“But it is worth keeping in mind that returns are not guaranteed and their deposit would not be protected under the Financial Services Compensation Scheme (FSCS).
“It’s great to see support for tackling climate change and in a low interest rate environment there may well be savers looking towards alternative ways to grow their savings pot.
“However, it is important investors understand their attitude to risk before they commit.
“Innovative Finance ISAs allow savers to invest using peer-to-peer and earn interest, which is tax-free under the ISA wrapper.
“However, as their capital is at risk, seeking advice would be wise as they are lending out their cash via peer-to-peer for an interest return.”
However, there are challenges which some may encounter.
She said: Borrowers sitting on a standard variable rate mortgage (SVR) may have seen their repayments fall in light of the two base rate cuts seen in March 2020, but they could stand to save much more by switching to a fixed rate deal. However, the impact of the coronavirus may have made it difficult for some consumers to move their mortgage, some may even be mortgage prisoners if their circumstances have changed drastically due to the pandemic.
“Mortgage availability was hit hard during 2020 and there was more caution adopted by providers with regards to their lending criteria, however the sector to see the biggest shake-up was for borrowers with a small deposit.
Trending
The MPC confirmed last month that while there wasn t a wish to signal negative territory was on the horizon, they were rewriting to banks on the matter.
The report stated: While the Committee was clear that it did not wish to send any signal that it intended to set a negative Bank Rate at some point in the future, on balance, it concluded overall that it would be appropriate to start the preparations to provide the capability to do so if necessary in the future. The MPC therefore agreed to request that the PRA should engage with PRA-regulated firms to ensure they commence preparations in order to be ready to implement a negative Bank Rate at any point after six months.
| UPDATED: 22:39, Thu, Feb 25, 2021
Link copied Make the most of your money by signing up to our newsletter for FREE now
SUBSCRIBE Invalid email
When you subscribe we will use the information you provide to send you these newsletters. Sometimes they ll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time.
Interest rates have faced challenges recently, but Paragon Bank has stepped in with a new offering. The provider has decided to increase the interest rates across all of its fixed rate products. The step was taken in order to offer further choice to savers who are currently on the lookout for competitive fixed rate options, Paragon Bank has said.
| UPDATED: 14:12, Thu, Feb 25, 2021
Link copied Make the most of your money by signing up to our newsletter for FREE now
SUBSCRIBE Invalid email
When you subscribe we will use the information you provide to send you these newsletters.
Sometimes they ll include recommendations for other related newsletters or services we offer.
Our Privacy Notice explains more about how we use your data, and your rights.
You can unsubscribe at any time.
TSB is a popular name on Britain’s high streets, with millions using the provider each year for their banking needs. Back in September 2020, the bank took the decision to launch its ‘Spend and Save’ current account, offering a number of features intended to help people progress in their money saving journey. Taking the offering one step further, today the provider unveiled ‘Spend and Save Plus’ - a new account which it states is designed to help customers feel more money confident.