40 percent bonus increase for FSA staff

In the midst of the ongoing financial crisis the UK’s financial regulator, the Financial Services Authority, has hiked up staff bonuses by a whopping 40 percent, according to recently released reports. Read more

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Pay rises make us worse off

That pay rise you have been pining for may make you worse off financially.

It may sound silly but, according to Prudential, many of us find that we actually suffer financially as a result of a pay rise or bonus.

The reason, says the financial services firm, is that many of us throw our good banking guides out of the window when we get a rise and start spending the money before we even have it.

Around 17 per cent of Britons are said to behave in this way, falling into a category dubbed by Prudential as ‘Money Illusionists’.

This is equivalent to 3.4 million people who spend their entire bonus or pay rise before they have received it, while nine per cent have even managed to get themselves into debt as a result.

“A pay rise or a bonus ought to be the trigger to get debt under control but too many of us simply see it as an excuse to spend more,” commented Angus Maciver, business insurance director at Prudential.

“It is particularly worrying that so many people appear focused on gaining pleasure now, spending increases and windfalls rather than saving.

“As Britain’s consumer debt levels continue to grow it is vital that people make provision for good times and bad,” he added.

Most people (19 per cent) admit to spending their pay rise or bonus on a holiday, while 13 per cent choose home improvements and 12 per cent on electronic gadgets.

On the other hand, only 23 per cent use the money to pay of debts and 15 per cent choose to save it.

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Motorists to save on insurance

Britain’s motorists are being told that they can make big savings by shopping around for their car insurance.

Recent figures show that the cost of owning a car is growing all the time, with Zurich recently putting the figure at an average of £1,766.62 per car, per year.

The increased price of petrol and road taxes during the latest Budget have added to these costs and many drivers are being forced to change their habits.

American Express carried out a survey of British motorists and found that 15 per cent have started driving less as a result of increased fuel prices.

In addition, ten per cent have bought a more economical car, while one per cent uses public transport more often.

However, American Express says that many drivers could save themselves a packet by shopping around for their car insurance.

“The cost of motoring seems to rise year on year and whilst there is little motorists can do to cut the cost of fuel or road tax, insurance is one area where real savings can be made,” commented Joanne Field, marketing manager for the firm.

Those looking for car insurance are advised to shop around for the deal that best suits their needs, compare similar policies and protect their no claims bonus once a deal is agreed.

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London card holders redeeming £349

More and more people are using credit card reward schemes to make some money, with Londoners the best at taking advantage.

According to research by Goldfish credit card around 83 per cent of card holders in the capital have a loyalty scheme attached.

The study found that between November and January alone, 39 per cent of Londoners redeemed an average of £349 on their cards.

Most people saw this money in the form of vouchers, cash back or travel rewards, meaning card holders were given the extra bonus of having to spend it on a personal treat rather than clearing debts.

Although Londoners have been enjoying their rewards with vigour, it is a different story in the north of England, with fewer people claiming their rewards.

“Credit card reward schemes are a great way for cardholders to be rewarded for everyday spending, but there is no point in having one if customers do not redeem their points,” said Patrick Muir from Goldfish credit card.

“Savvy spenders should consider cards that offer them a tangible benefit or reward for their spending.”

The research also showed that women are more likely to hold a rewards-based credit card but men are more likely to claim the rewards.

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Bonuses won’t be blown this year

Many of the UK’s top earners are preparing to receive their bonuses this week and they already know what they will spend them on.

That is according to Barclays Wealth, which carried out research and found that 65 per cent have already planned what they will spend them on, while only five per cent will seek professional advice.

Although big bonuses are traditionally blown on champagne and expensive parties, Barclay’s research shows that many intend to invest them this year.

A total of 43 per cent of those questioned said that they will choose long-term financial investments over partying, with personal debt and mortgages the main focus.

The number one priority appears to be investing in a UK property, with 23 per cent saying this is what they intend to do.

This is closely followed by any other financial investment (19 per cent), clearing debts (15 per cent), holidays (12 per cent) and home improvements (ten per cent).

“It is encouraging that our research shows that people are intending to be responsible with spending their bonus this year,” said Jonathan Williams from Barclays Wealth.

The majority of workers are expecting to receive a bonus of between £5,000 and £25,000, with ten per cent anticipating an even greater sum.

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Find the right savings account for your holiday savings

As the festive period disappears and Spring approaches many people in the UK start thinking about saving towards their summer holidays. If you are looking to start putting some money aside to fund your annual holiday in 2007, it could really pay to shop around a little and find a savings account that will make your money work harder for you. There are many different savings accounts available these days, and the interest rates on offer can vary dramatically. Depending on how much you will be saving this could make a big difference to the amount that you earn in interest.

The type of saving account that you opt for will depend on a number of factors, such as the initial deposit that you can make, the amount that you intend to put in each month, and the level of access that you require to your savings. You will find a choice of savings accounts, some of which require a certain period of notice in order to make a withdrawal without penalty and others that offer instance access. Some require a minimum initial deposit of just one pound whereas others require more, and some want to see a regular minimum amount going in each month, whereas others will accept deposits as and when you can afford them.

Amongst one of the highest savings account interest rates on offer is the Alliance & Leicester savings account, which offers twelve percent AER on its regular savings account. Choosing the right savings account for regular savings can make a big difference to the amount you make on your deposits, and consumers can quickly and easily compare the different savings accounts available, along with their interest rates and terms by going online. This is the easiest and most convenient way to see at a glance which of the UK’s savings accounts will best suit your needs and give you the best return on your deposits.

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Insurance : Do You Care More About Your Pet Than Yourself?

Latest figures from the UK’s insurance industry show that over half of the nation has no life insurance cover. Only 1 in 5 of us has any accident insurance. And less than 1 in 10 of us will take out any type of income protection insurance. By themselves these figures should be a little concerning, but when you add the fact that 1 in 4 of us in the UK has some form of pet insurance, you start to wonder whether or not our world-wide fame for being a nation of animal lovers may have gone a little too far! Read more

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