October 19th, 2018 | Andrew Hagger | News

19 Oct 2018 New research from Charter Savings Bank reveals that 40% (over 5.8 million) of grandparents give their families cash handouts every year worth an average of £1,475 each, as well as the equivalent of one month’s free childcare.

Children and stepchildren are the main beneficiaries, receiving £743 a year, while grandchildren collect around £450.

Of those grandparents who gift money, the majority (61%) do so because they want to pass their wealth to their family during their lifetime, while a third extend a helping hand to help family members who are struggling to make ends meet.

Grandparents’ cash is most likely to go towards the younger generation’s living costs (30%), holidays (21%) and home improvements (19%). One in six (15%) say they are helping towards a home deposit, while 12% are clearing university debt.

It’s not just the younger generation receiving a helping hand; the research shows that 5% of grandparents are also providing financial support to their parents too.

On a regional basis, the most generous grandparents are based in Yorkshire and Humberside who donate a whopping £2,298 every year. In a close second are grandparents living in London (£2,043) followed by the East Midlands (£1,929) and the South East (£1,723).

Grandparents contribute one month’s worth of childcare

As well as cash, two-thirds (65%) of grandparents have given up their time to look after grandchildren and great-grandchildren, spending an average of four hours per week. When rolled out over the course of a year, and assuming a 7.5 hour working day, grandparents are providing 28 working days of free childcare annually. Assuming the national minimum wage of £7.83 per hour², grandparents are providing £1,629 of free childcare – collectively worth £4.3 billion.

While most grandparents can afford to be generous, over a third (37%) admit to having to make lifestyle changes including fewer holidays (58%) and postponed or cancelled home improvement plans (37%).

Paul Whitlock, Director of Savings, Charter Savings Bank, said: “Rising living costs and squeezed family incomes mean that grandparents are having to ride to the younger generation’s financial rescue. In many cases grandparents find it hard to say no and while they like being hands-on, the risk is that they compromise their own standard of living.

“Savings accounts play a key role in grandparents’ ability to finance the younger generation, so it’s important to check they’re getting a competitive rate.  Many grandparents have built up sizeable nest eggs thanks to years of saving regularly. Passing this habit down through the family will help to ensure that future generations can also benefit from a financial leg-up.”

 Regional breakdown of financial contributions

Source: Charter Savings Bank, 2018

October 17th, 2018 | Andrew Hagger | News

17 Oct 2018 Today’s publication of the inflation rate for September means that the government now has all the information that it needs to set pension and benefit rates for April 2019.  Under the terms of the pensions ‘triple lock’ policy, the pension has to be increased by the highest of:

–          The growth in earnings, which was 2.7% in August 2018 (based on seasonally adjusted average earnings including bonuses);

–          The growth in prices, measured by the CPI, which is 2.4%;

–          A minimum of 2.5%;

With today’s fall in price inflation, the pension will rise in line with the growth in average earnings (2.7%).   The key figures (rounded to nearest 5p) are:

Pensioners on the old state pension system will see an increase in other elements of their pension, such as the state earnings related pension scheme (SERPS) in line with the increase in the CPI.

The main rate of the Guarantee Credit for the poorest pensioners is linked by law to the growth in average earnings so will also rise by 2.7%.

Commenting, Steve Webb, Director of Policy at Royal London said:

“Whilst the rates of working age benefits have been squeezed for many years, pensioners look set to enjoy another above-inflation increase.   Those receiving the full rate of the new state pension should get an extra £4.45 per week or just over £230 per year”.

ENDS

October 17th, 2018 | Andrew Hagger | News

16 Oct 2018 While losing money is common, with those prone to misplacing things often finding spare change in pockets (66%), bags (37%) and drawers/cupboards (34%), new research from NS&I reveals that 14% of Britons (7 million people) think they may have lost track of a financial product, highlighting the staggering amount of money left dormant with UK financial services providers. And it’s not just savings accounts, with a fifth (20%) admitting there is a possibility that they have lost track of a pension.

Paper or provider: what’s the problem?

Nearly two-thirds of Britons (63%) admit to losing or misplacing things from time to time, but many admit that this could stretch beyond occasionally misplacing items such as keys. A quarter of Britons (25%) who admit to misplacing things tend to lose important paperwork, which could lead to losing track of bank or savings accounts, direct debits or signed agreements.

Now that many financial products are available to manage online, the requirement to remember security details or passwords is higher than ever before. Just over half of Britons think that misplacing passwords or codes for accounts is a cause for losing track of financial products, yet 78% believe that digital technology has improved the ability to stay in touch with financial products. This figure reaches 89% of 16-24 year olds, and steadily decreases with age, however over two thirds of those aged over 65 still agree that digital technology has improved their ability to keep track of finances.

While most Britons hold savings and investments with 1-3 financial providers 17% use between four and six providers. Nearly half of the population believe that people can lose track of financial products because they use too many financial providers.

As a way to combat the complication of paperwork that may come with using multiple providers, 45% of people believe that offering a single banking platform to view all accounts would help prevent people from losing track of their financial products.

Tracing could be easier than you think

While looking for lost change is easy, only half  (50%) of those who believe they have lost a financial product have ever attempted to track it down, and just over a third (34%) of these are unaware of the ways in which to do so.

NS&I offers a free tracing service for their products, and additionally works alongside UK Finance and the Building Societies Association to provide MyLostAccount.org.uk – a free service dedicated to reuniting customers with lost funds held in banks, building societies and NS&I. While the process may take up to three months to perform a successful trace, the reward could be worth the wait. To date, NS&I’s tracing service and My Lost Account combined have reunited over £770 million with customers.

Just over one in ten (13%) of Britons have heard of My Lost Account, while only 3% of Britons have ever used the service.

Ian Ackerley, Chief Executive at NS&I, said:

“Misplacing things from time to time, including money, is common, yet searching for something you may not know exists could appear like a waste of time.

“Our research shows that 14% of us think they have lost a financial product at least once and yet only 3% have ever undertaken a trace using My Lost Account to try to find them. It can be daunting to know where to start, but if you suspect you have funds with a financial institution, you should start by contacting them directly or by using services like My Lost Account.  Both NS&I’s tracing service and My Lost Account do the hard work for you, leaving you with time to spend on things that matter to you.”

October 16th, 2018 | Andrew Hagger | News

16 Oct 2018 Holidaymakers are losing up to 13% exchanging unused foreign currency after trips abroad due to the rates on offer from foreign exchange providers, financial data analytics experts Consumer Intelligence warn.

One of the biggest gaps between buying and selling rates is offered by the Post Office – customers buying £100.99 of US dollars at the Post Office receive $130 but would only receive £87.25 for selling the $130.

There are better rates on offer than the 13% loss on buying and then selling but Consumer Intelligence advises holidaymakers to consider buyback guarantees.

There is potentially huge demand – its research shows one in three holidaymakers intend to exchange left over foreign currency after overseas trips and 38% take more than £500 of cash abroad.

Providers offering buyback guarantees on unused currency include Asda, Travelex and Moneycorp who charge £3.99 for the service while Caxton charges £4.99 for the buyback on its prepaid cards. 

Eurochange uses a sliding scale offering to buy back 20% of the original amount for £2 after 20 days; 30% for £3 after 30 days; or 30% for £5 after 50 days. The Post Office does not offer a buy back guarantee. 

Andy Buller, from Consumer Intelligence said: “Buyback guarantees can be good value for customers planning to sell back currency particularly when compared with the buy and sell rates offered by travel money providers.

“Holidaymakers are often coming back with large amounts of unused cash and there is a real opportunity for currency providers to win more business by offering good rates on buyback schemes.

“There is certainly a lot of leftover foreign currency around in the UK and it’s all money that could be better used for something else.”

October 11th, 2018 | Andrew Hagger | News

11 Oct 2018 Android owners are more likely to clumsily crack, crush and smash their devices than iPhone users are, according to new data which has been revealed by gadget insurance provider Protect Your Bubble.

More than three quarters of Android and non-IOS users who submitted a claim to the insurance provider cited ‘accidental damage’ as the reason behind their device’s plight.

By comparison, just 62% of iPhone owners who claimed on their insurance cited the same reason.

But while the analysis of mobile phone claims made to Protect Your Bubble in 2017 suggests iPhone owners are, on the whole, more careful, the insurer’s data reveals Apple fans were more likely to water-damage their phones.

Just 4.4% of Android owners claimed for water damage, while 11.1% of iPhone owners did so during the same period.

Intriguingly, female iPhone owners were the most likely group to drown their devices, with 12.6% citing ‘liquid damage’ as the reason for their claim. Meanwhile, just 8.9% of male iPhone owners claimed for water damage, while 5.2% of female Android owners did so as well as just 3.6% of male Android users.

Protect Your Bubble also found Millennials were clumsier than pensioners, with 80% of 21 to 35-year-olds claiming for ‘accidental damage’ and ‘loss’ combined. By contrast, only 73% of over-65s submitted claims to Protect Your Bubble for the same reasons.

However, the older generation was still more likely to drop their devices in water, with 10.7% of pensioners claiming for water damage, compared to just 7.8% of Millennials.

James Brown, director of gadget insurance provider Protect Your Bubble, comments: “Our research shows that we are unquestionably a nation of butter-fingered Brits. There are few feelings worse than scooping up a once pristine smartphone from the ground and flipping it over to reveal a smashed screen or worse. Sadly, our data proves ‘accidental damage’ is the overwhelming cause of gadget mortality, with 65.2% of our customers submitting claims for this reason in 2017.

“But what raises eyebrows further is that iPhone owners are clearly substantially worse at keeping their devices above water level. One of the many causes of liquid damage is dropping a phone in the loo. Not only is someone confronted with the unpleasant task of fishing around in toilet for their device, but their phone is often rendered useless after.

October 11th, 2018 | Andrew Hagger | News

11 Oct 2018 Tandem Bank, the UK’s leading digital bank, announce the launch of a second credit product, the Journey Card, available through application via the Tandem website.

Tandem Bank obtained its banking licence in January 2018 and launched shortly after with their Cashback Credit Card and three market-leading Fixed Saver accounts, along with an advanced app that aggregates bank accounts to give users full visibility and insight into their finances. Tandem is now adding its second competitive credit card offering to its product suite, this time to a market that Tandem believe is underserved.

The Journey Card is a way for those who haven’t had credit before to build up a strong credit profile. When paid on time, and without going over their credit limit, customers can use the Journey Card to achieve better financial health. Increasingly people are realising the importance of credit scores for building a better future, be that helping them to get car loans, mortgages and better credit rates in the long-term.

One of the worst things about travelling abroad is constantly having to worry about being stung with fees when you get home, but from today, customers signing up to the Journey Card can make purchases overseas without incurring fees and will receive real time in-app updates as they spend, leaving out the nasty surprises. Following the success of the Cashback Card, it’s clear that Tandem’s customer base loves to travel and the Journey Card offers the same great overseas features plus the advantage of a smooth application even if you are new to credit.

The Journey Card offers:

• ZERO transaction fees on any purchases
• ZERO transaction fees on cash withdrawals
• 56 days interest free on any money spent
• 24.9% APR representative, variable
• Receive all updates and communication via the App (forget documents being lost or exposed account information)
• Powerful in-App budgeting tools

October 3rd, 2018 | Andrew Hagger | News

03 Oct 2018 NatWest is offering a new offer, £125 to new and existing customers switching their main bank account. The limited time offer runs from 3 October 2018 until 3 December 2018.

Customers switching to a NatWest Reward current account will also benefit from 2% Rewards on their household bills with an average of £83 received each year. A customer switching to NatWest could therefore receive over £200 just for switching bank accounts.

Additionally NatWest is enhancing the benefits on its Reward Silver, Platinum and Black accounts from 1 October. Customers will now be able to benefit from no foreign purchase fees on debit card purchases made outside of the UK, up to 40% off cinema tickets and (for Reward Platinum and Black customers) personal car breakdown cover which will cover customers for vehicles they own and will also cover a vehicle if a customer is travelling in it.  The NatWest Reward range has no minimum sign up period – meaning customers can try account benefits and cancel at any time if it doesn’t meet their needs.

Switching bank accounts is simple and can be done through the Current Account Switch Service. Payments, such as Direct Debits, Standing Orders and Bill Payments, will be automatically transferred to the newly opened account within seven days.

Switchers are required to use the Current Account Switch Service, close their existing account with their current provider and transfer their main current account to NatWest. Customers will then receive the payment by 8th February 2019.

It is simple for customers to obtain the £125. £1500 must be paid into the account and customers need to log into either online or through the award winning mobile app before 7January 2018. Customers must be 18 or over and not have already taken advantage of a cash offer from NatWest after October 2017 for opening a new current account and switching. Customers can apply on natwest.com or in any NatWest branch.

October 3rd, 2018 | Andrew Hagger | News

October 1st, 2018 | Andrew Hagger | News

01 Oct 2018 After upping the ante on the funeral price war earlier this month, the UK’s leading funeral and probate provider Co-op Funerals and Life planning has now announced another wave of measures to further support thousands of bereaved families financially.

Co-op is leading  the way in tackling funeral costs, including through its guarantee to beat like for like funeral quotes, reducing the cost of its most affordable funeral, the Simple funeral by £100 and increasing discount for Co-op’s 4.7 million members to £200 (or 5% if greater) on all core funeral options.

Now Co-op is going further by extending its guarantee to beat competitor prices on a like for like basis across its funeral plans and on probate fees.

With over 207,000 funeral plans and more than 250,000 grants of probate every year across the market, the move will have a significant impact.

According to Co-op’s data, the average cost of a funeral now stands at £3,900. Coupled with the average cost of administering a grant of probate at £4,500, the cost of dealing with a loved one’s affairs for the bereaved now totals £8,400.

The new measures are in response to recent findings from Co-op’s biggest ever survey on death and bereavement, which received an overwhelming response from over 30,000 UK adults. The survey revealed that as many 81% of people haven’t saved anything towards a funeral.

Robert Maclachlan, Managing Director of Co-op Funerals and Life Planning said: “Every year, thousands of families are having to find significant sums to arrange the funerals of their loved ones and are seeing any inheritance left, reduced by probate fees.

“Last year, 70,000 funeral plans were taken out with the Co-op, giving more people peace of mind that their families won’t be left to cover the costs of their funerals.

“By introducing these new measures, we hope that more people will plan ahead with confidence and families who are left to deal with probate can trust that they’re getting the best price.”

September 27th, 2018 | Andrew Hagger | News

27 Sep 2018 Car insurance price cuts are speeding up with drivers seeing premiums drop by 9.1% in the past 12 months, new analysis from insurance research experts Consumer Intelligence (CI) shows.

Its data shows average car insurance bills have fallen to £766 with black box technology – so-called telematics – which rewards safer driving adding to the increased competition across the market. 

Under-25s are the biggest beneficiaries and can expect annual premium quotes of £1,608 after prices fell 15.4% in the past year. The over-50s only saw prices drop 6.8% in the past year but they have the comfort of annual bills of £392.

Across the market 22% of all the top five cheapest quotes came from telematics providers. For under-25s around 60% of the most competitive policies are telematics while just 7% of the most competitive for over-50s are telematics. 

All parts of the country are benefiting with the biggest annual price cuts in the North West at 14.9%. Drivers in London still see the highest annual bills at £1,150 – more than double the lowest at £510 in Scotland.

But premiums are still 20.4% higher than February 2014 when Consumer Intelligence – whose figures are used to calculate official inflation statistics – first started collecting the data.

John Blevins, Consumer Intelligence pricing expert said: “The trend in quoted premiums is down which may be partly due to insurers passing on the anticipated benefits of whiplash reforms now.

“It’s another sign of the increased competition for business and it is likely premiums will continue to fall unless there are any major shocks in claims or tax rises.

“The influence of telematics is a major factor with increased use of it by the over-50s and a 3% rise since March according to our data.

“Generally over-50s experience the biggest price rises as a percentage and the smallest price cuts so older drivers should explore telematics if they want to beat the demographic trend.”