November 15th, 2018 | Andrew Hagger | News

15 Nov 2018 New research from Charter Savings Bank reveals that those in their 30s are the savviest savers, setting aside 58% of their disposable monthly income each month – 16 percentage points more than the national average of 42%.

The average monthly disposable income for a 30-something is £486 (after paying bills), and the amount saved each month is £280. They have a higher disposable income on average than the UK as a whole which comes in at £452.

But their disciplined approach to saving means they save nearly 50% more than the national average of £191 a month.

Charter Savings Bank’s study found big differences in the disposable income of men, at nearly £600, compared with women at just over £300, with women saving £134 a month compared with men saving £252.

The research found 11% of adults have never opened a savings account – the equivalent of around 5.7 million people. The number of non-savers rises to 20% among those in their 20s.

UK adults can perhaps be a bit more disciplined – just a tenth (10%) save a set amount of money each month which they don’t touch.

The average size of a savings pot in the UK is £23,629. Those in their 70s have the most, at £44,542, while those in their 20s have just £5,440. There is a big gender savings gap with men having £12,000 more in savings than women at £29,549 compared to £17,611.

The table shows how saving breaks down across the decades – people in their 70s save the lowest proportion of their income but have the highest disposable income, while those in their 50s and 60s save just 35% of disposable income.

 Age breakdown of saving habits

The main reason to save for all age groups is having cash for an emergency – but this becomes more important with age, with 63% of people in their 70s saving for a rainy day compared to 44% of people in their 30s. It’s not all about worries though – holidays are the second key factor for saving for people in their 40s, 60s and 70s. Long term financial security is the second most important factor for people in their 20s, while 30-somethings want short term financial security.

Paul Whitlock, Director of Savings, Charter Savings Bank, said: “It’s interesting to see that, no matter what age we are, a potential emergency is our primary motivator for setting money aside. Beyond that, everyone will have different priorities for how much they can afford to save and what they are saving for, depending on what stage of life they’re at.

“The important thing is to try and save as much as you can afford to, from as early an age as possible, and seek out the best rates possible. It may not seem worth putting a small sum away each month, but it’s a brilliant habit to get into, plus that money soon grows.”

November 15th, 2018 | Andrew Hagger | News

15 Nov 2018 Across the UK there are currently 14.8 million renters and new research from Sainsbury’s Bank Home Insurance indicates that over half, 8.4 million of them are leaving themselves unprotected by not having home contents insurance in place.

Of those renters who do have contents insurance, less than one in five (16%) take the time to compare the cost of different providers and then switch if they find a better offer. Homeowners are more proactive with one in five (22%) comparing the costs of providers and switching to a better deal.⁽¹⁾

Homeowners are also savvier when it comes to finding ways to save on their building and contents insurance, with over half (54%) of those  with home or contents insurance having already or considering installing safety features to save money on their premium.

Steps homeowners are taking to save money on their home insurance:

Karen Hogg, Head of Insurance at Sainsbury’s Bank said: “It’s worrying to see that more than half of renters don’t have contents insurance, so they wouldn’t be compensated for the loss of their possessions if the worst were to happen.

“While homeowners are more proactive in comparing prices and switching, many people who do have contents insurance, could be missing out on a better deal as only 16% shop around when renewing their home insurance.”

The supermarket bank warns that insurers are unlikely to share how much of a saving will be achieved by adding additional home security, but that it goes without saying that homeowners who can prove they’re taking due care of their property will usually be priced more favourably. Securing your property in this way will therefore not only deter thieves, but will also save you money in the long run.

Five tips for securing your home:

• Lights, camera, alarm: Installing safety features can help to protect your home from potential intruders, as well as saving you money on your home insurance.
• Take time to compare insurers: It may seem like a chore to spend time comparing what different home insurance providers are offering, however in the long term it could help you save money. Make sure the provider you choose covers everything you need, such as student cover for children living away from home.
• Search for an offer: Look for a provider who is offering a benefit or deal to the consumer. Sainsbury’s Bank gives customers double Nectar points on their shopping and fuel, as well as a discount for Nectar card holders.
• Love thy neighbour: Making friends with your neighbours can prove to be a smart move. Having a trusty friend to keep an eye on your home when you’re not in could benefit you greatly. For prolonged stays away from home you could also ask a friend or family member to house sit, which can be particularly useful if you have furry friends that will need taking care of while you’re away.
• Know what’s in your home: When the time comes for taking out your insurance policy, take the time to walk round each room to make sure you know exactly what’s there and needs to be included in your cover. For further information on Sainsbury’s Bank home insurance, underwritten by a carefully selected range of insurers, call 0345 266 1603, visit www.sainsburysbank.co.uk or pick up a leaflet in store.

November 13th, 2018 | Andrew Hagger | News

12 Nov 2018 Millions of gas and electricity customers who have overpaid their bills are owed on average £84.80 by their supplier, according to new research by weflip, the automatic energy switching service.

The research reveals that 51% of UK households have overpaid their energy by on average, £84.80, while 12% of customers have made overpayments in excess of £100.  Collectively, it means energy companies are benefiting from a whopping £1.17bn of their customers’ money.

Paying by direct debit (DD) is the most convenient ways for most householders to settle their energy bills. DD payments spread the cost evenly across the year, and most energy companies offer a discount for customers paying in this way.  However, energy suppliers base DD payments on their estimate of a customer’s usage over the year.  Customers’ actual usage may differ significantly.  Overpayments arise when providers overestimate usage and set DD payments at a higher rate than the energy is consumed.

There are several options open to customers who find themselves in credit with their energy supplier.  But, before contacting their provider they will need to take an up-to-date meter reading.

Customers can leave the overpayment on their account to offset against future bills, 44% of the customers surveyed take this approach. Or they can ask their supplier to adjust their direct debit payment in line with their actual consumption.  Just over a fifth (21%) of people surveyed had asked for their DD to be reduced.

Customers are also entitled to ask their energy provider, at any time, for a refund (just 12% of the survey participants had requested overpayments to be refunded).  Providers must refund credits whenever they are asked to, unless there are reasonable grounds not to do so.

Alternatively, customers who hold a positive credit balance can wait until their account comes up for its annual review.  Energy suppliers are obliged to review DD accounts once a year, but some do it more frequently.  The purpose of the review is to check whether payments need to be adjusted depending on usage.  Refund policies for the big six energy providers (British Gas, EDF Energy, E.ON, Npower, Scottish Power and SSE) can be found on Ofgem’s website.

Commenting on the research, Amanda Cumine from weflip, said, “Direct debits take the faff out of paying utility bills, but the way they are calculated can leave many customers out of pocket.  While some people will be happy to carry a small surplus to offset higher winter bills, millions more would rather the money was sitting in their bank account rather than that of their energy provider.

“Suppliers calculate customers’ bills by estimating their annual energy consumption then dividing this into 12 equal monthly payments. However, energy usage can change with seasonal variations in the weather or if your domestic situation alters. While providers are required to automatically refund a surplus, they may only do this at the anniversary of your contract and if you provide a meter reading.

“If your account is significantly in credit you should always request a refund as soon as possible and ask your supplier to review your DD payment based on your actual usage.”

November 7th, 2018 | Andrew Hagger | News

07 Nov 2018   A comprehensive new study by RoosterMoney, the pocket money tracking app, has revealed that kids have been saving 30% of their pocket money so far this year. An encouraging sign compared to the Money Charity’s latest stats showing that the average household is now only saving 4.4% of post-tax income, down from 5.2% last year.

The annual Pocket Money Index, based on a sample of over 11,000 4-14 year olds, shows that kids are on course to earn £225 in pocket money over the course of 2018 (an average of £4.32 a week).

Based on last year’s activity, kids can expect to receive £45 in cash gifts this Christmas, with the most likely benefactors being aunts & uncles as they beat grandparents to the title of most generous relatives this year, giving on average £13.79 vs £11.97 per visit.

Given the most popular things kids have been saving for lately, that money is likely to be spent on:

1. Lego
2. Phones
3. Nintendo Switch
4. Books
5. Bikes

In the run up to Christmas, kids have also been earning extra pocket money by completing extra chores, the most lucrative of which have been:

1. Washing the car (£2.30)
2. Gardening (£1.24)
3. Making Dinner (£0.86)
4. Hoovering (£0.80)
5. Cleaning the bathroom (£0.77)

The tooth fairy is also getting more generous offering £2.18 a tooth, compared to £1.99 last year.

10 year olds have proven the most entrepreneurial age group, as the most likely to boost their income by selling their old toys and clothes – averaging £13.64 per sale.

Of the 70.5% of their money that kids have been spending, the most common purchases are:

1. Sweets
2. Books & Magazines
3. Lego
4. Xbox games
5. Apps

Will Carmichael, CEO of RoosterMoney, said:“Christmas is the perfect time to start talking to your kids about the value of money. Whether it’s thinking about the value of the things thereceive, or helping them decide how much of their Christmas money to save or spend. By getting youry  kids into some good saving habits now you can help ensure they develop healthy money habits for life.”

November 7th, 2018 | Andrew Hagger | News

06 Nov 2018  More than one in 10 Brits moved home after being burgled, according to a study by home insurer Policy Expert

• Over 2.7 million homes in the UK have been robbed in past year
• Revealing the psychological impact of burglary, a third (32%) had difficulty sleeping after the crime took place and almost one in 10 (8%) admit they couldn’t be left alone in the property
• The most common way burglars broke in was through a window (38%). Just under a third (29%) damaged a door, and one in seven (13%) tampered with the locks
• While you’re more likely to be burgled when out of the house, a fifth (20%) admitted the incident happened when they were at home asleep
• More than a quarter (28%) were at work, a fifth (18%) were out shopping or socialising, and one in six (15%) were on holiday, revealing the crucial need for effective home security

Adam Powell, Operations Director at Policy Expert, commented: “Burglary doesn’t just impact us financially, but takes a huge toll psychologically and emotionally. Protecting our homes and belongings is vital and there are a number of steps you can take to reduce the risk of becoming a target for thieves. Installing a burglar alarm doesn’t just provide a visible deterrent, but if there is an attempted break in, it’s more likely to alert neighbours and passers-by. Some alarm systems are even set up to alert the police.

“Opting for enhanced locks, windows and doors, or installing CCTV may also reduce the chances of being burgled. Try and keep valuables, including keys and gadgets, out of sight, and investing in sensor-activated, external lighting for the garden and around the front of the home is a simple, and usually inexpensive, way to prevent thieves. 

“In addition, while it may be tempting to post about holidays on social media, this might inadvertently advertise that your home is unoccupied. Burglars will typically go for smaller, more expensive items such as watches or jewellery, so check your single item limit and if you have a valuable that exceeds that, inform your insurer. Ultimately you need to make sure you have the correct level of home insurance, so if the worst was to happen, you’ll be protected financially.”

Top tips from Policy Expert on protecting your home:

1. Enlist the help of a housesitter or ask a trusted neighbour with a set of keys to check in on your house every now and again if you’re away for an extended period of time
2. Install a timer to set lights inside your home to come on once it gets dark – choose a light in a visible room at the front of the house, not the hallway, as this will create the impression that someone is inside
3. Invest in sensor-activated, external lighting for the garden and around the front of the home
4. Install a burglar alarm – not only is this a visible deterrent, if someone does attempt to break in the alarm would alert neighbours and the police before any damage could be done
5. Don’t leave curtains closed – during the day this makes it look like there’s no-one at home
6. Make sure any outbuildings or sheds are locked and that any tools are hidden away – these could be used to break into your home
7. Ensure any valuables are out of sight – remove the temptation and make sure these items cannot be seen from outside the house through the windows
8. Never leave a spare key anywhere near the front door, for example under a doormat, flower pot – thieves know all the usual hiding places
9. Similarly, don’t store house/car keys just inside your front door, as burglars could try to fish for the keys through the letterbox

November 1st, 2018 | Andrew Hagger | News

01 Nov 2018 More than 80% of parents and relatives have been investing in JISAs for children or young relatives since they were less than five years of age. However, nearly all plan to wait until their recipients are 16 or over before telling them they have money invested, a new survey by Willis Owen reveals.

Of those investors waiting until the child is 18, nearly two in five say this is because they would like to surprise their recipients while over a third (34%) are worried they will not be responsible enough to be informed earlier. Almost a quarter (23%) say they do not want their children to feel spoilt by being made aware of their JISA money before their eighteenth birthday.

Almost half of all those saving into JISAs hope the money will be used for university or higher education, while 43% would like the funds to contribute towards a deposit for a property. A further 42% would like the money to remain invested while 34% would like it to be used to pay for a car and 22% hope it will cover the cost of travelling the world.

Adrian Lowcock, Head of Personal Investing, Willis Owen says:

“When a child turns 16, he or she becomes entitled to manage their junior ISA investments and can access the money from their eighteenth birthday. However, our survey suggests that almost half of parents or relatives wait until their children are 18 or over to discuss JISAs invested on their behalf.

“This statistic sheds light on a very worrying issue; the fact that most people are leaving it too late to have conversations about personal finances with the younger generation. Learning about money and becoming financially aware is a long process, but it should start as early as possible.”

Lowcock adds:

“Most of our financial behaviours and disciplines come from our families so if you want to instil good behaviour you will need to practice what you preach. One technique is to start giving your child small amounts of change when shopping to buy goods, so they are involved in the whole process and understand the value attached to different items and services. Having a piggy bank is another engaging way to help them save for something in the future, but they need to set a goal that is achievable to ensure they appreciate the process and don’t get discouraged along the way.”

October 31st, 2018 | Andrew Hagger | News

31 Oct 2018 Yorkshire Building Society is urging UK tax payers to increase their financial resilience by cashing in on the Chancellor’s Budget income tax giveaways and saving the money they would have had to pay to the Inland Revenue.

Chancellor Philip Hammond announced on Monday that the Personal Allowance will rise to £12,500 from April 2019, saving UK basic and higher rate tax payers £130 per year, while the higher rate tax threshold will increase to £50,000, saving those playing the 40% rate a further £730 annually (£860 in total).

Since 2010, successive Budget announcements have seen the threshold for paying basic rate (20%) tax rise from £6,475 to £11,850 in April this year.4 Meanwhile, over the past five years, the higher tax rate threshold has increased from £41,451 to £46,350.

Yorkshire Building Society has calculated that basic rate tax payers who had managed to save all the tax they would have paid with each increase in the personal allowance since 2010 would have accumulated over £5,000 extra in savings.

This is an opportunity for thousands to take steps towards achieving what the Prime Minister described as the “peace of mind” which comes with savings.

Although other fiscal changes in those Budgets will have affected household incomes, the Yorkshire says putting away the Personal Allowance giveaway is a good opportunity to get into the savings habit.

Tanya Jackson, Head of Corporate Affairs, at Yorkshire Building Society, said: “Today’s change to the personal allowance means that UK workers who pay basic rate tax will be £130 better off from April next year.

“Yorkshire Building Society is urging workers who can to save their tax breaks. A basic-rate taxpayer who had deposited the money they’d saved from changes to the personal allowance since 2010 would now have an extra £5,434 in their savings account.

“Savings in relation to household disposable income are at the lowest levels since 1963 and 16.8m people have less than £100 in savings. As a mutual provider committed to helping our members overcome any financial hurdles they may encounter, we want to help people establish a regular savings habit to build their financial resilience.”

Savers can use this interactive calculator to see how much the personal allowance changes could help them save.

October 31st, 2018 | Andrew Hagger | News

31 Oct 2018 Credit experts and FinTech scale-up TotallyMoney have asserted their position as key players in the credit report industry by acquiring over one million Free Credit Report customers since its launch last year.

The rapid growth has been largely attributed to an array of features that have made a debut appearance in the credit report industry.

In addition to a full Free Credit Report, TotallyMoney gives customers a live credit score that gets updated whenever they log in, for the most up-to-date view of their financial health. This live score also includes reasons why the score goes up and down — the only provider currently available that offers this service for free.

Customers are able to use this information to understand their credit position better, so they can take the appropriate steps to improve their credit rating.

The Free Credit Report company further distinguishes itself from its competitors with a unique, proprietary Borrowing Power algorithm. Developed by TotallyMoney, Borrowing Power combines customer credit profile data with real-time, market-wide lending criteria.

It then finds the best credit offers for customers and shows them how likely they are to get accepted for them, without harming their credit rating.

This allows customers to apply for the best credit products for their credit rating and credit profile.

TotallyMoney CEO Alastair Douglas said: “Our significant growth marks a true step change in consumer attitudes towards credit reports and the credit industry in general. It shows that there’s a definite appetite for a service that not only provides customers with their credit information, but tells them what it means for their personal circumstances.

“It’s at the heart of our mission — to make credit better by putting customers in control of their data and helping them make smart borrowing decisions — and informs our plans for 2019.

“We’re working with more lenders to show customers the true rate of borrowing, as well as creating more experiences to help customers understand and improve their personal credit position.

“We’re doing this to enhance the financial lives for not just this million customers, but for the millions of customers to follow.”

October 26th, 2018 | Andrew Hagger | News

26 Oct 2018 As the clocks go back, the winter nights draw in, home insurer Policy Expert urges homeowners to be vigilant and take precautions to protect their homes.

The warning comes as new research of almost 4,000 people found that 28% of workers get home past 6pm. There are approximately 32.4 million workers in the UK – this means there could be as many as 9 million people leaving their homes in the dark for longer. As the afternoons and evenings get gloomier, 14% of Brits say they are more concerned about leaving their property due to a potential burglary whilst they’re at work.

The research also found that the average time to get home from work is 5.09pm. At present, that means people are arriving home in daylight hours. However as of Sunday 28^th October it will get dark at 4.41pm, meaning that from Monday 29^th October, homes could be empty and unattended in darkness for 28 minutes. The length of time will increase by one to two minutes every day until mid-December when the average home could be left empty and unattended in darkness for a full hour and 15 minutes.

Despite this, the research revealed that many homes do not have adequate security in place to protect them while they’re empty. In fact, a quarter of people don’t take any security measures at all to protect their home from theft.

Only two in five of those surveyed have timed lights and just 39% install extra security lighting. A third (32%) close their curtains, one in five (18%) leave the TV/radio on and just over one in eight (12%) improve their locks. Yet, almost one in ten make an extra effort to leave work earlier or on time.

Homeowners have the current security measures in place:

• External lighting – 69%
• Tall fences – 49%
• Plants/ Hedges – 40%
• Lights on timers 39%
• A dog – 34%
• Burglar alarm – 32%
• Neighbourhood watch membership – 17%
• Surveillance cameras – 16%

Adam Powell, Head of Operations at Policy Expert commented: “The winter months are a tempting time for opportunistic burglars. Longer nights and shorter days mean that there are more opportunities for crime to take place under the cover of darkness, so it’s important to remain vigilant and ensure your home is adequately protected. Any way to make your home look occupied or visible deterrents, such as lights on timers, CCTV cameras and burglar alarms should go some way in preventing a break in. Finally, check your home insurance policy to ensure it’s up to date and any valuables are declared to ensure you’re fully covered should the worst happen.”

Tips on protecting your home this Autumn:

• Install a timer to set lights inside your home to come on once it gets dark – choose a light in a visible room at the front of the house, not the hallway, as this will create the impression that someone is inside
• Invest in sensor-activated, external lighting for the garden and around the front of the home
• Install a burglar alarm – not only is this a visible deterrent, if someone does attempt to break in the alarm would alert neighbours and the police before any damage could be done
• Don’t leave curtains closed – during the day this makes it look like there’s no-one at home
• Make sure any outbuildings or sheds are locked and that any tools are hidden away – these could be used to break into your home
• Ensure any valuables are out of sight – remove the temptation and make sure these items cannot be seen from outside the house through the windows
• Never leave a spare key anywhere near the front door, for example under a doormat, flower pot – thieves know all the usual hiding places
• Similarly, don’t store house/car keys just inside your front door, as burglars could try to fish for the keys through the letterbox

October 23rd, 2018 | Andrew Hagger | News

23 Oct 2018 Holidaymakers are warming up to prepaid cards for overseas spending as the switch from cash continues, new research from financial data analytics experts Consumer Intelligence shows.

More than 27% of people heading abroad for winter holidays this year plan to use prepaid cards for some of their spending compared with 23% who used prepaid cards on winter breaks last year.

Nearly three-quarters (74%) heading overseas will still use some cash, the study found, but that is down from 76% last year with the data also showing a rise in the use of credit and debit cards for holiday spending. Pre-paid cards are now nearly as popular as debit cards which are used by 28%.

The gradual switch to pre-paid cards is an opportunity for providers to expand their range and Consumer Intelligence’s research on winter holiday destinations is another indicator of potential growth areas.

Its study found Spain remains the top choice for UK holidaymakers in the winter with 22% planning to visit. But Canada and the US are now the joint second destination chosen by 11%. France and Germany make up the rest of the top five.

Advantages for holidaymakers using prepaid cards include potentially better exchange rates plus less risk for their money if they lose the cards. But customers need to watch out for fees and debit cards can also offer good deals.

A spokesman for Consumer Intelligence said: “It is plain that card spending, for winter travellers, is definitely gaining ground.

“Providers must ensure they are offering the right deals, including prepaid cards, for the winter season, as well as taking note of the new popular destinations.”