Saturday, 30 May 2026
lifetime isa
A Lifetime ISA gives you a free 25% government bonus on top of your savings, which is an amazing deal for students saving for a first home or retirement. You can stash up to £4,000 per year and get an instant £1,000 bonus, without it affecting your student finance. Here’s what you need to know about this game-changing account.
savings
Premium Bonds swap guaranteed interest for a monthly prize draw, with a prize rate of 3.6%. Your money is fully safe and prizes are tax-free, but average luck means most people earn less than a top easy-access savings account currently pays.
isas
The best easy-access cash ISAs in 2026 pay up to around 4.75% AER, all tax-free. Smaller and newer banks often top the tables, and watching for bonus rates that expire and using comparison sites helps you avoid being stuck on a poor deal.
student loans
Getting student finance for a second degree is restricted by the 'previous study' rule, which generally reduces or removes funding if you already hold an equivalent qualification. But there are exceptions for certain subjects and personal circumstances.
student loans
If your only income is a part-time job paying below the repayment threshold, you won't make any student loan repayments. Repayments are based on annual earnings over £25,000 on Plan 5, and most part-time work falls below that.
isas
Because ISA interest is tax-free, it doesn't count as taxable income — and student loan repayments are based only on taxable earnings. So money you earn inside an ISA never raises your repayments, making ISAs a tidy option for graduates saving on the side.
tax
From 6 April 2026, the tax on dividends rose by two percentage points — the basic rate went from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%. It only affects dividends held outside an ISA, making the ISA wrapper more valuable.
tax
Thanks to the £1,000 trading allowance, you can earn up to £1,000 a year from a side hustle without paying tax or telling HMRC. Earn more and you need to register for Self Assessment and pay tax on the profit above the allowance.
tax
Receiving money from your parents is normally tax-free — there's no UK gift tax on the person receiving it. The only consideration is inheritance tax on the giver's estate, which can apply if they give large sums and die within seven years.
isas
The best easy-access cash ISAs in 2026 pay up to around 4.75% AER, all tax-free. Smaller and newer banks often top the tables, and watching for bonus rates that expire and using comparison sites helps you avoid being stuck on a poor deal.
isas
Any UK resident aged 18 or over can open a stocks and shares ISA, students included. It lets you invest tax-free, but the value can fall as well as rise, so it suits money you won't need for several years rather than next term's rent.
isas
A cash ISA keeps your money safe and pays interest tax-free, ideal for short-term goals. A stocks and shares ISA can grow more over time but can also fall in value. The right choice depends on your timeline and appetite for risk.
lifetime isa
Help to Buy ISAs closed to new applicants in 2019, so new savers can only open a Lifetime ISA. If you still hold a Help to Buy ISA, the LISA usually offers a bigger bonus and a higher property cap, but each has trade-offs worth weighing.
lifetime isa
Both a Lifetime ISA and a pension boost your savings, but in different ways. A LISA adds a 25% bonus and pays out tax-free; a pension gives tax relief and, crucially, free employer contributions. For most employees, the employer match makes the pension the stronger first choice.
lifetime isa
A Lifetime ISA tops up your savings with a 25% government bonus, worth up to £1,000 a year, if you use it for a first home under £450,000 or for retirement. For young savers building a deposit, it's often the single best-value account available.
budgeting
The classic advice is three to six months of essential expenses, but for students that's often unrealistic — and a smaller buffer of a few hundred pounds still transforms how you handle a surprise bill. Start small, keep it accessible, and build gradually.
budgeting
If your maintenance loan doesn't cover rent, you're far from alone — many students face this gap. Closing it usually means a mix of part-time work, careful budgeting, and tapping university hardship funds, which many students don't realise exist.
budgeting
Impulse spending is rarely about willpower — it's about how easy buying has become. Adding friction back in, like removing saved card details and applying a 24-hour wait before non-essential purchases, cuts impulse buys more effectively than trying to resist in the moment.
isas
Any UK resident aged 18 or over can open a stocks and shares ISA, students included. It lets you invest tax-free, but the value can fall as well as rise, so it suits money you won't need for several years rather than next term's rent.
tax
From 6 April 2026, the tax on dividends rose by two percentage points — the basic rate went from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%. It only affects dividends held outside an ISA, making the ISA wrapper more valuable.
investing
You don't need a lump sum or deep knowledge to start investing — many platforms let you begin with £25-50 a month. The key is starting early, keeping costs low with a diversified fund, and leaving the money alone for the long term.
savings
Premium Bonds swap guaranteed interest for a monthly prize draw, with a prize rate of 3.6%. Your money is fully safe and prizes are tax-free, but average luck means most people earn less than a top easy-access savings account currently pays.
savings
Easy-access savings let you withdraw whenever you like, ideal for an emergency fund. Fixed-rate accounts lock your money away for a set term in return for a guaranteed, often higher, rate. The right one depends on whether you'll need the money soon.
savings
Inflation is the rate at which prices rise — 2.8% in the UK as of April 2026. If your savings earn less interest than the inflation rate, your money loses buying power over time, even though the balance looks the same. Beating inflation means seeking accounts that pay more than it.
bnpl
Since June 2023, Klarna reports both on-time and missed payments to UK credit reference agencies. That means responsible use can help build your credit, but missed payments can now damage it — a real change from the early days of BNPL.
student loans
Your UK student loan does not show up on your credit report and has no direct effect on your credit score. Lenders can't even see it. The one place it matters is a mortgage application, where your monthly repayment counts as a regular outgoing.
credit score
With no credit history, lenders have little to judge you on — but you can build a score steadily. Registering to vote, using a credit-builder card and paying it in full each month, and keeping bills in your name all add positive data to your file.
bnpl
Since June 2023, Klarna reports both on-time and missed payments to UK credit reference agencies. That means responsible use can help build your credit, but missed payments can now damage it — a real change from the early days of BNPL.
bnpl
Buy now, pay later isn't inherently bad — used carefully it spreads costs at no interest. The danger is how easily it encourages overspending across multiple purchases, and missed payments now harm your credit. Used with discipline, it's a tool; used loosely, a trap.