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00:00Thank you so much.
00:06The budget dropped a bombshell on savers.
00:09The cash ISA limit is to be slashed.
00:11The lifetime ISA may be replaced.
00:14Savings tax is going up.
00:16So tonight, I'll cut through the noise to explain what it all means in practice
00:20and how to boost your interest to the maximum on the back of it,
00:24including all the best pies.
00:25Plus, as we've had over 10,000 questions in,
00:31on the budget since last week's special,
00:33I want to dig deeper to help you navigate the changes you've asked most about,
00:37including salary sacrifice on pensions, energy bills,
00:41and exactly what the Chancellor meant when she said
00:43those living solely on the state pension won't pay tax.
00:46And I'm going to use some unshown footage from that interview
00:49to help make sense of it all.
00:51Then, in menus you can use, there's now a free £225 up for grabs
00:56for switching bank, a litre of Baileys for just a tenner,
01:00and both Spotify and Amazon Music are offering four months ad-free for free.
01:05And now, speaking of music, to provide the smooth counter-melody
01:08to my rapid-fire percussion, it's Dineke Quachy, everybody.
01:11Thank you very much, Martin.
01:15Yes, it's time to get your questions in for Martin.
01:18Send them over on X or on Threads.
01:20You can use the hashtag MartinLewis,
01:21or you can email the team, martinlewis at itv.com.
01:24And always remember, if we don't use them tonight,
01:26we might use them in a future show.
01:28And as always, a huge welcome to our studio audience.
01:31Wave your wallet!
01:34Lovely, lovely.
01:35It was very busy last week, wasn't it?
01:38We did two shows, one on energy and one on the budget.
01:41So, here's a question that does both for you.
01:43It's coming from David.
01:44Now, following Martin's recommendation to fix all my energy on Tuesday,
01:48I immediately signed up to my provider's 14-month fix,
01:51the cheapest on the market.
01:52Does this mean I won't receive the £150,
01:55even though the Chancellor said everyone would get it?
01:59OK, so the £150 that was announced in the budget
02:01is to start on the 1st of April.
02:03It isn't actually £150, it's a reduction in the unit rates
02:06that you pay on electricity and gas
02:08that is a mean average £100.
02:10So, use more, your saving will be bigger.
02:11Use less, your saving will be less.
02:13Now, when you factor through what's actually going to happen in April,
02:16I've just got the latest predictions.
02:18The prediction before the budget was it was going to go up 3%
02:21the price cap in April,
02:22but now, with the changes in the budget,
02:24it's going to come down 5%.
02:26So, not all of that £150 will actually be in your pocket.
02:29Some will just forestall the rise that would have happened otherwise.
02:32You know what I mean?
02:33Makes sense.
02:33OK, so that's a 5% cut coming in April
02:37after a 0.2% rise in January.
02:39The cheapest fix is 12% cheaper.
02:43So, even if you didn't get the £150,
02:45it's far, far cheaper to fix.
02:47But, people who saw the programme on Thursday
02:49will know I've been lobbying Ed Miliband,
02:51the Secretary of State for Energy,
02:52to incorporate that fix.
02:54He wrote a letter that he sent to me yesterday
02:56to all the energy companies,
02:58telling them they need to give people
03:00the £150 saving on all tariffs.
03:02The question is how,
03:04whether they'll start bringing some tariffs in earlier
03:05that already factor it in,
03:06or they'll drop the price on the 1st of April.
03:08I had a conversation with one of the big bosses
03:10of the energy firms who said,
03:11there's confusion at the moment,
03:13guidance is needed,
03:14I'm going to be talking to Ofgem,
03:15I'm going to be talking to the Secretary of State,
03:17I'm going to be talking to the energy companies
03:18about how it works,
03:19but I'm 99%,
03:21you will get that £150,
03:22we're just not quite sure how at the moment,
03:24so watch this space.
03:25OK, perfect.
03:27Thank you for that question, David.
03:29Right, so, savings tonight,
03:31let's kick you off with Sue.
03:32Sue's saying,
03:32I have 80k in a bank account.
03:33Oh, no!
03:34And I need to know
03:35where the best place is to put it for interest.
03:38I do not need to have instant access to it.
03:40Could you advise, please?
03:41Don't put it in your bank account.
03:43You're never going to get good interest
03:44in £80,000 in a bank account.
03:46Good you've got 80 grand,
03:47but it's in the wrong place.
03:48I mean, we should be able to get you...
03:49You're earning nothing,
03:50so we should be able to add
03:52probably £4,000 a year,
03:53£3,800 a year of interest for you
03:55for doing it right.
03:57Two things before I start on savings.
03:58First of all,
03:59if you have expensive debts,
04:02you should look to clear the debts
04:03before you start saving.
04:05That's a golden rule.
04:06You always want a cash emergency fund,
04:07but clear the debts before it's saving.
04:08And also, really important,
04:10because she says,
04:12I do not need to have instant access to it,
04:14if you've got money
04:15that you're not going to be touching
04:16for over five years,
04:18in general,
04:19you would be better to invest it,
04:21not to save it.
04:22Put it in a broad spread of investments,
04:24and over the long run,
04:25it should go quicker
04:26than you would putting it in savings.
04:28And next week,
04:28for the first time
04:29in the 13-year history of this show,
04:31I'm doing an investment special.
04:33We're going to be talking about
04:33how to invest next week.
04:36For now, though,
04:37I'm just going to focus on the savings.
04:39I'm going to get you to put that question up later,
04:40because I'm going to do some...
04:41I'll keep it up for now.
04:42...stuff about the budget
04:42before I get into the others.
04:43Let's do the big briefing.
04:47OK, so this is the where are we now.
04:49The first thing to say,
04:51a cash ISA
04:51is just a savings account
04:54where the interest isn't taxable.
04:56Isn't taxable,
04:58not isn't tax.
04:59Isn't taxable means
05:00it doesn't even count
05:01towards your tax total.
05:03It's not really recorded
05:04for your tax total.
05:05It's totally separate.
05:06But it's just a normal savings account.
05:08Now, all UK adults
05:10can currently put up to £20,000
05:11in a tax year in ISAs,
05:13in cash and shares
05:13or in a mix.
05:14Once money is in an ISA,
05:16it remains tax-free.
05:17So you can build up an ISA pot.
05:18What do I mean by that?
05:19Well, let's say you put
05:20£20,000 in two years ago
05:21and then you put
05:22£20,000 in last year.
05:24That's 40.
05:24And then you put
05:25£20,000 in this tax year.
05:26That's 60.
05:26And then £20,000
05:27in next tax year.
05:28That's 80.
05:29And then the next year
05:30it's dropping for some
05:31to 12.
05:31But suddenly I've got
05:32nearly £100,000, haven't I?
05:34And I've got interest on top,
05:36which is why some people
05:37have hundreds of thousands
05:38of pounds in cash ISAs
05:39and over a million
05:41in shares ISAs
05:42because they can grow
05:43more quickly.
05:43That's what I mean
05:44year by year.
05:45So the change.
05:47From April 2027,
05:49the cash ISA limit
05:50is going to be cut
05:50to £12,000 a tax year
05:52for under 65s.
05:53Lots of confusion on this.
05:55So for me,
05:56it's a piece of cake.
05:58There you are.
05:59There's my cake.
06:01The ISA limit is £20,000
06:03and will remain £20,000
06:05even for under 65s
06:07after 2027.
06:09Which means you could put
06:10£20,000 in a shares ISA.
06:13You could also choose
06:14to put some in cash.
06:15So let's say you put
06:16a grand in cash.
06:17Well, that reduces the amount
06:18you can put in shares
06:19by a grand
06:19because it still has
06:20to total £20,000.
06:21And you can do that
06:22all the way up
06:23from 2027
06:24to £12,000.
06:26So you could have
06:27£12,000 in cash
06:28and £8,000 in shares.
06:31But of course,
06:32you don't have to put
06:33the money in shares.
06:34So you can just
06:36from that point
06:36have £12,000 in cash.
06:40That's how it works.
06:41That's how the new rule
06:42would work.
06:42£20,000 total,
06:44maximum £12,000
06:45in cash.
06:47But the key to this rule
06:49is it only impacts
06:51new money paid in.
06:52Any money,
06:53remember all those years
06:54and that jumping
06:54that I'm not going to do
06:55a go in
06:55because I'm not that well?
06:57All that,
06:58that's already in an ISA.
06:59That doesn't impact.
07:00The allowance doesn't
07:00change that at all.
07:01And all that old money
07:02you can still transfer
07:03to another cash ISA provider
07:04without any problems
07:06whatsoever.
07:07Just before you go
07:08any further on that.
07:08Good, because I need
07:08a sip of water.
07:09OK, you take that water.
07:10We've just had this
07:11come in from Jane.
07:11So many questions
07:12like this actually, Martin.
07:14Can you open
07:15a stocks and shares ISA
07:16using the full £8,000
07:18amount and a cash ISA
07:19using the full £12,000
07:21and then transfer
07:23your stocks and shares ISA
07:24to the cash ISA
07:26during the same tax year
07:27to get around
07:27the new cash ISA limit?
07:29Isn't that a clever
07:30workaround?
07:31And unfortunately,
07:32the Treasury
07:33are just as clever
07:34because they have said
07:35and this is a
07:36they'll do for consultation
07:37but it's going to happen
07:38from 2027
07:39you will not be allowed
07:41to do a transfer
07:41from a shares ISA
07:42to a cash ISA
07:43to stop people like Jane.
07:45Nice try, Jane,
07:46but no go, I'm afraid.
07:47Sorry.
07:47And I'll work for Jane.
07:48OK, right,
07:49we've had this tweet
07:50come in from 40.
07:52Whoa, Martin,
07:53what is this?
07:54A charge on any interest
07:56paid on cash
07:56held in the stocks and shares
07:57or innovative finance ISA?
08:01Yeah, so this is
08:02the other workaround
08:03that they're blocking.
08:04I should say
08:04these only apply
08:05for people aged under 65.
08:07Those over 65
08:07can still do the shares
08:08to cash transfer.
08:10So what they're going to do
08:11is if you put money
08:12into a stocks and shares ISA
08:13and you hold it in cash
08:14and get paid interest in it
08:15so you're effectively
08:16using it as a cash ISA,
08:17you will have a tax charge.
08:19We don't know the amount
08:20of the tax charge yet
08:21and we don't know
08:22after what length
08:22it will be applied.
08:23I mean, it would be ridiculous
08:24to apply it for just a week
08:25because sometimes
08:26you need to hold money
08:26in cash while you're
08:27buying a new investment
08:28but we don't know
08:29because that's going to be
08:30up for consultation
08:31but they're blocking
08:32that loophole as well.
08:33Do you understand
08:33what people are trying to do?
08:34You can't hold cash
08:35in the shares ISA
08:36if you're under 65
08:37from 2027, April 2027.
08:39OK, 40 tried.
08:41Let's go to Steve.
08:42Steve's got this question here.
08:43He says,
08:44Hi Martin, great show.
08:45With the new ISA changes,
08:46can I still move funds
08:47from cash to stocks and shares?
08:49You can move funds
08:50from cash to stocks and shares
08:52and cash to cash,
08:53stocks and shares
08:54to stocks and shares
08:55within ISAs
08:57but you can't move
08:58if you're under 65
08:59from 2027,
08:59shares to cash.
09:00So yes is the answer
09:02to that question.
09:03OK, let's carry on.
09:04OK, so that's not
09:06the only change
09:06happening to savings.
09:07The income tax
09:08on savings interest
09:09will rise by two percentage points
09:11in 2027
09:13which means ISAs
09:14matter even more
09:15because remember
09:15they're not taxable,
09:16they're not part of this.
09:17Now, most people
09:19can earn £1,000 a year
09:20if you're a taxpayer
09:21of interest
09:23without paying tax on it.
09:24Think of it,
09:24top paying account
09:25at the moment is 4.5%.
09:26You'd have over 20 grand
09:27in savings
09:28before you paid
09:29any tax on the interest
09:30at all
09:31and it's only
09:31the interest
09:31you pay tax on.
09:33Higher rate taxpayers
09:33£500 a year
09:34you get.
09:35Taxpayers earning
09:36more interest
09:37outside of an ISA,
09:38ISA interest
09:39doesn't count for this,
09:40well,
09:41you'll pay tax on it.
09:43From April 2027
09:45the tax rates
09:46will be
09:47on savings
09:48and also property income
09:4922%
09:51for those who
09:51on their normal earnings
09:52pay 20%,
09:5342%
09:53for those who pay 40%,
09:5447%
09:55for the top 45%
09:56rate taxpayers.
09:57Tiny note,
09:57on last week's show
09:58in the budget special
09:59I said that
10:00dividends tax
10:01comes in in 2027,
10:02it's 2026.
10:03I checked afterwards,
10:04I got that wrong,
10:05I do apologise.
10:06Yeah, so
10:06that is all,
10:09as you can see,
10:10a big change
10:10and being much tighter,
10:12frankly,
10:13with what's going on
10:14with savings.
10:14Now,
10:14the reason
10:15for some of these changes,
10:16according to the Chancellor,
10:17isn't to raise revenue
10:18but to encourage
10:20younger people
10:21to invest.
10:23And I think
10:25the stuff
10:25I haven't shown you
10:26from my interview
10:27with the Chancellor
10:28last week
10:29has some stuff on this
10:30that you might find
10:30interesting now.
10:33Bewildered asked,
10:34why would any government
10:35discourage saving?
10:37It's an absolutely
10:37moronic policy.
10:38So 90% of people
10:40will still pay
10:41no tax at all
10:42on their savings.
10:44If you go out to work,
10:46you pay tax,
10:48whatever income tax rate
10:49you're at,
10:50and you pay
10:51national insurance.
10:53And if you get your income
10:55from renting out a property
10:56or from dividends
10:57or from savings,
10:58you don't pay
10:59that national insurance.
11:00So we are narrowing the gap.
11:01And now let me say
11:02something about ISAs
11:04because this is a policy
11:07that I really believe in
11:09and I believe
11:10will make sure
11:11that savers
11:12get better returns
11:13on their savings.
11:14And the reason I say that
11:15is if you,
11:17if you in 1999
11:18started putting
11:20£1,000 into
11:21a cash ISA
11:23and a stocks and shares ISA
11:25and you did that
11:25every year
11:26up until today,
11:27you would be
11:28£50,000 better off
11:30from the stocks
11:31and shares ISA.
11:32And I want more people
11:34to be able to benefit
11:35from growing businesses,
11:36especially growing businesses
11:38here in Britain.
11:40And so we're keeping
11:40the £20,000 limit.
11:42We're not changing that,
11:44but we're saying that
11:44if you're under 65,
11:46£8,000 of it
11:48will be reserved
11:49for investment.
11:50There is also
11:51a wider economic benefit
11:52because if you look
11:53at the US
11:54or Sweden actually,
11:55which has made
11:56reforms recently,
11:57they have a much
11:58better culture
11:59of investment
12:00by ordinary people
12:02into the stock market
12:03and that really helps
12:05businesses in that country
12:06to grow
12:07and we don't have
12:08the same thing here
12:09and I want to keep
12:10businesses here in Britain
12:11and help them access
12:12finance here in Britain
12:14and so this also
12:14has a wider economic impact
12:16as well as
12:17getting better returns
12:18for savers.
12:18Now, as you know,
12:19I agree with your diagnosis
12:21of the problem
12:21we underinvest in this country
12:23and I'm pledging to you
12:24I'm going to do more
12:24communication out there
12:25to improve that.
12:26Which is brilliant
12:26because, you know,
12:28you obviously have
12:29such a big influence
12:31and the 5,800 questions
12:33shows that
12:35and people watch you
12:36because they want to know
12:38what the best thing
12:38to do is their money is.
12:39I disagree with you
12:41over the solution
12:42and I think
12:42Annie
12:43has comments
12:45sort of
12:46test my feeling
12:46why does she think
12:48that slashing
12:49the very important
12:49cash-eiser limit
12:50will suddenly get people
12:51to start investing
12:52when a huge chunk
12:53of savers
12:54don't know the first thing
12:55about stocks and shares
12:55won't it just mean
12:56they pay more tax
12:57on their savings?
12:5890% of people
13:00with savings
13:01will still have
13:02no tax
13:04on their savings.
13:06You can still put
13:0712,000 pounds
13:08Do you really think
13:08cutting the cash-eiser limit
13:09will make a substantial difference
13:10in the amount of people
13:11who invest?
13:11I agree with the guidance
13:13I agree with education
13:14I'd love you to incentivise investing
13:15but the cut...
13:16If we were doing that
13:17on its own
13:18you're probably right
13:19but we're not doing it
13:19on its own.
13:20We're at the same time
13:22changing the advice
13:23and guidance rules.
13:25I've worked with
13:26the Financial Conduct Authority
13:27to get these changes in
13:29and they'll start
13:29this coming ISA year.
13:33Well, only time will tell
13:35whether the Chancellor's plan
13:36will mean more people invest
13:38but on the show next week
13:39we will be going through
13:40how you can invest.
13:41That £50,000 extra figure
13:43of course depends on
13:44what your investment was
13:45in the stocks and shares ISA
13:46maybe an average figure
13:47some people it'll be a lot more
13:48some it'll be a lot less
13:49and understanding that risk profile
13:51is all that investment is about.
13:53Lots more to come from me
13:54and the Chancellor
13:55later in the show
13:56things you haven't seen yet.
13:57Great stuff.
13:57Thank you, Martin.
13:58Well, after the break
13:59Martin will run you through
14:00all the best buyers
14:01cash ISAs and savings
14:03plus what's happening
14:04to the lifetime ISAs.
14:05Big news for first time buyers.
14:07We'll see you in four.
14:08Welcome back.
14:22Lots coming in as usual
14:23over the break
14:24but let me bring this question
14:25back up for you.
14:25The one we had from Sue.
14:27She's got the 80k in her bank account
14:29needs to know the best place
14:30to put it for interest
14:31doesn't need instant access
14:32and wanted some advice.
14:33So, I think the first thing to say there
14:37is we need to split it
14:38into different accounts
14:39because different accounts
14:40have different practices.
14:41Never think you're stuck
14:41with one savings account.
14:43We need to minimise the tax
14:44because if you're a taxpayer
14:45on £80,000 of decent interest
14:47you're going to be paying tax on it.
14:48And there are two simple routes
14:50easy access
14:51and fixed savings.
14:53Let me go through those now.
14:54We'll start with easy access.
14:56These are the bog standard.
14:57You can put your money in
14:58when you want
14:59and you can take it out
15:00when you want
15:00and it's done with lump sums
15:01and generally huge limits
15:03some up to a million
15:04or £2 million
15:04or whatever.
15:05But the crucial thing is
15:07you have to monitor
15:08the interest rate.
15:09The interest rates can change
15:10both when the Bank of England
15:11moves its interest rate
15:12but also at providers' whims.
15:14So, if you're getting these accounts
15:15you need to every two or three months
15:16check your interest
15:17and if they drop the interest
15:19ditch and switch.
15:21But the big rule
15:22the start point
15:23if you ever get a big lump sum
15:25pay up your pension
15:26or sell a house
15:27you put it in an easy access account
15:29but not your bank account
15:29to start with
15:30and you put it in a top one
15:31because if nothing else
15:32you're going to get
15:35a decent rate of interest
15:36on the money
15:36and you both have to pay tax on it.
15:38Now, two different types here.
15:41Cash ISA
15:42a savings account
15:43you don't pay tax on
15:44and a normal savings account.
15:47In general terms
15:48normal savings pay more
15:50but not at the moment
15:51so we have this peculiarity
15:52that the top paying
15:53easy access account
15:54on the market
15:54is trading 212
15:55at 4.52%
15:57only for newbies though
15:58because the bonus
15:59is for newbies
16:00and that pays more
16:01than a normal savings account.
16:02So if you haven't used
16:03your ISA allowance
16:04even if you're not
16:04going to pay tax
16:05so the tax is irrelevant to you
16:07well it's just a savings account
16:08you don't pay tax on
16:09so you may as well
16:09put it in there.
16:10Next best cash ISA
16:11is 4.49% with Plum
16:13and then you've got
16:13the Bank of Ireland
16:14which is actually
16:15sort of the parent
16:16of the post office
16:16savings account
16:17worth you knowing that.
16:18What's interesting
16:19about this one
16:19you see these bonuses
16:20they all do this
16:22they do a bonus
16:22so it's a short term
16:23temporary interest rate hike.
16:25Two ways to look at that.
16:26In a year's time
16:28because so much of this
16:29is the bonus
16:30only 1% is variable
16:313% is the bonus
16:32the rate's going to be terrible
16:34but for the next year
16:36you've got a guarantee
16:37of at least 3.11%
16:39I tend to be in the
16:40I'd take the 3.11% guarantee rate
16:43and I put that in
16:43because it's a bigger name
16:44Trading 212 pays more though.
16:46In normal savings
16:47as long as you're new to it
16:48you have to open
16:49its current account
16:49but there's no hard credit score
16:50for doing that.
16:51Chase is the top pair
16:52again there's a 2%
16:53newbies bonus.
16:55If you want a big name
16:56Kahoot is part of
16:57Santander
16:584.4%.
16:59This is a weird
17:00easy access account
17:01you put your money in
17:02after a year
17:03it matures
17:03i.e. into a pants
17:05paying savings account
17:06and you'll have to
17:06ditch and switch there
17:07although if you've got
17:08over 25 grand
17:09it can be beaten by
17:10Monument
17:10at 4.51%.
17:12So all of those
17:13will work
17:13depending on what
17:14you want to do.
17:15Just to mention
17:15yesterday
17:16the savings safety
17:17protection went up
17:18you're now protected
17:19up to £120,000
17:22per person
17:23per financial institution
17:24it used to be £85,000
17:25any account I mention
17:27has that protection
17:28or I wouldn't be
17:29including it here
17:30all the way through
17:30the show.
17:31Here's the interesting
17:32stuff though
17:33let's imagine
17:34you've filled your
17:35cash ISA
17:35and you have enough
17:36other savings
17:37that you're paying
17:37tax on it
17:38now we do a comparison
17:39between these two
17:40the rate on cash ISAs
17:42even if you're paying
17:43tax on your other
17:44savings
17:45that's the actual
17:46rate you'll earn
17:46because it's not
17:47taxable
17:47the rate on this
17:48Chase account
17:49is the top one
17:50at 4.5%
17:51if you're paying
17:51tax on it
17:52as a basic
17:5320% rate taxpayer
17:54you effectively
17:55get 3.6%
17:56cash ISA
17:58smacked the pants
17:58off it
17:58if you're a
17:59higher rate taxpayer
18:01you're effectively
18:01getting 2.7%
18:02cash ISA
18:03has really
18:04smacked the pants
18:04off it
18:05if you're a
18:06top 2.5%
18:07rate taxpayer
18:07I can't even
18:08think of where
18:08to go with that
18:09one
18:09but those are
18:10a lot better
18:10you see the
18:11difference
18:11because these
18:12you'd have to
18:12pay tax on
18:13these if you're
18:13a taxpayer
18:14and that's when
18:14cash ISA
18:15has really
18:15come into
18:16their own
18:16worth noting
18:17too there are
18:17regular savings
18:18accounts linked
18:18to some banks
18:19that can pay
18:19you up to 7%
18:20but only up to
18:21£200 or £300
18:22put in a month
18:23these are for
18:23lump sums
18:24okay
18:24I hope that
18:25helps for Sue
18:26does that make
18:27sense
18:27you're following
18:28me
18:28good
18:28good
18:29right now
18:30Julie's been
18:30in touch
18:31Martin
18:31she's got
18:32this question
18:32what's the
18:33difference
18:33between a
18:34fixed ISA
18:35and a
18:36cash ISA
18:37nothing at all
18:38cash ISA
18:39is just a
18:40savings account
18:40you don't pay
18:41tax on
18:41and just like
18:42normal savings
18:43account you have
18:43easy access
18:44versions
18:44and you have
18:45fixed cash ISAs
18:46so a fixed ISA
18:47is a fixed
18:48cash ISA
18:49it's where I'm
18:50going next
18:51so the problem
18:52with those easy
18:53access accounts
18:54is the rates
18:54can move
18:55if you want a
18:55guaranteed rate
18:56you get a fix
18:57the problem
18:58with a fix
18:59is the rate
19:00is locked in
19:01but so is
19:02your money
19:02you can't
19:03withdraw money
19:04during the time
19:04on a normal
19:06fix
19:06cash ISAs
19:08by law
19:08have to allow
19:09you to withdraw
19:10the money
19:10but you
19:11normally
19:11lose
19:11say
19:12120 days
19:13worth
19:13of interest
19:13each one
19:14has different
19:15terms
19:15now what
19:16you'll notice
19:17here
19:17is whereas
19:18easy access
19:19the cash ISAs
19:21and the normal
19:22savings were
19:22roughly similar
19:23here
19:24cash ISA rates
19:25are manifestly
19:27worse
19:27than the top
19:28normal savings
19:29so in this case
19:31if you want to
19:32lock money away
19:32and if I go back
19:33to our person
19:33with £80,000
19:34and she doesn't
19:35need easy access
19:36she can get
19:37guaranteed rates
19:38in these
19:38in this case
19:39if you're gonna
19:39don't need to
19:41take the money out
19:42and you're not
19:42paying tax
19:43on that element
19:44of your savings
19:44so let's say
19:45it's up to about
19:46the first £20,000
19:47you would go
19:48with the top
19:49normal fixes
19:50I'm going to stand
19:50here so you can
19:51freeze frame at home
19:52and read all the best
19:53buys so I don't
19:53have to go through
19:53them
19:54if you are going
19:55to pay tax
19:55on your savings
19:56there's my little
19:57lozenge of
19:58information
19:58cash ISA fixes
20:00will always win
20:01if you're a taxpayer
20:02on your savings
20:03fixed rate savings
20:05I just need to
20:05be really clear
20:06remember you can
20:07earn £1,000 a year
20:08of interest
20:08without paying tax
20:09on it
20:09if you're within
20:10that these will
20:11win
20:12if you're above
20:13that and out
20:14then you need
20:14a cash ISA
20:15because that will
20:16win
20:16okay super
20:17right I've got
20:18a couple of
20:18questions for you
20:19here Martin
20:20this one's coming
20:21in from Julian
20:21she's asking
20:22I'm about to
20:23refix my ISA
20:24savings
20:24I don't need
20:25the money
20:26so is it
20:26best with the
20:27current markets
20:28to fix for
20:28three or five
20:30years
20:30so the rate
20:32at which new
20:33fixes are set
20:34tends to be
20:35based on the
20:36city's prediction
20:37of long-term
20:37interest rates
20:38now we have a
20:39base rate decision
20:40coming on the
20:4118th of December
20:42which the markets
20:42currently think
20:43we're likely to
20:44see base rates
20:44drop by a quarter
20:45of a percent
20:46now some of that
20:47will already be
20:48factored into
20:48these rates
20:49but because it's
20:49not guaranteed
20:50not everything
20:51will be
20:51so the first
20:53thing to say
20:53is while easy
20:55access rates are
20:56better at the
20:56moment than
20:57fixes if interest
20:59rates do continue
21:00to drop over the
21:01next year or so
21:01in a year's time
21:02these rates could
21:04look very very
21:04strong compared to
21:05the best easy
21:06access but most
21:08importantly fixed
21:09rates give you
21:10certainty you know
21:11exactly what you're
21:12going to get
21:13now the reason that
21:15the interest rates
21:15are lower after five
21:16years than one year
21:17is because the
21:18long-term prediction
21:19for interest rates
21:19is that they will
21:20drop from where
21:21they are right
21:21now if you were
21:23to get a one-year
21:24fix and then
21:25wanted to fix
21:25again for another
21:26three years say
21:27there's no guarantee
21:28that in a year's
21:29time you'll be able
21:30to get 4.25%
21:31you might only be
21:33getting 3.25%
21:34depending on what's
21:35happened to base
21:35rates I don't know
21:36I can't predict it
21:37but the general mood
21:38music is it's down
21:39so my answer would
21:40be I can't give
21:41you an exact answer
21:42the more you want
21:44certainty the more
21:45you want to guarantee
21:46the interest rate you
21:47get the more you
21:48should consider
21:49fixing and fixing
21:51longer
21:51the only risk is
21:53either you want
21:54your money out
21:54or that the opposite
21:56happens to what
21:56everyone's saying
21:57and interest rates
21:58go in and you're
21:58locked in at too
21:59lower rate
21:59okay I know you
22:00want to talk about
22:01Lysas as well
22:03and I've got a
22:03question here that's
22:04come in from Karen
22:05Karen is saying
22:07my son has just
22:08opened a Lysa
22:09has he done the
22:10wrong thing
22:10absolutely not
22:12opening a Lysa
22:13is exactly the right
22:14thing for anyone
22:15aged 18 to 39
22:16who has never
22:16bought a house
22:17how much money
22:18you put in is
22:18different
22:19the Chancellor
22:20has announced
22:21there will be a
22:21consultation starting
22:23next year to
22:24potentially replace
22:25the Lifetime
22:26Lysa with a new
22:26first-time buyers
22:28Lysa
22:29what will happen
22:29to the Lysa
22:30I presume it will
22:31stay open but it'll
22:31be closed for new
22:32customers much like
22:33they did with help to
22:34save the reason I say
22:35it's not wrong to open
22:36one well let's go
22:37through the Lifetime
22:38Lysa details
22:38what is a Lifetime
22:40Lysa well first of all
22:41it's only for people
22:42from their 18th birthday
22:43to the day before
22:44they're 40
22:45some of you
22:46are able to get
22:48that one
22:49and the key to it
22:50is you get a massive
22:51savings boost
22:52the state adds 25%
22:54on your contributions
22:55until the age 50
22:56up to a maximum
22:57of £4,000 a year
22:59so you get £1,000
23:00a year free
23:01the bonus can be used
23:03and is paid
23:04when you exchange
23:05on your first time
23:06home
23:06if you have ever
23:08owned a property
23:08anywhere in the world
23:10you can't have one of
23:11these even if you've
23:12only part owned it
23:13if you haven't
23:14you can have one
23:14even if you're
23:15buying with someone
23:15who's owned a property
23:16it's an individual
23:17so you could have one
23:18they can't
23:19if you've both
23:19never bought before
23:20you could have one each
23:21the alternative
23:22is you put the money
23:23away until you're
23:24age 60
23:24so it's an alternative
23:25to retirement
23:26to pension savings
23:27this is the reason
23:28many high street banks
23:29don't offer them
23:29because frankly
23:30putting your money
23:31in an employment pension
23:33where they match
23:34your contributions
23:34is so much better
23:36than this
23:36they were scared
23:37they'd be done
23:37for mis-selling
23:38by people using it
23:39for their pensions
23:39which is why
23:40they don't offer them
23:41this is the big problem
23:42you can only use it
23:44on a home
23:45that costs
23:46less than £450,000
23:48that has not gone up
23:50since 2017
23:51I've campaigned
23:52for it to change
23:52they haven't changed it
23:54and this is what people
23:55are getting agitated about
23:56so
23:57eligibility for the bonus
23:59this is the point
24:00this is why I say
24:01you should open one
24:02to use
24:04get the bonus
24:06and to use the bonus
24:07you have to have had
24:08a LISA open
24:08for a year
24:09so I would suggest
24:10any young person
24:11puts a pound in one
24:13and then
24:13tick tock
24:14tick tock
24:14tick tock
24:15the clock's ticking
24:16even if you don't
24:16want to use it now
24:17in a year's time
24:18you might decide
24:18you want to buy a house
24:19three weeks later
24:20you could put
24:21four grand in it
24:21that'd give you
24:22a grand bonus
24:22and you can use it
24:23because you've had it
24:24open for a year
24:24so that's why I say
24:25opening it is not wrong
24:26how much money you put in
24:28because of the
24:29withdrawal penalty
24:30is the issue
24:31if you take the money out
24:33just because you want
24:34the money
24:35or you're buying a house
24:36over £450,000
24:37and you're not age 60
24:39you will pay
24:40an effective penalty
24:42of 25%
24:44that's confusing
24:45it doesn't really work
24:46like 25%
24:47what it actually does
24:49is you've had 25%
24:50added on top
24:51and 25% taken off
24:52it leaves you with
24:536.25% less than you put in
24:55you've put 10 grand in
24:56you're going to take out
24:58£9,375
24:59the state is fining
25:01young people
25:02to take their money out
25:03if they're buying a property
25:04over £450,000
25:05I've had two chancellors
25:07promise me they'll fix it
25:08or tell me they'll try and fix it
25:09neither of them have done it
25:10of the last two
25:11we'll still be working on that
25:12and still you'll see me
25:12with Rachel Reaves
25:13on that in a moment
25:13and finally
25:14if you've got one
25:15or you want to open one
25:17the top payers
25:18Moneybox, Plum
25:19Tembo
25:19there are also
25:20investment lifetime ISAs
25:21but if you're saving
25:22to buy a house
25:22in the next few years
25:23you want cash
25:24if you're doing it
25:25for your retirement
25:26because you've already
25:26filled up your other pension
25:27then you probably want
25:28an investment one
25:29OK
25:29David good morning
25:31I know
25:31good morning
25:32oh my goodness
25:32I'll start that again
25:33good evening
25:34good evening
25:34I know you've got a question
25:35for Martin
25:36yeah hi Martin
25:37so yeah
25:38I'm in my early 30s
25:40and I already own
25:41my first home
25:41thank you
25:42and I just want to know
25:45is it worth me
25:45still continuing
25:46to add to my lifetime ISA
25:48given the speculation
25:49about it changing soon
25:50so the only reason
25:52you would do it
25:52is for retirement savings
25:53because you can't
25:54get the bonus twice
25:55do you have
25:56are you an employee
25:57or are you self-employed
25:58employee
25:58and do you
25:59are you maxing out
26:00your contribution
26:01on your pension
26:01yes yeah yeah
26:02OK so that would always
26:03be my first step
26:04after that
26:05this is a pretty
26:07you know
26:08it's better than saving
26:09in a normal savings account
26:10because you're getting
26:11the 25% bonus
26:12so it is not a bad thing
26:13to be doing
26:13there might be other things
26:14that you can do on top
26:15I think what I'd say to you
26:17is we're in a limbo stage
26:18I think it would be
26:20unthinkable for them
26:21to close the lifetime ISA
26:22and not give you
26:23the bonus age 50
26:24I mean the worst
26:24is they'd stop you
26:25putting any more money in
26:26so
26:27what I would say
26:28I mean funny
26:29I've just thought of this
26:30as I'm talking about
26:30what I'd say to anybody
26:31of this age
26:32even if you bought a house
26:33and you haven't got
26:33a lifetime ISA
26:34put a quid in one now
26:36just in case they do
26:37close it down
26:38and later you wanted
26:38to use it for retirement
26:39you've got that facility
26:40but I'd probably
26:42I mean the Chancellor
26:43will hate me to say
26:43I'd sort of be in limbo
26:44at the moment
26:45and wait and see
26:45what happens in that
26:46consultation before I put
26:47too much more money in
26:48because we don't know
26:49where we're going
26:49but my guess is
26:50they'll keep it open
26:51to people like you
26:52who've opened one
26:53but not allow anybody new
26:55to have the same situation
26:56that you've got
26:57it's an anomalous product
26:58this retirement savings bit
26:59OK
27:00thanks for your question Dave
27:01now Megan has been
27:02in touch as well
27:03final question
27:04when is the maximum value
27:06of the property
27:06you can buy with a ISA
27:07likely to change
27:08we're looking to buy
27:09a flat in the next year
27:10but there's not many options
27:11in London due to the
27:12450k limit
27:14we're gutted
27:15we're likely to lose
27:16a lot of our money
27:16I asked this to the Chancellor
27:18could you ask the Chancellor
27:21why they can't change
27:23the £450,000 cap
27:24on lifetime ISAs
27:25before the consultation
27:26we've discussed this many times
27:28so many are stuck
27:29and can't wait
27:30for a consultation
27:30yeah
27:31so look
27:32the consultation
27:32is getting up and running
27:35we want to get this right
27:36we're going to introduce
27:37a new product
27:38to a better product
27:41this is the system
27:42we inherited
27:43we are doing that consultation
27:45people with LISAs now
27:46are very worried
27:47many people are saying
27:48should I take my money
27:49out of a LISA right now
27:50because of this Chancellor
27:51I could do with your help
27:52so that they have
27:53some legitimate expectation
27:54of what's going to happen
27:55well we'll crack on
27:56with this consultation
27:57and make sure
27:58that the new product
28:00works better
28:01than the one
28:02it's going to be replacing
28:03but I would encourage people
28:05if you've got money
28:07in a LISA at the moment
28:07nothing is changing
28:10of course
28:11as part of that consultation
28:12we will look at
28:14the price of the property
28:16you can buy
28:17and we will look at that
28:18for people who have
28:18already got money
28:19in a LISA
28:19and if you have a LISA
28:21do you think you'll be able
28:21to put the whole thing
28:22to the new product
28:23if you want to do that
28:23that's why we're having
28:24a consultation
28:24to answer these questions
28:26and I really encourage
28:27you and Andy
28:29and all your viewers
28:30who have got views on this
28:31to feed into that consultation
28:32so we get it right
28:34so
28:35well
28:37not much meat to go on
28:38on that is there
28:39to be absolutely honest
28:40so let me give you my view
28:41first of all
28:41by the way
28:42I'll also be pushing
28:42for the help to buy ice
28:43to be able to go
28:44into this new product
28:44as well
28:45which it should be
28:45if you're going to be
28:47buying a house
28:47under £450,000
28:49in the next
28:50three or four years
28:51I would absolutely
28:52certainly be opening
28:53and putting my money
28:54into a lifetime ISA
28:55if you think
28:57you might be buying
28:58a house in the southeast
28:59where the price
28:59is over £450,000
29:00I would be very cautious
29:02about putting a substantial
29:02chunk of my money
29:03in the cash ISA
29:04because of the penalty
29:04and we don't know
29:05what's happening to it
29:06as for putting pension money in
29:07I would open an ISA
29:08but I would be cautious
29:10about putting too much money
29:12in there at the moment
29:13because we simply don't know
29:14what will happen
29:14although I suspect
29:15it will be fine
29:16I mean
29:16you've got the same answer
29:18as I've got on it
29:19OK
29:20thanks Martin
29:21well still to come
29:22we move on to the state pension
29:23and will you pay tax on it
29:25plus salary sacrifice
29:26on private pensions
29:27we'll see you after this
29:28welcome back
29:41we've been talking savings
29:42we're also talking the budget
29:43and I'm hoping to keep talking
29:44I've got Lurgy
29:45and I'm a bit brain frazzled
29:46but hopefully the information
29:47is coming across
29:47yeah there is so much
29:48coming in on social media
29:50but I've got this success
29:50from Donna
29:51and it's come about
29:52the help to save scheme
29:54thank you Martin
29:55I received my savings
29:56of £2,400
29:57and my last bonus
29:59is £600 this month
30:00I'll be putting this
30:01into a savings account
30:02and carry on saving
30:03even more
30:04well done
30:04I've now even recommended
30:05the help to save scheme
30:06to friends and family
30:07to help them save too
30:08good stuff
30:09yeah
30:10good
30:10yes you can give that
30:11a round of applause
30:11and we'll stop yourself
30:12nice
30:13look help to save
30:17incredibly important
30:18it's unbeatable savings
30:19if you are on universal credit
30:20and you work
30:21you can open one of these accounts
30:23even if you move off
30:24universal credit
30:24you can still keep it going
30:26the way it works
30:27you can put up to
30:27£50 a month in
30:29and then after two years
30:30you get a 50% bonus
30:32on the highest amount
30:32you had in
30:33so imagine you've got up
30:34to £600
30:34you had to take it out
30:35because you had an emergency
30:36you couldn't put any more money in
30:38still at the end of two years
30:39you get a £300 bonus
30:40and then you can do it again
30:42and this has now been made
30:43permanent in the budget
30:44it was due to end next year
30:46and in a couple of years time
30:48not just those who are working
30:49but people on universal credit
30:50who have parenting
30:52or kinship
30:52or carers responsibility
30:53will be able to get it too
30:55so if you're on UC
30:56and you work right now
30:56you should check that out
30:58no other form of saving
30:59comes close to beating it
31:00awesome
31:00well done Donna
31:01let's say
31:02good evening to Sophie
31:03on our virtual walls
31:04right behind you
31:05hi Sophie
31:05hi good evening everyone
31:07hi
31:07what can we do for you
31:09I've recently opened up
31:10a Lysa
31:11to save for my first house
31:13and
31:14I've got
31:16the full amount in there
31:17well done
31:18and I've got another
31:19£16,000 saved
31:20in premium bonds
31:22and I'm just wondering
31:23is it worth opening up
31:24a cash Lysa
31:25and transferring my savings there
31:27or just sticking with
31:29premium bonds
31:30well people know
31:32I'm not the biggest fan
31:33of premium bonds
31:34the premium bond
31:35is a prize draw
31:36where the interest
31:36is a
31:37your money is safe
31:38but the amount of interest
31:39you get is based on a prize draw
31:41the current prize fund rate
31:42is 3.6%
31:44have we got that
31:45the easy access savings
31:47yes
31:47so look
31:483.6%
31:49isn't close to any
31:51of the top easy access savings
31:52and these cash Isas
31:53are tax free
31:54but more than that
31:56because that is
31:57the mean average
31:59but I'm not going to explain
32:00this to Dita
32:00because I haven't got time
32:01but the typical luck
32:02someone with typical luck
32:03would win the median average
32:04in other words
32:05if you lined up everybody
32:05with the same amount
32:06of premium bonds in a row
32:07how much would the person
32:08in the middle win
32:09and the person in the middle
32:10would always win less
32:11than the prize fund
32:12you're more likely
32:13to win closer to the prize fund
32:15the more you've got
32:16£16,000 isn't bad
32:17the closer to £50,000
32:18the more likely you are
32:19to win it
32:20for me
32:20premium bonds
32:21are only for those people
32:22who
32:23are high earners
32:25who are paying tax
32:26on their savings
32:27and who can put
32:28up to £50,000 in
32:29so I can't say
32:31which will win
32:32because you might be
32:33the one person
32:34who wins the million
32:35but based on statistics
32:37and typical luck
32:38you would actually need
32:39to be very lucky
32:40for premium bonds
32:42to return more
32:43on £16,000
32:44than the top cash Isas
32:45that's the only way
32:46I can phrase it
32:47you'd have to be very lucky
32:48for premium bonds to win
32:49it's not impossible
32:50they will do
32:51but your much safer bet
32:52is to go with
32:53the top cash Isas
32:54does that make sense?
32:55yeah that makes sense
32:56thanks for your help today
32:57thank you my pleasure
32:58and people read more
32:59on premium bonds
32:59because it's more complex
33:01than you think
33:01okay good luck Sophie
33:03now change the subject
33:04we broke big news
33:05didn't we
33:05on the show last week
33:06about tax
33:07on state pensions
33:08lots of people
33:08have been getting in touch
33:09including Kevin
33:10with this question here
33:12following on from your show
33:13on Thursday
33:13I've been trying to find out
33:15if a pensioner
33:16who receives a state pension
33:17and their other income
33:18is all tax free
33:20i.e. from Isas
33:21or premium bonds
33:22or under the savings allowance
33:24will they have to pay
33:25more tax
33:26it's a really interesting question
33:28it's actually two questions
33:29forgive me coming onto your stage
33:30I've got Lurgy moved back
33:31right
33:32so look
33:34Isas are not taxable
33:36so they won't count
33:37they're not taxable
33:38premium bonds
33:38are not taxable
33:40under your savings allowance
33:42is taxable earnings
33:44but you haven't turned over
33:45the allowance
33:45so that's a slightly different category
33:47because you've got taxable earnings
33:48the honest answer
33:49is we don't yet know
33:51how this will work
33:52now let me explain
33:53the basics of the problem
33:54to you
33:54I've done a graph on it
33:55this week
33:55which I think clears up
33:56what's going on a bit
33:57this is the full new state pension
34:00the personal allowance is frozen
34:02we know that until 2031
34:03that's the amount
34:04you can earn tax free each year
34:05here is the full new state pension
34:07this is where it's going to go up to
34:08next April
34:09it's only 30 quid below that allowance
34:11so anyone who's got
34:12any other form of earnings
34:13well you're going to go over it
34:14if you've got the full new state pension
34:16and you'll have to pay tax
34:17but from 2027
34:20because we know
34:22the state pension has to rise
34:23by a minimum 2.5%
34:25because of the triple lock
34:26here's a projection
34:27this is the minimum
34:28it could rise
34:29by the triple lock
34:302027
34:31it's going to be about
34:32300 quid more
34:34than the tax free allowance
34:36and that's staying stable
34:36and it will go more
34:37and more and more
34:38so you can see the issue
34:39that's going on
34:40and I played a short clip
34:42to you last Thursday
34:43about what I asked
34:44the Chancellor about this
34:45my biggest concern
34:45was actually the admin
34:46how are we going to have
34:47older people
34:48doing their self-assessment forms
34:50when they're 90
34:50and they're only earning
34:5150 quid over the limit
34:52I'm going to play you
34:53a longer version
34:54of what I asked
34:55the Chancellor tonight
34:56Rebecca who says
34:59does my 85 year old father
35:01who's living with dementia
35:03now have to complete
35:04a tax return
35:05as his state pension
35:06will take him
35:07over the personal allowance
35:08so if you just have
35:11a state pension
35:13you don't have
35:13any other pension
35:14we are not going to
35:16make you fill in
35:17a tax return
35:18of any type
35:19yes
35:19and so
35:21I make that commitment
35:23for this parliament
35:24you're right
35:252027 looks like
35:26the time
35:26that it will
35:27cross over
35:28we are working
35:30on a solution
35:31as we speak
35:32to ensure
35:34that we're not
35:35going after
35:35tiny amounts
35:36of money
35:37but people will
35:38have to pay the tax
35:39they just won't
35:40have to do a return
35:41or will they not
35:41have to pay the tax
35:42in this parliament
35:43they won't have
35:43to pay the tax
35:45further out
35:47I won't be able
35:48to make any
35:48commitments
35:49on that
35:50but we're just
35:51looking at a simple
35:52work around
35:53at the moment
35:53okay
35:54so I haven't
35:55actually got that
35:56from the budget
35:56so that's really
35:57good to have clarity
35:57that they won't
35:58be paying the tax
35:59I'm going to ask
36:00the edge case
36:00and I know
36:01it's always difficult
36:01someone who's got
36:02a £50 a year
36:03private pension
36:04on top of the
36:05state pension
36:06they're going to
36:07have to pay tax
36:08I presume
36:08because there is
36:09I'm only making
36:10that commitment
36:11for people
36:11who just get
36:12the state pension
36:13obviously a lot
36:14of people
36:15in retirement
36:16do do
36:17self-assessment
36:19and do pay tax
36:20on their incomes
36:22and that's not
36:22going to change
36:23but I do recognise
36:24that if you're
36:25just in receipt
36:26of the basic
36:27state pension
36:28on the new
36:28state pension
36:29it wouldn't be
36:31the right thing
36:32to do
36:32to try and tax
36:33those small
36:34amounts of money
36:34so it's very
36:36interesting
36:37and it's why
36:38I can't quite
36:39answer Kevin's
36:40question
36:40because it isn't
36:40fully formulated yet
36:42but what I find
36:43interesting
36:43imagine someone
36:44who was a little
36:44bit off the
36:45full state pension
36:46so they were here
36:47let's say
36:50and then they had
36:50a very small
36:51private pension
36:52so they earned
36:52still less than
36:53the full new
36:53state pension
36:54under those rules
36:55they would have
36:56to pay tax
36:56and therefore
36:57they would be
36:58punished for having
36:59a private pension
37:00which is why
37:01I think the thing
37:01isn't fully
37:02thought through yet
37:03okay so
37:05we're going to keep
37:06with some questions
37:07on pensions
37:08June's been in
37:08touch as well
37:09June's asking
37:10it was said on
37:11your show
37:11the Chancellor
37:12said no one
37:12on full state
37:13pension would
37:13have to pay tax
37:14I had the
37:15SERPs contribution
37:16on my pension
37:17and this year
37:18was billed 71
37:19pounds
37:19should I get
37:20this back
37:20and if not
37:21will I have to
37:22pay tax
37:23on my state
37:23pension next year
37:24this is my only
37:25income
37:25had quite a lot
37:26of people in
37:27that situation
37:27if you are on
37:28the old state
37:29pension
37:29you get both
37:30the basic
37:30pension
37:31and you get
37:32the extra
37:32contributory pension
37:33called SERP
37:34state pension
37:35you can already
37:36be over the
37:37personal allowance
37:38now
37:38the answer is
37:40you are taxed
37:41on it now
37:42and you won't
37:42be able to get
37:43that money back
37:43I'm going to
37:44play back
37:44because I've
37:45listened to it
37:45a lot of times
37:45what the Chancellor
37:46said
37:46first of all she
37:47was talking
37:47from 2027
37:49we're not in
37:502027
37:51second she said
37:52we're working
37:53through how we
37:53do this
37:54so she answered
37:56the question to
37:57me and it
37:57broke news
37:58everywhere
37:58I think the
37:59truth is
38:00they are looking
38:00to ensure
38:01that from 2027
38:02people on the
38:03full new state
38:04pension only
38:05won't pay tax
38:06how it works
38:07for the old
38:08pension
38:08how have you
38:09got
38:09it just
38:10I don't know
38:11how it works
38:11yet
38:12I don't believe
38:12the Chancellor
38:13knows how it
38:13works yet
38:14okay
38:14thanks Martin
38:16well coming up
38:17your questions
38:18on salary plus
38:19battle of the
38:20Baileys
38:21and free
38:21£225
38:23we'll see you
38:24soon
38:24welcome back
38:37to the
38:37Martin
38:38this money
38:38show live
38:39Jeanette
38:39what's been
38:39coming in
38:40yeah lots
38:40coming in
38:41as usual
38:41the team
38:42are going
38:42through all
38:42the questions
38:43but Norman
38:44wants to
38:44know
38:45will it
38:46no longer
38:46be worth
38:46paying more
38:47than £2,000
38:48by salary
38:49sacrifice
38:49into my
38:50pension
38:50so where
38:51should I
38:52put the
38:52money
38:52instead
38:52okay
38:53there's been
38:54a lot
38:54of confusion
38:55on that
38:55I mean
38:56the answer
38:56is yes
38:56it probably
38:57is still
38:57worth it
38:57let me
38:58just go
38:58back to
38:58my graphic
38:59from last
38:59week
38:59which I
39:00have
39:01explaining
39:01salary
39:01sacrifice
39:02here we
39:03go
39:03so for
39:04a basic
39:04rate
39:04taxpayer
39:05for every
39:06£100
39:07you normally
39:07earn
39:08you'll pay
39:08£8
39:08in national
39:09insurance
39:09you'll pay
39:10£20
39:10in tax
39:11this is above
39:11the personal
39:11allowance
39:12and you'll
39:13take home
39:13£72
39:14in a
39:15general
39:16workplace
39:17pension
39:17auto
39:17enrolment
39:18pension
39:18which isn't
39:19salary
39:19sacrifice
39:20your whole
39:21£100
39:22will go
39:22into your
39:23pension
39:23but you
39:24will pay
39:24£8
39:24national
39:25insurance
39:25so it's
39:26still sort
39:26of a
39:26net
39:27huge gain
39:28because you're
39:29only losing
39:29£72
39:30in your
39:30pay packet
39:30but you're
39:31getting £100
39:31in your
39:32pension
39:32with salary
39:34sacrifice
39:34what happens
39:35is you get
39:36a reduction
39:36in your
39:37salary
39:37and your
39:38employer
39:39then takes
39:39that amount
39:40puts it
39:40in your
39:40pension
39:41as well
39:41if it's
39:42auto
39:42enrolment
39:42as a
39:43matching
39:43type
39:43contribution
39:44on top
39:44and you
39:45get the
39:45national
39:46insurance
39:46gain
39:46and it
39:47gets
39:47the
39:47national
39:47insurance
39:47gain
39:47which it
39:48may well
39:48give to
39:48you as
39:49well
39:49so you
39:49would get
39:50the whole
39:50£100
39:50so what
39:52we're talking
39:52about losing
39:53salary
39:53sacrifice
39:54above £2,000
39:55is you'd
39:56move from
39:56one of
39:57these
39:57to one
39:58of these
39:58not from
39:59one of
40:00these
40:00to one
40:01of these
40:02so it
40:02isn't quite
40:03as good
40:04but let's
40:04go
40:04it's a
40:05specialised
40:06subject
40:06I've got
40:06Charlene
40:06with she's
40:07a specialist
40:07in this
40:08Charlene
40:08still worth
40:09putting
40:09over £2,000
40:10in
40:10absolutely
40:11as you've
40:11explained
40:12because of
40:13the income
40:14tax savings
40:15on offer
40:1520%
40:16even more
40:17for higher
40:17rate taxpayers
40:18and beyond
40:19it's absolutely
40:19still worth
40:20using a pension
40:21to save
40:22towards retirement
40:22yeah because
40:23if you're a
40:23higher rate
40:23taxpayer
40:24then you're
40:25going to be
40:25paying £40
40:25of tax
40:26and by the
40:26way the
40:27national insurance
40:28gain is less
40:28it's only 2%
40:29in those cases
40:30so yeah
40:30absolutely keep
40:31going on that
40:31one
40:32okay brilliant
40:32also
40:33Helen's been
40:34in touch
40:34as well
40:35another one
40:35on salary
40:36sacrifice
40:37I'm not sure
40:38I'm right
40:38but I thought
40:39salary sacrifice
40:39could bring you
40:40below the tax
40:41thresholds
40:42so you could
40:42earn more
40:43interest on
40:43savings
40:44that are
40:44outside
40:45ISAs
40:45will this
40:46no longer
40:46be the case
40:47because you're
40:47no longer
40:48effectively
40:49in your salary
40:49actually the
40:50same happens
40:51in an
40:51employee
40:51pension
40:52if you're
40:53talking about
40:53trying you're
40:54just above
40:55the high rate
40:55threshold
40:56and you want
40:57to put
40:57and you put
40:57more in your
40:58pension
40:58even a normal
40:59employee pension
40:59that brings
41:00you below it
41:00because it
41:01doesn't count
41:01towards that
41:02contribution
41:02you could
41:03still therefore
41:03get the
41:04£1000
41:04personal savings
41:05allowance
41:05because you're
41:06now a basic
41:06rate taxpayer
41:07and still be
41:08eligible for
41:08marriage tax
41:09allowance
41:09that's the way
41:10it works
41:11it is
41:11absolutely
41:12and there's
41:12actually other
41:13tax traps
41:13you can get
41:14out of
41:14for example
41:15the rate at
41:16which child
41:16benefit starts
41:17to get
41:17clawed back
41:18pension
41:18contributions
41:19can bring
41:19you below
41:20that level
41:20and also
41:21when you start
41:22to lose
41:22your personal
41:22allowance
41:23if you have
41:23income above
41:24£100,000
41:25or two
41:25the one
41:25you can't
41:26get out of
41:26though is
41:26student loan
41:27maintenance
41:28contributions
41:28when it
41:28counts
41:29this doesn't
41:29go towards
41:30it
41:30so yes
41:30you would
41:31still
41:31even without
41:32salary
41:32sacrifice
41:32you could
41:33still
41:33continue
41:33to do
41:33that
41:34all right
41:34let's
41:34take
41:35this
41:35question
41:35then
41:35from
41:36Dave
41:36Dave
41:36is
41:37saying
41:37currently
41:37I put
41:386%
41:38of my
41:38salary
41:39every
41:39month
41:39my
41:40employer
41:40matches
41:41this
41:41with
41:4115%
41:42this is
41:43well over
41:43the new
41:44£2,000
41:44tax allowance
41:45should I
41:46continue to put
41:46this amount
41:47into my pension
41:47or are there
41:49now better
41:49options elsewhere
41:50to save
41:50for retirement
41:51I suspect
41:52Charlene's aghoned
41:52at that question
41:53so I'll let
41:53her answer
41:54yeah
41:54I mean
41:55Dave
41:55I want to
41:55know what
41:55this pension
41:56scheme
41:56is
41:56that's
41:57really
41:57really
41:58generous
41:58absolutely
41:59like we've
42:00said
42:00it's still
42:00absolutely
42:01worth
42:01continuing
42:02with this
42:02and please
42:02don't
42:03stop
42:03or reduce
42:04your
42:04contributions
42:04because you
42:05might lose
42:05that 15%
42:06generous match
42:07from your
42:07employer
42:08we don't know
42:10yet how
42:10employers might
42:11adapt
42:12particularly
42:12those sharing
42:13some of their
42:14national insurance
42:14savings too
42:15we've got until
42:162029 to know
42:17what's going to
42:17happen
42:17but there is an
42:18assumption the
42:18matching might be
42:19slightly less
42:19they might reduce
42:20what they're putting
42:21into your pension
42:21to help cover the
42:22cost that they're
42:22now having to pay
42:23national insurance
42:24it could be
42:24it couldn't be
42:25what I would
42:25suggest is
42:26engaging with
42:27your employer
42:27just finding out
42:28what their plans
42:28might be
42:29but it isn't
42:29happening yet
42:30anyway
42:30so you know
42:31we've got time
42:32to play all that
42:32through
42:32okay
42:33let's get some
42:34news you can
42:34use
42:35okay so we're
42:39just doing
42:39quickies today
42:40the first one
42:40the Santander
42:42Edge is currently
42:42giving £200
42:43for switching
42:44but there's an
42:44extra £25
42:45Amazon voucher
42:46available at the
42:47moment and I'm
42:47hearing just before
42:48I got on air
42:48in some places
42:49it's £35
42:50that you can get
42:51now this is my
42:51top pick
42:52bank account
42:53for bills
42:53or paying
42:54joint bills
42:54because
42:55while there's
42:56a £3 a month
42:56fee
42:57you get 1%
42:58cash back
42:58on bills
42:59you pay
42:59from it
42:59household bills
43:00via direct
43:01debit
43:01for most people
43:02that easily
43:02covers the fee
43:03and more on top
43:04so you make a net
43:05gain each year
43:06worth saying
43:07that the £25
43:08voucher
43:09you can't get
43:10going direct
43:10to Santander
43:11it's only available
43:12on a wide range
43:12lots of comparison
43:13sites have got it
43:14that's the way to get it
43:15so if you're looking
43:15to switch bank
43:16it'll probably be paid
43:17in March
43:17you know if you need
43:18some money in the new year
43:19and it's good for bills
43:20or joint bills
43:20that's one to go for
43:22next
43:23Spotify premium
43:24individual
43:25four months free
43:26it's the ad free version
43:28and then you pay
43:29£13 a month afterwards
43:30but you can cancel
43:31before you get to
43:31the £13 a month
43:32so you can just bag
43:33the four months free
43:33you've got to be
43:34new to premium
43:35in order to be able
43:36to get it
43:37or new to premium
43:38individual
43:38and matched
43:40by Amazon Music Unlimited
43:41which is the same
43:42service from Amazon
43:43again four months free
43:44ad free
43:44and then it's £11 a month
43:46you can cancel before
43:47this is for Prime members
43:48who are new to Unlimited
43:49or non-Prime members
43:50can get it
43:52but they only get
43:52three months
43:52and it's slightly
43:53more expensive afterwards
43:54and then we get
43:55to the Battle of the Baileys
43:56I could probably do
43:57with one after this show
43:57now
43:59I thought it was
44:00going to be £11
44:01that's what predicted
44:02but it's going to be
44:04£10 for one litre
44:05it is £10 for one litre
44:06normally £22
44:07this is mainly online
44:09it's safer to do it online
44:10in stores
44:10the prices vary
44:11Sainsbury's
44:12you need a Nectar card
44:13till the 6th of December
44:14Tesco a Club card
44:15till the 8th of December
44:16Asda it's on
44:17I don't have an end date
44:18and Costco members
44:20you can get it
44:21till the 8th of December
44:22so if you want your Baileys
44:22you're a little bit
44:23of a tipple and a topple
44:24in time for Christmas
44:25it's a bit cheaper
44:26at the moment
44:27I'm not even sure
44:28what a topple is
44:28I'll be honest with you
44:29I tried to style it out
44:31No but it worked
44:32I decided to admit it
44:33You shouldn't have told us
44:34OK just very quickly
44:36we've got this question
44:36that's coming from Simon
44:37I'm looking to buy
44:38a premium bonds
44:39if I were to buy
44:41say a total of £10,000
44:42is it best to buy
44:43the whole block
44:44or separates of £500
44:45or £1,000
44:46There are a huge number
44:48of myths out there
44:49about premium bonds
44:50that people in different
44:51parts of the country
44:51win more than others
44:52that older bonds
44:53are better than newer bonds
44:54they are all
44:55absolute nonsense
44:57every £1 bond
45:00is entered
45:01into a prize draw
45:02and has exactly
45:03the same chance
45:04as every other pound bond
45:06whether that pound bond
45:07was bought in 1963
45:08or it was bought in 2024
45:10it does not matter
45:12so you buy
45:13£10,000 in one go
45:14because that's
45:14administratively simple
45:15and it will have
45:16exactly the same chances
45:17the reason some areas
45:18win more than others
45:19is because there are
45:20more people with bonds
45:21in them
45:21the reason people
45:22with bigger
45:22who have more savings
45:23win more often
45:24is because they've
45:24got more bonds
45:25it is just a pure
45:26random chance
45:27lottery draw
45:28there is no clever
45:29way that you can beat it
45:30well except probably
45:32by putting your money
45:32in a cash ice
45:33as I said earlier
45:33but that's a slightly
45:34different argument
45:35OK that's it for this week
45:36what have we got
45:37next week Martin
45:37well I mentioned
45:38at the start of the show
45:39when you heard Rachel
45:40say to Rachel Reeves
45:41that I'm going to be
45:42talking about investing
45:43more because I think
45:44because it isn't my
45:44expertise and I focus
45:46on saving so much
45:46some people get the
45:47message you shouldn't
45:48invest I don't believe
45:49that I'm going to be
45:50joined by an expert
45:51panel next week
45:52to take your questions
45:53so if you've got
45:54questions on investing
45:55where to start
45:55what to do
45:56how the ISAs work
45:57or anything more
45:58do get in touch
45:59using the hashtag
45:59Martin Lewis
46:00thanks to Janet
46:00thanks Charlene
46:01thanks to the team
46:02bye bye
46:03well last night
46:10it was Vogue's
46:11turn to pack up
46:12and say goodbye
46:13to her campmates
46:14who'll be next
46:15I'm a celebrity
46:16get me out of here
46:17coming up
46:17in just a few minutes
46:33I'm a celebrity
46:35who'll be next
46:35to her camp
46:36and say goodbye
46:39you
46:40you
46:40you
46:40you
46:42you
46:43you
46:43you
46:44you
46:46you
46:46you
46:48you
46:50you
46:50you
46:50you
46:52you
46:52you
46:54you
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