National Savings & Investments (NS&I) has announced rate increases across its Guaranteed Growth Bonds and Guaranteed Income Bonds – otherwise known as British Savings Bonds. This announcement came just ahead of the latest Bank of England Monetary Policy Committee (MPC) meeting, where the base rate was held at its current level of 3.75%.

What is telling however, is how the votes went at this meeting compared to the last. On 19th March, just three weeks into the conflict in the Middle East, the MPC voted to keep base rate on hold, following six previous cuts since August 2024. At that stage, the vote was unanimous – with all nine members on the same page.

But with the ongoing conflict, which has seen the price of fuel rocket upwards and with inflation expected to tick up further, one of the members, Huw Pill, voted for an increase this time around, which means the possibility of a rate hike has far from gone away. 

In fact, the markets are now expecting to see two or three rate rises this year! A complete turnaround from a couple of months ago, when the trajectory was downwards.

Whilst bad news for those with debt, this news has seen a boost for savers, as savings rates have improved significantly, especially fixed rate accounts. At the beginning of February 2026, before the conflict began, the top 1-year fixed rate bond available was 4.25% - today you can earn 4.67% with Kent Reliance. Similarly, over 5-years the top rate available has increased from 4.31% to 4.70% which is available via two providers, GB Bank and the Market Harborough Building Society.

Things are changing fast though, so keep an eye on our Best Buy tables for the current rates.

Even NS&I is getting in on the action  

The new issue of the NS&I 1-year British Savings Bond has increased from 4.07% to 4.50% AER, whilst the 2-year bond has increased from 3.98% to 4.48%. The 3-year bond has increased from 4.02% to 4.45% whilst the 5-year bond has seen the lowest increase, from 4.05% to 4.40%.

The bonds also have a monthly interest option, giving savers the choice of either a regular income or to have all the interest paid at the end of the term. This choice can be important though, particularly for those who pay tax on their savings.

With the longer-term bonds, if you opt to have the interest added to your bond each year and left to compound, it won’t be accessible until maturity. And from a tax perspective, that means the interest will be treated as if it were received in one go at the end.

This matters because you can’t spread the interest over the term for tax purposes, and your Personal Savings Allowance (PSA) can’t be carried forward from one year to the next. So, if your total interest in the maturity year exceeds your PSA, you could find yourself paying tax on the excess – and possibly nudged into a higher tax band too, for that tax year.

For many savers this might not have a major impact, but it’s well worth keeping in mind.

Why is NS&I increasing rates now?

Whilst these increases could be a reaction to the rest of the market, NS&I often changes the rates it is offering, to either increase or stem the flow of funds into the state owned Bank, in order to meet its Net Financing Target. This is the amount NS&I is tasked with raising on behalf of the Government each tax year – and takes into account both inflows and outflows. For the 2026/27 tax year, that target has been increased from £13.6 billion to £15 billion. In addition, the back-office issue that was recently unearthed, that many families had not been repaid all the funds from their loved one’s accounts following a bereavement claim, may have led to some withdrawing their funds, which will need to be replaced.

Are the new rates competitive?

These latest rates are certainly more competitive, particularly compared to the high street names. Currently the 1-year bonds available from the main high street providers pay between 3.15% (Lloyds Bank) to 4% (Nationwide).

However, there are still better-paying options available for those happy to look beyond the household names, as the table show. For example, a £50,000 deposit for 12 months would earn £2,250 (before the deduction of tax) with NS&I’s 1-year bond, compared with £2,335 with Kent Reliance, which as mentioned above is currently paying 4.67%.

NS&I Guaranteed Growth Bonds (British Savings Bonds) vs the best accounts available 

So, whilst NS&I’s new rates are a marked improvement, they don’t make it into the best-buy tables.

Despite rarely offering the top rates, NS&I continues to attract huge loyalty based on its longevity and unique protection. Every penny held with the provider is 100% backed by HM Treasury, offering unmatched peace of mind. You can invest up to £1 million into each issue of these bonds, making it particularly appealing for those with larger sums who prioritise safety over the best returns.

For most savers, though, whose balances fall below the £120,000 Financial Services Compensation Scheme (FSCS) protection limit that applies to all other regulated and authorised banks and building societies, there are still better-value options elsewhere. 

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Rates correct at 01/05/2026

This article is for information only and does not constitute individual advice. 

The Financial Conduct Authority (FCA) does not regulate cash or tax advice.

Pensions remain one of the most tax-efficient ways to save for retirement, and there are several ways to build up your pot through the workplace. One option you may have heard of is salary sacrifice, which allows you to give up part of your salary in return for your employer paying more into your pension.

Under the current rules, this can be a highly efficient way to save, as it may reduce National Insurance costs for both you and your employer. But the rules are changing from April 2029, when the National Insurance benefit will be restricted. That means now could be a good time to understand how salary sacrifice works and consider whether you can make the most of it while the current advantages are still available.

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What is salary sacrifice?

Salary sacrifice is an arrangement where you agree to give up part of your gross salary and, in return, your employer pays that amount into your pension instead. In practical terms, your contractual pay is reduced and your pension contribution is made by the employer rather than being taken from your pay afterwards. That matters because salary sacrifice changes how Income Tax and National Insurance are calculated on your earnings.  

For many workplace pension members, it is one of the simplest ways to make pension saving more efficient. Instead of paying into a pension from taxed pay, the contribution is made before your salary reaches your bank account. This can improve take home pay, increase the amount going into your pension, or do a bit of both, depending on how your employer has set the scheme up.  

How does salary sacrifice help with pensions?

The main attraction of salary sacrifice is that it can make pension saving more efficient without requiring you to invest more of your disposable income. Because your salary is reduced, you do not pay Income Tax or National insurance on the amount being sacrificed, therefore, overall you pay less National Insurance and Income Tax because you have less salary. Your employer also pays less employer National Insurance on that part of pay.  

Some employers keep their own National Insurance saving, while others choose to add some or all of it to your pension. When that happens, salary sacrifice can become especially powerful because the pension receives more money than it would under a standard employee contribution arrangement.  

There can also be wider planning benefits. Salary sacrifice lowers taxable pay and adjusted net income, which may help some people tipping into higher tax thresholds linked to the personal allowance taper or support eligibility for certain forms of childcare support. That will remain the case even after the future salary sacrifice reform takes effect.  

What are the tax savings with salary sacrifice?

Employee savings

For employees, the saving comes through lower National Insurance and lower Income Tax as no National Insurance or Income Tax is payable on the amount sacrificed. Under the current rules, salary sacrifice pension contributions reduce the pay on which those deductions are worked out. Both Income Tax and National Insurance are calculated after the sacrifice has been made.  

That means a pension saver can often build a larger retirement pot more efficiently than through an ordinary deduction from net pay. For basic rate taxpayers the result is often straightforward and visible on the payslip. For higher earners, the benefit can be even more noticeable, especially if salary sacrifice is used for regular contributions or bonus sacrifice. The exact gain depends on income level, National Insurance band and whether the employer shares any of its own saving.

Employer savings

Employers also benefit because pension contributions are not normally subject to employer National Insurance, while salary is. The standard employer National Insurance rate is 15 per cent on earnings above the relevant threshold for 2026 to 2027, which is why salary sacrifice can reduce payroll costs.  

That saving creates choices. Some firms use it to offset rising employment costs. Others pass some or all of it into employees’ pensions, which can make salary sacrifice particularly attractive as part of a workplace benefits package. For businesses trying to improve pension engagement without sharply increasing overall reward spend, salary sacrifice has often looked like a practical middle ground.

Are there any disadvantages to salary sacrifice?

Salary sacrifice is not right for everyone. Because it reduces contractual salary, it can affect anything linked to your official pay figure. In some cases that may include mortgage affordability assessments, redundancy calculations, life cover linked to salary, or statutory payments such as maternity pay, paternity pay or sick pay. HMRC says salary sacrifice can reduce statutory pay and, in some circumstances, can remove entitlement if earnings fall below the lower earnings limit.  

There is also a practical limit for lower earners. A salary sacrifice arrangement cannot reduce cash pay below the National Minimum Wage or National Living Wage. That means some employees, especially those on lower or variable earnings, may not be able to use it fully or at all.  

This is why salary sacrifice should be seen as a planning tool rather than a default choice. The savings can be valuable, but the wider impact on pay related benefits and borrowing needs to be checked first.

Who benefits from salary sacrifice?

In broad terms, salary sacrifice tends to work best for employees with enough headroom above minimum wage, stable earnings and a workplace pension scheme that is already well organised. It can be particularly useful for higher earners, people making larger pension contributions and employees whose employer shares its own National Insurance saving.  

Employers can benefit too, especially if they want a tax efficient way to support pension saving while managing payroll costs. HMRC commissioned research published in 2025 showing that salary sacrifice was already a significant feature of employer pension thinking, and that potential National Insurance reform could influence whether employers continue to offer it in the same way. 

That said, the biggest winners have often been those making sizeable pension contributions through salary sacrifice year after year. That point matters because it helps explain why the government has now decided to intervene.

What is changing?

The government announced at Autumn Budget 2025 that the National Insurance advantage of pension salary sacrifice will be restricted from 6 April 2029. From that date, only the first £2,000 a year of employee pension contributions made through salary sacrifice will remain exempt from National Insurance. Any amount above that will be subject to both employee and employer National Insurance. Pension contributions made this way will still remain exempt from Income Tax, subject to the usual pension limits.  

This is a significant shift. At the moment, there is no equivalent National Insurance cap on pension contributions made through salary sacrifice. From April 2029, the structure remains in place, but much of the National Insurance advantage disappears once contributions go over the new annual limit.  

How much could pension savers using salary sacrifice lose?

The answer depends on how much is being sacrificed above the new £2,000 limit and which National Insurance rate applies to the employee.

For modest contributors, the impact may be limited. For larger pension savers, especially those using salary sacrifice heavily, the difference could be meaningful. The Office for Budget Responsibility estimate cited by the House of Commons suggests the reform will raise £4.7 billion in 2029 to 2030 and £2.6 billion in 2030 to 2031, which underlines how much value the current National Insurance relief provides.  

The people most likely to feel the change are those sacrificing well above £2,000 a year, including higher earners and employees using salary sacrifice for bonus planning. They may still want to use salary sacrifice, because the Income Tax treatment remains valuable, but the numbers will look less compelling than they do today.  

Why has the government announced this change?

The government’s published explanation is that these reforms are aimed at tax reliefs whose cost has been rising and which disproportionately benefit wealthier individuals. In other words, ministers see the current rules as generous, expensive and unevenly distributed.  

There is also a clear fiscal motive. The reform raises revenue without removing pension tax relief entirely. Salary sacrifice for pensions will continue, and contributions will still be exempt from Income Tax, but the National Insurance advantage will be narrower and more controlled. That allows the government to keep encouraging pension saving while collecting more from larger contributions.  

Talk through your pension options

Salary sacrifice can still be a useful way to pay into a pension, but it is worth reviewing how well it fits your wider plans. It may still work well now, especially if your employer adds some of its own National Insurance saving into your pension, but the position could look less attractive once the rules change in April 2029.

One option is to keep using salary sacrifice if it remains efficient for your level of earnings and contribution. Another is to review how much you are sacrificing, especially if you pay in larger amounts and may be affected by the new £2,000 annual National Insurance exemption limit from 6 April 2029. It can also be sensible to check how a lower contractual salary could affect things like borrowing, statutory pay and other benefits.

The key is to prepare early. Salary sacrifice is still valuable, but those making larger pension contributions may want to review their approach before the new rules begin.

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This article is for information only and does not constitute individual advice. The information provided in this article is based on the current allowances and legislation and is subject to change.

The Financial Conduct Authority (FCA) does not regulate trust or tax advice.

A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.  

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change. You should seek advice to understand your options at retirement.

Green Savings Bonds have been thrust back into the spotlight after National Savings and Investments (NS&I) have reintroduced the bonds at a competitive rate.

The new issue of bonds boasts a 3.82% AER (annual equivalent rate) over a three-year term. After the initial lukewarm response when they were launched back in 2021 due to the low opening rate, it is clear that NS&I aims to hit the ground running with a competitive rate this time around. Whilst it may be competitive, there are higher rates available, see our Best Buy tables for up to date rates.

Anyone aged 16 or over can invest anywhere from £100 to £100,000 in a Green Savings Bond per person for each issue, meaning that they are accessible to almost everyone, although it is important to note that the money cannot be accessed during the three-year term and the interest is only realised upon maturity.  

What are Green Savings Bonds?

Launched in October 2021 following Rishi Sunak’s 2021 Spring Budget, Green Saving Bonds are a type of three-year fixed savings account available from NS&I. The ‘Green’ part comes from the idea that the funds these bonds raise are then used to fund ethical and environmentally conscious investing such as electric vehicles, public transport, offshore wind farms and solar energy in homes.

Other than that distinction, they are functionally the same as normal fixed rate bonds. They operate like a normal three-year fixed savings account, so the amount you save is locked away until the account 'matures' at the end of the set period. In return, it pays a fixed interest rate, so once the three-year term is over, you'll receive your lump sum savings back in full, plus the interest.  

These bonds form an important part of the UK Government’s Green Financing Framework, complementing the role of gilts in generating funding for specific environmentally focused projects. The framework was revised in November 2025, with its remit widened to cover nuclear energy initiatives.

As a Treasury-backed savings institution, NS&I guarantees full protection on all deposits and supports a customer base of over 24 million people across the UK.

These bonds sit outside NS&I’s annual net financing target, which is determined by the Treasury each year.

Our chartered advisers are unbiased, meaning that they can give whole of market advice, and so are best placed to give you a plan tailored exactly to your personal financial goals, taking into account your ethics and values towards ‘green’ savings and investments.  

If you’d like to know more, request a free non-committal initial consultation with one of our team or give us a call on 0333 323 9065 and get in touch. 

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This article is for information only and does not constitute individual advice. 

The Financial Conduct Authority (FCA) does not regulate cash or tax advice.

The value of your investments and the income from them can go down as well as up. 

The start of the new tax year is often a good time to take stock of your finances, to review what you already have and consider what you need to do next. And in today’s environment, where every penny counts, making full use of the tax allowances that are still available has never been more important.

The ever-popular Individual Savings Account, or ISA is a good place to start. Like a lot of our tax allowances, the ISA allowance has been frozen for many years, so for the 2026/27 tax year, the overall ISA allowance remains at £20,000, offering one of the simplest and most effective ways to protect your savings and investments from tax on interest, dividends, and capital gains.

However, there are changes coming for those who favour the cash element of an Individual Savings Account (ISA).

Cash ISA allowance to be cut

Cash ISAs regained their popularity over the last few years, as interest rates increased, which led to savers paying more tax than they had for over a decade when interest rates were at rock bottom. There is now some £458 billion stashed away in cash ISAs, almost a quarter of the total amount held in cash savings. But for savers under the age of 65, the current tax year is the last chance to make use of the full ISA allowance for cash only deposits.

From 6 April 2027, the rules are set to change. Whilst the overall ISA allowance will remain at £20,000, only £12,000 of that can be deposited into a cash ISA for those aged under 65. To use the full allowance, the remaining £8,000 will need to be invested in a stocks and shares ISA.

To add insult to injury, at the same time that the cash ISA allowance is to be cut, the tax on savings interest will be increasing by 2%. So, a basic rate taxpayer will pay 22% on any taxable interest, it’s 42% for higher rate taxpayers and 47% for additional rate taxpayers, making the cash ISA even more valuable.

The good news is that those aged 65 and over are not affected by this change. They will still be able to place the full £20,000 into cash if they wish, a welcome exemption for older savers. But it highlights a broader policy direction, encouraging younger savers towards investment. 

A nudge towards investing

Whilst the comfort of a cash ISA is understandable, particularly in volatile times, it’s important to be aware that inflation can quietly erode the value of savings, and even with improved interest rates, cash may struggle to deliver meaningful real returns over time if inflation is higher than the interest you are earning. So, it might be worth asking yourself whether a purely cash-based approach is the right strategy for the longer term.

This is where stocks and shares ISAs come into play. They are not without risk though as values can go down as well as up. But they offer the potential for growth that cash generally cannot match over the long term, as long as you are prepared to accept the inevitable bumps in the road. You can of course, choose investments that better reflect your own personal attitude to risk, which will help minimise any potential downs and ups.

These changes could therefore be viewed as a prompt to diversify if you don’t need access to your money for the longer term, so more than five years. Using some of your ISA allowance for investment could make a meaningful difference to your future financial health. 

Use it or lose it

Given the upcoming changes, this tax year (2026/27) is an opportunity not to be wasted. If you are under 65 and prefer cash, it may make sense to maximise your cash ISA contributions while you still can.

And due to the ongoing conflict in the Middle East, with the expectation that inflation and therefore the Bank of England base rate could rise, savings rates have been increasing recently. Good news for savers, especially those who don’t also have debts.  

So, if you have funds sitting in taxable accounts, now is the time to consider sheltering them, as once the tax year ends, you can’t carry it forward.

Don’t overlook the Lifetime ISA

Alongside the standard ISA options, there is also the valuable Lifetime ISA (LISA), which is available to those aged between 18 and 39. The LISA allows you to contribute up to £4,000 per tax year, which counts towards your overall £20,000 ISA allowance and the real attraction is the generous 25% government bonus. In simple terms, a £4,000 contribution is topped up to £5,000, an immediate and very attractive return, even before any interest of investment growth is added.

Traditionally, the LISA has served a dual purpose: helping people save for their first home or for retirement. However, it is currently under review, and there is growing speculation that the retirement element could be removed going forward, making it simply a product for first-time buyers.

In the meantime, for those eligible, it remains a compelling option, particularly if you are saving for your first home.  

ISAs for the next generation

It’s also worth remembering that children have their own ISA allowance through the Junior ISA (JISA).

With a current annual allowance of £9,000 per year, the Junior ISA allows parents, grandparents, and others to build a tax-free savings pot on behalf of a child. It can be held in cash or invested, depending on your preference and time horizon.

There is, however, an important point to bear in mind: there is no access to the money until the child turns 18, at which point they gain full control of the account, which could have grown to a really significant amount. The funds become theirs to use as they wish, whether that’s for university, a car, a house deposit, or, indeed, something less sensible.

Alternatively, the funds can be rolled over into an adult ISA, retaining the tax-free status and allowing the savings habit to continue into adulthood.

For those who save for their children, it makes sense to have open conversations with them as they grow older, so that hopefully they will do the right thing with this valuable gift. Financial education is just as important as the savings themselves.

Time to take action

The beginning of the tax year is a great time to make use of your ISA allowance, for a couple of reasons.  

First, during the ‘ISA season’ of which April is the pinnacle, cash savings providers tend to compete with each other, which pushes rates higher, providing plenty of choice.

Secondly, why leave your cash in a taxable account any longer than you need to. Although often the headline rates on taxable fixed rate bonds may look higher than the same term cash ISAs, once you deduct income tax, you can earn far more in the tax-free ISA, as the table below illustrates:

Now is also a good time to review your old ISAs, to see if you could be earning more by switching. The key rule is vital though - never withdraw the funds yourself. Instead, always use the official ISA transfer process provided by your new provider, who will liaise directly with your existing bank or building society. If you take the money out and attempt to redeposit it, it could lose its ISA “wrapper” which crucially means you would forfeit the tax-free status tied to those historic allowances. Given that ISA allowances cannot be reinstated once lost, this is an irreversible and often costly mistake.  

Reviewing your old ISAs whilst making the most of your new ISA allowance means that you can make your cash work as hard as possible, particularly important if we are to see inflation spiking upwards once again.

If you want to make your cash work harder, it is important to compare rates regularly and move money when better deals arise. In a market that is shifting and where relatively small rate differences can add up to hundreds of pounds over a year, staying informed is the best way to keep your savings working as hard as possible. Check our best buy tables for the most up to date savings rates. 

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Rates correct as at 07/04/2026. 

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.  

The Financial Conduct Authority (FCA) does not regulate cash flow planning. 

Inflation held steady at 3% in the 12 months to February, matching expectations and unchanged from January, though it continues to sit above the Bank of England’s 2% target.

It should be noted this figure was recorded prior to the outbreak of conflict in the Middle East, which has since driven up the cost of energy and fuel, meaning inflation is expected to rise in the coming months.  

Despite the sticky 3% rate of inflation, pensioners are set to receive higher state pension payments from Monday 6 April, during the first full week of the new tax year.

The main state pension rate is set to rise by 4.8% under the ‘triple lock’ system.

This established government policy ensures the state pension increases each year by the highest of inflation, average earnings growth, or 2.5%.

For this year’s adjustment, earnings growth was the deciding factor during the key reference period used to set the increase.

This means that pensioners are actually beating the rate of inflation for the start of the new tax year. And because the average earnings growth has now fallen below 4% according to ONS figures from November 2025 to January 2026, pensioners are also set to see a bigger increase than the workforce, since wages growth for the triple lock is calculated between May and July the previous year.  

What is inflation and how is it measured?

Inflation is a measure of how the prices of goods and services have increased over time. Goods are tangible items sold to customers, such as food, while services are tasks performed for the benefit of recipients, such as a haircut. Generally, this increase is measured by considering the cost of things today compared to how much they cost a year ago. The average increase between these prices is demonstrated in the inflation rate.  

Rising interest rates directly affects the cost of living. For example, if the price of a bottle of milk is £1, and inflation is increasing by 5%, then your bottle of milk will cost you 5p more. Or, in other words, the spending power of your money has decreased by 5%.  

Ideally, the Government wants to keep inflation low and stable. The general mandated target for the Bank of England is 2%. Anything significantly above or below this target is thought to cause issues for the economy.  

The cost of living surged in recent years, with inflation peaking at 11% in 2022 - way above the Bank of England's 2% target, partly due to the increase in energy prices following Russia's invasion of Ukraine.

While the rate has dropped significantly since then, falling inflation does not mean the goods and services are coming down in price overall, it is just that they are rising at a slower pace.

Our chartered advisers are unbiased, meaning that they can give whole of market advice, and so are best placed to give you a plan tailored exactly to your personal financial goals.  

If you’d like to know more, request a free non-committal initial consultation with one of our team or give us a call on 0333 323 9065 and get in touch. 

Arrange your free initial consultation

This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

At the time of writing the Middle East conflict is in full flow. The Straits of Hormuz are effectively closed, and markets are swinging on a daily basis depending upon whether Donald Trump has got out of the left hand side or right hand side of his bed. In short, no one has got the faintest idea what’s happening and by the time this article goes to print, for all I know, the war will be over, and markets would have jumped 10% or, things will have escalated and markets will have fallen 10%.

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“Don’t panic Mr Mainwaring” blurted Corporal Jones, in virtually every episode of the classic BBC comedy, Dad’s Army. Of course, no one was panicking, except for Corporal Jones himself and in this state of blind panic, he was the least likely member of the platoon to be able to resolve the predicament they happened to be in. Panicking, generally, does not lead to sound decision making and certainly not sound financial decisions.

There are plenty of reasons to ‘panic’ in today’s world (financially and otherwise) but as Corporal Jones has shown us, panicking gets you nowhere. Life goes on, and the markets go on too and the worst thing investors can do is convince themselves that “this time it’s different”, that the end is nigh and that we all need to grow carrots and store drinking water in industrial quantities.

In their 2009 book “This Time is Different”, the economists Carmen Reinhart and Kenneth Rogoff argue that investors always fall for the trap of believing that the game is up and that capitalism is over and investing is no longer viable. There are always people who come out of the woodwork at these moments in time to endorse and bolster the naysayers, not because their views are valid but because the media is prepared to give them airtime. Funnily enough, we do not hear about them much when markets are doing well which, believe it or not, is most of the time.

The peace of mind a financial plan provides

I’m not pretending that the Iran war isn’t a threat to the world economies, far from it, but I wouldn’t like to bet on markets being lower in a year’s time to where they are now. They might be, of course, but if you want to safeguard yourself against inflation, history has taught us that market exposure is the best way to do it. Cash and bonds generally lose in real terms over the long term.  

Markets tend to recover from shocks, whatever they are, and economists call this antifragility, which is the general principle that markets are able to adapt to new conditions. As one source of enterprise closes down, another one opens up and markets always sniff them out, if not immediately, then in time.

It is all well and good to say "don’t panic," but that is much easier to achieve if you actually have a plan in place. The major benefit of having a plan that you regularly revisit is the emotional peace of mind it provides. It moves you away from making knee-jerk reactions based on the morning's headlines and back towards a structured approach. If your personal circumstances change, or the government decides to shift the goalposts on taxes, a quick review of the plan will tell you exactly what needs to be adjusted. By keeping a close eye on your financial roadmap, you can ignore the noise of the markets, knowing that while the path might get a bit bumpy, you are still heading in the right direction.

What we already know

In addition to the “unknowns” (such as the Iran war), we also have the “known” events of future tax changes which are much favoured by the current Labour Government. On going stealth taxes, announced in 2021 as a short-term measure post Covid but now expected to continue until at least 2031. Dividend Tax increase and VCT relief reduction (April 2026); IHT on pensions (April 2027); Mansion Tax (2028) and Salary Sacrifice capping (2029).  

In previous articles I have highlighted the dangers of not investing. Just to remind you, in the 20 years from 1st January 2004, $10,000 invested in the S&P 500 would have grown to $66,637 (an annualised growth rate of 9.7%). Had you missed the best 10 days during that 10 years the final sum would have been $29,154 (5.5% annualised growth rate). Take away the best 20 days and it’s $17,494 (2.8%). The message is, of course, stay invested and don’t try to call the markets.

As always, the key is to ensure that you have sufficient liquidity to ride out market volatility. For clients who are nearing retirement, they enter into the ‘decumulation’  - or ‘drawing down’ - phase of their investing life. That is, the scary moment when assets accumulated over decades must now step up to the plate and start delivering actual money to ensure a comfortable retirement. If you don’t plan this properly, you become exposed to what is known as “sequence risk”. This represents a significant threat to portfolios if investments are encashed to meet ongoing expenditure during a market downturn. Risk management planning is vital in retirement to ensure you avoid this pitfall. Investment portfolios need to remain invested, to protect them from long term real value erosion, but for decumulators, the higher risk elements must still be viewed as long term and kept invested for many years, if need be, to await a recovery if the downturn is severe. That’s why the cash buffer is important!

In January 2026, markets were looking bullish, economies were generally on the up and most market commentators were positive about the prospects of equity markets continuing to do well. So, what do we do? Keep calm and carry on investing, or, to quote another Dad’s Army character, hold our heads in our hands and say “we’re doomed!”.

But whatever you decide, the best approach is to have your own personal plan in place, review it with your professional advisers and above all, don’t panic!

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash flow planning, estate planning, will writing, tax or trust advice.

A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.

Past performance is not a reliable indicator of future performance.

There are now more ISA millionaires than National Lottery millionaires, according to new HM Revenue & Customs (HMRC) figures. 

The figures were obtained by a freedom of information request by Plum to HMRC and revealed that there were over 5,000 ISA millionaires by the end of the 2022/23 tax year with a further 7,470 pots that would have likely reached seven figures since the data was recorded.

The National Lottery, conversely, produced a little over 7,700 millionaires by 2025 and is expected to add only another 400 this year, leaving it notably behind the growing ISA millionaire class.  

With tens of thousands more pots forecasted to be added to the ISA millionaire list over the next decade, ISA millionaire status is becoming the new golden target for ambitious savers to reach.

The average ISA millionaire held a pot worth £1.35 million at the end of the 2022/23 tax year, while the top 25 ISA millionaires had average holdings of £11.3 million each.

This marks yet another victory for ISAs and demonstrates the popularity and effectiveness of the UK’s most well-known tax-free investment wrapper.

What is an ISA?

An ISA, or ‘Individual Savings Account’, is a scheme that allows anybody to hold cash, shares and unit trusts free of tax on dividends, interest, and capital gains. Essentially, it’s a savings account that you don’t pay tax on.  

A cash ISA is a tax-free savings account that allows people to save cash without incurring income tax on interest. They have become more popular over the past few years due to rising interest rates increasing the competitiveness of savings products.  

You can save up to £20,000 each tax year across ISAs and receive tax-free interest payments and capital gains, so when the value of your ISA increases, you get to keep all of it tax-free. Though the total amount you can save across your ISAs is £20,000, some ISAs have specific limits, such as the Lifetime ISA which is currently £4,000 per annum and of course the cash ISA limit will be falling to £12,000 from April 2027 for those aged under 65.  

While there is a £20,000 allowance in place for how much you can put in per year, there is not a cap on how much you can accumulate in an ISA over a lifetime.  

If you want to find out more, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation with one of our chartered advisers to see how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning. 

In the latest blow for savers, the government-backed provider, National Savings & Investments (NS&I), has announced it will be cutting the Premium Bonds prize fund rate from 3.60% to 3.30%, effective from the April 2026 draw. This fall in the headline rate will also cut the odds of each bond winning a prize from 22,000 to 1 to 23,000 to 1.

For the millions of NS&I customers, this is another disappointment which follows a series of recent rate cuts to a number of NS&I products.  

Whilst this latest change may not alter the basic appeal of Premium Bonds, capital security and the chance of tax-free prizes, it does reduce the expected returns and slightly worsens the chances of winning.

The total number of prizes is expected to drop from over 6.2 million in March to around 5.9 million in April. While the two £1 million jackpots remain, the "middle" and "lower" tiers of prizes are being squeezed.

Why is NS&I cutting the rate?

Although this latest announcement came at a time when the broader savings market had begun to soften, with many banks trimming their rates, there is another important factor in the background.  

One of the key reasons for this move is likely to be so that the annual Net Financing Target isn’t breached. The Net Financing Target is the amount of money the Treasury tasks NS&I with raising from the British public each tax year – and the current target is £13 billion.

The latest provisional results for the third quarter of the 2025/26 tax year show that NS&I is already very close to its target. By the end of December 2025, they had already raised £9.9 billion, with a forecast of reaching £13.6 billion by the end of the financial year – so slightly over target, although within the leeway of plus or minus £4 billion.  

When NS&I has too much money coming in, its products need to be less competitive, making them less attractive, discouraging a further flood of cash that they simply don't need. This latest move follows recent cuts to the Direct Saver and Income Bonds, as well as their fixed term accounts, proving that the Treasury is currently feeling  well-funded.

Are Premium Bonds still worth considering?

Although now a little less appealing, Premium Bonds are likely to remain a popular choice, especially for taxpayers, as winnings are tax-free. Rather than paying interest, Premium Bonds give holders the chance to win prizes ranging from £25 to £1 million each month, although as mentioned above, the odds of winning any prize have reduced a little.

Despite this, many savers are likely to keep their Premium Bonds because of the ‘what-if’ factor – the excitement of potentially winning big.

And for those who pay tax on savings interest, Premium Bonds could offer particularly competitive returns. For example, a tax-free win of the new prize fund interest rate of 3.30% is equivalent to a 4.13% return for basic-rate taxpayers, 5.50% for higher-rate taxpayers, and 6% for additional-rate taxpayers in a taxable savings account. No savings accounts currently offer anything close to these rates for higher and additional taxpayers.

Of course the risk is that you win either less than this or even nothing at all, although the latter is highly unlikely if you have a larger holding in Premium Bonds. However, for someone holding only a small balance, it is entirely possible to go years without winning anything.

Premium Bonds remain a quirky and popular savings product, but they work best when viewed as a safe place for cash with the added excitement of a prize draw, rather than a reliable source of income.

And as NS&I carefully manages its funding targets, further tweaks to rates across its range of accounts should never come as a surprise. 

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This article is for information only and does not constitute individual advice. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning.

Rachel Reeves delivered her Spring Forecast this afternoon, which had been overshadowed before it even started by events in the Middle East.

As expected, the Spring Forecast (rather than Spring Statement as it has been referred to in previous years) did not include any fiscal changes, with Reeves previously committing to only holding one fiscal event each year, in the Autumn Budget.

By way of updates, Reeves announced that the Office for Budget Responsibility (OBR) had ‘adjusted the profile of GDP’ resulting in it downgrading its UK Growth projection for 2026 from 1.4% (as forecast in November 2025) to 1.1%, but the OBR increased its forecasts for 2027 (1.5% to 1.6%) and 2028 (again 1.5% to 1.6%).  Reeves also heralded the interest rate cuts seen in recent months, but events in the Middle East have significantly reduced the chance of a further cut in March, given the inflationary oil and gas price rises seen since the weekend.

Therefore, the most important upcoming tax changes are those we already knew about, specifically:

• A 2% increase in dividend tax taking effect on 6 April 2026.
• VCT tax relief being cut from 30% to 20% on 6 April 2026.
• Business and Agricultural Relief limited to £2.5m per individual, with effect from 6 April 2026 – this importantly increased from the previously proposed £1m and can be passed between spouses if not used on first death.
• A 2% increase in savings and property taxes taking effect on 6 April 2027.
• A cap in Cash ISA contributions of £12,000 for under 65s with effect from 6 April 2027.
• Pensions forming part of estates for inheritance tax purposes from 6 April 2027.
• A Mansion Tax being introduced in April 2028.
• Salary Sacrifice pension contributions benefiting from National Insurance Contribution savings limited to £2,000 with effect from 6 April 2029.
• Income Tax thresholds frozen until April 2031.

If you would like to discuss the impact of the above on your personal financial situation, why not get in touch for a free initial conversation to see how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions

The Financial Conduct Authority (FCA) does not regulate estate planning or tax advice.

The increasing number of online ‘finfluencers’ has pushed regulators to take legal action in an unprecedented crackdown on online personalities handing out financial advice.

Following a freedom of information act requested by BrokerChooser, the Financial Conduct Authority (FCA) revealed action being taken against unauthorised finfluencers has increased by 174% last year.  

Importantly, this has led to three finfluencers being arrested and charged with encouraging followers to invest in high-risk foreign exchange traded funds. Their court appearances are set for 2027.

This is important as it demonstrates the shifting landscape around unregulated financial advice. For many years the finfluencer trend has been growing, with many content creators, such as those found on TikTok or Instagram, pivoting to give their often young audience questionable financial advice, sometimes in the form of ‘get rich quick’ schemes.  

Given the sheer scale of unregulated financial advice being promoted on these social platforms, there are calls for broader social media reform and platform cooperation. 34 million videos are uploaded to TikTok every day, and the FCA cannot check every one.  

However, the first arrests demonstrate that the FCA is serious about cracking down on the trend, and sets a precedent that things are changing.

The FCA commented: “Even when social media platforms remove the illegal content we flag, new accounts pop up in no time with identical, or almost identical, content. They must be more proactive in identifying and removing unlawful content early before it reaches UK consumers.”

Despite this, it is important to recognise that there is another side, and the FCA does acknowledge that some finfluencers can offer helpful guidance, which makes policing the content all the more difficult.

What is a ‘finfluencer’?

Finfluencer is a relatively new term, used to describe a content creator who operates on social media to promote financial products and services to their audience. What separates a finfluencer’s advice from real financial advice is the finfluencer is often unqualified, unauthorised and unregulated. Finfluencer derives from the term ‘influencer’ which, in marketing and social media terms, refers to a person with the ability to influence viewer’s opinions on social media or video sharing platforms like YouTube. You do not need to prove that you have any qualifications to become a finfluencer, you just need to have an audience.

The problem with finfluencers

If a finfluencer is knowledgeable about the product or service they promote and their content is considered 'responsible' by the FCA, finfluencers can actually be beneficial. They help to educate buyers and help them to evaluate their choices and understand the variety of products available to them in a simple and easy to digest way.

The problem is that there are many examples where this is not the case. Many finfluencers promote unlawful 'get rich quick' schemes or act irresponsibly in their communications, with endorsement of questionable crypto investments and ‘memestocks’ being a common trend (at the time of writing). In such cases, less knowledgeable audience members could be exploited and even scammed, with 55% of those who have followed financial advice on social media reporting losing money, according to TSB.

Aside from the obvious detriment to the victims of this kind of unlicensed advice, the wider reaching implication is that this misinformation leads to a general distrust of financial services, further discouraging financial literary and ultimately hurting the average consumer.

 If you are tired of misinformation and are seeking real, impartial and fully qualified financial advice, book a free non-committal initial consultation with one of our accredited advisers who will be happy to help. Alternatively, you can give us a call on 0333 323 9065.  

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This article is for information only and does not constitute individual advice. 

The Financial Conduct Authority (FCA) does not regulate cash or tax advice.

Investment returns are not guaranteed, and you may get back less than you originally invested. Past performance is not a guide to future returns.