Are you richer than you think?
The Government has given the financial services industry nine months to reunite an estimated £20bn of unclaimed cash with its rightful owners before it is turned over to the Balance Charitable Foundation and funnelled into worthy causes, says Paul Farrow in The Sunday Times. That includes the assets in dormant bank accounts and forgotten life insurance policies. If you think you may have forgotten about an old account, but can’t remember the name of the organisation, the Unclaimed Assets Register (www.uar.co.uk) will conduct a general search for £18. Alternatively, contact the Building Societies Association (www.bsa.org.uk) or the British Bankers’ Association (www.bba.org.uk) and request a free search for a dormant account.
Isas: it’s not all over
The Chancellor’s removal of the dividend tax relief on Isas is widely seen as a disincentive to savers, says Annie Shaw in The Independent. But Isas are still worth buying: they have not lost their tax relief on income from interest payments and still provide a shelter from capital gains tax – a useful feature, particularly if you want to invest in equities for the long-term. And the dividend income tax credit of 10% was an anomaly in any case. It has already been removed elsewhere. While the change means that basic-rate taxpayers who used to get dividend income of £100 will now collect £90 (the same as they would do without an Isa), higher-rate taxpayers will also collect £90, which compares very well with the £67.50 they would get without the benefit of the wrapper.
Switch mortgages before 31 October
It’s not just rising interest rates that should prompt you to review your mortgage payments. As of 31 October, the selling of mortgages is to be regulated, says Anne Ashworth in The Times. Lenders, aware that the reform will involve much upheaval of staff and systems, are worried that this disruption will hit sales, and as a result are likely to be trying to tempt as many customers between now and then. Some have started already and cut their fixed rates in the past week.
Feel good about yourself and make money too
The Charity Bank offers “a painless way for savers to help good causes”, says The Mirror. Taxpayers are asked to deposit a minimum of £1,000 in the Charity Bank’s Just Interest account for five years. Charities such as Tomorrow’s People, which helps the long-term unemployed back to work, get 2% interest a year on the amount deposited. The donor gets a tax kick-back worth the equivalent of 5% yearly interest tax-free – and their money back at the end of the five years. You can withdraw your money sooner, should the need arise, but to get the full benefit of the tax break you need to leave it untouched for at least three years. For further details, call the Charity Bank on 01732-520029.