April 21st, 2016 | Andrew Hagger | News

Using a mobile phone in EU countries will cost Brits less from the end of this month, as the European Commission (EC) reduces mobile roaming charges further by introducing lower caps on charges for calls, texts and data. However, price comparison and switching service u-switch says people still need to keep a close eye on the new charges to avoid getting caught out, as over a quarter  incorrectly believe it does not cost extra to use a mobile in other EU countries.

The cost for Brits making and receiving calls in the EU has dropped substantially since 2007, with charges set to be abolished completely in June 2017. The new caps, introduced on the 30^th April 2016, restrict mobile providers to charging a maximum of the domestic price plus €0.05 per minute for a call, €0.02 to send a text and €0.05 per MB of data used.

But despite falling roaming charges, more than six in 10 (62%) UK mobile customers are still afraid to use handsets in other EU countries for fear of bill shock when they return home – and 34% don’t use mobile phones abroad full stop.

A spokesman from USwitch said: “These price drops are especially good news for any Brits planning a summer trip to the Continent – and football fans heading to France for the Euros, too ­– but until EU roaming charges are fully abolished consumers should still be aware of the pitfalls.

“For example, a £40 cap applied by networks and designed to protect mobile users from bill shock only covers charges for data, and not calls or text messages. Our research reveals that more than a quarter of mobile customers who know about the £40 cap are completely unaware of this.

“Although some networks are going above and beyond to make sure roaming is affordable, like Three’s Feel At Home and iD’s TakeAway plan, networks across the board could do more to reduce consumer vulnerability to additional charges.

“We’d like to see more transparency in the form of real-time updates on out of tariff charges and reminder notifications after users have opted out of automatic caps.

ENDS

April 19th, 2016 | Andrew Hagger | News

Comparison website GoCompare is urging travellers heading to unfamiliar destinations to plan ahead and make sure they know the laws of and have the required travel documents and inoculations for the country they are visiting.

Intrepid travellers are also warned not to assume that all hotels, retailers and ATMs in the country they are visiting will accept international credit cards or travellers’ cheques.

The warning comes as ABTA’s 2016 Travel Trends report shows that 18% of British holidaymakers are planning to travel to a country they’ve never been to before.  The report, which was compiled in association with the Foreign & Commonwealth Office, identified 12 destinations that are expected to capture the public’s imagination in 2016 including; Abu Dhabi, China, Hawaii, Iran, Peru and Sri Lanka.*

Alex Edwards from Gocompare.com Travel Insurance commented, “Travelling to far-flung, exotic places is becoming easier and more accessible thanks to low cost air operators and the availability of more direct flights.  But, the culture, laws and criminal justice systems of some of the destinations highlighted by ABTA’s report are very different to the UK.  So, it is crucial tourists understand and respect the local traditions, customs, laws of the country they are visiting to ensure they don’t cause offence or act illegally.  Otherwise, the penalties can be severe.

“Travel insurance, which covers medical expenses, lost baggage and documents, cancellation and delays is also a must for any trip abroad.  But, insurers will expect you to take care of yourself and your possessions and, not behave recklessly or illegally.  So, for example, if you’re heading to an area which has life-threatening infectious diseases you need to make sure you have the right vaccinations.  Otherwise, if you fall ill with a disease for which you haven’t been vaccinated against or taken the required medicine – your insurance may not cover your medical treatment.”

Alex Edwards continued, “Money is another important consideration.  Some countries like China, are mainly cash economies with limited use of ATMs and credit cards.  Not all shops, restaurants and hotels in Peru accept international credit cards or travellers’ cheques and, in Sri Lanka travellers’ cheques aren’t normally accepted.”

“While most travel policies include cover for money, cover limits, excesses and exclusions vary considerably.  So, if you need to travel with a large amount of cash, you need to make sure you buy a travel policy which has the appropriate cover.”

April 19th, 2016 | Andrew Hagger | News

New research from Moneycomms shows that customers with the big banks could make massive savings on their loan and overdraft costs – simply by making use of the money transfer facility offered by a handful of credit card providers.

The money transfer facility is currently offered to new customers by MBNA, Virgin Money and Tesco Bank gives borrowers the opportunity to clear costly overdrafts and smaller personal loans and save hundreds of pounds in interest in the process.

A money transfer gives you the flexibility to transfer funds from the card to your current account with a low one off transfer fee – for example the current offer with the MBNA Platinum card it is just 1.49% with 0% interest for 32 months.

If you’re credit rating is in good order then this option gives borrowers the chance to wipe out that nagging and expensive bank overdraft once and for all.

The latest research shows that those permanently in the red by £1,000 could be paying as much as £365 per year for the privilege. The 32 month 0% money transfer option gives you the opportunity to clear the £1000 balance at a total cost of just £14.90 (Money Transfer Fee).

If you’re financially disciplined, 12 monthly payments at £84.58 or 24 months at £42.29 would see your £1000 overdraft totally cleared and without paying a penny in interest.

It’s also a much cheaper option than a personal loan if you’re only looking to borrow a relatively small sum.

The MBNA money transfer option along with peer to peer providers Zopa and RateSetter offer by far the cheapest options for a loan of £3,000 – streets ahead of the 20% plus APR charged by some of the big high street banks.

Even though there is a personal loan price war going on at the moment, the ultra-low 3.5% APR rates are only on offer if you want to borrow £7,500 or more whereas the average rate if you want to borrow £3000 is more than for times that, with Lloyds Bank advertising a rate of 24.9% APR

ENDS

April 12th, 2016 | Andrew Hagger | News

More than six out of 10 over-55s worry about the cost of continuing to live in their home city in retirement but want to avoid the hassle of moving, new research* from over-55s finance specialist Key Retirement shows.

Its unique study of the cost of living in the UK’s top 20 cities found 62% of over-55s are worried about making ends meet in retirement where they live –  but two out of three (66%) do not want to move out.

Key’s analysis shows the most expensive city for pensioners to live in is Brighton where the average annual cost is more than £13,266 a year, followed by London on £12,941 and Bristol on £12,058. By contrast pensioners in Cardiff enjoy the lowest annual cost of living at £9,723 – around 36% cheaper than Brighton – with Birmingham and Coventry joint second cheapest at £9,897.

Despite the possibility of major savings from relocating the study shows over-55s are reluctant to move – 63% say they like where they live while 35% say they don’t want the upheaval of moving and 29% are concerned about losing touch with family and friends. Younger people are more likely to relocate, the study shows. Around 57% of 18 to 34-year-olds say they would relocate when they retire.

Key believes property wealth can be a major factor in helping people stay in their homes – on average homeowners can release enough money from their homes to fund four years of living costs. In London the average homeowner can fund seven years of living costs.

Dean Mirfin, technical director at Key Retirement said: “Moving out of the city to save money can make financial sense but it is not an easy decision to make in retirement with the costs of moving as well as the risks of losing touch with family and friends to consider.

“But apart from all that, quite simply most people like where they live and want to stay there if they can afford it despite the rising costs.

“Property wealth can make a major contribution to increasing retirement income and enabling pensioners to strike the balance between living where they want and being financially comfortable.”

April 12th, 2016 | Andrew Hagger | News

Brits will need to tighten their belts ready for this wedding season, with new research from Policy Expert suggesting guests will be shelling out over £600 for each wedding they attend.

The average UK wedding guest will be totting up a total spend of £644 on gifts, food, new clothes, accommodation and stag and hen dos. More than a third (35%) of us even splash out on engagement presents, kicking off the spending spree long before the big day.

When it comes to choosing gifts for the bride and groom, the research found well over a third (37%) tread carefully and stick to the preapproved list, with other typical choices including cash and gift vouchers. Just 3.5% of those surveyed showed a little more imagination, stating they gave handmade gifts.

Unsurprisingly, mothers or fathers of the couple splurge the most at their children’s weddings – spending over £700 on presents alone. Second to this, grandparents spend around £245, followed by £144 for siblings, £78 from aunts and uncles and £57 for close friends.

If you’re looking to be showered with the most expensive gifts, don’t forget to invite your Scottish friends and family to watch you say ‘I do’, with the research finding that that on average Scottish guests spent the most (£58) on gifts, compared to a tight-fisted £39 in the South East.

Adam Powell, Head of Operations at Policy Expert commented: “If you or a family member is set to walk down the aisle this wedding season, it’s important to remember to check that the gifts received from generous guests as well as wedding rings and other valuables are covered in your home insurance policy. Policy Expert offers an additional 10% contents cover the month either side of your or your children’s wedding as standard, meaning you can cross the threshold on your return from honeymoon without any nasty surprises.”

April 12th, 2016 | Andrew Hagger | News

With the children back at school this week after Easter, people will soon be looking ahead to their 2016 summer holidays.

Lots of planning goes into getting the cheapest flight and best value hotel for the money, but when it comes to holiday plastic, many people stick with their everyday credit card and are paying over the odds.

Andrew Hagger of Moneycomms said it’s worth applying for a credit card that doesn’t charge overseas usage fees or cash withdrawal fees – you could easily save around £6 on every £100 currency equivalent ATM withdrawal and around 3% on every purchase made with your card.

Too many people rely on the cards they use in the UK but don’t realise how much they could save by picking the right card to pack with their passport.

For example, the new MBNA Everyday plus credit card doesn’t charge any foreign currency charge or cash withdrawal fee, so makes a perfect cost effective holiday companion.

Other credit cards worth a look are Metro Bank and Nationwide Select (although a current account is required) or alternatively Saga (over 50’s), Halifax Clarity or Post Office.

The table attached shows just how much the cost can stack up on a two week summer holiday – surely an £80 plus saving makes it worth taking the time to apply for a more suitable card to take away when you travel.

Even if you’re only going abroad for a few days the potential savings mean more money in your holiday kitty rather than adding to the profits of the banks.

April 7th, 2016 | Andrew Hagger | News

New research from Churchill Car Insurance exposes the ‘Jekyll and Hyde’ personality of UK motorists.  More than 57 per cent of drivers admit they behave differently when behind the wheel, acting more aggressively than they would normally.

Churchill compared displays of aggression on the road with those in person and found that while 31 per cent have sworn at strangers in the car, only 12 per cent have done so face-to-face. While 26 per cent of motorists have shouted at others while driving, less than half of that amount have done so in person. 

 One of the biggest catalysts for so called “Jekyll and Hyde” style driving is the mistaken belief that this behaviour is acceptable when in the car. Indeed when questioned, 27 per cent felt this was acceptable and psychologist insights support this. 

Drivers feel disassociated from their environment, their car a safe place allowing them to express anger and frustration at another driver and even at life in general without the risk of direct conflict. There is no one to criticise or in close contact, so people feel detached from situations and more able to express their feelings. 

Psychologist Donna Dawson said: “One of the reasons drivers exert such different behaviours when on the road is the belief that their behaviour is justified by the circumstances – we tell ourselves ‘the other driver caused me to react this way due to their bad driving. In other words, I am a perfectly reasonable person, reacting normally to another person’s bad behaviour.’”

Churchill’s research shows how dangerous the roads can be, with 29 million motorists (58 per cent) admitting to behaving aggressively while driving. Aggressive driving ranges from beeping horns (33 per cent) and swearing at other drivers (31 per cent) to deliberately tailgating (11 per cent) and chasing someone’s car in anger (four per cent).

April 7th, 2016 | Andrew Hagger | News

Research carried out by Skipton Building Society has revealed that many savers are missing out due to not understanding the rules and financial jargon that are associated with the new PSA and existing types of savings accounts.

Of the 2,000 people surveyed, almost half (47%) said they are confused by the rules associated with ISA accounts, over two fifths (44%) said they didn’t know what the maximum amount is they could put into an ISA and over a third (36%) didn’t know what the new Personal Savings Allowance (PSA) was.

The research revealed a clear lack of understanding on the savings landscape, one in five people admitted they didn’t save at all (19%), with one in ten of this group stating it is because they don’t understand enough about the different types of savings products (10%).

The research also shows that it’s not just savings rules that are confusing the nation, a fifth (22%) stated they didn’t know how ISA differed from standard savings accounts, and surprisingly one in ten (10%) said they didn’t even know what the acronyms ISA or PSA stood for.

April 6th, 2016 | Andrew Hagger | News

Research released today by HSBC indicates the UK public may be missing out on financial reward by not seeking professional advice.

Of the investments made to-date in 2016, two thirds were arranged without any financial consultation (68%). Over half of respondents planning to make an investment during the remainder of the year are unlikely to seek any advice (51%) and almost a quarter (23%) of those asked felt it was too expensive.

With a fifth (18%) of customers we spoke to during our research telling us that they are looking to make an investment during 2016, HSBC has launched Stand-alone Investment Advice following a successful trial period. The service is designed to provide financial advice for customers looking to invest single lump sums of cash from £15k.

One in five adults in the UK (22%) has £15K or more to invest. Despite this, there is currently a gap in the UK advice market where customers who have smaller amounts of money to invest can’t access the appropriate advice. This could mean customers leave their long-term savings in cash, sitting in bank accounts as seen by almost half of the respondents (47%).

With the introduction of Stand-alone Investment Advice at a 30% discount to full financial advice, HSBC says it is providing a more affordable service to customers as and when they need it, helping them to make the most of their money.

April 1st, 2016 | Andrew Hagger | News

The Personal Savings Allowance (PSA) comes into force from the start of the 2016/17 tax year and will reduce the amount of tax paid on savings interest for most people.

It is a radical new government scheme designed to encourage people to save more, it is conscious that it needs to incentivise savers at a time when interest rates are historically very low.

Up until the introduction of the PSA all bank and building society interest was paid net – i.e. after 20% has been deducted at source by your account provider (apart from ISAs).

The tax treatment of savings interest changes from 6^th April 2016 when everybody will receive their interest payments gross – i.e. without any tax deductions.

The PSA applies to interest earned on all non-ISA cash savings ,current accounts and Peer to Peer lending and will allow savers to receive a generous portion of their interest totally free of tax.

As a result of this move it’s expected that around 95 per cent of savers will receive their interest tax free – a change that gives the vast majority of savers an instant boost of 20% on their savings income.

The amount of tax free interest you will be entitled to under PSA will be based on your annual taxable income as follows:

• If you earn less than £43,000, i.e. a basic rate taxpayer, there will be no tax payable on the first £1,000 of savings interest earned each year.
• The tax free allowance if you are the higher rate tax bracket (earning between £43,001 and £150,000) has been set at reduced limit of £500.
• People in the 45% tax band, i.e. those with an income above £150,001 are currently not entitled to the PSA.

It’s a positive move that will see lower earners benefit from the largest allowance giving a welcome but long overdue instant boost to UK savers.