% £999 LV 0333 202 7580 mining, property and forestry, as well as INTRODUCTORY RATES TRACKERS */ DISCOUNTS mainstream equities. Provider Card type Introductory purchase APR 1 Reward Contact Lender Rate Scheme Deposit Fee Notes Contact Manager Nick Greenwood MBNA 0% Transfer & Purchase Mastercard 0% for 26 months 20.9% No 0345 606 2062 HSBC 1.39% Tracker +0.64% for 2 years 40% £999 ELV 0800 494 999 aims to buy rival Barclaycard Platinum All-rounder Visa 0% for 25 months 21.9% No 0800 731 0200 Nationwide 2.14% Tracker +1.39% for 2 years 10% £999 AELV 0800 302 010 investment funds at a 1.28 price that exploits the Tesco Bank Clubcard Purchase Mastercard 0% for 24 months 19.9% Yes 0345 300 4278 Newbury 1.99% 2.46% discount for 5 years 25% £850 LV 0163 555 5777 difference in their market SWITZERLAND Coventry 2.05% Variable for term 35% £999 ELV 0800 121 8899 BALANCE TRANSFERS GBP>CHF value — the share price — FIRST-TIME BUYER / LOW DEPOSIT and the value of their Provider Card type Introductory purchase Transfer fee 2 APR 1 Contact Lender Rate Scheme Deposit Fee Notes Contact underlying assets. MBNA Long 0% Mastercard 0% for 29 months 2.75% (no min) 20.9% 0345 606 2062 Post Office 2.96% Fixed to 31.01.22 5% £0 BPV 0800 077 8033 Halifax 29-month Mastercard 0% for 29 months 3% (no min) 19.9% 0345 944 4555 What it invests in Monmouthshire 2.95% Fixed for 5 years 5% £0 PV 0163 384 4351 Sainsbury’s Bank 29-month Mastercard 0% for 29 months 3% (min £3) 19.9% 0808 540 5060 Top holdings include 1.28 Barclays 1.81% Fixed to 31.01.25 25% £749 PFV 0333 202 7580 Alpha Real Trust, which CASHBACK CARDS BUY TO LET invests in property 1 development; Phoenix Provider Card type APR Cashback Contact AUSTRALIA Lender Rate Scheme Deposit Fee Notes Contact American Express Platinum Cashback 28.2% 1%-1.25%. Intro 5% for 3 months 0800 917 8047 GBP>AUD Spree, an investor in Ipswich 2.95% SVR -2.79% for 2 years 20% £1,149 R 0330 123 0773 German residential American Express Platinum Cashback Everyday 22.9% 0.5%-1%. Intro 5% for 3 months 0800 917 8047 Barclays 1.57% Fixed to 31.01.22 25% £1,795 R 0333 202 7580 property; and Dunedin Santander All in One Mastercard 21.7% 0.5% 0800 389 9905 Post Office 1.96% Fixed to 31.01.25 40% £495 BV 0800 077 8033 Enterprise Investment 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 England base rate. Trust, a private equity Source: Moneyfacts.co.uk Notes: SVR = Standard variable rate; A = £500 cashback for first-time buyers; B = £500 cashback; E = No early repayment charge; F = Help to specialist. 1.89 Buy or shared-equity scheme; L = Free legal work for remortgages; P = Purchases only; R = Free valuation and legal work for remortgages; V = Free valuation. Source: landc.co.uk — 0800 373 300 Performance Over the past year, it has lost 2.2% against its SAVINGS ACCOUNTS benchmark, the INSTANT ACCESS Investment Association Flexible Investment sector Provider Account name Min deposit Interest rate Contact CASH ISAS (4.5%), but over three Virgin Money 1 Double Take E-Saver (Issue 12) £1 1.45% uk.virginmoney.com INSTANT ACCESS years it has returned 25.7% Marcus 2 Online Savings £1 1.44% marcus.co.uk Provider Account name Min deposit Interest Transfers in Contact against 20.1% for the Britannia 3 Select Access Saver 10 £500 1.4% co-operativebank.co.uk Virgin Money 1 Double Take E-Isa (Issue 12) £1 1.36% Yes uk.virginmoney.com benchmark, and over five years 72.7% against 38.2%. Yorkshire BS 2 1-year Limited Access Saver Isa (Issue 2) £100 1.35% Yes ybs.co.uk NOTICE ACCOUNTS FIXED RATE What the manager says Provider Account name Notice period Min deposit Interest rate Contact Provider Account name Term Min deposit Rate Transfers in Contact “There continue to be PCF Bank 180-day Notice (Issue 2) 180 days £1,000 1.85% pcf.bank Aldermore Fixed-rate Cash Isa 1 year £1,000 1.5% Yes aldermore.co.uk many overlooked and Market Harborough BS 180-day Notice 180 days £5,000 1.75% mhbs.co.uk unloved closed-ended United Bank UK Fixed-rate Cash Isa 2 years £2,000 1.67% Yes ubluk.com United Trust Bank 100-day Notice 100 days £5,000 1.7% utbank.co.uk funds,” said Greenwood. 1 Maximum two withdrawals a year. 2 Withdrawals allowed on one day in each account year, based on anniversary of opening date. “Those that have fallen FIXED-RATE BONDS Source: Savingschampion.co.uk — 0808 178 5354 below the radar offer the Provider Account name Term Min deposit Interest rate Contact opportunity for us to Metro Bank Fixed-term Savings 1 year £500 1.8% metrobankonline.co.uk exploit hidden value.” United Bank UK Fixed-term Deposit 2 years £2,000 2% ubluk.com What the experts say United Bank UK Fixed-term Deposit 3 years £2,000 2.2% ubluk.com Ben Yearsley at Shore 1 Maximum of two withdrawals a year. 2 Rate includes 0.1% bonus for first 12 months. 3 Maximum of four withdrawals a calendar year, after which rate reduces to 0.3% for rest of year. CHILDREN’S ACCOUNTS Financial Planning said: DEALS ARE LISTED ONLY IF THEY ARE COVERED BY THE UK FINANCIAL SERVICES COMPENSATION SCHEME (FSCS) OR A EUROPEAN EQUIVALENT Provider Account name Account type Min deposit Interest rate Contact “This is a well-diversified Source: Savingschampion.co.uk — 0808 178 5354 Halifax Kids’ Monthly Saver Regular saver £10 4.5% halifax.co.uk fund that invests in out-of- favour, sometimes Santander 1 123 Mini Current Account Current account £300 2.96% santander.co.uk specialist investment Cambridge 3-year Fixed-rate Bond Fixed-rate bond £1,000 2% cambridgebs.co.uk trusts. The manager 1 Interest rates are tiered: 1% on balances of £100-£199; 1.98% on £200-£299; 2.96% on £300-£2,000. believes a lot of the trusts JUNIOR ISAS he invests in are sitting at ENERGY DEALS Supplier Average annual bill Rate Contact Provider Account name Min deposit Interest rate Rate Contact a discount to their true worth, and there’s Table shows the cheapest tariff from the 3three cheapest Green £867 Variable 0345 222 2525 Coventry Junior Cash Isa (1) £1 3.6% Variable coventrybuildingsociety.co.uk suppliers.Excludescheapest suppliers. fixed Excludes tariffs fixed of less tariffs than of 12 certainly been a widening months’less than duration. 12 months’ Excludes duration, tariffs tariffs that that do not have People’s Energy £882 Fixed 0131 285 5510 NS&I Junior Isa £1 3.25% Variable nsandi.com of discounts recently.” nationaldo not have coverage. national Excludes coverage tariffs and tariffswhere payments Scottish Power £890 Fixed 0800 027 0072 arewhere taken payments in advance are takenof the in customer advance coming of the on TSB Junior Cash Isa £1 3.25% Variable tsb.co.uk Kate Palmer supply.customer F=Fixed coming rates on supply.V=Variable rates Source: TheEnergyShop.com — 01259 220 270 Source: Savingschampion.co.uk — 0808 178 5354 ICONS BY JAMIE JONES

BRIEFING BUY A SAVINGS BOND, I thought peer-to-peer was as safe as HELP THE HOMELESS If you would like to receive the free weekly Money Yorkshire Building Society email bulletin, visit has pledged to donate 0.1% savings. Now I’m paying the price thesundaytimes.co.uk/ of the value of a new savings moneybulletin. The bulletin is bond to charities fighting exclusive to digital subscribers. youth homelessness. Savers will receive a 1.35% P2P platforms tout attractive returns, know when the rest of my Funding Circle account. Contact us Money, annual rate on the bond, money would arrive. Partly because of the The Sunday Times, fixed until December 31 next but the reality can be a wait of months What upsets me more, multitude of bad debts, it will 1 London Bridge Street year. They must deposit at though, is that I chose take months to retrieve this London SE1 9GF least £1,000 to open the to be paid out — and paltry interest Funding Circle because it said from the platform. account and save up to £2m. it lent only to tried-and-tested I’m not alone. On average, Email [email protected] The mutual will make a the ads I saw for P2P firms businesses. But that has been investors are waiting 135 days one-off donation of 0.1% of KATE such as RateSetter, Zopa and exposed as a sham. to get their cash out — yet the Advertising If you would like to the total value of the bonds Funding Circle were aimed at Its former UK managing platform continues to issue buy an advertisement in Money, to the End Youth PALMER people like me: millennials director, James Meekings, new loans. In a desperate email Paul Douglass at Homelessness group of with disposable cash. had told me that its “no effort to bring in more [email protected] charities when they close the The platforms have since start-ups” rule, and an investment, it is offering John or call him on 07917 598 422 scheme to new accounts. faced a clampdown by the average age of eight years for Lewis vouchers to customers Senior reporter Financial Conduct Authority the businesses lent to, meant who top up their accounts. (FCA), the City regulator, on that Funding Circle would be From next month, Funding ONLY 10% ‘CERTAIN’ OF When I first decided to invest how they advertise, and are able to weather a recession. Circle will levy a 1.25% exit fee in peer-to-peer loans five no longer allowed to compare (Meekings, who co-founded on loans it resells — a further COMFY RETIREMENT years ago, I was not certain it their products with savings the platform in 2010, stepped loss of £16.90 for me. was a good idea. I was cynical deals. But it was only in 2015 Like Zopa, Funding Circle 259 loans with repayment down earlier this year in the Zopa said of my loans that Fewer than one in ten people about the promised returns that the FCA began regulating started well. I earned 3.4% in periods from one month to wake of a disastrous float.) could not be sold: “Most of It is beyond are sure they have saved and did not like the way firms P2P sites — 10 years after they three years, about £153, on five years. I could not sell on So imagine my surprise these loans get back on track enough in their pension to be compared themselves to the launched in Britain. every £1,500 invested — any where the borrower was when I checked my account and can then be sold at the belief comfortable in retirement, a safer havens of banks. While some people poured better than many savings in arrears or had defaulted, recently and found that I was latest market rate”. It added survey of more than 2,000 However, interest rates on all their savings into the rates, albeit far lower than the which accounted for 20 of my lending to scores of young that investment information people by NFU Mutual savings accounts were so dire fledgling platforms, I started 6.9% projected when I joined. loans worth a total of £45. businesses, many of which was available on its website. Which? Money insurers has found. More that I decided to give “P2P” a more cautiously, placing I stuck with Zopa and The rest made me £280 — a had missed repayments. Funding Circle said savers editor Gareth than half of those aged 25-54 go. Now, faced with the need £1,500 with Zopa. I chose Funding Circle until this return of about 18% over five I am currently lending to had earned £300m in interest Shaw as TSB were nervous or unsure. On to get my money out, I’m Zopa because it loaned to August, when I read that years on £1,500. 328 businesses and can see over the past nine years, that hits an IT glitch average, those surveyed said regretting my involvement. individuals rather than some P2P firms had started to I knew the risks when I that 42 are “bad” debtors, just 4% of businesses had days after a £17,578 a year was needed P2P matches savers with companies, boasted that it go bust. I also began to worry joined Zopa, but I was still with a further nine behind on become bad debts, and the damning report for a “basic” lifestyle in borrowers and allows had survived the financial about how responsible the surprised at how tricky it repayments. The bad debtors average age of businesses into last year’s retirement, £33,210 for a individuals to lend their cash crisis and claimed that no sector’s lending was. Only proved to sell on my loans. include a six-year-old car fleet investors lend to is 10 years. major failure “desirable” lifestyle. in return for interest. The investor had lost money. then did it become clear that My experience with company that sought If I have learnt one thing, it platforms handling the loans Things started well. I getting my money out was Funding Circle turned out to £88,000; Funding Circle had is that P2P is not a halfway take a cut, which they use for watched as repayments were going to be a problem. be far worse. So far I have got awarded it an A* rating — its house between savings and GOOGLE ADMITS FLAW CAR TAX DODGERS their own profits and to cover fed back into my account, to With Zopa, I had to stop back only £286, and last week best. That firm owes me £16, investing. It is not covered by costs, such as carrying out be reinvested in other loans. reinvesting — a slow process, the platform said it did not and the only bit I can be sure the Financial Services IN PHONE SECURITY COST £94M A YEAR credit checks on borrowers. As my confidence grew, I as I had to wait for my loans of getting back is the 4% Compensation Scheme, The risk is supposed to be also joined Funding Circle in to mature one by one, but it funded by the British which protects savings of up A Google security flaw Car tax evasion has fallen in lessened because your cash is 2016. It lends directly to small would cost me nothing. Business Bank, a state-owned to £85,000 and investments allowed applications on 2019 to 1.6% of all registered divided into small amounts and medium-sized Two weeks, ago, however, I institution set up to help up to £50,000. Android phones to record vehicles — about 634,000 — and loaned out to scores, companies, and allowed me needed to speed up the small companies expand. It’s going to be an anxious calls and access a phone’s although it is still costing even hundreds, of businesses to pick a risk level (I opted for process, so I changed to the Another bad debt, a wait to get my money back, camera without its user’s £94m a year in lost revenue, and individuals at a time. “low”) and choose which alternative way of cashing in: property and construction but at least I’m not facing knowledge, the tech giant according to figures from the Back in 2014, most of my businesses to invest in. I felt paying a 1% fee to sell on my firm, was also an A* borrower financial ruin. What must admitted last week. It has Department for Transport. money was earning low in control, knowing I would loans to other investors. £286 when it sought to raise £2.3m. happen now is proper fixed the problem but said The figure is still higher interest in savings accounts. I be able to limit my exposure I had about £800 left on Cash returned by Funding For every £1,500 invested, scrutiny of a sector that’s very “hundreds of millions” of than before paper tax discs wanted higher returns, and to untested start-ups. the platform, split between Circle of £1,500 invested there is £1,355 left in my hard to understand. users could still be affected. were abolished in 2014.