11 major money changes coming in February including Nationwide bank account change and bill rise
FEBRUARY is nearing with some major money changes on the way.
A new alcohol tax regime is coming into effect while a key Warm Home Discount date will land during the month.
Plus, a big change to eBay fees and a price rise for Sky Mobile customers.
Here are all the big money changes you can expect over the month of February and what they mean for you.
February 1 – Nationwide reducing savings rates
Nationwide is reducing rates on dozens of savings accounts within days.
The building society is lowering rates by between 0.1 and 0.26 percentage points on 89 variable rate and instant access savings and cash ISA products.
Interest rates are being cut on 55 non-ISA savings accounts, while rates on 34 ISA accounts will also fall.
Anyone with an impacted savings account can shop around and see if there are any better deals out there.
You can use websites like Moneyfactscompare.co.uk and MoneySavingExpert.com to find the best deals for each type of savings account.
February 1 – Alcohol tax changes
Alcohol duty rates in the UK are rising on February 1 while a new regime taxing wine based on strength is also coming into force.
Alcohol duty is a tax on drinks produced or imported into the UK and is usually added onto the cost paid by punters.
The price of some alcoholic drinks will rise by 3.6% which the Wine and Spirit Trade Association said will see the cost of a bottle of gin go up by 33p and a bottle of vodka by 30p.
February 4 – eBay fee change
Next month, eBay is making big change to its Buyer Protection for both sellers and buyers.
A fee will be included in the item price when buying from a private seller rather than additional costs being added at the checkout.
Anyone buying items from a business seller will get Buyer Protection without any charges being added to the item price.
February 6 – Bank of England base rate announcement
The Bank of England‘s Monetary Policy Committee (MPC) is next meeting on February 6 to decide its base rate.
This is the rate charged to smaller high street banks and building societies, impacting savings and mortgage rates.
The MPC last met in December when it decided to hold base rate at 4.75% after lowering it from 5% the previous month.
The base rate is raised to control inflation and generally encourages people to save money rather than spend it.
But with inflation around the BoE’s 2% target, the MPC is under pressure to lower base rate to encourage households to spend and get the economy growing again.
February 10 – Starling Bank axing interest payments on current accounts
Starling Bank is ending interest payments on current accounts from February 10.
It currently pays 3.25% interest on balances up to £5,000 but this will be stopped from next month.
Anyone impacted can switch bank accounts to get a better deal through the Current Account Switch Service (CASS).
Some banks like TSB are offering free cash to switchers worth up to £160 as well.
February 13 – Barclays dropping savings rates
Barclays is dropping the rates on two of its savings accounts – the Everyday Saver and Rainy Day Saver.
The interest rate for the Everyday Saver is dropping from 1.51% to 1.26% on balances up to £10,000.
However, if you’ve got more than £10,000, the rate is going up from 1.16% to 1.26%.
The Rainy Day Saver, which is for Barclays Blue Rewards members and Premier Banking customers, is seeing its rate drop from 5.12% to 4.87% on balances up to £5,000.
For balances over £5,000, the rate is staying the same at 1.16%.
February 14 – Sky Mobile price hike
Sky Mobile customers who are out of contract and on a pay monthly or SIM-only deal will see their monthly bill rise by a fixed £1.50 a month from February 14.
Customers still in their contract term will not see the price of what they pay go up.
You can check when your contract is due to end by speaking to Sky Mobile or logging into your online account.
February 19 – inflation announcement
The Consumer Price Index (CPI) measure of inflation for January will be released next month.
The Office for National Statistics (ONS), which publishes the data, said CPI inflation stood at 2.5% in December.
Why does inflation matter?
INFLATION is a measure of the cost of living. It looks at how much the price of goods, such as food or televisions, and services, such as haircuts or train tickets, has changed over time.
Usually people measure inflation by comparing the cost of things today with how much they cost a year ago. The average increase in prices is known as the inflation rate.
The government sets an inflation target of 2%.
If inflation is too high or it moves around a lot, the Bank of England says it is hard for businesses to set the right prices and for people to plan their spending.
High inflation rates also means people are having to spend more, while savings are likely to be eroded as the cost of goods is more than the interest we’re earning.
Low inflation, on the other hand, means lower prices and a greater likelihood of interest rates on savings beating the inflation rate.
But if inflation is too low some people may put off spending because they expect prices to fall. And if everybody reduced their spending then companies could fail and people might lose their jobs.
See our UK inflation guide and our Is low inflation good? guide for more information.
This is still 0.5 percentage points above the BoE’s 2% target, but is significantly lower than a 41-year high of 11.1% in October 2022.
Inflation is a measure of how much a basket of goods and services is rising in price.
That means even if it reaches the BoE’s 2% target, prices are still rising, just at a slower pace.
February 19 – Chase savings rate falling
US online-only bank Chase is lowering the interest rate on its Chase Saver account.
The savings account’s interest rate tracks the Bank of England’s (BoE) base rate, and currently tracks it 1.25% below.
But from February 19 it will hover 1.5% below base rate meaning savers will be getting a worse deal.
Savers will see their interest rate go down from 3.5% to 3.25%, as it stands.
But this could of course change based on what the MPC decides to do with base rate on February 6.
February 25 – Ofgem price cap confirmed
Ofgem, the energy regulator, will announce its new energy price cap on February 24, coming into force on April 1 until June 30.
The price cap is currently set at £1,738 a year for an average household on a standard variable dual-fuel tariff paying by direct debit.
Energy analysts Cornwall Insights are predicting the price cap to rise to £1,785 – a £47 yearly rise.
It’s worth bearing in mind, the price cap is just the limit on what energy firms can charge customers per unit of gas and electricity.
This means you may pay more or less than the headline figure, depending on how much energy you use.
Ofgem introduced the price cap in early 2019 as a protective measure to stop households from getting ripped off on their energy bills.
February 28 – Warm Home Discount deadline
The deadline to apply for the Warm Home Discount, a £150 discount off your energy bills, is next month.
The money is usually paid to you via a credit on your energy bill and most people should receive it automatically.
Those eligible should have received a letter by the end of this month telling them they qualify for the scheme.
If you haven’t, and you think you should have, you need to get in touch with the Warm Home Discount scheme helpline before February 28 to see if you’re in line for a discount.
The number to call, Monday to Friday between 8am and 6pm, is 0800 030 9322.
You will quality for the Warm Home Discount if you’re on the Guarantee Credit part of Pension Credit, or on a low income and have a home with high energy costs.
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