MAY is bringing a flurry of financial changes, impacting everything from bank accounts to energy bills.
First up, NatWest is officially taking the reins at Sainsbury’s Bank on May 1, gradually transferring millions of customers’ personal loans, credit cards, and savings accounts by the year’s end.
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Also on May 1, the clock starts ticking for those late filing their self-assessment tax returns.
Benefit recipients can look forward to early payments on May 2 and 23, ahead of the bank holidays, but remember that this is simply an advance, and regular payment schedules will resume as usual.
Meanwhile Barclays customers will see a dip in their savings rates on May 5, the second reduction in just four months.
The Bank of England‘s interest rate decision looms large on 8 May, with economists predicting a cut to 4.25% amidst global economic headwinds.
Whether you’re a homeowner eyeing potential mortgage rate drops, a saver concerned about dwindling interest, or a benefit recipient awaiting a much-needed boost, staying abreast of these changes is crucial for navigating the financial waters ahead.
Here’s all the money changes you need to know about in May.
NatWest takes over Sainsbury’s Bank – May 1
NatWest will take on millions of Sainsbury’s Bank customers on May 1 after it secured approval for the transfer from the High Court in April.
All of Sainsbury’s personal loans, credit cards and savings accounts will be gradually transferred to NatWest.
The transfer will be completed by the end of the year.
Travel money and insurance services provided by Sainsbury’s Bank will remain unchanged.
Sainsbury’s announced plans to wind down its retail banking division in January 2024 so it could focus more closely on its core retail operations.
NatWest agreed to acquire the supermarket bank in June last year.
Then in August Sainsbury’s Bank pulled its credit card and loans for new customers ahead of the takeover.
The bank then stopped accepting new savings account customers in March 2025.
Penalties for late tax return – May 1
If you missed the self-assessment tax return deadline on January 31 – and incurred the initial £100 penalty – additional fines will begin to accrue from May 1.
From this date, you will be charged £10 per day, with the daily penalties continuing to accumulate until they reach a maximum of £900.
To avoid this, send your Self Assessment tax return as soon as possible.
Who needs to fill out a self-assessment tax return?
YOU must send a tax return if, in the last tax year (6 April to 5 April), any of the following applied:
- You were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
- You were a partner in a business partnership
- You had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value
- You had to pay the High Income Child Benefit Charge
You may also need to send a tax return if you have any untaxed income, such as:
- Money from renting out a property
- Tips and commission
- Income from savings, investments and dividends
- Foreign income
Benefits paid early – May 2 and 26
Millions of people receiving benefits, including Universal Credit and the state pension, will be paid early ahead of the two bank holidays in May.
Those scheduled to be paid on Monday, May 5 will instead receive their payment on Friday, May 2.
Similarly, those due to be paid on Monday, May 26 will receive their money on Friday, May 23.
This advance payment ensures recipients are not left without funds over the bank holiday.
However, it also means you’ll need to plan your budget carefully, as your next payment will still be made on its usual date.
If your benefit payment does not arrive as expected, you should contact the DWP helpline on 0800 328 5644.
Barclays savings rates cut – May 5
Barclays is lowering the rate on its Rainy Day Saver account for the second time in four months.
Currently, customers earn 4.87% interest on the account, down from the previous rate of 5.12%, which the bank cut in February.
Now, from May 5, the rate will drop further to 4.61%.
The interest was previously set at 5.12%, but this was cut by the bank in February.
This change comes ahead of the Bank of England‘s next interest rate decision, scheduled for May 8.
How can I find the best savings rates?
WITH your current savings rates in mind, don’t waste time looking at individual banking sites to compare rates – it’ll take you an eternity.
Research price comparison websites such as MoneyFactsCompare.co.uk and MoneySupermarket.
These will help you save you time and show you the best rates available.
They also let you tailor your searches to an account type that suits you.
As a benchmark, you’ll want to consider any account that currently pays more interest than the current level of inflation – 2%.
It’s always wise to have some money stashed inside an easy-access savings account to ensure you have quick access to cash to deal with any emergencies like a boiler repair, for example.
If you’re saving for a long-term goal, then consider locking some of your savings inside a fixed bond, as these usually come with the highest savings rates.
Bank of England interest rate meeting – May 8
The Bank of England‘s Monetary Policy Committee is set to meet on 8 May to decide whether to make changes to the base rate.
The Bank is widely expected to lower interest rates to 4.25%, down from its current level of 4.5%.
This anticipated cut follows a wave of trade tariffs introduced by Donald Trump, which has dampened expectations for economic growth both in the UK and globally.
Many economists predict that falling inflation will drive the decision to reduce the rate.
The base rate serves as a benchmark for lenders, influencing the interest rates offered to customers on savings accounts and borrowing products.
A cut to the base rate could bring good news for homeowners, as it often leads to lower mortgage rates.
However, it could be a blow for savers, as the interest earned on savings accounts is likely to decrease as well.
Santander bank changes – May 12
Santander is scrapping its text alert service, which notifies users of specific activity on their accounts, from May 12.
Currently, customers can set up free text and email alerts for updates such as weekly balance summaries or notifications of large withdrawals.
These alerts can be arranged via online banking, at a branch, or over the phone.
Customers can set alerts up via online banking, at a branch or over the phone.
Most major high street banks offer this service including Nationwide, NatWest, Lloyds Banking Group and Barclays.
However, Santander customers who have opted into these alerts will stop receiving them from May.
Consumer experts have criticised the move, calling it “a bad thing” for savers.
The decision is part of Santander’s efforts to encourage customers to transition to its app and online banking services instead.
Universal Credit payment boost – May 13
Most benefit payments increased by 1.7% in April, while the State Pension rose by 4.1%.
However, many people will have to wait longer to see this increase in their payments, with some waiting until June.
This is because most benefits are paid monthly or twice monthly in arrears.
Universal Credit recipients will also experience delays in receiving the new rates.
This is because payments are based on income and personal circumstances during the previous “assessment period.”
For those whose assessment period began before April 7, the increased payments will be reflected in May.
However, anyone whose assessment period started after this date will not see the new 2025/26 rates until June.
Ofgem price cap announcement – May 27
Ofgem is set to announce the next energy price cap, covering the period from July 1 to September 30, by May 27.
According to analysts at Cornwall Insight, energy bills are expected to decrease to £1,683 from July, marking a reduction of nearly 9% compared to April’s cap of £1,849.
Over 22 million households on standard variable tariffs will be affected by the price cap.
However, many households are likely to face costs higher than Ofgem’s headline figure.
This is because the energy price cap does not set a limit on the total amount a customer pays.
Instead, it determines the maximum charge per kilowatt-hour (kWh) of gas and electricity, along with daily standing charges.
Additionally, the amount you pay can vary depending on the region in which you live.
Should you fix your energy bills now?
By James Flanders, Chief Consumer Reporter:
Predictions suggest that energy bills are finally on the decline, with a potential 9% drop expected from July.
That said, the energy market often feels like a rollercoaster – one moment it’s up, the next it’s down.
Current forecasts could easily change, influenced by ongoing geopolitical tensions, the war in Ukraine, and broader economic uncertainties.
In light of this unpredictability, a fixed tariff might be a wise choice for households keen to manage their budgets.
Opting for a fixed energy deal can provide price certainty and safeguard against potential future price hikes if things were to go south.
Millions of households can already begin saving on their energy bills by switching to one of the leading fixed tariffs, many of which currently offer lower rates than the standard variable tariff.
For example, Outfox the Market’s Fix’d Dual Apr25 12M v3.0 tariff costs a typical household £1,591 per year – £258 less than Ofgem’s current April price cap.
Even with the anticipated drop in the price cap this July, it would still be £92 cheaper, according to the latest forecasts.
Choosing a fixed tariff offers stability and protects against market volatility.
However, it’s important to weigh this decision carefully.
Keep in mind that exit fees may apply if you switch before the contract ends.
Plus, you could miss out on potential savings if the price cap drops significantly in the future.
To find the best fixed energy deals, start by visiting price comparison websites, which aggregate various offers from different energy suppliers
Nationwide £100 bonus confirmed – May 29
Millions of Nationwide customers could be in line to receive a free £100 payment in the coming months.
The building society told The Sun when customers can expect news about its popular Fairer Share scheme, which has previously rewarded millions of people with a £100 cash boost.
Nationwide has run the scheme for the past two years, though it’s not guaranteed it will do so again this year – although it appears likely.
The bank has now confirmed that customers will find out whether the scheme is returning on May 29.
The decision will depend on Nationwide’s financial performance, as this is the date it releases its full-year results.
Last year, Nationwide paid out £385million to 3.85million customers, while the year before, it distributed £340million to 3.4million people.
In previous years, customers had to meet specific qualifying criteria within the first three months of the year to be eligible for the payment.
If the same rules apply this year, there’s not much time left to ensure you qualify.
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