Private accounts taken up for package rather than rate

Premier private bank accounts do not have a very high interest rate compared to high street banks and are often taken out for the additional benefits they provide, says an expert.

Samantha Owens, head of personal finance at Moneyfacts, said customers must have high balances to receive any credit interest, which would not be particularly high compared to other accounts.

However, she noted that people open premier private bank accounts because of the benefits they offer, such as investment advice and access to bank managers.

Commenting on who might find this type of account most useful, Ms Owens said: “People who are worth a lot of money, basically… They’re not really for people to just walk in off the street.”

Yet such accounts appear to be gaining in popularity, with Schroders reporting earlier this month that its private banking pre-tax profits were up 54 per cent with a net income rise of 11 per cent.

Ms Owens said that Coutts pays 0.15 per cent on a balance of £5,000 and offers free banking for customers who have over £2,500 in their accounts.

Tags: bank account, Private banking, Private accounts, high street banks, investment, bank accounts, finance, people open premier

High-earners should consider premier private bank accounts, says expert

High-earning individuals should consider opening a premier private bank account since they may benefit from the additional services they offer, says Moneyfacts.

Although such accounts charge higher fees than high street accounts, Samantha Owens, head of personal finance at Moneyfacts, says they may nevertheless be a worthwhile option for people who earn a lot of money because they can receive extra benefits such as advice on investments.

“If you’re in the higher income bracket then you’re not really going to be worried about getting a current account paying 8.5 per cent up to the first thousand pounds,” says Ms Owens.

Premier private bank accounts appear to be increasingly popular, with HSBC and Schroders both reporting recent increases in private banking pre-tax profits.

Tailored services which come with the accounts include a concierge service and a discount on investment advice.

Ms Owens warned that people on an average salary are unlikely to benefit as much from the service, particularly when taking into account the higher fees.

Tags: Head of Personal Finance, investment advice, hsbc, additional services, Current account, High-earning

BRC: Credit crunch leading to “cash comeback”

More people are using cash to pay for their purchases amid growing consumer concerns about how much money they are spending, the British Retail Consortium (BRC) has claimed.

The global credit crunch is causing consumers to be more cautious with their money, says BRC spokesperson Richard Dodd.

New figures from the organisation show that cash is now used for 60 per cent of all transactions, an increase of 54 per cent from 2007.

Cash now represents 34 per cent of all money spent in the retail sector, compared with 32 per cent a year ago.

Recent research from uSwitch shows that on average, credit card holders owe £1,812.

With ten per cent of all cardholders paying the minimum on their cards, the company estimates 3.5 million people will spend close to the next 30 years clearing their credit cards.

“People’s enthusiasm for using cards is slipping. That’s because people are not only reluctant to borrow, they are also reluctant to use cards,” concluded Mr Dodd.

Tags: organisation, Business Finance, spokesperson richard dodd.new, Recent research, spokesperson, Richard Dodd, crunch, company

Nationwide tightens mortgage criteria

Nationwide, the UK’s second biggest mortgage lender, has increased the deposit needed by new borrowers to a minimum of ten per cent on all except two of its products. Read more

Tags: director for mortgages, Mortgages, nationwide mortgages, nationwide, biggest mortgage lender, bbc, United Kingdom, loan

Government help for mortgages “too slow”

The government should act more quickly when providing aid for mortgages to people in financial difficulties facing repossession, says National Homebuyers. Read more

Tags: mortgage help, Mr Coogan, Mortgages, economic conditions, mortgage payments, large lenders, lender, mortgage lenders

Surfers worry about using credit cards online

Almost half of UK internet users have reservations about using their credit cards to make purchases online, with a third feeling concerned about the security of web banking, according to new research.

Internet security firm F-Secure has found that 48 per cent of people are not confident that their card is secure when using it online.

Banking Trojans are rising sharply and can compromise security by stealing log-in details such as usernames and passwords by providing links to websites that are very close imitations of the genuine bank site.

Increasingly complex attacks are also emerging, says the company.

“Consumers need to be aware of threats when banking online, but that is not to say that they should not do it,” says Mikko Hyppönen, chief research officer at F-Secure.

In a recent survey, Abbey found that around 40 per cent of online shoppers want banks to monitor online transactions more closely to make the internet safer.

Tags: card, cent, research internet, site, Banking Services, imitations, online.banking trojans, security firm

UK mortgage market worst in 30 years, warns expert

British home buyers are facing the toughest conditions in the mortgage market the country has seen for 30 years, the UK’s largest house builder, Persimmon, has warned. Read more

Tags: property market, Merrill, Mortgages, house, Darling revealed plans

Legal cover on home insurance may help avoid costly bills, claims expert

Home owners are being advised to take out legal cover on their house insurance to safeguard them in the event of a dispute with neighbours.

The Association of British Insurers (ABI) says that legal expenses can be very pricey if people get into a dispute and with research showing that a third of people have argued with their neighbours, insurance may be a sensible option.

According to a recent survey by Allianz Insurance, more than 1.1 million households have argued with their neighbours about noise and one in three of the 3,000 homeowners questioned have had a disagreement.

Kelly Ostler-Coyle, spokesperson for ABI, said: “The thing with insurance is you never know if you need it till you need it, so it’s always there to protect against the unexpected.”

If people think they would not be able to pay the legal fees in the event of a dispute, they should consider getting legal cover when they take out their home insurance policy, Ms Ostler-Coyle concluded.

Tags: British Insurers, policy, Coyle, option, spokesperson, noise, Financial economics

First-time buyers turn to families for help

First-time buyers are increasingly being forced to ask family members for help in raising a deposit as the mortgage market tightens under the global credit crunch. Read more

Tags: business, First-time, housing ladder, income, family, first time buyers, mortgage lenders

ABI: Don’t just go for the cheapest home insurance

With one in three households getting into arguments with their neighbours, people should not simply choose the cheapest home insurance policy as it may not cover the legal cots of a dispute, says the Association of British Insurers (ABI).

Kelly Ostler-Coyle, spokesperson for the ABI, advises people to consider what is covered in the insurance policy rather than simply choosing one based on cost.

Ms Ostler-Coyle, says that when shopping for insurance, people should ask themselves “Does it include legal cover? Does it have all risk extension fees so you’re covered for your items when you’re outside the home and how much [in terms of] belongings am I covered for?”

Yet people often take what they believe is a good deal without taking any advice and later find their claims rejected since the insurance policy they chose does not cover issues such as disputes, says an expert.

Over a million people say they have argued with their neighbours over noise, according to a new survey from Allianz Insurance.

Tags: Financial economics, advice, expert, abi, Allianz Insurance, British Insurers, Social Issues, Business and Economy

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