The Chancellor previously confirmed that she only wanted to make major tax and spending announcements once a year, with this being in the Autumn Budget.  Therefore, no tax changes were expected and none were delivered.

The headline from the speech was that the Office for Budget Responsibility (OBR) has halved its 2025 growth estimate for the UK from 2% to 1% in 2025, but it has upgraded its longer term forecasts from 2026 onwards.

Alongside this, previously announced cuts to Welfare and Overseas Aid payments, Increases in Defence spending and Planning Reforms were confirmed.

In terms of signposting future changes that could be announced:

• The government confirmed it is looking at options to reform ISAs to “get the balance right between cash and equities to earn better returns for savers” which could indicate limited cash ISA allowances relative to Stocks and Shares ISA allowances.
• The government will also be holding a series of roundtables with key stakeholders over April as it considers the role of tax reliefs for Enterprise Management Incentives Schemes, Enterprise Investment Schemes and Venture Capital Trusts.

After the pension changes over the last few years and, in particular, last year’s confusion as the new pension rules were ‘bedded in’ and legislation adjusted, it was a relief to have no further tinkering with pension rules.

We already know of course, of various areas of impending change, including the removal of the ‘domicile’ tax regime from 6 April this year, the Business Property Relief and Agricultural Property Relief changes from April 2026 and of course the Pensions and IHT changes from April 2027 – which we await further details on.

These areas and others, including the employer National Insurance increases, are covered off in our Autumn Statement 2024 summary.

There were some changes announced to Universal Credit from 2026 onwards and from this summer it will become possible for those newly liable for the High Income Child Benefit Charge to pay the tax through PAYE rather than via self-assessment.

If you’d like to discuss any of the announcements from the Spring Statement or Autumn Budget last October, and are concerned about how they will affect your financial plan, why not get in touch and speak to one of our expert advisers.

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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 tax advice.

In its annual update to the ‘basket of goods and services’ used to monitor inflation price growth, the Office for National Statistics (ONS) added 23 new items and removed 15 to the list of over 700 that reflect typical consumer spending habits, with some additions that may come as a surprise.

Opening the basket of goods

Among the new additions to the basket were virtual reality (VR) headsets, pre-cooked pulled pork, yoga mats, noodles and mangos, while newspaper adverts, oven-ready gammon joints, in-store cafeteria meals and DVD rentals were removed.

As a surprise to some, men’s sliders/pool sandals also made their way into the basket. A sure-fire sign of the times!

Stephen Burgess, ONS Deputy Director for Prices, said the addition of VR headsets to the inflation basket pointed to Britons’ “appetite for emerging technology, while the loss of printed newspaper adverts demonstrates a continuing shift towards the online world.”

Burgess explained the addition of the yoga mats: “Yoga mats also limber up as a new addition due to their increased popularity since the pandemic."

As for the men’s sliders, we still aren’t entirely sure!

How is the basket of goods calculated

In order to calculate an inflation figure, the ONS tracks the prices of hundreds of everyday items and compiles them into one figure. This combination of all the different items and their prices is called the ‘basket of goods’. The basket is constantly updated and adjusted depending on the economic context, and different weightings within the basket are given to different areas of spending in the economy.

Each month the ONS releases a new inflation figure which shows how much the combined prices of items in the ‘basket of goods’ has risen since the same time last year.

The basket currently contains 752 items. The ONS collects the costs of these products and services across many different retailers to come up with the monthly inflation figures.

But what is added or removed each time also gives us a fascinating insight into our changing tastes, trends and lifestyles. For example, wild rabbit was one item included in the first list of 1947. Tea bags only made it in by 1980. It is essentially a reflection of our collective consumer habits in the UK.

Understanding how inflation can impact on your financial plan is key, so 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 to find out 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 or tax advice.

The financial support provided by parents and grandparents has long played a role in family life, but in recent years, it has become a defining force in the broader economy. Dubbed the ‘Bank of Mum and Dad’, this intergenerational flow of wealth is increasingly crucial in helping younger people buy their first homes, fund their education, and establish financial security.

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As house prices have surged far beyond wage growth, saving for a deposit has become an uphill battle for many. The average first-time buyer in the UK now needs around £60,000 for a deposit, a sum that would take years to accumulate without external support. Faced with this reality, nearly half of young homebuyers now rely on financial help from family to get onto the property ladder. This trend is even more pronounced in high-cost areas such as London and the South East, where deposits often exceed £100,000. Without parental contributions, home ownership is increasingly out of reach for those without inherited wealth.

A similar pattern is evident in higher education, where rising tuition fees and the high cost of living mean many students graduate with substantial debt. While some rely on student loans, others benefit from parents who cover their fees or living expenses outright. This financial head start can have long-term advantages, allowing some graduates to begin their careers unburdened by debt, while others face years of repayments that delay their ability to save, invest, or buy property.

What does this mean for society?

Beyond individual families, the ‘Bank of Mum and Dad’ has wider economic implications. As wealth is increasingly passed down through gifting, it alters patterns of financial security and social mobility. Those who receive help from their parents enjoy an advantage not only in property ownership but in long-term financial stability, while those without such support find it harder to build wealth. 
Research from the Institute for Fiscal Studies confirms that parental earnings are now a stronger predictor of young people’s future income than in previous generations, reinforcing economic divides.

The 7-year rule in inheritance tax

For wealthier families, gifting money to children can also serve a strategic purpose. Under current UK tax laws, financial gifts made more than seven years before the giver’s death typically fall outside of inheritance tax calculations. This means that parents and grandparents who transfer wealth earlier can help reduce the potential tax burden on their estate while providing meaningful support at a time when it is most needed. Given that inheritance tax is charged at 40% on estates above the £325,000 threshold known as the nil rate band (or £500,000 when passing a main residence to a direct descendant, known as the residence nil rate band), careful legacy planning can result in substantial savings.

However, parental generosity is not without its risks. As life expectancy increases and retirement lasts longer, many parents must balance their desire to support their children with their own financial security. Rising care costs and later-life expenses mean that some retirees could deplete their savings too quickly, potentially leaving them reliant on state support or requiring assistance from their own children in later years. A survey by Aegon suggests that over half of UK adults anticipate financially supporting their parents as they age, illustrating how wealth flows between generations in complex and often unpredictable ways.

The future of the ‘Bank of Mum and Dad’

Despite concerns about retirement preparedness, the influence of the ‘Bank of Mum and Dad’ is unlikely to diminish soon. Housebuilding targets remain unmet, real wages have not kept pace with property prices, and the need for financial support among younger generations shows no signs of easing. As a result, families will continue to navigate the challenges of intergenerational wealth transfers, seeking to strike a balance between supporting their children and securing their own financial futures.

For those considering passing on wealth, early planning is key. Seeking professional financial advice can help families structure gifts and inheritance in the most tax-efficient way, ensuring that wealth is preserved and maximised for future generations. As economic trends continue to shift, the role of the ‘Bank of Mum and Dad’ is, for the near future at least, here to stay.

If you’re looking for advice on the best way to support your loved ones, why not get in touch for a free initial consultation 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, estate planning, tax or trust advice.

Last month, on February 6th, we saw a 0.25% cut to the Bank of England base rate.

Savings rates are proving resilient!

Normally, that’s bad news for savers since interest rates on savings accounts tend to follow suit. But so far this year, the best savings rates have held up surprisingly well. In fact, many accounts are not only offering rates higher than the current base rate of 4.50% but also keeping pace with the rising cost of living (inflation), which currently stands at 3%.

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So what does this mean for savers?

Well, it might not be as bad as you think!

The fact is that some of the longer-term bonds and ISAs are actually paying higher rates now, compared to the beginning of the year.

Back in early January, the best 5-year bond available paid 4.50% AER, but today, JN Bank, Birmingham Bank and Close Brothers Savings are all offering 4.55% AER. Similarly, the top 5-year cash ISA rate has risen from 4.18% at the start of the year to 4.30% now.

One of the key reasons for this is inflation, which remains stubbornly above the Bank of England’s 2% target. As a result, interest rates are expected to stay higher for longer than previously anticipated. Good news for savers!

Even some of the top variable rates, whilst a little lower than they were in January have not fallen by as much as the cut in the base rate. At the start of the year the best unrestricted easy access account, offered by Gatehouse Bank, paid 4.75%. Today, GB Bank is offering 4.60% AER. And that Gatehouse Bank account, although it has since been withdrawn from sale, those who opened it before it was closed are still benefiting from that 4.75% rate.

For those who can limit their withdrawals, even better rates are available. Monument Bank’s Limited Access Saver pays 4.75% AER, allowing three penalty-free withdrawals per year—though you’ll need at least £25,000 to open the account. If you have a smaller balance, Vida Savings Defined Access Issue 1 offers 4.65% AER, allowing four penalty-free withdrawals a year. Any additional withdrawals will see the rate drop to 2.50% for the rest of the year.

Cash ISAs continue to provide a valuable tax-free savings option. There’s been speculation that the cash ISA allowance could be reduced—or even scrapped altogether. However, despite the ongoing debate, it has been reported that Chancellor Rachel Reeves has confirmed there will be no changes to cash ISA rules in the upcoming Spring Forecast on March 26th – but that doesn’t mean the cash ISA allowance is safe!

The key takeaway? Savers still have plenty of opportunities to make their money work harder. It’s worth checking what you’re currently earning and switching if you can get a better deal. And if you can afford to lock away some of your savings, you could protect yourself from further rate cuts while keeping up with inflation.

Take a look at our unbiased and whole of market best buy tables to see if you could do better!

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Investment returns are not guaranteed, and you may get back less than you originally invested. 

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 tax advice.

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Once again, we sincerely appreciate all of our clients and prospective clients for taking the time to share their experiences.  

If you’d like to discover why The Private Office continues to be top-rated, we’d love to hear from you. Get in touch today! 

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Question: I love cash ISAs and hope they stick around. I’ll be receiving a lump sum soon and want to put some of it into next year’s £20,000 ISA allowance. I prefer cash ISAs but need some flexibility since my rental income isn’t always steady. Can I split my funds between a fixed-rate ISA and an easy access ISA as there are times that my properties are empty, so I might need access to some cash? 

I’m a fan of cash ISAs too! So, I’m worried that there’s been a lot of speculation recently that the cash ISA allowance is to be either scrapped or at the very least restricted – some are saying to as little as £4,000 a year. With cash ISAs remaining as one of the best ways to earn tax-free interest for savers, I hope that these rumours won’t come to fruition, but we’ll just have to wait and see.

Now, onto your question. Thanks to rule changes in April 2024, you should now be able to split your £20,000 ISA allowance into several cash ISAs within the same tax year. That means you could open both a fixed-rate cash ISA and an easy-access cash ISA, as long as you don’t exceed your total annual allowance. However, it might not be as simple as you’d hope!

A fixed-rate ISA usually offers a better interest rate in return for locking your money away for the chosen term — ideal if you don’t need access to those funds for a while. Plus, it protects you from any future rate cuts that may happen. In contrast, an easy-access ISA gives you the flexibility to withdraw funds if you need them for rental gaps or unexpected expenses, although the interest rate is variable and could be cut if interest rates fall over time, as is expected.

However, while the updated rules now allow this mix-and-match approach, not all providers have adopted them in practice.

Before the 2024 rule change, you could only pay into one of each ISA type per tax year—so, for example, one cash ISA and one stocks and shares ISA. There was an exception called the ‘portfolio ISA’ rule, which allowed multiple cash ISAs with the same provider in a single tax year, but only a handful of providers, such as Paragon, Aldermore, Charter Savings Bank, Nationwide and Ford Money, offered this option.

With the new rules, you might assume you can now open multiple cash ISAs with different providers or the same provider within a single tax year. But here’s the tricky part - ISA providers aren’t required to follow the new rules. Most now allow you to open another cash ISA even if you’ve already funded one with a different provider in the same tax year. However, this doesn’t necessarily mean they allow multiple cash ISAs under one roof.

If you’re after the best rates for both fixed and easy-access ISAs, chances are they won’t be from the same provider anyway. So, to make the most of your allowance; it’s worth picking the best rates available rather than worrying about whether one provider allows multiple ISAs.

And be aware that you should always check the small print on easy-access ISAs. Some have short-term bonuses that boost the rate initially but drop after a few months. Others limit the number of withdrawals you can make before penalties apply.

Another key point - if you expect to dip into your ISA savings, check whether the ISA is flexible. With a flexible ISA, you can withdraw money and put it back within the same tax year without affecting your allowance. If it’s not flexible, any money you take out still counts toward your annual limit when you replace it.

For example, if you put £10,000 into your cash ISAs during the 2024 to 2025 tax year but then take out £3,000, the amount you can put in during the same tax year is £13,000 if your ISA is flexible (the remaining allowance of £10,000 plus the £3,000 you took out). But if your ISA is not flexible, you can add just £10,000 (just the remaining allowance).

Whilst in theory the new rules should make opening ISAs simpler than ever before, the bottom line is that whilst things should be more flexible now, inevitably this isn’t necessarily the case, so you need to ask your existing and potential ISA providers about which of the rules they have adopted or are looking to adopt. 

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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 tax advice. 

The accounts mentioned in this article are accurate and correct as at the time of writing.

The fight for the future of the cash ISA continues as one of Britain’s biggest building society has waded into a row over whether the government should cut tax breaks on cash ISA's, arguing such a move would reduce the availability of mortgages for first-time buyers.

As covered in our previous article on the cash ISA threat, Rachel Reeves is being lobbied by City firms to scale back or remove tax breaks on the popular cash ISA's. They are putting pressure on Reeves to make these changes so that more focus is put on the riskier practice of investing in the stock market, which they say would boost economic growth and could deliver higher returns to individuals over the long term, although as with any investment that is not guaranteed.  

Richard Fearon, CEO of Leeds Building Society, criticised the increasing push from certain City brokers and fund managers to cap cash ISAs in an effort to steer savers toward stocks and shares. He warned that lowering the £20,000 annual cash ISA limit would not only be unpopular among customers but could also lead to higher mortgage rates.

“It’s naïve at best, or deliberate misinformation at worst, for fund managers to say money saved in cash ISA's is dormant,” he said. “We use it to fuel our mortgage lending. If you significantly reduce that funding, mortgage rates would become more expensive for borrowers.”

A survey to Leeds Building Society customers last year found that only 7 per cent were interested in opening stocks and shares ISAs in 2024. It’s clear that many people are not interested in the more risky stocks and shares ISA over the more secure cash ISA, despite what big city firms want.

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 two years due to rising interest rates increasing the competitiveness of savings products.  

A stocks and shares ISA is a tax-efficient account that allows you to invest in shares, funds, bonds, and other assets while being sheltered from income and capital gains tax. 

You can save up to £20,000 each tax year and receive tax-free interest payments, so when the value of your ISA increases, you get to keep all of it tax-free*.  

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

When choosing a style of investment to suit your needs, you may want to consider how long you plan to invest for and how much you would like your money to grow. It is also important to understand what movement in value you may or may not be happy with and any potential losses that may happen. That is why getting professional advice can be important for understanding your objectives and options.

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. 

*Source: Gov.uk

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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. 

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

Planning for retirement requires careful consideration of the best savings vehicles available, and two of the most popular options in the UK are pensions and ISAs (Individual Savings Accounts). While both offer tax-efficient ways to grow wealth, they serve different purposes and come with distinct advantages and limitations. A well-rounded retirement strategy may involve using both, depending on individual financial goals, tax considerations, and evolving regulations.

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The role of pensions in retirement planning

Pensions are designed primarily for long-term retirement savings, offering significant tax advantages that make them an attractive option. One of the biggest benefits is the tax relief on contributions—money paid into a pension receives tax relief at an individual’s marginal tax rate, effectively reducing the amount of tax paid on earnings. For higher or additional-rate taxpayers, this makes pensions particularly valuable, as contributions can benefit from 40% or even 45% tax relief, depending on income levels.

Additionally, pensions provide tax-free investment growth, allowing savings to accumulate over time without being eroded by capital gains tax or dividend tax. When it comes to withdrawing funds, 25% of a pension pot can be taken as a tax-free lump sum, while the remaining balance is subject to income tax. The trade-off for these benefits is that pension savings are locked in until at least age 55 (rising to 57 in 2028), making them less accessible in comparison to ISAs.

The flexibility of ISAs

ISAs, on the other hand, offer tax-free growth and withdrawals, making them an excellent complement to pensions in a retirement strategy. While contributions do not receive tax relief, the ability to access funds at any time without penalty makes ISAs more versatile. This flexibility can be particularly useful for those who may need to draw on savings before retirement or wish to supplement their pension income without triggering additional tax liabilities. ISAs have a limit of £20,000 per individual per tax year and this can be split across cash and/or stocks and shares.

Cash ISAs allow savers to earn tax-free interest, while Stocks & Shares ISAs provide the potential for investment growth with no capital gains or dividend tax on returns. This makes ISAs an attractive choice for those who want to retain control over their savings without the restrictions of a pension. However, recent discussions about potential changes to the Cash ISA framework have raised concerns about its long-term benefits, making it all the more important for savers to stay informed about policy updates.

The changing landscape of pensions and inheritance tax

One of the most significant changes being proposed for pensions  is the planned inclusion of pension funds within the scope of inheritance tax (IHT) from 2027. Historically, pensions have been an efficient way to pass wealth down to future generations, as they have typically fallen outside of an individual’s estate for IHT purposes. This has led many financial advisers to recommend using non-pension savings first in retirement, preserving pension wealth to be inherited tax-free.

However, with the proposed new rule changes, pensions may no longer enjoy this exemption, potentially making them less favourable for wealth transfer. This shift may encourage retirees to draw down on their pensions earlier rather than leaving them untouched, making strategic planning even more essential. Individuals should review their estate planning strategies in light of these proposed changes to ensure they optimise tax efficiency while securing their financial future.

Balancing pensions and ISAs for a stronger retirement plan

Given the unique advantages of both pensions and ISAs, a balanced approach can help individuals make the most of their retirement savings. Pensions remain a powerful tool for long-term wealth accumulation due to tax relief and employer contributions, but they have some limitations on access and flexibility and could soon be subject to inheritance tax. ISAs, while not offering tax relief on contributions, provide tax-free growth and withdrawals, making them an excellent complement for early or flexible access to savings – but are limited to £20,000 contribution per tax year.

Younger savers may prioritise pensions to take full advantage of employer contributions and tax relief, ensuring they build a solid foundation for the future. Meanwhile, those approaching retirement may benefit from shifting some focus to ISAs, allowing for accessible savings that can be drawn upon without incurring additional tax burdens. Given the proposed changes to pension inheritance tax, retirees may also need to rethink how they draw down their savings, potentially using pensions earlier than previously advised.

With tax laws and regulations evolving, seeking professional financial advice is crucial to navigating the complexities of retirement planning. A tailored strategy that considers tax efficiency, investment growth, attitude to risk, and changing policies can make a significant difference in long-term financial security. By carefully balancing contributions between pensions and ISAs, individuals can build a more resilient retirement portfolio that aligns with their goals and adapts to the shifting financial landscape.

We’re currently offering anyone with £100,000 or more in pensions, savings or investments  a free initial financial review worth £500. If you’d like to learn more, get in touch for an initial consultation 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 tax planning.

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

The information contained within this article is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change.

National Savings & Investments (NS&I) has announced changes to some of its savings rates, with a mix of good and bad news for customers. While some rates are being cut, there is also a slight boost for those with the cash ISA.

The bad news is that from 5th March 2025, NS&I will lower the interest rates on its Direct Saver and Income Bonds easy access accounts. Direct Saver will drop from 3.50% to 3.30% AER, while Income Bonds will see a reduction from 3.44% monthly (3.49% AER) to 3.26% monthly (3.30% AER). Additionally, the prize fund rate on Premium Bonds will decrease to 3.80% from the April 2025 draw.

However, there is some positive news. Effective immediately, the Direct ISA rate has increased from 3.00% to 3.50% for both new and existing customers. While this is a welcome boost, it is worth noting that better rates are available elsewhere – and you are not able to transfer in previous ISA allowances.

Why is NS&I cutting rates now?  

One key factor behind the cuts is likely to be the recent base rate reduction of 0.25% in early February, from 4.75% to 4.50%.

But it could also be that NS&I is already on track to meet its net financing target for the tax year – the amount of money it needs to raise each year.  

In the Spring Budget of March 2024, the UK government set NS&I’s net financing target for the 2024-25 financial year at £9 billion, with a leeway of plus or minus £4 billion.  

This is quite a range and as of the second quarter of the 2024/25 tax year, it had raised £3.3 billion. While this is within the target range, it is slightly below the ideal figure, making the decision to cut rates even more disappointing.

Are Premium Bonds still worth hanging on to?

Premium Bonds 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. The odds of winning remain at 22,000 to 1, but in order to keep the odds the same, NS&I has increased the number of £25 prizes while reducing some of the larger payouts. However, the two £1 million jackpots will still be available each month.

Despite the rate cut, 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 3.80% is equivalent to a 4.75% return for basic-rate taxpayers, 6.33% for higher-rate taxpayers, and 6.91% 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.

How do the new easy access and ISA rates compare?  

For those looking for better easy access savings rates, alternatives exist. Some banks and building societies are currently offering rates as high as 4.57% AER on accounts with no restrictions. Others, like Monument Bank’s Limited Access Saver, is offering 4.75% AER on £25,000 plus, although only three penalty free withdrawals can be made per year and it must be opened via the bank’s mobile banking app. If you are looking for monthly interest, this account allows you to choose this option paying a rate of 4.65% gross monthly.  

Kent Reliance offers an unlimited access account that can be opened in branch or online paying 4.56% AER/4.47% monthly.  

There are plenty of easy access cash ISAs paying more too.  

Take a look at our best buy tables to see what else is on offer.

Why some still choose to stay with NS&I

With better rates available, some savers may consider moving their money to earn more. However, NS&I remains a trusted option due to its government backing. Unlike other banks and building societies, which are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person per institution, NS&I guarantees 100% security for all savings, no matter the amount. So for short term needs, NS&I can be an obvious and simple option.

But for those with smaller balances or who are willing to spread their savings across multiple institutions paying higher rates, it might not be the best choice.

The rise of the cash savings platforms has also added another option for those with larger amounts of cash.

Think of a cash savings platform like a savings supermarket, where with a single application and log-in, you can pick and choose multiple competitive savings accounts - from easy access to fixed term bonds - and providers at the click of a button. Whilst not whole of market, cash platforms often do offer competitive and some market leading accounts. But the real benefit is that they make it easier to spread your cash, so that it can be better protected by the Financial Services Compensation Scheme (FSCS), whilst earning more.

You can now open, access and switch between multiple competitive savings accounts via a single log-in with the our  Savers Hub, powered by Insignis.  

While NS&I’s rate cuts are disappointing, the appeal of Premium Bonds and the security of being able to deposit very large sums securely remain strong. However, savers looking for better returns should explore alternatives, as the current market offers more competitive rates. 

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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 advice.

The accounts and rates mentioned in this article are accurate and correct as of 27/02/2025.

The financial landscape has shifted dramatically over recent decades, leaving Generation Z (those born between 1997 and 2012) facing a unique set of challenges compared to their parents and grandparents. From soaring house prices to student debt and an increasingly complex job market, young adults today must navigate financial hurdles that previous generations may not have encountered at the same stage of their lives.

At the same time, there is an unprecedented transfer of wealth underway, known as the Great Wealth Transfer (or even Bank of Mum and Dad), with many parents and grandparents holding significant financial assets that could play a vital role in supporting the next generation.

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For parents, the question is no longer just how to leave a financial legacy but also how to equip their children with the knowledge and confidence to manage their money effectively. The right conversations and early financial planning can make all the difference in helping Gen Z establish a strong foundation for their future.

A New Set of Financial Challenges

Every generation faces financial pressures, but Gen Z has grown up in an economic environment where stability can feel increasingly out of reach.

Homeownership, once considered a realistic milestone for young adults in their twenties or early thirties, has become far more difficult to achieve. House prices have surged ahead of wage growth, with deposits requiring years of disciplined saving. For many young people, renting well into adulthood is the only viable option, meaning they have less opportunity to build wealth through property ownership.

Sadly, rental costs have soared in recent years, meaning many young adults are forced into living with their parents for longer than they might ideally like, pushing independence further down the road.

Student debt is another significant burden. While previous generations could attend university with minimal financial strain, tuition fees and the cost of living now leave many graduates starting their careers already saddled with considerable debt. At the same time, traditional career paths are changing. The rise of the gig economy and short-term contracts means that many young workers experience financial instability, making it harder to plan for the future or save consistently.

Beyond these direct challenges, there is also the issue of financial education. Many young people enter adulthood with little understanding of saving, investing, or managing debt, leaving them vulnerable to financial mistakes. The earlier they develop financial literacy, the better positioned they will be to navigate these challenges with confidence.

The Role of Parents in Financial Education and Support

One of the most valuable things parents can do for their children is to normalise conversations about money. Many families shy away from discussing finances, whether due to cultural norms, discomfort, or simply a lack of knowledge about how to approach the topic. However, fostering an open dialogue about money from an early age can set children up for long-term success.

The family dinner table is an ideal place to introduce these discussions. Talking about budgeting, saving, borrowing or even explaining financial decisions in real time helps children develop a natural awareness of financial matters. For younger children, this could be as simple as discussing how pocket money is spent and saved. For teenagers and young adults, conversations might focus on the realities of student loans, credit scores, or the importance of building an emergency fund.

Crucially, these discussions should not be one-off lectures but ongoing conversations that evolve as a child grows. Encouraging Gen Z to ask questions and think critically about money can help them make informed financial decisions rather than relying on trial and error.

The Great Wealth Transfer and Its Impact

While Gen Z faces significant financial pressures, they are also poised to benefit from what is being called the largest wealth transfer in history. Over the coming decades, trillions of pounds are expected to be passed down from the ‘baby boomer’ generation to their children and grandchildren, reshaping the financial landscape.

For families with significant assets, careful planning is essential to ensure that wealth is transferred in a way that is both tax-efficient and beneficial for the next generation. Parents and grandparents should consider whether gifts or inheritance might help their children achieve financial security, such as contributing to a house deposit or assisting with university costs. However, support should be accompanied by financial education and know-how. Without the right knowledge, sudden financial windfalls can be mismanaged or even create unintended dependencies.

This is where financial advice plays a crucial role. Whether navigating inheritance tax (IHT), structuring financial gifts, or setting up trusts, working with a financial adviser can help families manage their wealth in a way that benefits both the current and future generations.

Encouraging Smart Financial Habits Early

While parental support can make a significant difference, it is equally important that young people take ownership of their financial future. Encouraging Gen Z to start investing early can be one of the most impactful steps towards long-term wealth building. The power of compounding means that even small investments made in their twenties can grow significantly over time, providing a strong financial foundation for later life.

Many young adults perceive investing as risky or complicated, often assuming it is only for those with substantial wealth. However, with modern investment platforms making it easier than ever to get started, there has never been a better time for young people to explore their options. Even modest contributions to a stocks and shares ISA or a tax-efficient pension scheme can set them on the path towards financial independence.

Parents can support this by demystifying the investment process, encouraging their children to start early, and, if necessary, introducing them to professional financial advice.  A financial adviser can provide tailored guidance on saving strategies, tax-efficient investment options, and long-term financial planning, helping young investors build confidence and clarity about their financial goals. 

Why Seeking Financial Advice Matters 

For parents, working with a financial adviser can help create a structured plan for passing on wealth while ensuring their children are prepared to handle financial responsibilities. For Gen Z, seeking the right financial advice early can provide clarity on how to budget, save, and invest effectively, setting them up for long-term success. 

At TPO, we help individuals and families build a secure financial future through tailored advice and strategic planning. Whether you are a parent looking to support your children or an adult looking to maximise your wealth, our team is here to provide the expertise you need. 

If you want to take control of your financial future, contact us today to learn how we can help you make informed, confident decisions.  

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The details in this article are for information only and do not constitute individual advice.

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

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