Choose the right bank account for your needs

These days there are a number of bank account available for consumers to choose from based on their needs and circumstances, and it is important that you choose the right bank account so that you have the facilities and benefits that you need to deal with your day to day financial transactions.

Choosing the right bank account can make a big difference to how easily you manage your financial transactions, and most of the major banks these days offer three choices when it comes to bank accounts. This includes the basic bank account, current accounts, and packaged current accounts.

It is a good idea to look into the different features and benefits of these individual bank accounts so that you can better determine which of these is the right one for your needs, as this will help you to make a more informed decision.

The basic bank account is one that is designed for basic day to day financial management, and is somewhat limited compared to the standard current account in that it does not come with facilities such as a debit card or cheque book. These accounts allow you to set up direct debits and standing orders, and also come with a cash card so that you can take money out from a cash point. However, there is no overdraft facility with the basic bank account, and they are often made available to those on low incomes or credit history problems.

Current accounts offer slightly more than the basic bank account, and the additional features that may be available with these accounts include an overdraft facility (subject to status), a cheque book, and a debit card. These accounts, like the basic bank accounts, are ideal for having money paid in and out and for managing your day to day finances.

Over recent years more and more banks have been offering packaged bank accounts, and these are fee charging accounts with the monthly charge varying from one bank to another. The packaged back account allows you the same facilities and benefits as a current account. However, it also comes with a package of benefits, which often includes benefits such as travel insurance cover, preferential borrowing rates, car breakdown cover, discounts off various services and from a variety of retailers, mobile phone protection, etc. You should always check the benefits package to determine whether you will use the services and products offered, as otherwise it will not be worth you paying the monthly fee for the account.

Tags: packaged bank accounts, bank account, basic bank accounts, Banking, finance, bank

More people to get access to bank accounts

According to recent report many more people will be able to get access to bank account facilities, after plans were announced by the government to force banks to offer bank account facilities to all. Under the plans, which were revealed in the recent budget, banks may have to offer at least a basic bank account to everyone that is legally entitled to have banking facilities in the UK. With banks having been at the receiving end of much criticism over the past year this is just one of the measures that are being looked at to try and tighten the way in which the UK’s banks operate.

The government claims that there are around 1.75 million people in the UK that have not got access to banking facilities at present, and hopes that this move will help to ensure that a large proportion of these people are provided with access to bank accounts. Many may be able to get basic banking facilities under the new regulations, and these are accounts that allow the accountholder to carry out transactions such as transfers, payments, receiving money, and setting up direct debits, but do not come with a cheque book or overdraft facility.

The British Banker’s Association has argued that the move is not necessary because people that want to have a bank account can have one anyway. Many of those that can only get access to a basic bank account are people that are on low incomes and are limited in terms of how much they can put into the account, or those that have a poor credit rating.

A promise was also made to move more quickly when deciding whether to grant a new banking licence to companies, and this was welcomed by consumer campaign group Which?. Officials from the group said: “People have been telling us how fed up they are with the sales culture that appears to have replaced customer service in our banks. New entrants in the market offering genuinely competitive products will help bring about the culture change the industry so desperately needs.”

Tags: which, basic bank account, bank account, bank, Banking

Do you want faster payments from your bank?

For many people that amount of time that their bank takes to transfer money from one bank account to another can be a real problem, and whilst banks are supposed to adhere to regulations that have been formed by the UK Payments Council there are many banks that still do not carry out the same day transfers in line with the Faster Payments Scheme, which was brought in back in May of 2008. Read more

Tags: finance, cheque, bank, Payment systems, bank account, BACS

Man claims his Abbey account was frozen in revenge

A man who gave a low rating to an employee at a call centre at Abbey bank said that he had his account frozen out of revenge. The customer of the Spanish owned bank said that he had found the customer services representative at the call centre to be ruse and arrogant, and when he had been asked to complete a survey on his experience he gave the lowest scores to the employee, which he felt was justified. However, he says that as a result his account was frozen in revenge. Read more

Tags: abbey, Banking, standing, business, revenge, massive inconvenience, bank account, money back

Building society loses sensitive data

A building society has become the latest culprit of a string of data loss incidents, having lost sensitive data on around one thousand of its employees. The Leeds Building Society is said to have lost details that included the bank accounts numbers and salary details of around one thousand employees, and staff members affected have been warned to remain vigilant with regards to their accounts, and to keep an eye out for any suspicious activity. Read more

Tags: floor, vigilant, eye, close eye, bank account, blunders, building society

HMRC offers huge reward for return of sensitive data discs

Following the huge blunder where two discs containing the bank and personal details of 25 million people were lost by HM Revenue and Customs a huge reward has been offered by official for the safe return of the information. The discs were lost some weeks ago by HMRC, and although there has been no indication that they have fallen into the wrong hands everyone affected has been contacted in writing and urged to be extra vigilant to ensure that nothing is amiss when it comes to their bank accounts. Read more

Tags: identity theft, fraud, security, interest rate cuts, data, safe return, bank account

Do you want to earn an income from your interest?

With a wide range of savings accounts to choose from consumers in the UK can enjoy finding the ideal account to suit their needs and their circumstances. The savings account that you choose will be based not just on your needs and circumstances but also on the amount that you have to invest and what you want from the account. For instance, those looking to gain instant access to a savings account would not fare well with a notice account. However, those wishing to get a tighter reign over their savings accounts withdrawals could really benefit from an account that restricts the number of withdrawals that can be made. Read more

Tags: rise, savings account, tighter reign, bank account, interest, monthly income accounts, bank accounts

Bank accounts for students

Even as a student it is important to have certain banking facilities and services that enable you to manage your money and your debts effectively, and many banks in the UK now offer specialist bank accounts designed to meet the need to students. This is good news for students, as it means that not only can they benefit from having banking services available to them but they can also build a business relationship with a bank, which could prove invaluable in the future when it comes to setting up a regular bank account, setting up a savings account, and most importantly borrowing money for purchases such as a car or property. Read more

Tags: cost overdraft facility, uk consumers bank, relationship, student accounts, day, bank accounts, wide range, bank account

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

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

Consumers are unlikely to switch accounts unless “they suffer”

Despite an awareness of the benefits of switching bank accounts, consumers are reluctant to take advantage of what this move will bring, one financial expert has claimed.

According to moneysupermarket.com, the majority of providers in the UK want consumers to come in on a service proposition, not a price proposition.

This tends to be a less tangible, lightweight offer to spenders as it merely says ‘we have better services’, said the financial advisers.

Kevin Mountford, head of savings and current accounts at Moneysupermarket.com, said that there is an awareness of the benefits of moving accounts.

“However, it does not seem that people have the impetus or the appetite to do so unless they suffer and gets a poor service from their provider,” he continued.

Of those surveyed by the Watchdog, 46.8 per cent did not think they should be charged for going over their overdraft limit without authorisation, while 28.2 per cent felt that it was difficult to get a complaint with their bank resolved.

Tags: service proposition, bank, bank account, service, advantage, overdraft, Driving, watchdog

Consumer increase care over their personal data

One of the major issues that have raised concern across the UK over recent months is that of personal data security, with many people concerned over the risk of identity theft and fraud. Read more

Tags: credit, bank account, recent, Financial institutions, personal data, result, Revenue, increase

Borrowing from friends affects both young and old

Both young and old are liable to borrow money from other people says a financial expert.

Research from online company Paypal reveals that “the person we turn to most for borrowing money is our mother”, while 16 per cent of UK consumers have fallen out with family members after lending money to them.

The findings also showed that there is “a huge chunk of us” that go to our friends to borrow money. This means the closer a person is to someone the more likely they are to borrow from them, claims Paypal.

Cristina Hoole, a spokesperson for PayPal, said: “The key thing is that if you do borrow money or if you lend money, that shouldn’t affect the relationship that you have with that person.”

“So make sure you don’t create a risk, especially over money, it’s not really worth it,” she concluded.

Research from YouGov showed that the average amount people in the UK have lent to friends and family in the last 12 months is £898.52.

Tags: huge chunk, spokesperson, cristina, Paypal, family, 12 months, bank account

Online banking ‘good for all ages’

Online banking is for savers of all ages, according to a finance expert.

Nick Staib, a spokesperson for HSBC, said that age was no barrier to internet banking and revealed that internet banking was outstripping bank account sales.

UK payments association Apacs recently published figures that showed the number of adults using online banking had increased by 174 per cent from 6.2 million in 2001 to 17 million last year.

This figure included 350 per cent increase in use amongst the over 55s.

Mr Staib said that there was a steady growth in customers going online and added that while internet banking was readily adopted by young people, the older generations saw it as “natural” to bank online.

“There is no reason why people of any age can’t use the online banking, as long as they can send an email to somebody,” he said.

“If we didn’t [have internet access for banking] I don’t think we would be able to sell hardly any bank accounts at all.”

Tags: access, payments association apacs, use, young people, number, finance expert, bank account, apacs

Brits are fretting about their finances

People in the UK are deeply concerned about their finances, a new study has shown.

Research from Alliance & Leicester indicates that 3.4 million Britons consider their finances to be their biggest worry – with 18 per cent fretting about cash on a daily basis.

Despite this, around half of those questioned admitted that they had not thought about whether changing their bank would provide them with a better deal.

Perhaps unsurprisingly, the study revealed that Brits tend to worry more about their cash at certain times of the year. Half said Christmas was a stressful time financially and 40 per cent admitted to thinking about their finances before a holiday.

“Money is obviously a topic at the forefront of most people’s minds,” explained Andy Bayes, head of current accounts at Alliance & Leicester.

“Regardless of whether money worries stem from managing day to day finances or finding the money in the run up to special times of the year, it’s crucial people check that their bank account is working hard for them.

“Considering the time people spend worrying about money, and the lengths some will go to find more, it’s surprising to see that so many customers still remain faithful to the same bank they have been with for years, which pays very little in credit interest.”

Research from Lloyds TSB indicates that 36 per cent of people from the UK plan to sort their finances out this autumn.

Tags: biggest worry, bank account, britons, plan, credit interest

Customers’ rights ‘breached’ by bank laws

New rules, concerning the sharing of information about customers between banks, are being criticised.

Credit check firm checkmyfile.com says the move could be in breach of millions of people’s basic human rights.

The company claims that the rules will erode customers’ rights to privacy as details of around 33 million current accounts could be shared without the individuals’ consent.

At present, it is not legal for the details of older accounts, those opened before 1998, to be shared, but the Department of Trade and Industry is said to be looking into getting around this.

“The government’s proposal will drive a coach and horses through banking confidentiality, data protection laws and the European Convention on Human Rights,” said a checkmyfile.com spokesperson.

“For many people, their bank account is sacred and most bank accounts are still not shared with the credit reference agencies.”

The present law means account details cannot be shared with anyone without the individuals consent.

Tags: bank account, reference, customers rights, Human Rights, older accounts, credit reference agencies, banking confidentiality, protection

Bad Credit-Credit Cards

In the red and on the blacklist

What is bad credit, how do you become somebody who has bad credit and how does it affect your daily life? How do you get a credit card even if you are on the credit blacklist? There are ways and means…

The cost of credit repair

If you are refused a mortgage, a loan or even a credit card it may be that you are regarded as either a bad risk or that the lender can’t see how they will make money from you, which, when it comes down to it, is the same thing.

But I haven’t done anything!

When you apply for any kind of loan the company you are approaching conducts what is called a credit check. Every time you have enquired about finance it has been recorded on a central database and lenders access this database to see how well you repaid your loans and any other debt management you have exercised.

If you have missed a few payments on a loan, defaulted on a mortgage for whatever reason, or perhaps failed to pay household bills on time, it will be recorded and quite often the criteria lenders use to assess whether you are a good or bad risk will count these things against you.

Squeaky clean

Strangely enough even if you have lived a squeaky clean financial existence and never had a credit card or defaulted on any payments or perhaps you haven’t had a large repayment to make before, this can all sometimes add up to an equally bad risk in the lenders assessment. This is because they have no data on which to assess you; there will be no record of how you may respond to the credit you are now applying for. So they refuse you credit altogether.

A quarter of adults

It’s reckoned that one in four adults have had some form of bad credit rating at some point in their lives. The good news is it can be changed. One way of changing your credit rating for the better is with a bad credit-credit card.

How much!

The problem with bad credit-credit cards is they tend to be expensive. The APR you will normally find on these cards can be up around 30percent.

But as you are determined to improve your credit rating and this is why you have taken out one of these cards it doesn’t really matter because you will be paying off the full balance each month and thereby avoid actually paying the high interest rate…won’t you?

Shop around

It is always worth shopping around for the lowest rate you can get, just in case there is a month or two where you simply can’t pay everything off. And above all, don’t overstretch yourself! Just because you have credit doesn’t mean you have to use it!

Keeping it real and avoiding the debt trap

Once you have your card it is really important to make sure you use it properly. If necessary you should set up direct debits from your bank account well before the payment due date so you always pay off at least the minimum payment each month.

The secret to improving your credit rating is to make regular payments and thereby demonstrate your reliability. But remember, paying off the minimum each month will incur compound interest, (interest on interest) at very high rates too. The last thing you want is to fall into the debt trap.

A capital card

The Capital One Classic Credit Card is currently available to people who have a bad credit rating. As you might expect, it has a limited credit ceiling of between £200 and £2,500, but with time it is likely to increase as you demonstrate good management of your debts. The APR is a whacking 29.9% so you really want to avoid paying interest if you possibly can.

Hopefully a card like this would help you walk away from being amongst this country’s one in four with a poor credit rating.

 More Information:

• Credit card articles – some great articles from the Card Guide
• Applying For Credit Cards When You Have Bad Credit
• Using Your Credit Card To Build Credit History
• CCCS – Free non profit association advice
• APACS information page

Tags: Credit score, poor credit rating, credit ceiling, adults it, bad credit rating, bank account, Business Finance, credit check

Student & Graduate Loans

Student and graduate loans are designed to help pay for people to get through University now that the grant system has disappeared. These days it’s estimated that a third of all eighteen year olds enter further education. When the full maintenance grant system was in place only a tenth did so. Clearly this has created a huge demand for loans. Read more

Tags: new academic year, bank account, student loans, graduate loans, taken out, home, Business Finance, Loans

Savings Accounts – Are They Worth It?

It wasn’t like that in my day

It’s an often heard phrase usually uttered by a disgruntled and crumpled pensioner about some aspect of modern life. Well, thank goodness it’s not like it used to be as far as savings bank accounts are concerned. They used to be pointless; today they are a little different. Read more

Tags: Wise words, saving, savings accounts, recession, interest rates