August 14th, 2015 | Andrew Hagger | News

With A level results announced this week, students will soon be busy sorting their university arrangements for the autumn, and that includes opening a student bank account.

The banks are keen to attract the potential high flyers of tomorrow with one eye on signing them up for their profitable insurance, pension and mortgage products in later life.

The big high street providers have released details of their student account packages for this year and as usual are offering an array of incentives in an effort to win the custom of the new intake of 2015.

However, the most important element of a student bank account for most people will be the ability to borrow as much money interest free as possible.

So even though gift cards and money off deals may sound tempting, the following numbers should convince you to give the freebies a wide berth.

If you can borrow an additional £1,000 interest free, you would save around £154 every year compared with a Lloyds Bank student account which charges interest at a rate of 8.2% EAR plus a £6 monthly fee.

That adds up to considerable saving over the course of your time at college, more than £600 over four years, and far outweighs the value of any incentives on offer.

Halifax and HSBC offer the largest interest free overdraft limits of up to £3,000, but be aware that both are subject to application and not granted automatically.

Also some of the banks will limit how much you are able to borrow each term, particularly in the first year.

Whichever bank you choose, make sure you don’t go over your interest free limit as you could end up paying hefty charges which you can ill afford on a student budget.

The only possible exception to the rule regarding incentives and one offer that maybe worth a look again this year comes from Santander.

New Santander student customers are eligible for a free four year 16-25 Railcard which cuts student rail fares by a third, a benefit that could prove a big money saver if you plan to use the train frequently to get to and from college.

August 13th, 2015 | Andrew Hagger | News

With A level results out today, here’s some useful advice from  Charlotte Burns the editor of the student website’ http://www.studentmoneysaver.co.uk/

Well, I imagine you’re exhausted. Sleep doesn’t come easy to those waiting for their results. Your results should be available from about 8am on results day morning (don’t freak out if the site’s slow, it’s a busy day).

You’re going to make some big decisions today, so be prepared – make sure you take a pen and paper, a fully charged phone, your results, UCAS number and login details, contact details for both your firm and insurance offers as well as chocolate, tissues, your childhood teddy-bear… whatever calms you.

It’s a good idea to bring someone with you. If it all goes a bit wrong, you may really appreciate someone sensible to be able to talk to about your options.

You’ve got your place! Nice one.

If your results match up to your university offer – YES! It’s nearly time to plan which bars you’re going to tonight – you’re off to uni! But you can’t relax quite yet, there are a few things to do.

Keep an eye on UCAS Track, as your university should change from ‘Conditional’ to ‘Unconditional’. This isn’t instant, so don’t panic if it doesn’t happen for a few hours. If by the next day it still hasn’t changed, give your university a call (your uni – sounds good right?!).

You’re then going to get your AS12 letter, which is an official confirmation letter sent from UCAS. Once you have this – it’s on, expect this on Friday or Saturday, by post and email. Read the instructions as you might need to ring up and confirm at some universities, while others won’t need you to.

Make sure you keep your letter safe, it’s what you’re going to need to get your student bank account, railcard etc.

You didn’t get the grades you needed.

Don’t panic. Breathe. And remember that going through clearing is not the end of the world.

You may even still be able to go to your first choice university. Check UCAS Track to see what your status is, if it says ‘Unconditional’, you’re in. If you’ve missed out by a few marks, have extenuating circumstances, or intend to appeal your grade you can call your first choice university to explain, but it’s a long shot.

If the university won’t accept you, you have a few options. You can accept your insurance offer, retake your A Levels and reapply next year (some universities will wait for you) or go through Clearing.

Clearing is an opportunity for you apply to a different university that has spaces on their courses. According to UCAS, 9% of students (61,000) found a university place from Clearing in 2014.

Applications through Clearing close on September 21 2015, but it really kicks off on results day. Don’t hang about, as the best courses/universities will be filled by the end of the first week after results. Check the UCAS Track site and if you’re eligible for Clearing, you’ll get a Clearing number which you should write down somewhere.

You’ll then ring up universities through their special Clearing phone lines and speak to an adviser about the course you’re interested in. They will ask you about your grades and will make a decision about you on the spot after a mini-interview.

Try not to stress out, think about the universities you might consider going to and prepare all the documents and phone numbers you need. Quickly practice your mini-interview and write down answers to questions you might be asked.

THINK – I know you can’t wait to get to uni, and the thought of resitting sounds horrific, but don’t accept anything because you are panicking. This might decide where you’re going to spend the next three/four years, and possibly what career route you’ll go down. Be prepared to say no to an offer if you’re not 100% sure.

If you end up at a university that wasn’t your first choice, sort out your accommodation as soon as possible. Your second choice uni might not have reserved a halls place for you, and you won’t have applied for halls at a Clearing uni, so check right away.

For my handy student information check out http://www.studentmoneysaver.co.uk/

August 5th, 2015 | Andrew Hagger | News

According to new research from Tesco Bank many consumers find it difficult to compare the value of their bank account, a problem that is preventing them moving their custom elsewhere.

The findings show that the majority of current account customers (55%), for example, find it impossible to understand the value of their account – one of the earliest conditions that must be met before customers will consider switching.

Furthermore, there were stark differences between ‘stickers’ (people who are not considering switching), of whom 62% cannot determine the value of their current account, and switchers, of whom only 24% cannot determine the value of their current account.

Tesco Bank has provided the findings to the UK Competition and Markets Authority to support their review into the current account market, and has called for the industry to make it easier for customers to see the true cost of their accounts and the value of what they receive in return.

Personal finance expert, Andrew Hagger of Moneycomms commented: “The switching process is now quicker and easier, but if consumers aren’t confident that moving their account will be of financial benefit then they’ll stick where they are, even though their existing account may be a bad fit.”

He added: “There’s currently too much focus on introducing portable account numbers at a time when the inability to easily compare the financial benefits appears to be a bigger barrier to account switching.”

Benny Higgins, Tesco Bank Chief Executive, said, “Customers are telling us that more needs to be done to enable them to understand the true cost and value of their current account. Only then will customers be able to make sure that they are choosing an account that is right for them.

August 5th, 2015 | Andrew Hagger | News

With the new Premier League season kicking off this weekend football fans across the country will be donning their new replica shirts and scarves, whilst some supporters will take their loyalty a step further by carrying a club branded credit card in their wallet.

It may be a great talking point and often a bit of a wind up when you get your football club credit card out in the bar or restaurant in front of your friends, but these deals aren’t the best option for all fans and by choosing the wrong plastic you could end up scoring a financial own goal.

MBNA remains the primary provider when it comes to football affinity credit cards, currently behind the deals for almost 30 clubs – not just the premiership big boys, but also some of the cash strapped smaller teams in the lower leagues.

Creation cards is the other influential company in this sector and currently advertises cards for six football league clubs although the financial terms of these cards are less attractive.

A prime example is that even though the 0% balance transfer term is a mere 6 months on the Creation football cards the one off balance transfer fees of 5% are way out of line when compared with the market average of 2% to 3%.

Aside from the pride of carrying your club colours in your purse or wallet, simply spending on your football credit card can deliver a welcome cash injection to the coffers of your favourite team.

The funds donated from these cards make a vital financial contribution to the grass roots player development your club thus helping the first team players of tomorrow.

If you sign up for a card the youth training academy at your club will receive up to £20 when you first use it and then a further contribution every time you spend on the card, in the last 14 years the partnership with MBNA has resulted in over £10 million being donated to teams up and down the country.

The interest rates on these cards at 18.9% APR representative are in line with the market average but if you can’t afford to pay your balance off in full each month you would be better opting for a cheaper rate deal such as the Halifax Low Rate credit card at 6.4% APR or MBNA’s own 6.6% low rate deal and making a separate donation to your club – as long as you remember!

MBNA Football Credit Cards offer 24 months interest free on balance transfers, that’s a full year less than the best non-football cards, however a plus point is that you can transfer money from your these football cards directly to your bank account subject to a one off money transfer fee of 4% – a low cost way to clear that nagging and expensive overdraft once and for all.

For fans who always pay their statement in full every month, these cards won’t hurt your finances and can get you decent discounts in the club shop and the chance to win ‘money can’t buy’ and VIP days at your club

Some of the Creation Card deals also allow you to spread the cost of your season ticket over 9 months interest free which could prove a useful option when funds are tight.

However, if you keep a big balance on your card, then look for a lower rate non-football card and don’t be blinded by club loyalty as it could cost you far more than the value of benefits you receive.

August 4th, 2015 | Andrew Hagger | News

Almost 18 million over 50s are planning to go on holiday this year and while the majority will stock up on sun cream in anticipation, some won’t actually make it to their intended holiday destination according to Saga Travel Insurance.

Analysis of claims data shows that cancelling a holiday is the most common claim that over 50s make on their travel insurance policy. However, it could be extremely expensive if they don’t have any insurance, as the average cost of a cancellation claim is around £1,000.

This amount could climb even higher as lots of people pre-pay for excursions, book rental cars and pay for cattery or kennel fees in advance; all of which can be claimed for on their travel insurance policy.

However, packing the right travel insurance may not seem as fun as picking up new swimwear or designer shades, but it is just as crucial as packing the sun tan lotion if you don’t want to get financially burnt.

A review of claims data shows that over 50s are most likely to cancel their holiday 17 days before their scheduled departure date, however many will have to cancel just 24 hours before they are due to jet off.

Saga is urging people to buy insurance as soon as they have booked their holiday so that they are covered for any eventuality.

The most common reasons people have to cancel a holiday are because someone falls ill, gets injured or someone passes away. Other common reasons people cite for cancelling their holiday are strikes or hotels that they have booked to stay in closing down.

A spokesman for, Saga Services, said: “No one books a holiday thinking the worst but if you don’t want to risk getting financially burnt then you need to pack the right travel cover along with the sun tan lotion. Too many people find themselves with a financial hangover having booked and then cancelled a holiday.”

If people have already booked a holiday and then the Foreign and Commonwealth office (FCO) advises against travelling to that specific country then they will be covered on their insurance to cancel their holiday, so people should always check the FCO website before travelling.

July 29th, 2015 | Andrew Hagger | News

Research  from Sainsbury’s Bank Life Insurance reveals that four in ten parents with children under the age of 18 do not have any life insurance in place. Around two thirds of these parents do not have any critical illness protection.

The findings highlight the life insurance gap for families who may be unable to cope financially and afford the same lifestyle if one parent can no longer provide.

Surprisingly, of those without life insurance, 21% do not believe it is necessary and almost half (49%) say they cannot afford it, with 7% saying they used to have it but the increasing cost of living has made it no longer affordable. One in ten parents (14%) claimed they plan to take out life insurance cover but have not got around to doing it.

The research showed that among those with life insurance, 36% say they have never reviewed their cover and just 10% increased their life insurance cover as they had children.

Scott Gorman, Head of Sainsbury’s Life Insurance said:  “Life insurance is an important financial safety net and should not be overlooked. Families should consider life insurance with critical illness protection  as early as possible to cover their mortgage, any borrowing  and other day-to-day commitments to ensure financial stability, if the worst happens.”

July 28th, 2015 | Andrew Hagger | News

Nearly a third of over-55s expect to be in debt in retirement or are unsure whether they will have paid off all their financial commitments, new research by equity release lender more 2 life shows.

Around 60% of those surveyed had applied for some form of credit within the last two years, including 58% of those aged 65 and above, but one in eight have been turned down with some reporting that their age was a factor in the decision (18% of those aged 65 and over said they were refused credit on the basis of their age).

The nationwide study underlines the growing need for increased flexibility from lenders as well as a recognition that increasing longevity and rising house prices mean more people owe money on their mortgages past traditional retirement ages.

more 2 life believes there is growing demand – and a need – for lending solutions aimed at over-55s who may need to borrow past traditional retirement ages. Its research shows there is strong demand for credit among the over-55s with more than 58% borrowing in some form in the past two years.

There is also demand to continue to borrow into retirement with nearly two-thirds of those questioned welcoming the ability to borrow in retirement without necessarily wanting to use it.

A spokesman for more 2 life, said: “Given the high levels of those who expect to be in debt at retirement, it is crucial that pensioners and those in the run-up to retirement focus on having sufficient income to support them once they retire.

“However that can be more easily said than done and the industry needs to focus on enabling people to borrow responsibly as well as open up the opportunity for those approaching retirement to make the most of the equity in their property.

“Mortgage debt is a particular issue and the concern about interest-only mortgages needs to be addressed. In many cases those people are entirely able to service their debts but just need lenders to take a flexible approach.”

July 23rd, 2015 | Andrew Hagger | News

The days of the best man chasing the groom’s mates to get their contribution to a weekend of revelry, a tatty envelope going round the office collecting cash for a colleague’s birthday gift, or a jam jar stuffed with cash in a shared house could well be a thing of the past with the launch of KiTTi, a brand new money management app from Santander.

This is the first app in the UK that brings the good old cash kitty up to date, and allows up to 100 friends to contribute and keep an eye on their money all at the tap of a button.

Customers of any UK bank can download the app, quickly and easily set up a KiTTi, invite their friends and get started.

How it works

KiTTi is accessed exclusively through a smartphone app, available on both iOS and Android and users do not need to be an existing Santander customer. The service is available to anyone over 18 with a UK debit card and works in the following way:

• Download the app from either the Apple or Android app stores
• One person registers as an owner to set up a KiTTi and is sent a KiTTi prepaid contactless MasterCard
• Each KiTTi can be given a name, target value and payment milestone(s)
• The owner invites friends to join the KiTTi via the app (text message is sent to their smartphone)
• The owner and friends pay into KiTTi by entering their debit card details, which they need to do only once, through the app’s secure payment process
• A small fee of 35p is applied whenever a payment is made into the KiTTi
• Using the KiTTi prepaid card, money can be taken out or used to pay for anything the group wants – in the UK and overseas
• A single KiTTi has a maximum balance of £4,000

A Santander spokesman said“We’ve all been through the hassle at the end of a fantastic meal with friends when it comes to splitting the bill. You get a pile of notes, coins and cards in the middle of the table and then have to divvy up the change. And you know at least one of your friends is secretly annoyed because they feel they’ve paid more than they should.

June 4th, 2015 | Andrew Hagger | News

Research out this week reveals that UK citizens took almost 39 million holiday trips abroad in 2014 and spent £24.4 billion whilst there.  Sainsbury’ Bank Travel Money predicts another busy June, as last June was the fourth busiest month for the supermarket bank’s travel money sales. The amount of travel money bought from Sainsbury’s in June 2014 jumped 16% from the amount sold in May 2014.

This June, up until 29th, Sainsbury’s Bank Travel Money has pledged to beat any in-store travel money rates customers find at their local Post Office or M&S Bank travel money bureaux (within five miles).

Sainsbury’s Bank Travel Money already provides Nectar card holders with a discounted rate but guarantees that if Post Office Money or M&S Bank are offering a better in-store rate on the day, it will beat their rate.

Sainsbury’s Bank has around 170 travel money bureaux in Sainsbury’s stores across the UK and offers 0% commission on foreign currency. There are over 50 currencies available to order. Open seven days a week and with handy parking, Sainsbury’s offers the convenience of collecting travel money whilst shopping.

June 3rd, 2015 | Andrew Hagger | News

High street retail giant Boots has launched its new travel insurance range, designed to make sure that all members of the family can enjoy the health benefits of a holiday.

The new product range is now wider and more comprehensive with five levels of coverage, which means customers have a greater choice of insurance options to make sure they find the correct cover for everyone on the trip.

A spokesman for Boots commented: “We believe that enjoying a safe and happy holiday is something that should be available to everyone. Our policies now cover a range of travel experiences – whether it’s policies that take care of people with medical conditions, the older traveller, or allowing children to be covered for free when travelling on their family holiday. We’ve also removed the upper age limit for single trip policies* and made travel for those with pre-existing medical conditions even easier, meaning that more people will be able to afford to go on holiday safe in the knowledge that they are protected by a quality, comprehensive product.”

Understanding that travel is important for people’s sense of happiness and wellbeing, should anything happen while on holiday, Boots customers will have access to a 24/7 emergency helpline where they can talk to doctors who will have an in-depth knowledge of their medical conditions.

Key features of Boots travel insurance:

• Specialist cover for pre-existing medical conditions
• No upper age limit on single trip policies
• 24/7 emergency line managed by real doctors
• Talk to people not checklists
• Children go free with family or single parent cover