Ask Andy #28: Your money questions answered

My regular round-up of your personal finance questions.

I love hearing from you, whether it’s on the blog, social media, YouTube or email. Often you’re asking me questions about your finances, and I’m always glad to help if I have the time.

But I realised that my answers could also be useful to other followers. So I’ll be putting my responses to the best questions into regular articles here on the blog.

Keep reading for some of the questions I’ve been asked, plus the video live from this week with even more!

Watch the latest Q&A

Watch my answers to questions in the weekly Q&A on YouTube:

Are newer Premium Bonds better than old ones?

I spoke to one of my friends who has owned premium bonds for a very long time and he is adamant that you should recycle your bonds every year. By this he means cash in your old bonds and purchase new ones yearly.

He has had very good results and he seems to think that newer bonds have a greater chance of winning, even though he knows it’s meant to be totally random. There may be zero truth to it, but he does seem to win most months. As a note he does have the max amount allowed so obviously his chances of winning are greater than someone who only owns a few hundred pounds worth.

When I first bought some PB’s about £5k’s worth i won twice the first month and then again £25 each month for about 3 months. Then nothing again for the year.

I ended up cashing in and investing in the stock market, but I did ponder whether there was any truth to what he said. So if there is anyone out there who has a large amount of bonds but hasn’t won in ages, maybe its worth running a little experiment 🙂

Brad, via YouTube

Hi Brad. Yes this is a really common myth! I think it comes from the fact that now you need to buy at least 25 PBs, so you’re going to have more than if you had just one from years back.

However, that theory only applies to smaller amounts. I think the reason he seems to win regularly is, as you say, because he has £50,000 invested there.

Can I transfer a Junior ISA?

Is it possible to transfer money between a junior cash ISA and a junior stocks and shares? Cash ISA is poor interest rate and would be better in the stocks and shares. My son is only 12 so has time to ride the market ups and down. Thanks Sue

Sue, via YouTube

Yes you can! You will need to check the new Stocks and Shares Junior ISA allows transfers in (and follow the transfer process). You can only open and pay into one of each type in each financial year.

Can I combine a LISA with other savings?

As LISA’s are capped at 4k a year, am I able to supplement a potential mortgage with savings elsewhere?

Charlie, via YouTube

Yes, absolutely. The LISA will form just part of your savings. Here’s more on how Lifetime ISAs work.

How do I set up a PayPal direct debit?

Dear Andy

I watched your video on direct debits which are required in order to qualify for switching bonuses that are currently being offered by banks.

I have 1 direct debit which is for my Council Tax bill. (But, I need another one.) This is where I came across your video on PayPal direct debits. My questions are:

• Do I have to add money from the PayPal app on my mobile device instead of adding money via my laptop/PC on desktop? (When you add money via desktop, you have to login to your bank account’s Online Banking and you need to transfer money via a bank transfer to PayPal’s sort code and account number that they provide to you.) Will this still count as a direct debit?
• When you add money from your bank account to your PayPal account (via the PayPal app), are you effectively sending money to yourself and creating an active direct debit in the process when the money is sent over/transferred?
• After you send money from your bank account to your PayPal account, will (PayPal) show up on your list of direct debits when you log into your bank account’s Online Banking?
• Can I ask you, how did you set up the direct debit with PayPal? Did you have to fill in and post PayPal’s direct debit instruction form in order to set up the direct debit, after you linked your bank account to your PayPal account?
• You mentioned PayPal’s Direct Debit isn’t automated and not passive, so I presume you have to add money from your bank account to your PayPal account every single month manually?

I hope you can clear this up for me.

The Customer, via email

Hi The Customer,

• It should work on desktop. Here’s more from PayPayl  https://www.paypal.com/be/webapps/mpp/directdebit?locale.x=en_BE
• Yes that’s right. You’re moving money to yourself which you can move back
• Yes, though make sure you check in your current account that it’s there
• Yes. Though you might only need to do it once or twice to qualify it as an active direct debit. Once you’ve got the free cash you can stop.

Hope this helps.

Can my partner boost their credit score with my card?

Hi Andy! I have a question about credit building, hope it’s okay to ask you here. Will it help my partner to build up his credit if I add him as an authorised user of my credit card(he just moved to UK so he basically has 0 credit history) Hope you are enjoying your day

Theodore, via Instagram

Hi Theodore. No, sadly he’ll need his own credit card.

I just closed an account. Can I open a new one?

Hi Andy, love your helpful tips, wondering if you can help me out and answer a question for me.

As you know, Nationwide have been running at £125 switch offer for existing customers (of which I am one). In a bid to get this offer I applied for a Santander current account as a donor account to get the Nationwide Switch offer. Fast forward to two weeks later and Santander have a £130 switch offer but I have just switched out of them after holding an account for a matter of days.

I have also recently opened a Lloyds Club account for the same reason, to get the £100 switch offer from them.

Am I able to switch back to Santander from either my Nationwide or Lloyds to get the switch offer, given that I left them for a switch offer just days ago? Or would they reject me pretty much instantly?

Alex, via Instagram

Hi Alex. Yes I’m theory you’ll be able to open up a new Santander account and switch to it as long as you’ve not had switching cash from them before.

However they will have their own application criteria which might rule out someone who just closed an account. You could try a different account from them, though I don’t know if it’ll make a difference. I’m theory (they can change this), the Santander offer ends 21 October so you’ve got a few weeks to possibly space out the application, though there’s the risk they’ll end the deal early

How to ask me questions

The best ways to get in touch is in the Andy Clever Cash Facebook community

Just post your question any time, or ask me live in my weekly Q&A each Wednesday (which is on Instagram and YouTube).

You can also comment on individual blogposts and videos or ask me questions via these channels:

• Twitter @AndyCleverCash
• Instagram @AndyCleverCash
• Email Andy[at]BeCleverWithYourCash.com

I can’t promise I’ll be able to answer all questions but I’ll do my best.