February 11th, 2021 | Andrew Hagger | News

With the first lockdown Valentine’s Day fast approaching, it’s no secret that COVID-19 restrictions have put a halt to many of our plans over the last year. However, new research¹ from American Express reveals that over half of Brits (54%) haven’t let lockdown stop the fun, actively celebrating at least two special occasions with household members since the first lockdown in March 2020.

Brits looking to liven up lockdown have spent an average of £68, equating to £1.9 billion² across the country, on items including food, drink and decorations, to celebrate occasions such as birthdays, anniversaries, having a baby and graduating.

Top ways Brits celebrate at home

The research from American Express revealed that, for those who have spent more on celebrations during lockdown (since March 2020) compared to what they would usually spend when they could go out and about, the most popular motivation has been to make the occasion as special and memorable as possible.

In the age of social media it is perhaps unsurprising that 13% say that they have spent more on occasions in order to have photos to share on social media with friends and family.

Other reasons for splashing out include relieving boredom (30%) and having more disposable income to spend on special occasions (27%) because of lockdown restrictions.

Celebrations yet to come

The pandemic has certainly given Brits time to take stock and reflect on all things they may have taken for granted before COVID-19. Whilst two thirds of people are feeling disappointed that they couldn’t celebrate their special occasions in the ways they had planned over the past 12 months, nearly three in five (57%) agree that the restrictions brought about by the pandemic have made them realise they want to celebrate special occasions even more in the future.

American Express offers the following top tips on how to make the most of a lockdown celebration:

1. No fancy restaurant? No problem! – Why not recreate that restaurant ambiance in your own home? Put on some background music, decorate your table with a candle and tablecloth and order in food from your favourite restaurant. Alternatively, look out for restaurants offering home meal kits that come complete with ingredients and instructions to make a knock-out meal.

2. Dress up for a night on the (kitchen) tiles – With almost a third of Brits having held a party with members of their household, it goes to show that you really can’t beat celebrating in person. If you’re guilty of spending day after day in your tracksuit or lounge clothes, mark the special occasion by getting dressed up in your favourite outfit.

3. Treat yourself with points and rewards – However you choose to celebrate your upcoming milestone moments, remember to put your spend on a Card that earns cashback, rewards or points for your purchases, which you can then use to treat yourself and your loved ones.

4. Let them eat cake! – No celebration is complete without cake. If you’re living with a group why not host your very own bake-off? Or if you’re isolating on your own and don’t fancy a whole cake to yourself, cupcakes are a great bake for manageable treats that can be spread across the week.

5. Housebound Treasure Hunt – Hiding treats around the house is a great way to get up and get moving, especially when there’s a tasty reward to be found! A perfect activity to occupy kids and the young-at-heart adults alike.

February 9th, 2021 | Andrew Hagger | News

HSBC UK is offering £125 in cash to those switching to its Advance or Premier current accounts, the bank announced today. By utilising this and the bank’s other benefits, customers could easily be hundreds of pounds better off.

A cash offer of £125 to new customers who switch to an Advance or Premier current account, comes into effect on the 8^th February. 

Those customers who switch to HSBC UK could enjoy benefits including:

–        £125 when they switch to an HSBC Advance or Premier Bank Account, using the 7 day Current Account Switch Service;

–        Significant savings on shopping through HSBC UK’s ‘Home And Away’ offers site, with new offers recently added including Costa Coffee, ASOS, and Not On The High Street; and

–        £40 cashback, ROCKit S wireless ear buds worth £90, or a night away if they take out ‘Pick and Mix’ insurance through our innovative Select And Cover insurance.

Fiona Anderson, HSBC UK’s Head of Everyday Banking, said: “For many millions of people, 2020 was a defining year, whether as result of home schooling, changes to working patterns or financially. We have already seen that 2021 will be unpredictable too, but there is light at the end of the tunnel and we all hope we can return to some kind of normality sooner rather than later.

“We know that health and money are the two most common subjects people have been thinking about during the pandemic and while we are in the midst of this lockdown, we might be able to provide a little financial boost for those switching their banking to us, with £125 on offer for switching to our Advance or Premier current accounts.

“There are plenty of additional benefits through HSBC UK that can save customers money, whether it’s by using our handy financial fitness tool and supporting guides to assess and improve your financial health, enabling people to save while they spend with our Home and Away offers, as well as a free gift or cashback when taking out insurance with our innovative Select And Cover insurance. All in all, you could earn or save yourself hundreds of pounds, which could come in really handy at this challenging time.”

February 3rd, 2021 | Andrew Hagger | News

Finance experts TotallyMoney warn that customers could be offered a worse deal if they stay with their current car insurance provider than if they were to renew with a new provider:

• £565m is lost every year due to customers being loyal to current car insurance provider
• 14 million customers are paying on average an extra £40 by renewing their car insurance with current provider
• The average car insurance premium in the UK is an incredible £816, increasing to £1449 in the capital
• All 38.4 million cars in the UK need an insurance policy by law
• The ‘loyalty penalty’ is due to come to a halt when new FCA regulations come into force. But it is unknown when this will be, so customers should switch now

No reward for loyalty

When the time comes for customers to renew their car insurance policy it seems only natural to stay with their current provider; it’s comfortable to stick to what you know, and it’s incredibly easy to do what’s familiar. However, recent figures reveal that a staggering £565m is lost each year by customers who auto renew their policy with their existing car insurance provider.

After a sustained period of cuts in the cost of car insurance, latest trends show that car premiums are starting to increase. It’s therefore more important than ever that customers search for other deals to ensure they’re on the best and most affordable one possible.

Just in time

Long-overdue changes from the Financial Conduct Authority§ are welcomed to put a stop to this unfair loyalty charge customers face when renewing, but with no official word as to when the changes are coming into force, it’s incredibly important that customers avoid being automatically rolled over onto a more expensive deal.

Finance experts TotallyMoney have partnered with comparison specialists Seopa, to launch their new car insurance instant quote service right before February‖, the month where customers are likely to find their best deal with insurance premiums being at their cheapest.

Alastair Douglas, CEO of finance experts TotallyMoney comments:

“With customers being punished for their loyalty, and a car being an essential item for many across the UK, the car insurance industry can be seen as unfair. 

“Millions of pounds are lost every year because of this, money that could be kept in customers’ pockets and better spent on other essential items. 

“Customers should be aware that their best deal is not always with their current provider, in fact it rarely is, and they should shop around before renewing their policy. 

“With a third of customers paying monthly for their policies, credit scores play an important role when insurance providers run a credit check for this purpose. Customers should check their report before applying, to raise a dispute and correct any errors. This way they can be sure that they’re getting the best deal for their true circumstances.

“At TotallyMoney, we’re on a mission to improve the UK’s credit score and help our customers move on up to a better financial future. Helping our customers save money on their car insurance is a significant step forward in achieving this goal. Whether those savings are used to pay off more of their debt, or to simply make day-to-day life a little bit easier, it’s clear how a small change could make such a big difference to the lives of many across the UK.”

January 29th, 2021 | Andrew Hagger | News

A survey by Paragon Bank found that topping up ‘rainy day’ funds and booking a holiday are two leading financial priorities for savers this year.

In a survey of more than 2,600 customers, Paragon Bank asked savers about their long-term plans for any money saved during the pandemic.

The research showed that 29% of savers will prioritise topping up their emergency fund with any savings made during the pandemic, which is reflective of Brits responding to the ongoing climate of economic uncertainty.

Booking a holiday was also a priority for 29% of savers, as many people prioritised splashing out on a trip abroad after many experienced cancelled travel plans in 2020.

Saving in a fixed rate product was the second top priority, with 28% of savers planning to lock money away in a fixed rate in order to guarantee rates during challenging market conditions. Home improvements plans took third place for 27% of savers.

A quarter of savers also had generous plans for their pandemic funds, with 15% planning to gift some of the money to a loved one and one in ten committing to a charity donation.

Purchasing a property was by far the leading priority for younger age groups still saving for a deposit for their first house purchase, with 64% of 18-24 year olds and 75% of 25-29 year olds naming this as a priority.

Half of customers able to save more during the pandemic

The survey found that one in two customers were able to put more money aside during the pandemic, with millennials in the best position to save more.

Millennial savers were most likely to be able to put more money aside during lockdown compared to other age groups, with more than two thirds (67%) of 25-29 year olds and 65% of 30-39 year olds saving more money than usual.

Derek Sprawling, Savings Director at Paragon Bank, said: 

“It’s clear from the data that the ongoing climate of economic uncertainty is impacting people’s financial plans. Topping up emergency funds and saving in a fixed rate product are two leading priorities, combining to nearly double the proportion of respondents who are looking to invest in a much-needed holiday.

“Splitting funds between an easy access ‘rainy day’ fund and a fixed rate is a good solution for those looking to have access to money in the event of an emergency, while also ensuring they get a competitive rate on a portion of their savings.”

January 25th, 2021 | Andrew Hagger | News

As millions of UK residents continue to work from home, Aviva is urging people to take extra care of their possessions when using summerhouses, outbuildings or sheds as workspaces.

ONS data suggests around 13 million UK people became home-workers last year as a result of the pandemic⁽¹⁾ and sales of sheds and summerhouses have been rising rapidly⁽²⁾.

But Aviva warns that home contents cover is often limited for items stored in sheds, garages and outbuildings, compared to the main home. The insurer is therefore encouraging “shoffice” workers to remove valuable items such as laptops, phones and tablets when not in use.

Sarah Applegate, Head of Risk, Aviva General Insurance says: “While many insurers cover home office equipment as standard under home contents policies and some are extending cover during the pandemic for people who need to work from home, cover may be restricted for items located outside the main property.

“Contents in outbuildings usually have an upper limit of around £2,500 for theft claims, so people should think carefully what they store in their outdoor rooms, particularly if they are using home office equipment.

“Tech devices are easily portable and can quickly add up to hundreds or even thousands of pounds in value. We’d encourage householders to remain vigilant when working in outbuildings and remove expensive equipment when not in use.”

Aviva has the following advice regarding outbuildings and keeping contents safe:

• Limit what you store in your outbuildings, sheds, garages and summerhouses, particularly if items are valuable. Check your home contents policy wording and be aware of cover limits for items kept in external buildings.
• Pay particular attention to portable items such as laptops, phones and tablets, if you are using an outbuilding as a home office. Tech devices can be lifted in a matter of minutes.
• Lock your sheds, summerhouses, garages and outbuildings when not in use. Replace any damaged or rusty padlocks.
• Check the access to your home and garden in case any would-be burglars are watching. Close gates and repair damaged fences – deterrents are sometimes the best prevention.
• If you’ve bought new office equipment, don’t leave packaging in a place where others can see it, such as by outdoor bins. If boxes are too large to go in a bin, store them in your home until you can dispose of them, for example at your local recycling centre.
• Inform your home insurer if you’re making substantial changes to your home – such as building an extension to provide a home office space or converting an integrated garage – before you start building works.
• Find out more about Aviva home contents cover for outbuildings here.

January 12th, 2021 | Andrew Hagger | News

Research by finance experts, TotallyMoney shows that Brits paying interest on their credit card debt are wasting hundreds of pounds by not switching to a better deal.

• Customers can save a massive £676 in interest by transferring the average credit card balance of £2,177 to a 0% balance transfer card of 21 months
• A huge 54% of active credit card accounts have interest accruing balances outstanding at the end of the calendar month
• January marks balance transfer season, the busiest month for balance transfers which sees an average of 687,000 transactions worth an average of £1.55bn each year
• There were just 60 balance transfer cards available in the market in December compared to 75 the year before, while the average number of interest-free days is at its lowest level since May 2015

54% of credit card balances incur interest – but these interest charges are avoidable for borrowers eligible for a balance transfer card.

Balance transfer cards charge 0% interest for a set period of time, meaning 100% of credit card repayments go towards reducing the debt, not paying interest.

TotallyMoney found that by transferring the average credit card balance of £2,177 to the average balance transfer duration of 21 months, customers could save a huge £676.

Customers seeking the best 0% deal to ring in 2021 should move fast — before lenders cut the honeymoon period even further. Recent figures show that as of December 1st 2020 offer durations were at the lowest level since May 2015.

Not only are the offer durations shortening but the number of products available to customers has also fallen from 75 in December 2019 to 60 in December 2020.

An interest freeze still comes with fees

Most balance transfer cards charge a balance transfer fee. This is quoted as a percentage of the debt transferred, with a minimum cash amount. For example, ‘3% with a minimum of £5’. This means if you transferred £1,000 of debt, you’d pay £30.

The golden rule with 0% balance transfer credit cards is to repay your entire debt in the interest-free period. For example, if you had £2,000 of debt and could afford to repay £100 a month, you’d need a card that’s 0% on balance transfers for at least 20 months.

Alastair Douglas, CEO of finance experts TotallyMoney, comments:

“As many look to get their finances in shape for the new year, one way that customers can save money is to stop paying interest on their debt when there’s no need to. Transferring existing debts over to a balance transfer card lets you pay off your debt while avoiding the spiralling interest charges.

“Unfortunately, balance transfer deals aren’t as generous as they used to be with both the introductory durations on offer and the number of cards available in decline.

“When applying for a credit card make sure you check your eligibility. This will help you avoid rejection and damage your credit score.

“You should also use these cards carefully. Resist the temptation to use a balance transfer card to make purchases as most will charge a high rate of interest on any new borrowing.

“At TotallyMoney, we’re on a mission to improve the UK’s credit score and help people move on up to a better financial future. Switching your credit card will mean clearing debts quicker, which will reduce your credit utilisation. Cutting your credit usage will normally have a positive effect on your credit score.”

January 12th, 2021 | Andrew Hagger | News

RoosterMoney, the pocket money app, reveals that kids received an impressive £321 pocket money (£6.18 a week) last year, and encouragingly they saved 37% of it. This is in line with adult saving rates also reaching record levels of 28.1% during the Covid-19 pandemic.* Video games Roblox & Fortnite also dominated the spending charts as kids spent more time at home.

Children are picking up lasting money habits as young as 7 years old**, and RoosterMoney is showing that a strong pocket money routine is a great way to build positive money habits early on, lockdown, or no lockdown…

• EARNING: 66% of parents gave regular pocket money last year
• Average weekly allowance was £6.18 (£321 a year)
• Kids received £52 in cash gifts this Christmas
• Families embraced chore routines: The highest earning chores were ‘washing the car’, ‘mowing the lawn’, & ‘washing windows’
• SPENDING: Video games Roblox & Fortnite rose to the top of the spending charts
• SAVING: Average saved was 37%
• Most popular things to save for were Lego Sets, Phones & Roblox
• Top Lego Sets: Star Wars, Harry Potter, Friends
• The average time it took to reach a savings goal was 45 days
• GIVING: Most popular causes were Children’s Charities, Animal Welfare & Cancer Research.

Top things to SPEND on in 2020.

Roblox & Fortnite rose to the top as kids spend more time at home.

Top things to SAVE for in 2020:

Holidays and bikes fall down the rankings.

1. Lego Sets (-)
2. Phones (-)
3. Roblox (new)
4. Fortnite (new)
5. Nintendo Switch (-2)
6. PlayStation (+2)
7. Books & Magazines (-2)
8. Holidays (-4, biggest drop)
9. Bikes (-3)
10. Xbox (-)

Will Carmichael, RoosterMoney CEO says:

“The Pocket Money Index can often provide a fascinating reflection of what’s going on in the wider world. The pandemic has shifted most of our spending online and that’s seen clearly here with kids’ spending habits too. It’s also really encouraging to see the saving rates remain so high.

Now more than ever, building financial capability into our kids is so incredibly important. The financial impact of this crisis has the potential to affect us for a generation – perhaps several. Having confidence with money, building positive habits around saving and learning to make considered spending choices will be something that sticks with kids for life.”

January 5th, 2021 | Andrew Hagger | News

M&S Bank has today launched new offers across a range of its insurance products – offering up to £150 in M&S vouchers – when customers take out a new Pet, Home and Motor Insurance policy.

Customers purchasing a new Premier M&S Pet Insurance policy will receive £50 of M&S vouchers, while customers taking out a new Standard policy will receive £30 of M&S vouchers. Customers who take out a new Premier or Standard combined buildings and contents policy from M&S Home Insurance will also receive £50 of M&S vouchers, as will customers taking out a Premier Car Insurance policy.

M&S Pet Insurance customers have access to three levels of cover; Essential, Standard and Premier, depending on their individual needs, and customers can choose either lifetime or time-limited cover. In addition, customers will receive 24-hour access to qualified nurses via vetfone^TM, as well as a 5% multi pet discount for any additional pets they insure with M&S.

Customers with M&S Premier Home Insurance benefit from cover for accidental damage, storm damage to gates and fences, and visitors’ belongings. The policy also covers the policyholder’s children when they are living away from home at university or college, or a dependent relative living in residential care.

M&S Premier Car Insurance provides customers with a guaranteed replacement car, if their own vehicle is out of action due to an accident, as well as uninsured driver protection, so they’re not out of pocket if hit by a driver without insurance.

For more information, visit: https://bank.marksandspencer.com/insurance/overview/.

December 28th, 2020 | Andrew Hagger | News

New research from Metro Bank, conducted by YouGov, has revealed the extent to which people are getting set to take control of their finances in 2021.

When asked about managing their money better in 2021 compared with 2020, more than one in two Brits (54%) agreed they are determined to start doing so – rising to two thirds (67%) of 25-34 year olds.

Two thirds (65%) of Brits also want to save more next year than they did this year, and more than half (54%) want to spend less. This rises to 79% and 62% respectively among 25-34 year olds.

Less than one in 10 (8%) say they are not planning on saving any money in 2021, with people, on average, aiming to save around £4,400 next year.

Committing to New Year, new you

When it comes to committing to a finance-related New Year’s resolution – less than one in five (18%) of Brits say they plan to set one for 2021. This is however a 50% increase on the one in eight (12%) people who said they made a finance-related resolution for 2020, with seven in 10 agreeing they’ve stuck to their resolution so far this year.

Women (21%) are more likely than men (14%) to make a finance-related New Year’s resolution for 2021, alongside three in 10 (31%) 25-34 year olds compared with only one in 10 (10%) over 55s.

After saving more (52%) and spending less (40%), the most popular finance-related resolutions for 2021 are:

1. Reduce my debt (25%)
2. Get out of debt (18%)
3. Get a better interest rate on my savings (17%)
4. Improve my credit score (15%)
5. Create a personal budget (11%)

Keeping a close eye on the festive spending

If New Year’s Eve 2019 is anything to go by, Metro Bank data shows plenty of customers keeping a close track on their spending and account balances during the festive period. There were more than 400,000 logins to the Metro Bank mobile app on New Year’s Eve 2019.

The bank’s mobile app data also reveals:

• 230,000+ logins on Christmas Day 2019 – with between 11am and 1pm the most popular time to login
• 320,000+ logins to the Metro Bank mobile app on Boxing Day 2019

• 330,000+ logins on New Year’s Day 2020

Jo MacDonald, Director of Bank Accounts & Deposits at Metro Bank, says: “We all love to start the New Year afresh and probably never more so than now, as we bid farewell to the challenges of 2020. It’s great to see from our research how many people want to start managing their money better in 2021. A bit of time spent on finding the provider that best meets your banking needs and delivers great service will be time well spent as people get set for the year ahead.”

December 21st, 2020 | Andrew Hagger | News

New research from Metro Bank, conducted by YouGov, has revealed the extent to which people worry about their personal belongings.

As Christmas is fast approaching and police warn the public not to put their presents out for others to see, it’s no surprise that a quarter of British adults that say they have a prized possession  – around 8 million people – are worried about losing their possessions as a result of theft.

Alongside the one in four people who are worried about theft, more than three in 10 are worried about losing their prized possessions in a fire and nearly one in seven (15%) worry about their items being destroyed by water damage.

What precious items are people hiding?

When asked to choose their most prized possession from a list in the survey, there was much variety in the responses received. The most popular prized possession – named by almost one in ten  – was a photo album, with wedding or engagement rings (8%) closely following behind.

When asked if there was anything else they see as a prized possession, some of the more surprising items include:

• Prized whisky collections
• Childhood teddy bears
• Wartime diaries
• Fishing rods
• Vintage Star Wars collectibles

Where are Brits keeping their prized possessions?

More than a fifth of keep their cherished item in a drawer or filing cabinet and almost one in 10 (8%) keep their special belonging in the garage, loft and even in the shed. A small percentage of the country admitted that they keep their most treasured item under the bed (2%) or in a shoebox (2%). 38% of people say they only use their most prize possession once every six months or less.

Metro Bank offers Safe Deposit Boxes in a range of sizes starting from just £20 a month. The boxes are available in each of the bank’s 77 stores, with the majority open seven days a week and giving customers unlimited access to their Safe Deposit Boxes. These are available long term or short term and provide proper security for people’s most prized possessions, whether that be jewellery, a stamp collection or confidential documents.

Jeremy Lawrey, Head of Retail Accounts and Partnerships, says: “As Christmas approaches, many of us will worry about the safety of our belongings. Whether your most cherished possession is an old family heirloom, a special piece of jewellery or even a passport or house deeds, our Safe Deposit Boxes enable you to safely store your belongings in a secure environment.”