Joy’s Power Round Up of February 2018

Welcome to the second installment of my monthly power round up. January was the longest month of the year. February flew by so quickly I felt that I wasn’t able to try enough financial products and services. That withstanding, here is a brief but useful list of what I was down for in February.

TSB Classic Plus account

I love my Starling account but I can recognise a good deal when I see one. This is exactly why I decided to switch my spending account from Starling to the TSB Classic Plus account. This popular bank account provides 3% AER variable interest on balances up to £1,500. The fact that the 3% interest rate beats every easy-access savings account currently available on the market was a deciding factor. To gain the interest, I have to pay in a minimum of £500 a month and register for internet banking and paperless correspondence. With an additional £10 cashback every month, you can see why I could not resist. The £10 cashback is divided into £5 cashback from having 2 direct debits every month and £5 cashback if I spend with my debit card at least 20 times a month.

I also downloaded the TSB app to keep track of my spending. In comparison to my other accounts apps, I prefer TSB’s app as pending card transactions are shown in detail. Yes to not being left wondering why my account balance is different from my available balance

TSB is currently running a refer a friend offer where you can earn £75* for switching to the Classic Plus account if you apply and start your switch using the Current Account Switch Service by 4pm on the 9th of April. Click here to take advantage of our refer a friend link before it ends and make sure you read the terms and conditions.

The Ratesetter Innovative Finance ISA

If you read my previous power round up, you’ll be aware that I entered the world of peer-to-peer lending by investing in Ratesetter. Last month, Ratesetter launched their new Innovative Finance ISA (IFISA). So far, Ratesetter has been straightforward to use and I was sure the IFISA was going to complicate the platform. However, recognising the fact that Ratesetter is not protected by the FSCS, moving my money into the IFISA felt like the reasonable thing to do.

Transferring my investment from the general investment account to the IFISA was a quick and straightforward process with clear steps provided along the way. My new investment entered the market at a rate of 3.8% in interest. This may seem unimpressive (which it is), but given time and the power of compound interest, returns might yet be more than what was originally bargained for.

Related: Joy’s Power Round up of January 2018

 

Do you know of any apps or websites you would like us to try out? Let us know!

This post was written by Joy


Glossary of terms
  1. IFISA –  Innovative Finance Individual Savings Account. A tax-free wrapper for investments on peer-to-peer lending platforms. Individuals can hold one IFSA along with (1) one cash ISA or Help To Buy ISA, (2) one Stocks and Shares ISA and (3) one Lifetime ISA in one tax year. The 20,000 ISA allowance can be invested across different forms of ISA. The interest rates offered by IFISA providers will typically be higher than those offered by cash ISA providers. This is mainly because the key factor of peer-to-peer lending is cutting out the middleman. This allows borrowers to pay less interest while lenders receive more interest. The interest rates for both IFISAs and cash ISAs are not comparable as one has a higher risk profile due to lending to individuals who may default on their loan and as peer-to-peer lending is not protected by the FSCS.
  2. FSCS – The Finacncial Services Compensation Scheme where one can be compensated by up to £85,000 should the company go bust
Please be aware that we take no responsibility for any loss or damage incurred by your interpretation of the products and services listed above. Before making any decisions with regards to the above information, please do your research, read the terms and conditions of the product or service and contact a licensed financial adviser if required before proceeding. 
*by using the link above, you and Refined Currency may earn £75 within 28 days of you completing the switch. This offer is valid for the first five people that switch through the link we have provided.
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