News Round Up
Premium Bonds prize rate falls
The prize rate for Premium Bonds has reduced from 1.4% to 1% as savings rates hit a record low. Each £1 bond has just a 34,500-to-1 chance of winning a prize, which may be as low as £25. However, while most bondholders won’t win anything, two lucky winners do scoop up £1m each month.
Rent falls hit buy-to-let
The Covid-19 pandemic brings more bad news for buy-to-let landlords. Rents have fallen in many major cities, because of lower demand for rented accommodation from students, overseas workers, tourists and business travellers. The drop is most pronounced in London, according to Zoopla, but rental prices are also falling in Manchester, Birmingham, Edinburgh, Leeds and Reading.
Regulation of postponed payment services
Financial regulators will now oversee the ‘buy now pay later’ firms offering interest-free loans to online shoppers. These services allow people to pay for items in instalments and were used by five million people in the last year. There are concerns these interest-free services are an easy way for people to fall into debt, particularly the younger generation. Providers, such as Klarna, will now have to undertake affordability checks.
The information in this article does not constitute advice and should be used for informational purposes only. This content has been provided to Helm Godfrey by Taxbriefs.