Ways to Get a Bargain on the Cost of Your Holiday

When you decide it is time to take a holiday, instead of going to the airlines or the travel agent to make your reservations you should spend some time surfing the net. This is where the best deals are to be had on everything from flights, accommodations and car rentals. Read more

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Credit cards reward disloyal behaviour

Credit card companies’ struggle for new customers is encouraging disloyalty, a new report has claimed.

By reserving the best deals for new customers only, Defaqto argues in its report ‘Credit Cards in the UK’, credit card firms are making it sensible to keep switching.

While some cards now offer “anniversary” offers as a means of keeping customers, on the whole, these are not as good as introductory offers.

The average 0 per cent introductory deal available at present lasts 9.5 months for balance transfers, while for anniversary offers, the figure is between 5 and 6 months.

David Black, principal consultant of banking, explained: “There is a clear incentive for the creditworthy to review and change their credit card on a regular basis. The credit card industry is geared to routinely rewarding customer disloyalty for the creditworthy and there seems to be little evidence of this changing.”

At the other end of the scale, however, people with poor credit ratings are finding it ever harder to get approved for credit cards at all.

A recent report from Equifax found that high street lenders, mobile phone businesses and even catalogue companies are toughening up their credit checks.

Tags: means, disloyalty, companies struggle, David Black, clear incentive, Credit history, business, best deals

Young people attracted by saving

Young people are now twice as likely to open a savings account as they were just six months ago.

A new survey from Birmingham Midshires found that one in seven (14 per cent) 18 to 24-year-olds had opened a savings account in the last three months, compared to just one in fourteen at the time of its last study, six months ago.

More and more young people are seeing the benefits of saving, with interest rates high and banks and other savings providers competing fiercely to give the best deals.

Jason Robinson, director of savings operations at Birmingham Midshires said: “With 2007 widely accepted as the year of the saver, the savings market is not only appealing more to new markets – the younger generation – but we are also noting an increase in movement with more savers, particularly older savers – switching accounts to get a better deal. The trend is certainly moving away from inertia as people vote with their feet.”

The study found that more people, particularly over-55s, are willing to move their savings around to get a better deal.

However, other research out this week claimed that large numbers of savers are unaware of just how much interest they are actually earning.

Research from Sainsbury’s Bank found that around £112 billion nationwide is being held in account where the savers just do not know what rate they are on.

Tags: Birmingham Midshires, six months, deal, inertia, savings operations, Youth, bank of england, best deals

Insurance switching gains momentum

There has been a marked increase in insurance switching, an industry expert has said.

According to MoneyExpert.com, the car and home insurance markets have seen a dramatic rise in people changing policy.

In the last six months, insurance customers for these sectors have abandoned in excess of 9.2 million uncompetitive policies.

The website’s Switching Index shows that, in the same period ten per cent have switched home insurance policy while 15 per cent have changed motor insurance policy.

In total, 9.27 million policies have been swapped in the last six months, which represents a staggering increase of 1.6 million from the previous quarter this year.

Sean Gardner, chief executive of MoneyExpert.com, said: “The good news is there are plenty of excellent offers out there and many product sectors are incredibly competitive – insurance being a prime example.

“It will almost certainly be the case that everyone can save money by switching and we would urge consumers to continue to seek out the best deals.”

Tags: best deals, insurance policy, home insurance markets, economics, Financial services, case, momentum, home insurance