A HIGH street bank is giving away £50 free to customers who move their savings account to it from elsewhere.

The reward is available to any new or existing customer who switches their Individual Savings Account (Isa) from another provider to the bank.

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An Isa is a a type of savings account where you don’t pay tax on any interest earned, and you can save up to £20,000 a year tax-free.

Smaller savings pots don’t usually incur tax, but larger ones can.

For those putting away money for big purchases, like a home deposit, an Isa is worth considering.

The offer from Santander could be withdrawn at any moment – so those eyeing up the extra cash for Christmas should act fast.

Now Santander is offering free cash to those with a nest egg of more than £10,000.

Once the transfer is complete the bank will give customers a £50 e-voucher.

This can be spent at more than 100 restaurants, supermarkets and clothes stores including Argos, B&M and Primark.

Banks often offer incentives to attract new customers, typically for bank accounts, but sometimes for other products like savings accounts too.

Andrew Hagger, personal finance expert at Moneycomms, said: “This is a good incentive – especially for people who may be sitting on some poor performing Isas.”

But it’s important to check that an account is right for you before you switch, instead of moving your money just to get an incentive, and that you’re getting the best rate on offer.

How do I get the deal?

First you need to apply for a Santander Fixed Rate Isa.

You can also upgrade an existing Santander Isa to a Fixed Rate Isa.

Once the account is opened, you must complete a transfer in instruction.

Santander suggests that you do this on the day you open your account or upgrade.

You can do this online or in a branch.

The instruction asks for your non-Santander Isa to be transferred to your new Fixed Rate Isa.

You need to do this within the first 14 days of opening your Isa account.

When you complete the form you will need to ask for a full transfer of your existing non-Santander account, which must have a balance of £10,000 or more.

You must provide an up-to-date email address which the bank can use to email you the code to redeem your e-voucher.

Your account could take up to 30 days to transfer.

You will be sent a code to redeem your e-voucher within 14 days of your transfer completing.

When transferring an ISA you must follow the bank’s correct processes, or you could lose the tax-free status of your cash.

Never withdraw your cash from the account.

Is the Santander deal worth it?

Santander currently has three fixed-rate Isas on offer, with different terms.

A fixed rate means you lock in the interest rate at the start and it won’t change in that time.

Locking away your cash can mean you’re protected if interest rates fall, but you could miss out if they rise.

You may be charged a penalty for withdrawing cash early, or lose the rate of interest, so if you need access to the cash a fix might not be for you.

You need £500 or more to open one of these accounts, though remember you’ll need to pay in £10,000 to get the bonus.

The one-year fixed-rate Isa gives you 4.01% interest on your nest egg.

If you transferred the minimum £10,000 this would give you a return of £33.42 a month, or £401 over the course of a year.

The 18 month fixed-rate Isa has a slightly lower return, at 3.91%.

On a £10,000 nest egg you would get £32.58 in interest each month, or £391 a year.

The two year fixed-rate Isa has the least generous interest rate of all of the accounts.

It has an interest rate of 3.81%, which would give you £31.75 a month, or £381 a year, on a £10,000 balance.

If you want to withdraw money from the account before its fixed-term has ended then you will need to close your account.

A charge equivalent to 120 days’ interest will be applied.

However there are Isas paying better rates of interest.

Virgin Money has the best one-year fixed-rate cash Isa of all banks and building societies.

It offers a return of 4.61% on your nest egg.

If you had £10,000 in savings this would give you £38.42 a month in interest – £5 more than the best Santander account.

Over the course of a year you would earn £461 in interest, £60 more than with the Santander account.

If you take into account the £50 bonus you would still be £10 better off after a year with the Virgin Money account.

Plus there is no minimum amount you need to open this account, which makes it a good option for savers with smaller pots.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Savers need to be wary of cash sweeteners if the account itself does not offer the best value compared to other similar accounts.

“Santander’s rates are not market leading and there are a plentiful amount of challenger banks offering much higher rates.”

How do I compare rates?

You can find a full list of the best Isa accounts by using a comparison website such as Compare the Market and Moneyfactscompare.co.uk.

These will help you save you time and show you the best rates on offer.

You can also filter your searches by length or account type.

As a rule of thumb, you only want to consider an account that pays more interest than the current level of inflation, which is 1.7%.

It’s also worth checking regularly as rates can change from one day to the next.

It is a good idea to keep some money in an easy-access savings account which you can use in an emergency.

Once you have found an account you like you should contact the bank or building society you want to move to.

You will need to fill out an Isa transfer form to move your account.

Do not withdraw money from one account to pay into another as you will not be able to reinvest it as part of your tax-free allowance again.

It should not take longer than 15 working days to transfer money between cash Isas.

It can take up to 30 days for other types of transfer.

If your transfer takes longer than it should then contact your Isa provider.

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A MAJOR fashion brand with 100 UK branches has been bought out by a major fashion group.

White Stuff has been snapped up by The Foschini Group (TFG) in a deal believed to be worth around £50million.

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TFG, a South-African fashion group, already owns fashion brands Hobbs, Whistles and Phase Eight.

White Stuff, which was founded in 1985, currently runs 113 stores and 46 concessions inside John Lewis and M&S branches.

No stores will close and no staff will be let go as part of the deal.

The retailer currently employs more than 1,200 people.

George Treves, co-founder of White Stuff, said: “Today marks a significant and emotional milestone for Sean and me.

“We have spent over 40 years building this company from the ground up.

“We have achieved more than we ever dreamed possible, thanks to the incredible dedication of our team, the support of our customers, and the commitment of our suppliers.”

It comes after the founders of White Stuff were said to be exploring a sale of the business earlier this year.

At the time it was understood no stores would be closing as part of any deal.

Last November, bosses also announced plans to open more shops, with several having opened since then.

In April this year, White Stuff reported record revenues of £154.8million, with 85% of revenue coming from online and store sales.

TFG said all colleagues across the business would keep their roles as part of the deal struck today, but that founders George Treves and Sean Thomas would step down.

The acquisition marks TFG’s expansion into the fashion retail market, having bought out Phase Eight in 2015, followed by Whistles then Hobbs.

Justin Hampshire, chief executive officer of TFG London, said: “We are thrilled to welcome the White Stuff team into the TFG London family.

“We have long admired the White Stuff brand which is synonymous with unique detail and exceptional quality.

“The addition of White Stuff to TFG London diversifies and strengthens our existing womenswear portfolio, adding the first lifestyle brand while also bringing a well-established menswear offer and its loyal and resilient customer base.”

He added that White Stuff would be looking to increase its number of stores and concessions across the UK.

White Stuff had been in advanced talks with TFG over a sale of the business for the last couple of days, Sky News reported.

A number of other parties were also believed to be interested in snapping up the retailer.

Today, Jo Jenkins, chief executive officer of White Stuff, said: “We have spent over 40 years building this company from the ground up.

“We have achieved more than we ever dreamed possible, thanks to the incredible dedication of our team, the support of our customers, and the commitment of our suppliers.

“Together, we have built something truly special.”

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Rumours are rife of potential changes to the tax-privileged status of pension schemes as part of the Budget and its objective of filling some of the alleged £22bn black hole in public finances.

I have no idea whether these rumours have substance but I do have concerns over any changes to pensions tax, tax relief and related legislation relief.

I think back to 2010 and the new government at that time, which, in a discussion document, said reform of pensions tax relief was “a necessary part of its commitment to tackling the fiscal deficit”.

In that discussion document, it put forward a range of options, including:

• Redesign and the application of the annual allowance
• Different methods for valuing defined benefit (DB) contributions
• The appropriate level for the lifetime allowance (LTA)
• The rate of tax relief for additional-rate payers

We all know what then happened – the annual allowance was dramatically reduced, along with a reduction in the LTA, the complexities increased, compounded by the introduction of pension freedoms in 2015 and the tapering of the annual allowance from 2016 and, recently, further chaos with the abolition of the LTA.

Today’s pensions legislative and taxation landscape has become ridiculously and unnecessarily complicated

I suspect the new government will be grappling with the above options, apart from the LTA and maybe some other ideas. We will soon find out. However, my concerns are not just about the likely negative impact of any such changes on pensions savers and savings but more about the potential for more legislative complexity as any changes are implemented.

Shortly before the new government was elected, I came up with a short list of pensions-related suggestions for an incoming government to consider.

Top of my list was pensions simplification. It is now over 20 years since the then-Labour government set out its proposals for simplifying the taxation of pensions. These proposals were enacted in April 2006 – ‘A Day’ as it was known.

It was suggested pensions tax simplification would:

• Improve choice and flexibility for providers, employers and individual savers
• Improve competition among pension providers
• Encourage individuals to save for retirement
• Reduce administration and compliance costs for employers, administrators, providers and advisers

Those were all laudable objectives but, unfortunately, they have all been lost in the mists of time. Today’s pensions legislative and taxation landscape has become ridiculously and unnecessarily complicated.

I advocate one pensions regulator for all DC pensions and one ombudsman to deal with all complaints

There is no prospect of increasing consumer engagement with pensions while the current complexities remain or, worse still, increase.

My fear is that further tampering with the pensions tax regime will simply add further layers to the pensions “onion” – the skin of which is now almost impenetrable.

The government has recently announced a Pensions Investment Review, with the aim of boosting investment, increasing saver returns and tackling waste in the pensions system.

The focus is almost entirely on workplace defined contribution (DC) pensions, examining primarily scale and consolidation, costs versus value and alternative investment strategies to boost UK growth.

In parallel with this review, it should invite proposals and submissions on how we can produce a radically simplified tax regime for DC pensions. I would ignore DB pensions for the purpose of this exercise.

Shortly before the new government was elected, I came up with a short list of suggestions for an incoming government. Top of my list was pensions simplification

All parts of the pension savings lifespan would need to be considered, including decumulation, with the aim of removing as many anomalies or other historical quirks, such as the artificial age 75 death benefit threshold and the multiple drawdown structures that currently hinder post-retirement planning.

There is scope to take a considerable element of cost out of the operations of DC pensions with a new simplified regime to the benefit of all DC pension savers. I shudder to think of the actual cost of monitoring, administering and advising on pensions under the current regime when one takes into account all those involved, even allowing for the potential positive impact of AI and associated technologies.

There are plenty of industry experts who could help in designing a simplified regime, rather than leaving it to civil servants. Once completed and accepted, this team of experts could then consider potential simplification of a separate DB regime and the trickier cross-border issues such as pensions transfers.

There is a lot more that could and should be done to improve the pensions landscape. For example, I advocate one pensions regulator for all DC pensions, regardless of whether they are workplace or individual arrangements, and, similarly, one ombudsman to deal with all complaints and one compensation regime. These regulatory changes would go hand in hand with the simplification proposal.

Is this all possible? Yes. Is it likely? No. Sadly, adapting the title of the song made famous by Marvin Gaye and Tammi Terrell, “the pensions world is just a great big onion” that threatens to get even bigger. I doubt the remedy suggested in the song of planting love seeds is likely to be effective in producing a simpler pensions world!

John Moret is principal at MoretoSipps

A HUGE update in the car finance mis-selling scandal has been issued.

The Financial Conduct Authority (FCA) has been carrying out an investigation into whether motorists were unknowingly overcharged on historical loans.

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Those who bought a car, motorbike or van on finance before January 28, 2021, could be owed potentially thousands of pounds.

The FCA is in the process of finding out how many motorists have been affected and what compensation customers will receive.

Today, in an “unexpected” decision in one of the motor finance test cases, a court has sided with drivers against the banks and lenders.

The Court of Appeal ruled that a broker could not lawfully receive a commission from the lender without obtaining the customer’s fully informed consent to the payment.

The judgment said that in order for consent, the consumer would need to be told all material facts that might affect their decision, including the amount of the commission and how it was to be calculated.

The judges ruled that did not happen in any of these cases.

Three cases were merged earlier this year, the Hopcraft case is against merchant banking group Close Brothers, Wrench is against South African Firstrand Bank, and Johnson is against Firstrand Bank and Motonovo Finance.

The court revealed today that it has unanimously allowed all three appeals.

The repercussions of today’s judgment are expected to resonate throughout the motor finance sector.

The FCA is thought to be closely watching the development as it continues its investigation into the scandal.

“This ruling is a massive win for consumer justice,” said Sam Ward, Director at Sentinel Legal, a consumer rights law firm.

“For too long, lenders have taken advantage of consumers through complex, unfair finance deals. This decision finally puts power back into the hands of consumers, forcing banks to face the consequences of their actions.”

While Stephen Haddrill, director general of the FLA, which represents motor finance lenders said: “This is a significant and unexpected judgment, the implications of which stretch far beyond the motor finance sector, making it an issue that demands the immediate attention of the FCA.”

The FCA had intended to publish the outcome of its investigation in September.

However the publishing date has been pushed back to May 2025 and the date firms have to respond to customer complaints to December 4, 2025.

The FCA says it has had to push back the deadline due to it taking “longer than expected to get the data” it needed from implicated car finance firms.

Investigators have also been unable to complete their review because of a pending court case surrounding one of the complaints.

It’s worth nothing, the FCA’s decision to extend the deadline to December 4 next year is just when firms have to have respond to any complaints.

Customers can still complain to their providers before this point, and in some cases, there are time limits for doing so.

You can find more information about any time limits on the FCA website.

What is the Car Finance Discretionary Commission Scandal?

The Car Finance Discretionary Commission Scandal affects those who bought a car, motorbike or van on finance before January 28, 2021.

After this date, the city watchdog the FCA banned lenders from using “discretionary commission arrangements” (DCAs).

DCAs allowed brokers to increase interest rates on car finance loans, which in turn saw their commission bumped up.

It has been classed as an unfair practice because drivers weren’t told about the DCAs and therefore thought any deals were a fixed price that they couldn’t negotiate on.

Anyone who took out a vehicle on finance before January 28, 2021, could have been unfairly paying more than they should have.

The FCA has now launched an investigation to see how many people have been impacted.

MSE’s website has a useful checklist on who might be in line for money back.

It also has a list of firms that are unlikely to have handed out dodgy deals and therefore don’t owe customers money.

How to claim

Consumer website MoneySavingExpert.com has a page on its website with an email template you can use to complain to your firm.

Or, you can complain directly to them without using the template.

In the complaint, you should ask whether you were overcharged due to your broker getting paid a commission and ask the company to correct this if that is what happened.

If you’re not satisfied with the company’s response, you can take your complaint to the Financial Ombudsman Service (FOS) for free.

You have until July 29, 2026, or up to 15 months from the date of their final response letter, whichever is longest.

Be wary of using a claims management firm to help you claw back any overpaid car finance as you’ll have to pay it a portion of any successful claim.

The FCA has previously said the total cost of redressing motorists impacted by the car finance scandal could cost firms between £6billion and £16billion.

It means affected customers could get potentially £1,000s back in overpayments.

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Money Marketing’s Weekly Must-Reads: Top 10 Stories

This week’s top news highlights include potential “experimental” tax initiatives from the Chancellor in the upcoming Budget and the FCA’s recent cautionary interviews with 20 financial influencers promoting financial products.



Chancellor might create ‘experimental’ new tax for the Budget

Chancellor Rachel Reeves may introduce a new “experimental” tax in the 30 October Budget, targeting ultra-wealthy individuals.

James Jones-Tinsley of Barnett Waddingham noted that such a measure could help address the £22bn “black hole” in public finances, but warns of potential legal challenges.

With limited options due to Labour’s pledge not to raise national insurance, income or VAT taxes, Reeves faces pressure to find alternative revenue sources. Financial anxiety is rising, with many seeking advice on potential tax changes.

FCA interviews 20 finfluencers under caution for touting financial products

The Financial Conduct Authority (FCA) recently interviewed 20 “finfluencers” under caution for allegedly promoting financial products illegally.

Operating on social media, finfluencers often lack FCA authorisation, posing risks to young audiences who trust their advice. The FCA has also issued 38 alerts against finfluencer accounts with potentially unlawful content.

Regulators and industry leaders support the FCA’s crackdown, emphasising the need for caution when following social media-based financial advice and the risks of unregulated promotions targeting vulnerable individuals.

‘Unprecedented shift’ in fee models used by financial advice firms

A NextWealth report reveals an “unprecedented shift” in financial advice fee models, with 71% of firms still using asset-based fees, though this is declining.

Subscription fees have surged, used by 22% of firms, up from just 1% in 2023. Overall client costs rose to 1.89%, driven mainly by ongoing advice fees. Larger firms are less likely to charge initial fees and set higher thresholds for client portfolios.

While 92% of advisers feel confident delivering value, only 26% trust regulatory effectiveness.

Inheritance tax receipts rise steeply ahead of Budget: reaction

Inheritance tax (IHT) receipts rose to £4.3bn from April to September 2024, up £0.4bn year-on-year, amid stagnant nil-rate bands since 2009.

Rising IHT revenue has fuelled speculation ahead of the Autumn Budget, with experts predicting potential reforms, including changes to business and agricultural property reliefs and tightened gifting rules. Analysts note a broader IHT burden beyond the wealthy due to inflation.

Other tax receipts also increased, with income tax, capital gains tax and NICs reaching £226.8bn, up £6.2bn.

Söderberg & Partners takes minority stakes in four more IFA firms

Söderberg & Partners has acquired minority stakes in four UK IFA firms—George Square, Cheltenham IFA Ltd, Bluezone Capital Ltd and Alexander Bates Campbell (ABC)—as part of its UK expansion strategy.

The Swedish wealth manager aims to support these firms’ growth, which collectively manage over £920m in client assets. CEO Gustaf Rentzhog highlighted the UK advice market as a strategic focus.

Söderberg & Partners recently received a £225m investment from KKR and TA Associates to further its growth in the UK and Spain.

How to combat quiet quitting and plug the employee engagement gap

Employee engagement in the UK has hit a decade low, with just 10% of employees feeling engaged.

Gallup reports that “quiet quitting” affects six in ten workers, as more employees feel disconnected. Simon Evans, director at Clearcut Consulting – Engage First, suggests companies address disengagement through authentic leadership, structured engagement programmes and recognition. He argues that fostering purpose and connection can counteract quiet quitting and drive sustainable growth.

Engagement remains crucial for organisational success, boosting profitability by up to 21%.

Government urged to ‘keep up the momentum’ after pensions dashboard update

Industry experts have urged the UK government to maintain momentum on the Pensions Dashboard Programme following an update from pensions minister Emma Reynolds.

The MoneyHelper Pension Dashboard service will launch before commercial dashboards, but no public launch date is confirmed. Pension schemes must connect to the dashboard by October 2026, with earlier connections encouraged from April 2025.

Experts emphasise that multiple dashboards are essential for user engagement and effective tracking of pension savings, highlighting the initiative’s potential to transform pension awareness and accessibility.

Wealthtime partners with Wipro and GBST on platform upgrade

Wealthtime has partnered with Wipro and GBST to enhance its platform technology, merging the Wealthtime and Wealthtime Classic platforms into a unified brand.

The collaboration will use a co-delivery model to offer comprehensive platform services, transferring Wealthtime’s Operations and Technology functions to Wipro’s new UK centre of excellence. This upgrade aims to improve service standards through automation, benefiting advisers and investors alike.

The deal also extends Wealthtime’s 15-year partnership with GBST, facilitating rapid platform enhancements and future-proofing technology for clients.

Guardian sets out adviser strategy for 2025

Guardian has unveiled its adviser strategy for 2025, focusing on strengthening relationships with advisers and firms to ensure positive customer outcomes.

Executive chairman and interim CEO Peter Mann emphasised the shift from rapid growth to consolidation, aiming to maximise value from its distribution and product offerings amid current economic challenges. Guardian’s products, now available on major protection panels, are designed to provide certainty at the point of claim.

The strategy marks a new phase for the insurer, following the recent departures of CEO Katya MacLean and marketing director Jacqui Gillies.

Defaqto: Four big predictions ahead of the Budget

Ahead of the upcoming Budget, Defaqto analyst Richard Hulbert outlines four key government objectives: addressing a £22bn fiscal gap, reducing dependency on state support within the pension system, promoting financial self-reliance among citizens and encouraging investment in UK businesses.

Hulbert’s predictions include integrating side-car cash accounts into pension schemes, re-evaluating tax-free cash allowances, replacing pension tax relief with a flat rate top-up and simplifying ISAs to incentivise investment in the UK economy. These changes aim to enhance financial stability and support for individuals.

THOUSANDS of elderly customers at a major building society risk being left behind after it confirmed it is axing a key service.

In an email to customers, Nationwide said that its Loyalty Saver account holders will no longer be able to use a passbook to manage their savings account.

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These savings accounts are reserved for customers who have used the bank for many years and often reward them with top interest rates.

Nationwide announced that it was axing passbooks in July but it had not yet confirmed the exact date it would do so until now.

Passbooks provide a vital lifeline to thousands of older customers who are unable to bank online or by mobile app.

The books are issued by a bank or building society and allow the account holder to keep a physical record of how much money they have paid in and taken out of their account.

They can also be useful if you want to limit impulse spending as there are a lot more steps to take with each transaction.

In spite of this, Nationwide has confirmed that they will be axed from February 6, 2025.

But as more banks move towards digital banking they have decided to stop offering passbooks.

Barclays and Santander both decided to scrap passbook savings accounts, which are no longer available to new customers.

Meanwhile, Nationwide has already stopped offering new passbook accounts to customers.

The building society said only 2% of its 16 million customers still use passbooks, which is equivalent to around 120,000 people.

Dennis Reed, a campaigner at Silver Voices, said: “Here is another example of a finance company telling older customers to get lost, we can’t be bothered with you.

“The local building society branch with a trusty passbook provides a good, friendly and safe banking service.

“We have no objection to digital banking, which has its advantages, but there should always be a face to face non-digital alternative available.”

What did Nationwide tell customers?

Nationwide said: “After February 6, 2025, if you had a passbook you won’t be able to use it anymore.

“But you can still manage your account in a branch, if that’s what you like to do.”

It also told customers that their account details and the way they use their account will change.

For example, customers may be given a new sort code and account number.

It confirmed that the changes will not affect the customer’s interest rate.

Automatic payments, such as direct debits, which enter their savings account each month will not be impacted.

Can I still bank in branch?

Customers will still be able to manage their account at one of the bank’s branches.

Nationwide has pledged to keep branches open in every town and city where it currently has one until 2028.

Paper bank account statements can also be provided in store.

The bank has also launched a new savings wallet, which comes with its branch savings account.

Nationwide said: “If you like using your passbook and would prefer something similar to keep track of your savings, we may have another branch savings account that could be right for you.

“It comes with a savings wallet that has a pocket for mini statements and a card.”

For more information about the account visit your local branch.

You need to be a permanent UK resident to open one of these accounts.

Customers can also manage their account through internet banking or via the Nationwide banking app.

It is understood that the company will be taking on temporary staff to help with the transition from the old passbooks to the new savings wallets.

The news comes after Nationwide announced that it was axing passbooks in July.

At the time Nationwide said that it wants to “modernise” passbooks next year, with the process expected to take seven months.

A Nationwide spokesperson said: “We are modernising passbooks rather than removing them, but while they are changing, banking in branch isn’t.

“We are maintaining the benefits our passbook customers value most – face-to-face service and having a physical record of transactions.

“As the UK’s largest building society, we are investing in our systems so we can offer the products and services our customers expect from a modern mutual.”

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