Kids pose driving danger

British drivers may be at risk of having an accident simply by having their children in the car with them.

Almost eight million motorists say that their children are a distraction while they are behind the wheel and many people admit to being on auto-pilot during much of their time on the road.

LV= General Insurance points to official figures which say that 2,895 of the 150,000 accidents on British roads are caused by distraction and is urging drivers to remain focused while behind the wheel.

“On today’s busy roads, with 16 per cent of accidents having fatal or serious consequences, it is vital to maintain 100 per cent concentration when behind the wheel,” said Andrew Beard, from LV.

“It is frightening to think what can happen in the split second when drivers take their mind of the road.”

Mr Beard went on to point out that any distraction while driving is dangerous and said simple tasks such as changing a CD or smoking can lead to a crash.

“With the holiday season just around the corner, many families will be setting off on longer than usual car journeys – preparation is the key to help avoid in-car distractions,” he continued.

“Packing the car with travel games and books before you set off will help to keep the children amused whilst on the move. You may also want to think about getting your CDs loaded and your radio tuned, so you can listen to your favourite tracks without having to fiddle with the audio equipment.”

Tags: Andrew Beard, distraction, Text messaging, Packing, car distractions, usual car

Internet banking needs innovation

Internet banking recently turned ten but one of its pioneers says the current crop of sites lack innovation and direction.

Jim Spowart, chairman of peopleschampion.com, who created the UK’s first bespoke internet banking site, has criticised the current market.

He says that banks appear to be unsure of where to go next with their online banking websites and wants to see them doing more to offer customers something different.

“The banks have been concentrating on profitability. All they have done is use the technology to update their traditional banking methods,” commented Mr Spowart.

“There’s been very little thinking about how they can offer the customer something brand new. Internet banking is just an add-on convenience for many – but it hasn’t changed banking. That’s why the banks are having to hit the customers with extra hidden charges.

“In every way, the internet has changed the way we all look for products and services. The poor old traditional bankers are still scratching their heads looking for ways of gaining customers, yet the whole game has changed,” he added.

Internet banking in the UK celebrated its tenth anniversary on May 27th 2007, a decade after Nationwide launched the first site.

Tags: old traditional bankers, online, internet, internet banking, way, thinking, site, Business and Economy

Savers could benefit from another interest rate rise

Over the past year the UK has seen interest rates rise three times, shooting up from 4.5% in August last year to 5.25% by January of this year.

And with experts predicting that another rise of at least 0.25% will be enforced in May, and possible a further rise in the summer, borrowers on variable interest rates are dreading dealing with their finances, as this means that repayments will go up yet again. However, for some savers the story is quite different.

According to information from Moneyfacts interest rates on fixed rate savings accounts have been climbing, and another interest rate rise could spell good news for savers. According to one expert from Moneyfacts a number of banks and building societies have been raising fixed rate interest rates by up to 0.55%. This has created stiff competition between those offering these savings accounts, and at present the Nottingham Building Society offers the highest rate at 6.2%.

According to Moneyfacts’ Rachel Thrussell: “While rates in excess of six percent are currently very competitive, instant access rates are not far short of this mark, making the reward for tying up your money relatively low. So while these rates will offer a great return and piece of mind, perhaps the market has not yet reached its peak and better rates may still be yet to come.”

In a related report from Sainsbury’s Bank, some experts were concerned that savers were being short-changed in terms on interest on their savings, with many account failing to keep up with inflation and interest rate rises. Consumers that are saving in a low interest account are urged to shop around and look for an account that offers a higher rate of interest, as this could really bump up the amount if interest earned each year.

Tom Smith
28th May 2007

More Information:

• Savings Accounts – Are They Worth It?
• Internet Bank Accounts – The Benefits and Drawbacks

Tags: amount, interest, society, accounts, fixed

What the recent interest rate rise means for your mortgage repayments

On 11th May the Bank of England increased its rates by another 0.25% to 5.5%, meaning that six million homeowners in Britain will face bigger monthly payments for their mortgages. Read more

Tags: england, surveyors, rise, prices, house, rates, mortgage, inflation

Over one fifth of Brits do not save

Over twenty percent of Brits do not put aside any money in the form of savings according to a recent report. Research has shown that twenty one percent of Brits fail to put aside any money in savings.

The savings survey was carried out by Nationwide in a bid to try and determine how best to tempt consumers into opening and running a savings account. The survey also showed other facts and figures relating to Brits and the way that they save – if at all.

According to the survey, over one in five Brits saved nothing at all. However, the results also showed that thirty five percent of Brits do save money on a regular basis. In addition to this the survey revealed that nearly forty five percent of Brits tended to save on an ‘as and when’ basis, putting money aside into savings whenever they had some spare but otherwise using it for day to day cost of living.

Seventy seven percent of those interviewed as part of the survey stated that their most important consideration when it came to a savings account was a good, long term interest rate. Eight four percent also stated that the account needed to allow withdrawals without any form of penalty being imposed. Nearly sixty percent stated that they would only open a savings account with a well known provider.

Shockingly, the survey also showed that some people still use the most primitive methods of trying to save money, such as stashing their cash in various places around the home – including under the mattress. Those interested in savings accounts are advised to shop around and find an account that offers a good interest rate that reflects the rising interest rate in the UK.

Tom Smith
26th May 2007

Tags: bank, uk, savings, spend, income, money, earn, interest, accounts

You could get a better deal with annual travel insurance

According to officials from MoneyExpert buying annual travel insurance cover could work out cheaper than opting for single trip cover, although experts do warn that consumers need to carefully check the policies to see what is and isn’t covered before making any commitment.

According to researchers from MoneyExpert some annual travel insurance policies can work out cheaper than single trip policies, but consumers must check that they are adequately covered.

One MoneyExpert official stated: “Holiday makers often think that single trip cover is simple and cheap, but the truth is it’s often not best value for money. You are certainly paying for a quick fix. As with all insurance, the quality of cover will always vary so like-for-like comparisons are quite difficult to make. Nevertheless it remains the case that you can get annual travel insurance for the whole family without breaking the bank. Focusing on price alone can mean holidaymakers will be left with insurance that is not worth the price. Insurance policies are only tested when you need to make a claim. You don’t want to find out when you are making a claim that you’ve saved money at your expense.”

MoneyExpert officials have warned that although it can be cheaper to take out annual cover, consumers should take into consideration the quality of the cover as well as the price. It is important to ensure that you compare different policies, and know exactly what you are and are not covered for in order to ensure that you get proper value for money with your travel insurance policy.

According to Sean Gardner from MoneyExpert: “Average prices provide a guide as to what to look for. It is then up to holidaymakers to probe a little deeper to find the policy that suits them best.”

Tom Smith
26th May 2007

Tags: policy, cost, Insurance, News, cheaper, travel, single, trip, cover

NS&I pulls out of treasurers accounts

National Savings & Investments has announced that it will no longer be running Treasurer’s Accounts, which are designed for non-profit organizations and charities to make deposits.

The move means that around one thousand organizations and charities will have to find alternative accounts with other companies. No further Treasurer’s Accounts can now be opened with NS&I, and from August 10th no further transactions other than account closure can be made on existing accounts.

Launches in 1996, the number of Treasure’s Accounts and the amount of money invested in them has declined over the years. In 2003 there were 992 of these accounts running with NS&I, with total investments of £67 million. This has now dropped to 932 accounts with total investments of £61.3 million. Officials from NS&I state that it is necessary to make this move, as it is more cost effective for them to now concentrate their efforts on personal savings accounts.

Peter Cornish, director at NS&I, said: ‘The Treasurer’s Account has been in decline for some time which has prompted our decision to close the account. Banks and building societies offer similar accounts for non-profit-making organisations so there are plenty of alternatives available in the market place.’

He added that to continue offering this sort of account a substantial investment would need to be made, and that because of this it was no longer worth the company taking on these accounts.

Amongst those that have Treasurer’s Accounts with NS&I are various charities, and a range of clubs and societies, including youth groups, church groups, and other non-profit organizations. The accounts were thirty day notice accounts, with minimum investment levels of £10,000 and maximum investment levels of £2M.

Tom Smith
26th May 2007

More information: Treasurer’s accounts no longer available

Tags: bank, charity, accounts, closed, treasurers, non-profit

Home disasters for returning holidaymakers

Over one million Brits return from holiday each year to find that there home is a disaster area.

Research by Halifax Home Insurance shows that we arrive home to a combined total of £2.3 billion worth of damage and, without insurance, we could be counting the cost for years to come.

The most common problems are criminal damage, faulty utilities and storm damage. According to Halifax, a quarter of us are burgled while on holiday.

Water damage is another costly problem that affects many, with 1.7 million holidaymakers having to pay a combined bill of £960 million to repair damage done by burst pipes and the like.

“Home disasters can be extremely distressing at the best of times, so returning to one after a relaxing holiday would certainly bring you back down to earth with a bump, so having adequate home insurance cover to protect your property – whether it’s occupied or not – is absolutely critical,” said Vicky Emmott from Halifax.

“As well as making sure they are insured there are lots of other practical things that holidaymakers can do to protect their properties whilst they’re away.

“For example, ensuring that the heating comes on during the winter can prevent pipes from bursting, and cancelling regular deliveries like milk or newspapers make it less obvious to a thief that your property is vacant,” she added.

Children left alone on the house are also a common menace for holidaying Brits, with almost one million saying that they had returned to find their home damage by the kids.

Tags: insurance policy, halifax, adequate home insurance cover, Financial economics, water, house, milk, Vicky Emmott

Expect annual fees on your credit card

The next decade is likely to herald a new era for credit cards, where users are charged simply for having them.

Financial research company Defaqto predicts that annual charges will become the norm in the next ten years as credit card companies and banks look to rebuild their profits following the capping of penalty fees.

The likes of Lloyds TSB and Barclaycard have already or are considering introducing charges of this sort and it seems that more firms will follow suit.

“Reports that Barclaycard is considering an annual fee is not a surprise and my expectation in the years ahead is that there will be a gradual move towards annual fees in the credit card market,” said David Black, head of banking at Defaqto.

“However this will herald a significant contraction in market size as people who clear their outstanding credit card balances on a monthly basis will, as they start facing annual fees, jettison credit cards in favour of using debit cards instead.”

If, as Defaqto predicts, fewer people use credit cards, it may be that those who do hold one will be hit even harder by annual fees as the providers charge more to cover the losses.

However, a mass exodus from credit card use may also work in the public’s favour as competition hots up and more favourable deals are introduced.

Tags: losses, banks, significant contraction, jettison credit cards, profits, credit

Brits spend billions on conversions

British homeowners have spent over £90 billion on converting ‘dead space’ in their homes.

Research by AA Financial Services shows that 20 per cent of mortgage holders have converted attics, garages, cellars and sheds to make them liveable areas.

The main driving force for the majority of people was to increase the value of their property, with 27 per cent citing this reason.

Money appears to be a major factor when it comes to conversions, with 17 per cent of those asked saying that they would have preferred to leave the ‘dead space’ as it was but needed to room and could not afford to move.

Others though were simply keen to get the most from their property, especially as house prices continue to rise.

“Many homeowners relish turning unused or ugly areas of their homes into liveable rooms as it means more space for family and less dusty boxes and clutter,” said Janet Pell from AA Insurance.

“But it is important that you ensure you have the appropriate building regulations approval before going ahead.

“And make sure you update your home insurance cover following an extension or conversion – your three-bed cottage might suddenly become a four-bed house – and of course, you’ll have additional furniture and possessions too.”

It is worth noting however, that if your property does become a four-bedroom house, it will be subject to the new Home Information Pack regulations from August 1st.

Tags: three-bed cottage, cover, cent, possessions too."It, mortgage holders, home insurance, research, conversions

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