Product Spotlight: Two-year fixed rate bonds available online
Here are the best deals available for those wanting to secure their rate for a period of two years and prefer being able to open and operate their account online.
Ahli United Bank (UK) plc pays the top rate among internet-operated two-year bonds, with the Raisin UK – 2 Year Fixed Term Deposit account offering a rate of 1.04% AER paid on maturity. It requires a minimum investment of £1,000 and, as is common in the sector, no further deposits or withdrawals will be allowed. The account is exclusively available via the Raisin UK platform and as an added perk, Raisin UK is offering a bonus or Amazon gift card of up to £50 for new customers (terms and conditions apply).
Next up is QIB (UK), with the Raisin UK – 2 Year Fixed Term Deposit paying an expected profit rate of 1.00% AER on its maturity from a minimum initial deposit of £1,000. No further deposits or withdrawals are allowed. This account can only be opened through the Raisin platform and savers can benefit from a bonus or Amazon gift card of up to £50 when they join the platform (terms and conditions apply).
The third-best rate is available from private bank Arbuthnot Direct at 0.95% AER, however savers will need to be high net worth individuals to qualify as a customer. The next best rate available without this requirement is from Union Bank of India (UK) Ltd paying a rate of 0.90% AER on its Union Premier Bond. Interest is paid on maturity and the minimum opening deposit must is £5,000. Withdrawals and further additions are not allowed with this account.
To find more two-year bonds that can be managed online, head to our savings chart.
Product Spotlight: First-time buy-to-let landlord mortgages
Here are the best mortgage rates for those wanting to be a buy-to-let landlord for the first time.
Halifax has the most competitive rate at 1.81% (4.0% APRC) fixed until 28 February 2023, and after this it increases to 4.44% variable. The maximum loan-to-value (LTV) is 60%. There are no arrangement or completion fees. The rental income must be at least 125% of the mortgage interest. This is calculated using a rate of 5.50%.
Virgin Money offers a rate of 1.98% (4.2% APRC) fixed until 1 May 2023, after which it increases to 4.54% variable. The maximum LTV is 75%. There is a £995 arrangement fee. The rental income must be at least 145% of the mortgage interest. This is calculated using a rate of 5.50%. Alternatively, income multiples may also be applied.
Hinckley & Rugby Building Society offers a discounted variable rate of 2.29% for two years. The rate is discounted by 3.60% against the Society’s revert rate of 5.89% variable. After the two-year period, the rate reverts to 5.89% variable. The maximum LTV is 75%. The fees are £250 on arrangement and £999 on completion of the mortgage. The rental income must be at least 145% of the mortgage interest. This is calculated using a rate of 5.50%. Alternatively, income multiples may also be applied.
To find more buy-to-let mortgages, look at our buy-to-let charts and first-time landlord charts. Alternatively, speak to our preferred mortgage broker to help you find the best buy-to-let mortgage.
State pensions set to rise in April
This April, the state pension is set to rise by 2.5%, which will see pensioners getting up to an extra £228.80 a year. The increase is due to the triple lock system, which sees the state pension rise each year in line with earnings, the consumer price index (CPI) or 2.5%, whichever is highest. As inflation was 0.5% in September and earnings have remained low throughout 2020, the triple lock system has resulted in pensions increasing by 2.5%. This will see those on the new full state pension getting an extra £4.40 a week, resulting in £179.60 per month, while those on the old full state pension will get an extra £3.40 a week, resulting in £137.65 per month. Here we’ve looked at how retirees can further boost their pensions.
How to clear credit card debt in 2021
As we enter 2021, now is the perfect time to start making financial plans for the upcoming year and one major goal for many will be to clear credit card debt. Not only is clearing credit card debt a good financial goal, but credit card repayments are becoming more expensive as some providers increase minimum monthly repayments. For example, Barclaycard is set to increase its minimum monthly repayment in January, while in 2020 Halifax, Lloyds Bank, MBNA Limited and Bank of Scotland all increased their minimum monthly repayments. Here we’ve put together some tips on how to clear credit card debt in 2021.
Why you should consider insuring new pets
Constant lockdowns throughout 2020 have seen a significant increase in the number of people acquiring new pets and, although a pet is often an exciting addition to the family, it is also a long-term financial commitment. One way some pet owners may try and reduce the financial cost of owning a pet is by skipping taking out pet insurance but, although pet insurance is not a legal requirement, not taking out pet insurance could end up costing owners more in the long run. Here we take a look at the benefits of getting a new pet insured and how to find the best pet insurance policy.
Start the new year with the market’s best return on savings: 1.25% (variable) easy access.
Chip has recently launched its new market-leading account, Chip+1, allowing savers to unlock a return of 1.25% on savings up to £5,000.
For a limited time, readers of Moneyfacts will be able to unlock Chip+1 and start earning 1.25% bonus on Financial Services Compensation Scheme (FSCS)-eligible savings with our exclusive VIP passcode MF4CT5.
This is currently the highest paying return on easy access savings in the market, coming out on top of the big high street banks that are sitting at 0.01%, so is a perfect way for you to grow your money this year.
For more information on eligibility and Chip+1, head to our site.
Download Chip, sign up and enter MF4CT5 to unlock Chip+1 and start earning a 1.25% return on your savings.
Find out more and apply today: