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16 The Sunday Times December 15, 2019 MONEY ENERGY DEALS Table shows the cheapest tariff from the three cheapest suppliers. Excludes fixed tariffs of less than 12 months’ duration, tariffs that do not have national coverage and tariffs where payments are taken in advance of the customer coming on supply. Supplier Average annual bill Rate Contact Green £867 Variable 0345 222 2525 Nabuh £900 Fixed 0330 041 4902 British Gas £902 Fixed 0333 202 9802 Source: TheEnergyShop.com — 01259 220 270 CREDIT CARDS INTRODUCTORY RATES Provider Card type Introductory purchase APR 1 Reward Contact MBNA 0% Transfer & Purchase Mastercard 0% for 26 months 20.9% No 0345 606 2062 Barclaycard Platinum All-Rounder Visa 0% for 25 months 21.9% No 0800 731 0200 Tesco Bank Clubcard Purchase Mastercard 0% for 24 months 19.9% Yes 0345 300 4278 BALANCE TRANSFERS Provider Card type Introductory purchase Transfer fee 2 APR 1 Contact MBNA Long 0% Mastercard 0% for 29 months 2.75% (no min) 20.9% 0345 606 2062 Halifax 29-month Mastercard 0% for 29 months 3% (no min) 19.9% 0345 944 4555 Sainsbury’s Bank 29-month Mastercard 0% for 29 months 3% (min £3) 19.9% 0808 540 5060 CASHBACK CARDS Provider Card type APR 1 Cashback Contact American Express Platinum Cashback 28.2% 1%-1.25%. Intro 5% for 3 months 0800 917 8047 American Express Platinum Cashback Everyday 22.9% 0.5%-1%. Intro 5% for 3 months 0800 917 8047 Santander All in One Mastercard 21.7% 0.5% 0800 389 9905 1 APR = annual percentage rate, dependent on credit rating. 2 Fee charged on the amount of each balance transfer during the introductory period. Source: Moneyfacts.co.uk SAVINGS ACCOUNTS INSTANT ACCESS Provider Account name Min deposit Interest rate Contact Marcus 1 Online Savings £1 1.44% marcus.co.uk Shawbrook Bank Easy Access (Issue 17) £1,000 1.41% shawbrook.co.uk Yorkshire BS 2 1-year Limited Access Saver £100 1.4% ybs.co.uk NOTICE ACCOUNTS Provider Account name Notice period Min deposit Interest rate Contact United Trust Bank 200-day Notice 200 days £5,000 1.75% utbank.co.uk Close Brothers Savings 95-day Notice 95 days £10,000 1.55% closesavings.co.uk Shawbrook Bank 120-day Notice (Issue 42) 120 days £1,000 1.55% shawbrook.co.uk FIXED-RATE BONDS Provider Account name Term Min deposit Interest rate Contact Metro Bank Fixed-term Savings 1 year £500 1.7% metrobankonline.co.uk United Bank UK Fixed-term Deposit 2 years £2,000 2% ubluk.com United Bank UK Fixed-term Deposit 3 years £2,000 2.2% ubluk.com 1 Rate includes 0.1% bonus for first 12 months. 2 Withdrawals allowed on one day in each account year, based on anniversary of opening date. DEALS ARE LISTED ONLY IF THEY ARE COVERED BY THE UK FINANCIAL SERVICES COMPENSATION SCHEME (FSCS) OR A EUROPEAN EQUIVALENT Source: Savingschampion.co.uk — 0808 178 5354 FOREIGN CURRENCY These are the interbank rates at 5pm on Friday, which show where the market is trading. They are not indicative of the rate you will be able to get. EURO GBP>EUR 1.20 AMERICA GBP>USD 1.33 SWITZERLAND GBP>CHF 1.31 AUSTRALIA GBP>AUD 1.94 ICONS BY JAMIE JONES CHILDREN’S ACCOUNTS Provider Account name Account type Min deposit Interest rate Contact Halifax Kids’ Monthly Saver Regular saver £10 4.5% halifax.co.uk Santander 1 123 Mini Current Account Current account £300 2.96% santander.co.uk Cambridge 3-year Fixed-rate Bond Fixed-rate bond £1,000 2% cambridgebs.co.uk 1 Interest rates are tiered: 1% on balances of £100-£199; 1.98% on £200-£299; 2.96% on £300-£2,000. JUNIOR ISAS Provider Account name Min deposit Interest rate Rate Contact Coventry Junior Cash Isa (1) £1 3.6% Variable coventrybuildingsociety.co.uk NS&I Junior Isa £1 3.25% Variable nsandi.com TSB Junior Cash Isa £1 3.25% Variable tsb.co.uk Source: Savingschampion.co.uk — 0808 178 5354 CASH ISAS INSTANT ACCESS Provider Account name Min deposit Interest Transfers in Contact Yorkshire BS 1 1-year Limited Access Saver (Issue 2) £100 1.35% Yes ybs.co.uk Cynergy Bank Online Isa (Issue 1) £1 1.31% Yes cynergybank.co.uk FIXED RATE Provider Account name Term Min deposit Rate Transfers in Contact Charter Savings Bank Fixed-rate Cash Isa 1 year £5,000 1.41% Yes chartersavingsbank.co.uk United Bank UK Fixed-rate Cash Isa 2 years £2,000 1.67% Yes ubluk.com 1 Withdrawals allowed on one day in each account year, based on anniversary of opening date. Source: Savingschampion.co.uk — 0808 178 5354 MORTGAGES 2-YEAR FIXED RATES Lender Rate Scheme Deposit Fee Notes Contact Barclays 1.21% Fixed to 31.01.22 40% £999 LV 0333 202 7580 HSBC 1.49% Fixed to 31.03.22 20% £999 LV 0800 494 999 Barclays 1.8% Fixed to 31.01.22 10% £999 LV 0333 202 7580 3-YEAR FIXED RATES Lender Rate Scheme Deposit Fee Notes Contact HSBC 1.44% Fixed to 31.03.23 40% £999 LV 0800 494 999 HSBC 1.84% Fixed to 31.03.23 15% £999 LV 0800 494 999 Virgin Money 1.99% Fixed to 01.03.23 10% £995 R 0345 605 0500 LONG-TERM FIXED RATES Lender Rate Scheme Deposit Fee Notes Contact First Direct 1.49% Fixed for 5 years 40% £490 LV 0800 482 448 Barclays 1.93% Fixed to 31.01.25 15% £999 LV 0333 202 7580 Virgin Money 2.25% Fixed to 01.03.25 10% £995 R 0345 605 0500 TSB 2.24% Fixed to 28.02.30 40% £995 LV 0800 056 1088 TRACKERS */ DISCOUNTS Lender Rate Scheme Deposit Fee Notes Contact HSBC 1.39% Tracker +0.64% for 2 years 40% £999 ELV 0800 494 999 Nationwide 2.14% Tracker +1.39% for 2 years 10% £999 AELV 0800 302 010 Newbury 1.99% 2.46% discount for 5 years 25% £850 LV 0163 555 5777 Coventry 2.05% Variable for term 35% £999 ELV 0800 121 8899 FIRST-TIME BUYER / LOW DEPOSIT Lender Rate Scheme Deposit Fee Notes Contact Virgin 2.86% Fixed to 01.03.22 5% £0 CR 0345 605 0500 Monmouthshire 2.95% Fixed for 5 years 5% £0 PV 0163 384 4351 Barclays 1.79% Fixed to 31.01.25 25% £749 PFV 0333 202 7580 BUY TO LET Lender Rate Scheme Deposit Fee Notes Contact Ipswich 2.95% SVR -2.79% for 2 years 20% £1,149 R 0330 123 0773 Barclays 1.57% Fixed to 31.01.22 25% £1,795 R 0333 202 7580 Virgin 1.85% Fixed to 01.03.25 40% £995 R 0345 605 0500 Early repayment charge applies unless otherwise stated. * Most deals track Bank of England base rate. Notes: SVR = Standard variable rate; A = £500 cashback for first-time buyers; C = £500 cashback for purchases; E = No early repayment charge; F = Help to 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 CURRENT ACCOUNTS CREDIT INTEREST Provider Account name Account fee Interest rate 1 Balance Contact Co-operative Bank Current with Everyday Rewards None £4 a month – 0345 721 2212 Nationwide FlexDirect None 5% 2 £0.01-£2,500 0800 302 010 Halifax Reward None £2 a month – 0345 720 3040 OVERDRAFTS * Provider Account name Account fee Interest rate 3 0% overdraft limit Contact First Direct 1st Account None 15.9% £250 0345 600 2424 M&S Bank Current Account None 15.9% £100 0800 756 7777 Starling Current Account None 15% £0 starlingbank.com 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. Some accounts require minimum funding/direct debits to open or receive rates shown. Source: Moneyfacts.co.uk Best Buys What it does Aims to achieve long-term capital growth by investing at least 80% of its money in China, including Hong Kong. What it invests in Invesco China Equity (UK) has a heavy exposure to consumer stocks (43%) and telecoms, media and technology shares (21%). Its top 10 holdings include Alibaba, the online retailer; Tencent, the world’s largest gaming company; Sun Art Retail, a hypermarket chain; Shanghai International Airport; and China Mobile. Performance The fund has returned 3.2% over the past year, compared with an average of 7.6% for rival funds in the sector. What the managers say: Fund managers Mike Shiao and Lorraine Kuo have stated: “Invesco China Equity takes a high- conviction approach to company selection. “We seek to invest in companies with sustainable leadership and competitive advantages [and] whose share prices trade at a discount to what they consider to be fair value.” What the experts say Darius McDermott of FundCalibre, the fund research website, said: “The managers aim to identify companies with a competitive advantage over their peers, and specifically target companies that they feel are undervalued by about 25%-30%. “They then hold them with the expectation that they will reach fair value over a three to five-year time horizon.” Mark Atherton FUND FOCUS INVESCO CHINA EQUITY (UK) Joanne Fowler says relatives are happy to give cash to Holly and Ania at Christmas preaches. “Our children get presents from Santa and their parents, but everyone else gives cash that we put into their Jisas. They’re getting to an age now that when I show them a screen and it has a four-digit number next to their name, they actually get excited.” Some children may have a CTF rather than a Jisa — the tax-free savings accounts available before Jisas. Any child born between September 1, 2002 and January 2, 2011 should have one. Kids got up to £500 added to their accounts by the government, depending on their parents’ income. CTFs were scrapped in 2011 and replaced with Jisas — but although the accounts could be converted, many children still have a CTF. Anyone can pay money into one. Up to £4,368 can be paid into a CTF each tax year — the same as the Jisa allowance. That money will then grow tax-free until the child turns 18, when they will get access to spend it however they wish. If parents did not set up a CTF for a relevant child, then the government will have done it on parents’ behalf and deposited £250 or £500. If £250 had been paid into an investment account tracking the FTSE 100 back in 2002, it would be worth more than £800 now, according to the Share Foundation. If you have lost the details of a CTF, track it down at gov.uk/child-trust-funds. presents’ when they hit adulthood, whether they’re for driving lessons, help towards university maintenance costs or home ownership dreams.” Becky practises what she Stuck for children’s Christmas presents? Give the gift of saving She enjoys seeing the updated balance in her book Swap throwaway toys for a passbook, writes Ruth Jackson Premium Bonds These are another way to help your child save. The money will not earn any interest, but every pound buys a bond that is entered into a monthly draw to win £25 to £1m. The nation’s favourite savings product are a popular gift: in the year to August, £384m worth of Premium Bonds were bought for children. In the past, only parents and grandparents could buy bonds for a child, but the rules have changed so now anyone can gift them. “Premium Bonds hold a special place for many savers and we know, often, that they are bought for a child,” said Ian Ackerley, chief executive of NS&I, which runs the scheme. “We are delighted to give the opportunity for those other than parents or grandparents to give Premium Bonds.” Buy Premium Bonds online or by post and you will get an electronic or paper gift card to give to the child. Just make sure you ask a parent or guardian first, as they will have to manage the bonds on the child’s behalf. Gold Want something a little more exciting than a bank transfer under the tree? How about copying Melchior’s gift to Jesus and giving gold. “Gold has a reputation for holding its value over the long term and safeguarding investments in the face of economic volatility,” said Karina Hicks from the Royal Mint. You can buy a Christmas- themed 1g gold bar from the Mint for £65, or gold coins starting from around £70. Just make sure the lucky child’s parents know about your gift and have somewhere to store it safely. We will spend an average of £300 each on gifts this year, according to American Express. But research by toy firm Toca Boca found that a third of children’s presents are never played with again after Christmas Day. So, rather than buying something that will be cast aside before the last mince pie has been eaten, why not invest that money instead? “Lots of parents struggle to find exciting new gifts and gadgets to spoil their children with at Christmas, especially things that will pass the test of time,” said Michelle Pearce-Burke, co-founder of investment firm Wealthify. “An investment could be a great way to give your child a head start in life, particularly if you start putting their Christmas money aside when they are still little. “It might not seem exciting as it can’t be opened on Christmas Day, but forgoing a toy car today might well mean they can buy a real car when the time comes.” Joanne Fowler, 41, of Rochester in Kent, has been setting money aside for her two children since the day they were born. Ania, 10, and Holly, 7, both have savings accounts, and part of their Christmas present each year is a contribution. “Ania has a child trust fund (CTF) with a passbook,” said Joanne, a business consultant. “After Christmas I take her to the bank and she pays in her money. She enjoys seeing the updated balance: it shows her how her money is growing. She says she hopes to buy a house with it, although there might not be enough for that!” Joanne has found that relatives are happy to avoid the minefield of Christmas presents. “It’s getting harder for them to buy a meaningful gift, so they are happy to put something away for the future instead.” If you want to save for a child at Christmas, here are a number of ways you can do it. Jisas Junior Isas ( Jisas) are a hugely popular savings option for children. As with an adult Isa, money and investments held within the wrapper can grow free from tax (children have to pay tax on their income, just like adults). A parent or guardian has to open the Jisa, but after that anyone can make a contribution up to the annual limit of £4,368. The money cannot be touched until the child turns 18, when it automatically converts into an adult Isa with full access. According to the insurer Royal London, parents spend an average of about £138 per child at Christmas. If that was put into a Jisa instead, by the time they are 18 they will have a £2,824 nest-egg, assuming a growth rate of 1.45% a year. “It might seem Scrooge- like to save for rather than spend on your children, but over time putting money into long-term savings is truly far more generous than things that come in giftwrap,” said Becky O’Connor, a personal finance specialist at Royal London. “Even if your children don’t realise it now, they’ll appreciate these ‘future £3k What that annual amount could add up to in a Jisa £138 Average cost to parents of a child’s Christmas gift PETER TARRY
