Martin Lewis reveals top normal savings accounts
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Budget 2021, Rishi Sunak’s second in his short term as Chancellor, delivered a comprehensive economic update. Mr Sunak’s highly-anticipated address in the House of Commons revealed how the Government intends to navigate the end of nationwide restrictions. His policies will have sweeping effects on how the country recovers from the pandemic and could affect people’s savings.
What does Budget 2021 mean for your savings?
The 2021 budget delivered good news for people struggling to make ends meet during the pandemic.
The Chancellor has locked down the £20 Universal Credit boost for another six months, guaranteeing an enhanced safety net.
Furlough will also continue, preventing more significant job losses until at least September.
The green NS&I savings account
A new “green” NS&I savings account is one way Mr Sunak hopes to enhance UK savers.
NS&I operates the Government-backed premium bonds scheme that allows people to invest and potentially win cash prizes.
The “green” version of the savings method allows savers to help fund the country’s post-Covid recovery.
Money raised via bond purchases will help projects focussing on renewable energy and clean transportation.
Ultimately, these will contribute to the Government’s target for net-zero emissions by 2050.
Mr Sunak has not yet revealed the scheme specifics, such as how much he hopes to raise.
But the budget red book shows proceeds won’t contribute to NS&I’s net financing remit.
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The adult ISA allowance
Another savings feature of the budget this year was an update on allowance limits for adult Independent Savings Accounts (ISAs).
Ministers have capped the current ISA allowance at £20,000, but unfortunately, Mr Sunak did not decide to push it up.
The limit leapt from £15,240 in the 2016/2017 tax year to £20,000 in 2017/2018.
The ISA limit has not changed since then across the board.
Junior ISAs, which parents can set up for their under-18 children, saw a similar boost last year.
But rates for these accounts will also remain unchanged in the interim.
They jumped from £4,362 in the 2019/2020 tax year to £9,000 between 2020 to 2021.
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