Consumers advised to pay credit card debt and not save

In the current economic and financial climate, with the recession threatening the jobs of many people, it is not surprising that many people decide to put every spare penny into savings in the event that they should find themselves short of cash or experience a drop in income. Read more

Tags: savings, base, Credit Cards, savings account, credit card debt

Foreign savings accounts back at the top of the best buys

Over the past couple of years consumers in the UK have seen a number of foreign banks enter the UK market, offering impressive interest rates on savings accounts and catapulting themselves to the top of the best buy tables. With some of these accounts offering very high rates on interest even on instant access account many consumers have switched their savings in order to make their money work harder for them. Read more

Tags: industry official, savings, british bankers association, flock, wholesale money markets, past couple, savings account, rate

Get a good deal on your savings from a British bank

There was a time not so long ago when consumers in the UK who wanted to get a good return on their savings were looking more towards foreign banks that had recently entered the UK market for savings accounts, as they were pretty sure that this is where the best interest rates would be found. They were not wrong, as a number of foreign banks have stormed into the UK savings account market over the past couple of years, and have stormed to the top of the best buy tables by offering impressive interest rates in a bid to attract customers and keep the competition at bay. Read more

Tags: Money market, competition, Financial institutions, slump, savings account, interest, deal, housing slump

A regular savings habit is “good housekeeping”

Making a regular habit of putting some money aside in a savings account each month is “just good housekeeping”, the chief executive of Moneynet.co.uk has said.

Richard Brown emphasised the importance of saving money, saying that it is a “brilliant habit”.

He pointed out that even a small amount can make a difference.

“We looked at several accounts and if, for example, you save £25 a month with Halifax, that’s £330 with your ten per cent…It gets you in a habit for when you are in a position of earning more money,” he explained.

Although three-quarters (74 per cent) of people recognise the importance of saving, only 50 per cent make an effort to save regularly, according to figures from Nationwide.

Furthermore, nearly 57 per cent of Brits said they are not saving as much as they think they should and just 41 per cent believe they will in a position to save what they think they should in six months’ time.

Tags: finance, habit, importance of saving money, savings account, Brits, regular habit, Save (baseball)

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

Banks moving ahead of overdraft charges ruling

Banks have made a move to reduce overdraft charges ahead of the High Court ruling over unauthorised customer fees, according to new research.

Findings from MoneyExpert showed that the average unauthorised charge has dropped by five per cent over the past year, decreasing to 20.01 per cent compared with 25.25 per cent.

Sean Gardner, chief executive with finance experts, said that the current account market is changing very rapidly.

“It is encouraging that average unauthorised overdraft rates have dropped by five per cent in the past year. That said though a 20 per cent rate is still very high and well above the average standard credit card rate,” he said.

An estimated nine providers, including Northern Rock, still charge customers 29 per cent on going into the red.

According to MoneyExpert, a further 52 out of 136 accounts from 27 providers charge more than 25 per cent on their overdraft facilities.

Meanwhile, analysis from the financial experts showed that customers who insist on a passbook with their saving account are receiving an average of 0.5 per cent less on their cash.

Tags: overdraft facilities, unauthorised, Transactional account, Moneyexpert, Banking in the United Kingdom, findings, card, savings account

Parents should encourage children to save

Parents should highlight the costs of raising a family and encourage children to begin saving from an early age, claims an insurance company.

Liverpool Victoria (LV) said that pocket money – which on average currently amounts to £5,469 from the age of five to 18 – could turn into “quite a nice sum” if invested into a savings account as the child grows up.

Lucy Pope, media relations manager for Liverpool Victoria, said: “It’s really good for the child to actually see how things are growing, and obviously with the onset of technology children can be more savvy with online savings.”

“I think actually being able to see their money grow and things like that is a really nice way of bringing it all to life,” she concluded.

According to the most recent LV annual Cost of a Child survey, the average cost of raising a child up to the age of 21 is £186,000.

The most expensive costs are estimated as over £47,000 spent

Tags: child, average cost of raising a child, nice sum, Insurance, cost of raising a child

Current accounts help poor save money, union says

Current accounts are the safest way for those on low incomes to save money, credit unions said today.

ABCUL, the main trade association for the unions, said that these accounts also give lower-income customers access to direct debit, allowing utility bills to be paid more cheaply.

Spokesperson Lucia Webster said that they offered “a safe and accessible option for many people in the UK.

“It offers much more than a basic bank account from a high street bank.”

Ms Webster added that unions “offer a wide range of services to all sectors of the community, including people who may have difficulty accessing high street banking services.”

The Family Resources Survey from 2005/06 shows that 97 per cent of British households have some form of saving account, with fully 90 per cent of the population hold a current account.

Tags: offer, high street banking, Transactional account, Financial institutions, utility, savings account, account, Direct debit

Parents feel the squeeze in the summer holidays, poll finds

According to an Abbey poll, British parents are finding the summer holidays financially draining.

The recently released figures show that keeping the children entertained during the long school break can cost families thousands of pounds each. In total, summer holidays may have £5 billion spent on them this year in the UK.

Abbey found that over a third of families rely on others to take care of childcare, and a fifth will cut down on working hours

Steve Shore, head of banking at Abbey said: “It’s important that families try to set aside some extra cash in advance of the summer holidays.”

Head of savings Reza Attar-Zadeh agreed: “Just putting a small amount aside each month into a savings account can provide enough to cover the cost of childcare, holidays abroad or trips out for the family.”

The bank recommends families to prepare in advance for the holidays, suggesting a figure of £50 per month to be put into accounts set up specifically for the summer break.

Tags: Working time, abbey, british parents, cost, savings account, School holiday, Travel and Tourism, summer break

The Process and Benefits Of Switching Bank Accounts

It’s a free market, competition is positively encouraged between companies and the banking world is no exception. So what do you have to do when you want to change banks accounts? Read more

Tags: bank accounts, switch bank accounts, bank, best bank accounts, finance, old one, savings account, cheque