The Sunday Times April 29, 2018 17 MONEY Best Buys CURRENT ACCOUNTS FOREIGN MORTGAGES MONEY CREDIT INTEREST CURRENCY 2-YEAR FIXED RATES Provider Account name Account fee Interest rate 1 Balance Contact Lender Rate Scheme Deposit Fee Notes Contact MADE EASY These are the interbank TSB Classic Plus None 3% + £10 a month 2 £1-£1,500 0345 975 8758 Monmouthshire 1.34% Fixed for 2 years 35% £999 HR 0163 384 4351 INHERITANCE TAX rates at 5pm on Friday, Reward None £3 a month £1+ 0345 720 3040 which show where the HSBC 1.54% Fixed to 31.8.20 20% £999 LV 0800 494 999 Thousands of families Nationwide FlexDirect None 5% 3 £0.01-£2,500 0800 302 010 market is trading. Nationwide 1.89% Fixed for 2 years 10% £999 GLV 0800 302 010 have missed out on an They are not indicative inheritance tax break OVERDRAFTS * 3-YEAR FIXED RATES of the rate you will be intended to help people Provider Account name Account fee Interest rate 4 0% overdraft limit Contact able to get. Lender Rate Scheme Deposit Fee Notes Contact who pass on a family 1st Account £10 a month 5 15.9% £250 0800 242 424 HSBC 1.69% Fixed to 31.5.21 25% £999 LV 0800 494 999 home to their heirs, M&S Bank M&S Current Account None 15.9% £100 0345 900 0900 EURO Coventry 1.85% Fixed to 30.6.21 15% £999 LV 0800 121 8899 according to analysis by Post Office Money Standard Account None 14.9% £0 0345 266 8977 GBP>EUR Virgin Money 2.18% Fixed to 1.7.21 10% £995 LV 0345 605 0500 the insurer NFU Mutual. 1 Based on funding of £1,000 a month. 2 To receive £10 you must have two direct debits and make 20 card payments a month. 3 Introductory rate for one year, then 1%. 4 Equivalent annual rate. 5 Fee waived if minimum funding of £1,000 is met. * Based on overdraft of £500 for 15 days a month. LONG-TERM FIXED RATES What is inheritance tax? Some accounts require minimum funding/direct debits to open or receive rates shown. Source: Moneyfacts.co.uk Lender Rate Scheme Deposit Fee Notes Contact An individual can pass First Direct 1.84% Fixed for 5 years 40% £490 LV 0800 482 448 on up to £325,000 (£650,000 for a couple) 2.02% Fixed to 31.7.23 20% £995 LV 0345 051 8446 1.14 without their heirs having AMERICA 2.44% Fixed to 31.7.23 10% £999 LV 0333 202 7580 to pay any inheritance tax CREDIT CARDS GBP>USD Coventry 2.19% Fixed to 30.6.25 35% £999 LV 0800 121 8899 (IHT). Anything above this threshold is usually taxed INTRODUCTORY RATES TRACKERS */ DISCOUNTS at 40%. The taxman took Provider Card type Introductory purchase APR 1 Reward Contact Lender Rate Scheme Deposit Fee Notes Contact a record £5.2bn in IHT Halifax 30-Month Purchase Mastercard 0% for 30 months 18.9% No halifax.co.uk 0.99% SVR -3.96% to 30.6.20 40% £1,449 LV 0800 202 122 in 2017-18. Virgin Money 30-Month All Round Mastercard 0% for 30 months 18.9% No 0800 389 2875 1.38 HSBC 1.79% Tracker +1.29% for 2 years 10% £999 ELV 0800 494 999 Last April, the MBNA All Round 30/30 Visa 0% for 30 months 19.9% No 0345 606 2062 Leeds 1.80% SVR -3.89% for 5 years 20% £499 LV 0345 045 4049 government introduced SWITZERLAND an additional £100,000 GBP>CHF Barclays 2.24% Tracker +1.74% for term 25% £1,999 LV 0333 202 7580 BALANCE TRANSFERS tax-free allowance for Provider Card type Introductory purchase Transfer fee 2 APR Contact FIRST-TIME BUYER / LOW DEPOSIT each individual whose estate includes a main MBNA Platinum 36-Month Visa 0% for 36 months 1.99% 19.9% 0345 606 2062 Lender Rate Scheme Deposit Fee Notes Contact family home. The Yorkshire BS 3.19% Fixed to 30.6.20 5% £495 PV 0345 166 9510 Nuba Transfer Mastercard 0% for 36 months 2.5% 19.9% 0345 606 2062 allowance, raised to Tesco Bank Clubcard Mastercard 0% for 36 months 2.69% 18.9% 0345 300 4278 1.36 Monmouthshire 2.99% SVR -2% for 2 years 5% £0 CPV 01633 844 351 £125,000 this month, is Barclays 2.75% Fixed to 31.7.21 0% £0 FP 0333 202 7580 known as the “main CASHBACK CARDS AUSTRALIA residence nil-rate band”. GBP>AUD BUY TO LET Provider Card type APR 1 Cashback Contact It means that, in total, Lender Rate Scheme Deposit Fee Notes Contact American Express Platinum Cashback 28.2% 1%-1.25%. Intro 5% for 3 months 0800 917 8047 an individual can pass Virgin Money 1.79% Tracker +1.29% to 1.7.20 40% £995 D 0345 605 0500 on up to £450,000 (or American Express Platinum Cashback Everyday 22.9% 0.5%-1%. Intro 5% for 3 months 0800 917 8047 Ipswich 3.15% Fixed to 30.4.20 20% £1,149 R 0147 321 1021 £900,000 for a couple). Santander All in One Mastercard 21.7% 0.5% 0800 389 9905 Barclays 2.20% Fixed to 31.7.23 40% £1,950 R 0333 202 7580 1 APR = annual percentage rate, dependent on credit rating. 2 Fee charged on the amount of each balance transfer during the introductory period. 1.82 So what’s the problem? Source: Moneyfacts.co.uk Early repayment charge applies unless otherwise stated. * Most deals track Bank of England base rate. Notes: SVR = Standard variable rate; Source: timescurrencyservices.co.uk C = £250 cashback; D = £500 cashback; E = No early repayment charge; F = Family Springboard, 10% deposit must be in a Barclays Helpful Start Only a “direct 020 7294 7970 account; G = £500 cashback for first-time buyers; H = Remortgages only; L = Free legal work for remortgages; P = Purchases only; R = Free valuation and legal work for remortgages; V = Free valuation. descendant” can benefit Source: landc.co.uk — 0800 373 300 from the extra allowance. This means children and grandchildren — SAVINGS ACCOUNTS including adopted and INSTANT ACCESS foster children, and Provider Account name Min deposit Interest rate Contact stepchildren. However, CASH ISAS it does not apply to Easy Access — Issue 26 £1,000 1.3% kentreliance.co.uk INSTANT ACCESS nephews, nieces, siblings RCI Bank Freedom Savings £100 1.3% rcibank.co.uk Provider Account name Min deposit Interest Transfers in Contact and other relations. Easy Access — Issue 11 £1,000 1.25% shawbrook.co.uk Nationwide 1 Single Access Isa £1 1.3% Yes nationwide.co.uk How many people NOTICE ACCOUNTS Coventry BS Easy Access Isa (7) £1 1.25% Yes coventrybuildingsociety.co.uk have lost out? 1 Subject to maximum of one withdrawal a year. Additional withdrawals will reduce rate to 0.5% for remainder of account year. Provider Account name Notice period Min deposit Interest rate Contact Just 3,065 estates claimed FIXED RATE the additional allowance 1 180-day notice 180 days £1,000 1.65% securetrustbank.com Provider Account name Term Min deposit Rate Transfers in Contact in April to December Paragon Bank 120-day notice (Issue 8) 120 days £500 1.55% paragonbank.co.uk last year, according to a Kent Reliance Cash Isa (Issue 25) 1 year £1,000 1.48% Yes kentreliance.co.uk Secure Trust Bank 1 120-day notice 120 days £1,000 1.55% securetrustbank.com freedom of information Kent Reliance Cash Isa (Issue 26) 2 years £1,000 1.68% Yes kentreliance.co.uk request by NFU Mutual. FIXED-RATE BONDS Source: Savingschampion.co.uk — 0808 178 5354 The insurer estimates only Provider Account name Term Min deposit Interest rate Contact 4,000 of 24,000 estates United Trust Bank 1 Year Bond 1 year £5,000 1.9% utbank.co.uk that paid IHT in the last tax Secure Trust Bank Fixed-Rate Bond (26.5.20) 2 years £1,000 2.16% securetrustbank.com year will have benefited from the new allowance. RCI Bank Fixed Term 3 years £1,000 2.31% rcibank.co.uk 1 Maximum three capital withdrawals a year, subject to required notice. CHILDREN’S ACCOUNTS Top tip DEALS ARE LISTED ONLY IF THEY ARE COVERED BY THE UK COMPENSATION SCHEME (FSCS) OR A EUROPEAN EQUIVALENT Source: Savingschampion.co.uk — 0808 178 5354 Provider Account name Account type Min deposit Interest rate Contact A good way to mitigate tax Halifax Kids’ Monthly Saver Regular saver £10 4.5% halifax.co.uk bills is to plan early and take advantage of your Santander 1 123 Mini Current Account Current account £300 2.96% santander.co.uk annual gifts allowance – Cambridge 3-year Fixed Rate Bond Fixed-rate bond £1,000 2% cambridgebs.co.uk the amount you can pass 1 Interest rates are tiered: 1% on balances of £100-£199; 1.98% on £200-£299; 2.96% on £300-£2,000. on each year without any JUNIOR ISAS IHT implications. ENERGY DEALS Supplier Average annual bill Rate Contact Provider Account name Min deposit Interest rate Rate Contact You can find details of the specific allowances Table shows the cheapest tariff from the 3 cheapest Tonik £829 F 0333 344 2686 Coventry Junior Cash Isa (1) £1 3.5% V coventrybuildingsociety.co.uk suppliers.Excludessuppliers. Excludes fixed fixed tariffs tariffs of of less less than than 12 12 here: gov.uk/inheritance- months’ duration. Excludes tariffs that do not have People’s Energy £864 V 0131 285 5510 Nationwide Smart Junior Isa £1 3.25% V nationwide.co.uk tax/gifts. national coverage. Excludes tariffs where payments Together £872 F 0333 150 1699 are taken in advance of the customer coming on Tesco Bank Junior Cash Isa £1 3.15% V tescobank.com Ali Hussain 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

MIKE DUHON of exploration, while environmental worries Are you getting ready could boost cleaner energy providers at the expense of fossil fuels. The explosion on BP’s Deepwater Horizon rig in to crawl out of your April 2010 killed 11 workers and caused widespread pollution. The company revealed in January that the Shell? Think again total cost of this disaster in fines and compensation payments looks likely to exceed $65bn. For all the swings members of pension funds, business is fundamentally As a BP shareholder, I was as well as income-seeking mispriced and represents glad to get out at 506p in in the oil price, it is unit trust investors, should an opportunity for investors.” January 2011. However, BP care what happens to Royal Buxton is more nuanced: has now run up to 537p, hard to walk away Dutch Shell. “It has for a long while been helped by the investment from a company Fears that it might cut its my largest position in the bank Goldman Sachs tipping dividend — which was barely Old Mutual UK Alpha fund at it to hit 640p. that has paid covered by corporate 5% of assets, because I felt the Russ Mould, investment investors so much earnings — have dogged the market’s concerns about director of the online stock in recent years. the sustainability of the platform AJ Bell, pointed out However, these concerns dividend would ease. that sterling’s strength have been eased by the rising “But, as the shares have against the dollar means PERSONAL oil price, now about $75 per been buoyed of late by rising Two Shell platforms in the Gulf of Mexico. The oil giant distributes more dividends than any other company listed in London British investors in Shell ACCOUNT barrel, and Shell’s self-help oil prices, I have trimmed the might receive a reduced strategy of selling assets and holding somewhat — it’s now to cut the oil supply in an income when the first IAN cutting costs. nearer 4% of the fund — NEVER MIND LEAVING MONEY TO THE KIDS attempt to increase prices. quarter’s dividend is paid on COWIE Senior City figures — such because I am not convinced Tensions in the Middle East June 18, based on the June 4 as Paul Niven, who runs the the current oil price is USE IT OR LOSE IT TO THE TAXMAN tend to support that trend. exchange rate. At current Foreign & Colonial (F&C) sustainable in the long run.” Last week the US president rates, the forecast annual Investment Trust, and History shows that the How do you fancy getting wealth far in excess of multimillionaire, Andrew Donald Trump threw petrol dividend of $1.88 looks set to Richard Buxton, chief higher the price of oil climbs, a 40% discount on a dream £325,000, the threshold Carnegie — you think it is a on the fire by describing his be worth £1.34. executive of Old Mutual the harder consumers try holiday, home extension beyond which inheritance bit dim to aim to be the predecessor’s deal with Iran Mould added that Shell’s ever sell Shell” Global Investors — reckon the to use less by increasing or boat? tax (IHT) bites at 40%. richest stiff in the graveyard, as “insane” — and the oil price earnings per share still fall sounds like a silly dividend is relatively safe. efficiency or finding other Most weeks, this column As this includes your it makes even less sense to spiked above $75 for the first short of the ideal ratio of rhyme, but it seems Shell was the first share sources of energy. Few urges readers to save and home — albeit after an become a higher-rate time in three years. cover for sustainable to work most of F&C bought, back in 1925, and commodities are more prone invest, but a change is as additional main residence taxpayer posthumously. Coming down from those dividends — where earnings ‘Nthe time. The oil the world’s oldest investment to fluctuating between glut good as a rest. So here is a allowance of £125,000 in Alternatively, spending heights to the micro- equal twice the payouts to giant, which announced trust still holds it today. and famine, boom and bust. financial incentive to have the current tax year — that some of your wealth now economics of my modest shareholders — but its first-quarter profits up 42% to That is not to say F&C is For example, as oil some fun instead. means many folk who means that HMRC will in portfolio, Shell has been a cashflow has improved. $5.3bn (£3.8bn) on Thursday, uncritical about how Shell approached $150 a barrel in My old friend Alan Steel, have been basic-rate effect subsidise 40% of core holding for seven years All things considered, distributes more dividends wasted shareholders’ money 2008, demand collapsed in a Scots independent taxpayers all their lives your expenditure on and is likely to stay so. demand for oil seems likely than any other company on ill-conceived ventures the global credit crisis and the financial adviser since 1973, will be paying higher-rate whatever you like. While nuclear, solar and to pump up the price, listed in London — a total of when oil prices were higher. price plunged by two-thirds. says the purpose of tax for the first time after Your kids may not thank wind power get a lot of media supporting Shell’s valuation, nearly $16bn this year. That’s “Low oil prices forced When oil recovered to exceed effective investment is to be they die. you, or me , for this way of coverage, oil remains the and shareholders are being more than £1 in every £7 improvement in capital $100 between 2011 and 2014, able to afford to fly business As Steel said: “Now that looking at things — but lifeblood of the industrial well paid to wait. paid out by all the companies allocation and returns will American shale frackers class even after you have HM Revenue & Customs whose money is it anyway? economy. So it makes sense The company’s share price on the FTSE 100. improve in future,” Niven pumped harder to boost retired. [HMRC] is collecting more to retain some exposure to has increased by 22% over Dividends — the income told me. “But the share price supply and prices fell. He should know, having than £5bn a year from IHT, this sector as part of a the past year, with half of that companies may pay to implies continued value Geopolitical and macro- just returned from yet anything that jolts wealthy ST DIGITAL diversified fund. this happening in the past shareholders — have destruction, despite the fact economic trends remain another jaunt — this time to folk out of their inertia on Read a breakdown of Against all that, this month. delivered most of the real the dividend is now covered powerful drivers of Australia. Steel points out financial planning has to Ian Cowie’s ‘forever’ fund remains a risky business. That ain’t bad for a blue returns from investing in as long as the oil price commodity markets. that many readers of The make sense.” thesundaytimes.co.uk/ The Gulf of Mexico disaster chip that still yields 5.5%. equities over the past remains above $50. We Erstwhile rivals Russia and Sunday Times will have If — like another Scottish cowieholdings at the start of this decade [email protected] century. So millions of believe the quality of the Saudi Arabia are co-operating demonstrated the hazards or @iancowie