December 16th, 2015 | Andrew Hagger | News

Analysis by Sainsbury’s Bank predicts that this December approximately £11.75 billion could be withdrawn from LINK ATMs, the UK’s cash machine network– equal to more than £379 million every day during the month.

The supermarket bank, which has over 1,635 free-to-use ATMs across the UK, estimates that the number of cash withdrawals carried out at LINK ATMs in December could reach 173 million – around three million higher than the same time last year.  It’s predicted that the average value of an ATM cash withdrawal carried  during December will be £68.

Usage is expected to peak on Friday 18^th December, in terms of both number of transactions and total value of cash withdrawn. The Friday before Christmas is the typical peak day for pre-Christmas cash withdrawals; Friday 19^th December was the busiest day in 2014 and Friday 20th December was the busiest day in 2013 for cash withdrawals.

As a result of the large volumes of cash being withdrawn during the festive season, Sainsbury’s Bank is encouraging consumers to be extra vigilant when withdrawing cash.

A spokesman for Sainsbury’s Bank said: “With December typically being the busiest month of the year for withdrawing cash, we’re encouraging people to be extra vigilant when they’re using an ATM. Whenever you use one, take your time, don’t count your money at the machine, and put it away safely and out of sight before leaving the ATM.”

Five top tips to keep your details safe when using an ATM:

• Only use an ATM in a well-lit, public area
• If you see anything suspicious either on or around the ATM, do not use it and report it to the owner or business that has the ATM on its premises
• Stand close to the machine and shield the keypad not only when entering your PIN but also when entering the amount of cash you are withdrawing
• Always put your cash, card and receipt straight away, you can count your cash and check your receipt later
• If your card is retained in the machine, report it to the card issuer immediately.

December 14th, 2015 | Andrew Hagger | News

Last week the regulator (FCA) announced a package of measures to improve competition in the savings market.

The proposals included clearer information on interest rates, reminders when promotional rates come to an end and making it easier and quicker to switch accounts.

Whilst any move to try to get people earning a better return on their nest egg is welcome, you can’t help feeling that the proverbial horse has long since bolted.

The FCA wants to speed up processes but we’ve already seen from the current account switching service figures, it’s not about how quickly you can move your custom from one provider to another.

Another factor that makes people lethargic when it comes to finding a better savings rate is the level of reward on offer for taking the time and trouble to transfer their funds to a new account.

Many instant access savings accounts will have relatively small balances and these people particularly will question whether it’s worth the effort.

For example if someone with £1,000 in an easy access account paying 0.25% finds a no strings, no introductory bonus gimmick, FSCS covered, best buy account paying 1.40%, they will earn a mere £11.50 per year extra before tax.

When you see an increasing number of current account providers offering £100 golden hellos and still struggling to attract new business then it’s highly unlikely that savers are going to jump ship for a fraction of that reward.

The government has kept rates low as part of its strategy to rebuild the economy and we now have some of the lowest mortgage and personal loan rates on record so it’s no surprise that margins have been squeezed and easy access savings rates are much lower as a result.

With a number of current accounts paying between 3% and 5% on credit balances savvy people will be using these accounts as a vehicle for their ‘rainy day’ or emergency savings.

Naming and shaming via the new FCA ‘sunlight remedy’ tables will show which banks and building societies rank worst amongst a pretty poor bunch, but even if (and it’s a big if),  the information is seen by those who have savings paying miserly returns don’t expect to see a step change and people switching in large volumes.

With savings interest returns so low for so long now, it’s no wonder the big consumer Peer to Peer players like Zopa and Ratesetter are both currently pulling in between £40 million and £50 million of new money every month, particularly when RateSetter was this week paying 3.3% on its monthly access account.

Base rate slumped to its current record low level back March 2009 and until it awakes from its slumber then little will change in the UK savings market.

December 14th, 2015 | Andrew Hagger | News

Research has revealed that 17% of learner drivers have acted as ‘designated drivers’ over the festive period and been relied upon to drive people home after a Christmas night out.

However, the Co-op Insurance is urging people rethink their ‘designated driver’ plans and to leave learners drivers out of the selection process.

The law states that learner drivers should be ‘supervised’ when they are driving with family or friends*. People supervising learner drivers have to adhere to road laws as if they were driving so, for example, you cannot exceed legal drink drive limits.

However, nearly half of the drivers questioned who have been festive learner ‘designated drivers’ didn’t believe that their passengers would have been in any fit state to help them out if they would have become confused or needed to ask a question about their driving. This led to these inexperienced drivers feeling anxious (28%) and worried (21%).

The Government’s website warns learner drivers ‘You can be fined up to £1,000 and get up to 6 penalty points on your provisional licence if you drive without the right supervision.’

Nick Ansley, Head of Motor Insurance at the Co-op, said: “The law is clear in that learner drivers have to be supervised when they take to the roads.

“Anyone who asks a learner driver to take them home after a festive get together where the other passengers are all under the influence of alcohol are putting these learners in an unfair situation.

“For the cost of a taxi fare, learner drivers are being put at risk of a driving prosecution and their licences being revoked, all before they’ve even taken to ‘L’ plates off the car.

“If you plan to have a drink, order a taxi or walk home, don’t drink and drive and don’t expect learners to take you.”

December 10th, 2015 | Andrew Hagger | News

Couples across the UK are keeping millions of pounds worth of money secrets from each other and potentially threatening their prospects of a comfortable retirement later in life, according to new research from Prudential¹.

The insurer’s annual survey of co-habiting couples over the age of 40 is now in its sixth year and found that huge numbers of people hide debts, savings and even income from their other halves.

The results reveal that one in 10 (10 per cent) have secret savings, investments and/or pension pots that their partner doesn’t know about, with an average value of £30,300. And one in seven (15 per cent) have hidden debts they don’t own up to, averaging £8,000 .

My other half doesn’t know what I really earn…

Meanwhile, one in eight (12 per cent) of those surveyed say their partner doesn’t know how much they earn.

Of those who keep some or all of their earnings secret, more than a quarter (27 per cent)  do so to maintain their independence, while 23 per cent hide their earnings to maintain their financial security in case of a break up. However, a generous one in 10 (nine per cent) say that they use their secret earnings to treat their partner.

A spokesman for Prudential, said: “Hiding such significant sums in savings or debts from a partner makes financial planning for the future very difficult. For example, taking unexpected debts into retirement could make a significant dent in the joint income that the couple was expecting to be able to live on.

“In addition, keeping income or stashes of cash secret could mean that couples are not making the most of the pension saving tax relief or allowances available to them. A consultation with a professional financial adviser should benefit most couples in planning for their retirement, provided they are open and honest with each other about their individual finances.”

I keep my finances secret because…

Prudential’s research also sheds some light on why people choose to keep some aspects of their finances secret.

Worryingly, given the potential tax benefits of joint pension saving, the most common reason cited for having secret savings is so they can be used to help fund retirement (29 per cent) – an approach more popular with women (36 per cent) than men (22 per cent). Ensuring financial security in the event of a relationship break-up (27 per cent) is the second most popular reason given for maintaining a secret stash.

How my secret debts came about…

The majority (60 per cent) of those with secret debts say they arose from general living costs. However, nearly one in seven (15 per cent) attribute their secret debts to overspending as the result of an emotional event such as a previous relationship break-up. Money spent on holidays and travelling is the main source of debt for one in eight (12 per cent).

I keep money secrets for both our benefit…

A lack of financial trust in their partner is a recurring theme among many of those who keep their financial affairs hidden. Eleven per cent of secret savers admit to keeping shtum because they don’t trust their partner to make sound financial decisions. Almost one in five (18 per cent) of those who conceal their real income do so for the same reasons.

December 9th, 2015 | Andrew Hagger | News

For personal customers:

·         Mortgage and loan repayment deferral for up to three months

·         Customers can close fixed savings accounts to access cash with no Early Closure Charge

·         Refunds on credit card cash advance fees

·         Customers can apply for increased temporary credit card limit

·         Customers can request an increased cash withdrawal limit of up to £500

For business customers:

·         New or increased overdrafts with no arrangement fees for up to six months

·         Capital repayment holidays and reduced payments for up to six months with no arrangement or administration fees

·         Fee-free loan funding to replace assets.

The serious flooding across much of North West England and Southern Scotland is likely to have financially affected many people and businesses in those areas. This is a difficult time for those impacted, so NatWest and RBS have introduced a range of measures to support our personal and business customers and ease the financial strain caused.

Les Matheson, CEO of Personal and Business Banking at RBS and NatWest, said: “We want to help the people and business owners affected by the recent flooding by making banking the least of their worries.  We’re providing additional credit or access to finance where needed, so they can concentrate in getting their homes or businesses back to normal.

All of our branches in the affected areas have remained open, but we know some of our customers may not be able to get to us. We would urge our affected customers to get in touch with us, either by phone or in a branch, to discuss how we can help them get back on their feet.”

Further information on all the measures being offered, including specific contact numbers, are detailed in the notes to editors. Where a number is not specified, customers should call the following numbers or visit a branch:

NatWest personal banking                                                         03457 888 444

RBS personal Banking (with accounts in Scotland)            0345 6002230

RBS personal Banking (with accounts in England)             0345 900 0400

NatWest Business Banking         03457 11 44 77

RBS Personal Banking                    03457 888 444

December 2nd, 2015 | Andrew Hagger | News

Christmas is the one time of year when your bank balance can take a real hammering, so it’s a big help if your employer enters into the festive spirit and pays your December salary a week or two in advance.

This may initially prove to be a godsend particularly when faced with the extra cost of paying for presents, festive food and drink and those parties and extra nights out.

However the downside of getting paid a little earlier means it’s easier to lose track of your debit card transactions and direct debits, particularly when your next payday could be up to six weeks away.

Failing keep tabs on your current account balance with a ‘worry about it later’ attitude, could see you exceeding your agreed overdraft limit and facing a hefty bill for bank charges come the first few weeks of 2016.

That’s not the best way to kick off the New Year, particularly as you’ll have the post-Christmas credit card bills to deal with too.

If you don’t already have an agreed overdraft in place or you think you could do with a little more financial breathing space over the festive period, speak to your bank or building society now to arrange an authorised overdraft sufficient to see you through to the end of January.

It’s usually a simple and pain free process and can be arranged very quickly either online, by phone or if you prefer the face to face approach then pop down to your local branch.

Once you’ve got your safety net arranged, make sure you keep a close eye on your balance – there’s no excuse not to these days with the information available 24×7 online, on your Smartphone App or via an ATM.

To put into perspective the importance of staying within your agreed limit, we looked at how much it could cost you if your bank allows you to drift £200 over your limit due to two £100 debit card payments and then your account remains overdrawn by this amount for 7 days in a row.

The numbers are too big to ignore, with customers of Lloyds Bank account facing a bill of £76, NatWest and Santander customers £42.00 and Halifax and Barclays  both £35.00 – so it’s definitely worth being proactive and getting your finances organised otherwise whichever tariff you’re signed up to, it can end up hitting your pocket hard.

December 2nd, 2015 | Andrew Hagger | News

New research from Charter Savings Bank  has found that more than a fifth of UK adults with savings are earning 0.5% interest or less on their primary savings account, which is less than the base rate set by the Bank of England. The research shows that as a result of historically low interest rates, combined with poor High Street offerings, the average UK savings pot, now £8,500, could earn just an average of £43 a year of annual interest.

These ‘modern day mattress savers’ are earning only slightly more in interest than the 174,000 UK adults who keep the majority of their savings  in an unsecured place, such as under real mattresses or in shoe boxes. To give an idea of the scale, the Bank of England recently estimated that UK homes have £3 billion of cash stashed away. 

The research also reveals that whilst saving is a habit for the UK, many are simply not engaging with their hard-earned money: nearly a third (32%) of UK adults with savings admitted they do not know the current rate of interest on their main savings account, while almost a fifth (17%) admit to having never checked the rate on their primary savings account.

Paul Whitlock, Director of Savings at Charter Savings Bank, said: “High street banks are offering little more to the UK than a secure mattress for their savings, and with news that more than 400,000 NS&I savers will see interest rates on their Isas cut, it’s no surprise UK savers have themselves lost interest in their savings. People are simply not aware of how much harder their money could be working for them and so have become apathetic to taking their money from under their mattress, or from out of their High Street bank.”

November 30th, 2015 | Andrew Hagger | News

As Britain hits the shops ahead of Christmas and Government figures show one in 12 of us is falling victim to scams, Nationwide Building Society has just released its 12 top tips to avoid fraudsters during the busy festive period, as follows:

1. Trust your instincts – is that must-have toy back in stock on an unusual website? If an offer’s too good to be true, it usually is.
2. Don’t be fooled by phony websites – make sure a website begins ‘https’ rather than ‘http’ and that it has the padlock icon in the address bar before you enter your card details.
3. Think twice before clicking – jokey emails and videos are a Christmas staple, but think twice before clicking a link. If asked to upgrade to the latest software – don’t! It’s almost certainly malware.
4. Don’t listen to fake IT support – bought a laptop? Got a phone call from IT support wanting to fix your router or upgrade your software? Hang up – it’s likely to be a fraudster after your personal details.
5. Keep your details up-to-date – always ensure your building society or bank has current contact numbers so they can get in touch if they spot unusual activity.
6. Shoulder surfing – ensure no one can see your pin when using a card at a cashpoint or till. It’s an easy target for pickpockets.
7. Party time – at the office party, don’t be tempted to leave your card behind the bar. A heavy bar tab is one thing, but a cloned card isn’t worth the hangover.
8. Avoid paying by money transfers – money transfers aren’t secure, and reputable sellers won’t ask you to do this. Use an online payment option such as PayPal, or a credit card which offers greater protection.
9. Delete unsolicited emails – and don’t follow links. Fake websites with great-sounding offers can look convincing, so don’t be tempted.
10. Keep your security software and firewall up-to-date – banks often offer free virus and firewall software via their online security centres, so make sure you’re protected.
11. Keep receipts and check your statement – if you spot an unrecognised transaction, speak to your building society or bank straightaway.
12. Never give out your account details – no building society or bank will ask for your personal banking details and information. If you’re being asked for them, it’s likely to be a scam.

Allan Clare, Nationwide’s Financial Crime Director, said: “Christmas is an opportunity to celebrate after a long year, but it’s also open season and a prime opportunity for canny fraudsters to take advantage of our goodwill.

“The good news is that by knowing what to look out for, we can protect ourselves. Fake emails, websites and offers are tactics commonly used by fraudsters, but can be easily avoided by deleting anything unsolicited.

“Protecting yourself against fraudulent phone calls is important too – no building society or bank will ever ask for your personal details or PIN code. If you’re being asked to provide this, hang up.

November 24th, 2015 | Andrew Hagger | News

Tesco Bank customers with its credit building Foundation Credit Card are to receive free access to their credit score and be alerted every time there is a change to their credit report.

The service is free for 3 years and is available to the Bank’s existing Foundation Credit Card customers immediately and to new card customers from 11^th December.

This is a responsible move from Tesco Bank and it would be good to see this adopted as the norm rather than the exception by all personal finance providers.

It’s important that people are encouraged to understand and take control of their credit record – by seeing their score increase it encourages people to manage their money more responsibility.

Not having to pay for their credit report will be a major plus point for many people – particularly those already managing on a tight budget as it will enable them to keep an even closer eye on their finances

November 24th, 2015 | Andrew Hagger | News

The government’s latest bid to boost UK home ownership and get more people on the housing ladder is officially launched on 1^st December.

Details of the new ‘Help to Buy ISA’ initiative which rewards people saving for a first home with a 25% bonus have been patchy and there’s been some confusion about how the scheme works, so here are a few pointers to clarify some of the more common misconceptions.

I can’t take out a HTB ISA if I’ve already taken out a Cash ISA in the 2015/16 tax year

This is not necessarily the case as at least one provider; Nationwide Building Society, will allow you to have both a Cash ISA and HTB ISA within the same ISA wrapper as long as your total savings don’t exceed the annual tax free savings limit of £15,240.

I’ve only got 3-6 months until I purchase my first home so it’s not worth taking out a HTB ISA

Even if you’ve only got three months this gives you time to put in the initial £1000 maximum lump sum and three £200 monthly payments – so you’ll have a £1600 balance which entitles you to a £400 bonus contribution from the government. If there are two of you buying for the first time and you save £1600 each then your bonus will be £800 – that’s got to be worth it!

I’m not sure when the HTB ISA bonus get paid into my account

The bonus won’t appear in your account, instead when the time comes to purchase your first home, the conveyancing solicitor acting on your behalf will claim the bonus directly from the government and use it as part payment towards the purchase price of your home.

I have to start my HTB ISA on 1^st December 2015

You can open your account any time within four years of 1^st December 2015 – the maximum term you can save for is four years and you must claim your bonus by 2030.

Saving £200 per month (or £400 per month for joint buyers) will take too long to build the deposit required.

This is the situation that some savers will face, particularly in London and the South East where prices (and required deposits) are much higher than the national average. However the bonus structure is far more rewarding than any interest bearing savings account, so it’s worth saving the maximum in an HTB ISA while simultaneously saving the remainder in a separate savings account.