Seven money changes in February from savings accounts to state pension benefit | Personal Finance | Finance

The dark days of January are behind us, and with the dawn of February, the shortest month of the year, many of us will be hoping to get our finances back on track as spring inches closer.

With payday coming sooner this month than any other, most of us are hoping to make some sensible financial decisions this month and get our money working for us as we enter 2025.

But whether it’s bank savings, new fees for online shopping or energy bills going up again, there are several financial hazards on the horizon this month that UK households should be aware of and plan for as far as possible.

New eBay fees – February 4

New fees will be imposed on eBay buyers starting on Tuesday, February 4. A few months after the online marketplace ended fees for selling on eBay, the website introduced fees for buying on eBay instead of buying from a private seller.

From Tuesday, buyers will have to pay an extra 4% of the cost of the item plus a flat 75p rate on top.

February 5 – Santander ends bank switch offer

For months, Santander has been offering a free £ 150 cash sweetener to customers who switch to one of its current accounts or savings accounts.

The bank is offering not just £150 cash but also a linked savings account worth £235 a year if maxed out, cashback on monthly bills and spending worth another £240 a year in total, and an overseas spending card.

But the deal disappears at midnight this Wednesday, meaning those who open an account or switch to Santander on Thursday will no longer get the £150.

Bank of England interest rates – February 6

The Bank of England is set to meet on Thursday to discuss what to do about interest rates. The rates were held at 4.75% in December, but there’s growing pressure to cut rates this time, which will be good news for borrowers and those with mortgages but bad news for savers who want to earn more interest on savings.

The only sticking point is that service-based inflation is still relatively high and is expected to increase thanks to rising energy bills and water bills, so it’s not yet clear what the Bank of England will do.

Barclays cuts interest rates – February 13

Just days after banking outages, which left customers unable to access their accounts, high street bank Barclays will slash interest rates on savings. Two of its most popular accounts, the Everyday Saver and the Rainy Day Saver, will see their rates cut from 1.51% to 1.26% on balances under £10,000.

If you have a balance over £10,000, your rate will increase from 1.16% to 1.26%.

In either case, it’s safe to say you can do much better with another account – many easy-access accounts still offer 3-5% on savings, with ISAs like Trading212 offering over 5%.

The Rainy Day Saver is for premium customers with Barclays Blue Rewards. Its rate will be cut from 5.12% to 4.87%.

Chase cutting savings rates – February 19 

Like Barclays, online bank Chase is also cutting its savings rates this month. The bank announced near the end of 2024 that it would reduce the savings rate on its Chase Saver account by reducing the rate at which it tracks the Bank of England base rate.

Chase’s interest rate is currently at 1.25%, the Bank of England base rate. However, starting on February 19, it will track at 1.5% below, meaning everyone’s rates will be 0.25% lower than they would have been before.

It means standard savings rates with Chase will drop from 3.5% to 3.25%. Again, there are accounts out there which can beat this.

Warm Homes Discount deadline – February 28 

The deadline for the Warm Homes Discount will pass on February 28. The scheme will hand those eligible for the benefit an extra £150 off their energy bills. It is available to those on most energy firms in the UK, such as British Gas, EON, EDF, Scottish Power, Scottish Gas, Utilita and Octopus, among others.

Those who are eligible for the scheme should have received a letter by the end of January, but you need to contact the Warm Home Discount Scheme’s helpline if you think you should have received a letter but haven’t.

The discount is usually available to low-income households, including, but not limited to, those on Pension Credit.

February 25 – Ofgem price cap announced as energy bills rise

On February 25, energy regulator Ofgem is set to announce the latest price cap. Based on Cornwall Insight predictions, all signs currently point to another increase, with money expert Martin Lewis advising that bills are likely to increase again by roughly another 3%, or £47 a year.

It will be the third time in a row that Ofgem has chosen to increase energy prices and would set the new rate at £1,791 a year for a typical use average household.

It comes after a 10% increase in October and another 1.2% in January.

But there are cheaper fixed-rate deals available right now, including ones that are cheaper than the forecast April price cap and the current cap. So, by switching now, you will not only save money against the April cap but also against what you pay today.