Those looking for a good home for their savings may be interested to hear about a new product launched by Egg.

The Egg savings account was launched today (June 26th), as its new Bonus Savings Account, allowing customers to open an account with an initial balance of at least £1 and is available to both new and existing Egg customers.

This competitive savings account offers an interest rate of 2.8%, which includes a fixed savings rate bonus of 1.55 per cent for the first 12 months.

Furthermore, this savings account does not come with any limits or charges on cash withdrawals.

Sharon Maguire, head of banking products for Egg, states: “During times of unprecedented low interest rates, customers need to have the peace of mind that their savings account is making their money stretch further.”

Those on the search for an online savings account may also wish to consider the second issue of the Principality e-Saver, launched earlier this month.

A survey carried out by department store John Lewis reveals that 18-24 year olds are the one of the most ‘house proud’ age groups, with almost a quarter of those that took part in the survey revealing that they are reluctant to entertain at home for fear of potential party accidents – close to three times  those aged 65 and over, with just 8% worrying about damage, and more than double 55-64 year olds (10%).

The study, involving 2,014 adults from Greenbee Home Insurance (part of the John Lewis Partnership), also found that 26% of this age group ask guests to remove footwear before entering their homes, almost double that of those aged 65 and over (14%) who have been found to have a more relaxed attitude.

It has been suggested that this new age of thinking has been brought on by the credit crunch, as 14% of Brits said they could not afford to replace damaged or broken items based on their current financial situation.

These findings may come as a surprise, turning stereotypes on their head, with a new breed of CHAPS - Cautious Hosts Against Party Stress.

It appears that the Midlands is Britain’s most house-proud region, with an above-average concern in all areas. Over a fifth (21%) of Midlanders make their friends remove their shoes when visiting (compared to 15% of people in South East/London) and 16% prefer not to host house parties, fearing that a party could result in damages caused by party accidents (compared to just 10% of Scots).

These results confirm that the financial crisis has turned the Britain into a nation of paranoid party poopers, but this view can be seen as well justified, as 14% said they’re more worried about household accidents or breakages than ever before as in the current economic climate as they can’t afford to replace any damaged items - rising to one in five (20%) of 45-54 year olds and 17% of women (compared to 11% of men).

James Furse, managing director, greenbee.com said: “It’s no surprise that people, regardless of their age, are cautiously house-proud, particularly with financial concerns foremost in the thoughts of a significant proportion of people.

“While those without cover are understandably concerned about the cost of an unfortunate accident while entertaining, even those with home insurance may want to consider checking their policy small print to make sure they’re covered for all eventualities. Ensuring you have the right home cover in place may offer peace of mind, along with valuable protection.”

There are a number of insurance providers offering cover that will help to offer peace of mind when hosting such an event, so if you fit into the ‘concerned host’ group, be sure to check them out!

As more of us are feeling the pinch from the credit crunch, many have tightened up on spending, becoming more aware of what they’re spending and taking a more savvy approach to their finances. But although people may be cutting back on luxuries, many have drawn the line at sacrificing their summer holidays – could it have anything to do with the weather I hear you cry!?

Where are the most cost-effective destinations in terms of currency? Is it cheaper to leave booking until the last minute? When is it worth paying with plastic abroad? These are some of the questions that you should consider when looking to get the best value from your holiday.

Many people will be making a change from the norm when looking on where to travel for their summer holiday this year. A recent poll found that almost half of those asked said they would be reassessing holiday plans for 2009, and close to a fifth said they would be seeking a cheaper holiday.

The following ‘money saving tips’ can be incorporated into anyone’s holiday:

1. Choose your destination wisely - Consider choosing a destination based on how much value you will get from your holiday pound – The euro zone has become far less attractive in recent months due to poor exchange rates, so try looking further afield.

2. Shop around for your travel insurance – There are savings to be made when looking to insure yourself while abroad, such as not going for a travel insurance policy that covers you for unnecessary things such as extreme sports when you plan to lie on the beach all day. At the same time it would be unwise to not declare something that could later void your policy, as this could cause serious problems and end up costing you dearly.

   If you travel for than twice a year, it may be worth looking at annual cover. Also, if you use credit cards, consider looking at what’s on offer in the market, as some cards come with a range of perks including annual holiday insurance. Rachel Cutler from Tesco Travel Insurance said: “Travelling without insurance can be a costly business, and it can leave you high and dry in a medical emergency. To save money, anyone who travels more than twice a year, including weekend breaks, will be better off with an annual policy; and if you’re unlikely to venture further afield pick European cover only - you should be able to extend the territory if necessary.”

3. Not just Where, but When - If you’re looking at travelling to a far-away country or have already decided on your destination, then it can be better to book as far in advance as possible. If you’re not bothered about where you want to go, leaving it till the last minute can often give you a much better change of bagging the best bargain!

4. Every penny makes a pound - In the current climate people are likely to be wary of how much they fork out for the actual holiday in terms of travel/accommodation costs, but it can be the little things that we don’t plan for that add up. For example, research carried out by Santander Credit Cards revealed that a whopping £1 billion pounds was spent replacing essential items that holidaymakers had left at home!

   It may seem obvious, but make a list well in advance of your travels as this will give you time to think about everything will need so you can avoid getting billed for being forgetful.

5. Keep your eye out for a bargain – carriers like ryanair often have great sales allowing you to get away cheaper. The introduction of low-fare airlines have swayed many from sticking to UK destinations like Blackpool, to be a little more adventurous and hit the skies, and the best thing is it is likely to cost you less! Although these low cost airlines tend to fly to closer destinations around Europe, they do fly outside the euro zone too, so it’s well worth checking how the pound stands against these currencies.

6. School holidays - The unfortunate reality is that families with young children are generally made to pay more for taking their summer holiday during the school holidays, especially when looking to go on a package holiday. According to research by Santander Credit Cards, Brits that go on holiday abroad during this period can end up paying 40% more than the same holiday taken in mid-August. You’re unlikely to even get away from this when holidaying in the UK - while you may avoid poor exchange rates, UK resorts tend to increase rates by an average of 39% during the school holidays.

   Head of Abbey Credit Cards - Callum Gibson, said: “While school holiday premiums may be inevitable, Britons heading abroad this summer can save money by cutting out unnecessary costs such as foreign exchange fees, which are charged by most providers for card transactions made in a foreign currency.”

7. What to be aware of when exchanging foreign currency – To begin with, there’s no such thing as ‘commission free’ so don’t be fooled by a bureau de change making such a statement. This is because they have to make their money somewhere, so is usually in the form of poor rates. The best thing to do is order your currency in advance as many companies will deliver it for free, so avoid leaving it until you get to the airport as you’ll end up paying through the teeth before you’ve even left the country!

   Sam Gooch, travel money expert at which4u.co.uk said: “One of the most important things to consider when buying foreign currency is the exchange rate you will receive. “Many banks and airport bureau de exchanges’ are devious in the way they attract custom through advertising 0% commission, while disguising their fee with high exchange rates that fall well above average.”

8. Is cash always king? Making payments abroad – It is extremely easy and convenient to pay for goods and services by plastic, giving you peace of mind for a number of reasons. You may not want to carry too much cash around, especially when in unfamiliar surroundings, after all if you lose cash you are very unlikely to see it again.

   Using a credit card can offer you protection against fraud, allowing you to get back any money lost as a result of fraud from your card company. On top of this, providers now offer a payment protection policy to cover you for all purchases made on your credit card between £100 and £30,000. This feature is provided by law, under Section 75 of the Consumer Credit Act, and covers you against anything bought on your card within this price range that turns out to be faulty or never gets delivered.

9. ET Phone Home! From the start of this month lasting until the end of August this year, Vodafone are providing a new service to allow people on the Vodafone network to make or receive calls or texts home from abroad (from specified countries) at the standard UK calling rate.

   The Vodafone Passport scheme is free to join, allowing customers to benefit from calls to the UK from abroad at standard calls rates, dropping the connection fees used in the past (75p + standard rate).

   Another great feature in this offer is that you can even use your inclusive minutes to makes calls on holiday. You have to join the scheme to qualify for this deal, so don’t forget to add that to your list of things to sort out before you go. The countries included are:

   Albania, Andorra, Austria, Belgium, Bosnia, Bulgaria, Canary Islands, Channel Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroes, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Isle of Man, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Madeira, Malta, Monaco, Norway, Poland, Portugal, Republic of Ireland, Romania, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, The Netherlands, Vatican City, New Zealand, Australia.

10. Travelling by train? - A popular way to travel around various countries is by train. However, this can work out very expensive, especially when moving around on a whim, as 9 times out of 10 if you choose to pay on the day you will end up paying an extortionate fare.

    One way around this is to consider an InterRail ticket. These unique tickets charge a one off fee and allow you to travel between different areas of the world using your pass. Some trains may require a supplement, such as high-speed and sleeper trains.

    Take the European ticket as an example. You can choose from a number of different durations to best suit your travel needs, i.e. 22 days continuous; 1 month continuous; 5 days within 10 days; 10 days within 22 days, all varying in price, and you can get a discount if you are ages 25 or under.

    I mentioned above that you may want to stay away from the euro due to poor exchange rates, but this pass covers a whole range of countries, so you may wish to follow a path that avoids this currency, and with 30 countries to choose from, you really are spoilt for choice! The Global euro pass covers the following countries:

    Austria, Belgium, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, FYR Macedonia, Germany, Great Britain, Greece, Hungary, Italy, Luxembourg, Montenegro, The Netherlands, Norway, Poland, Portugal, Republic of Ireland, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey.

    If you are only interested in a single country, you might wish to go for a one country pass - which entitles you to travel within your chosen country as well as extra benefits such as discounted or free shipping services and reduced admissions to museums.

    Alternatively you could go for the InterRail Benelux Pass offering access to trains within Belgium, The Netherlands and Luxembourg; or the Greece Plus Pass, which includes ferry crossings from and to Italy as well as unlimited access to trains across Greece.

Principality has increased savings rates on its instant access e-Saver account from 1.65% to 2.85% .

This is a very significant change and is likely to cause similar reactions from competitors which is great news for savers. There are terms and conditions that apply and this rate only applies for a year after opening the account (as with most accounts).

Before Principality announced the increase, ING was at the top of the table, offering one of the best rates available at 2.75% on its ING Direct Savings Account, with the Sainsbury’s Internet Saver close behind at 2.60%.

There have been a number of significant changes in the credit card market since the last quarter of 2008, mainly

Credit Cards

caused by the the credit crunch.

Irresponsible lending has been blamed for causing the credit crunch, so it is understandable that  credit card providers have become stricter on who they lend to, tightening acceptance criteria making it harder for some to be approved for credit.

This caused a fall in the acceptance rate, as providers recognised that this previous lending trend needed to be broken as many believed it was this that triggering the financial crisis in the first place.

However, within the last few months the market has seen a rise in competition, which has increased the amount of choice available and in turn led to a growth in consumer appetites for credit cards.

Something else worth noting is that many providers have made these attractive deals available to existing customers only as a way of reducing the risk factor, as this allows the provider to have a pre-existing relationship with the customer, thus enabling them to make a better judgement based on customer profile history.

An existing customer is someone that already holds an account with the provider, such as a savings account or current account.

An example of this is Natwest and RBS, both of which recently increased the balance transfer duration on their Platinum credit cards from 13 months to 15 to all existing customers.

There is nothing stopping you from exposing yourself to the best credit card deals on the market by opening a number of different current accounts spread across multiple banking institutions, as these days most accounts cost you nothing to open with no maintenance costs, so you have nothing to lose in doing so.

According to the British Bankers’ Association, in April, the amount of outstanding credit fell by £412 million to £64.3 billion, £457 million less than the same month last year. The proportion of balances accumulating interest also fell by 0.9 percent to 72.9 percent.

If you have been rejected for a credit card, it is probably due to your credit history not meeting the lenders criteria. It may be worth looking into adverse credit cards, as these are designed to accommodate people that have found it hard to be accepted for a credit card due to a number of reasons.

Abbey Fixed Rate Bonds

Abbey has launched a new fixed rate bond offering very competitive rates of interest on one & two year terms. These great accounts allow you to calculate exactly how much interest you will earn from your investment, so you can sit back and watch your money grow.

The new Abbey fixed rate bonds have been designed to suit all types of savers, with the Abbey 1 year account offering savers a rate of 3.0% on balances of £1 up to £24,999 and 3.5% from £25,000 up to £2,000,000, and the 2 year account offering 4.01% on balances of £30,000 up to £2 million.

On maturity you can have your deposit plus the interest earned paid into an Abbey savings account or any other UK account held in a bank/building society.

These accounts are available to new and existing  customers who plan to transfer or deposit funds that are not currently held within the Santander Group (Abbey, Alliance & Leicester, Bradford & Bingley, cahoot and Cater Allen)

You cannot make any further payments to your bond after the initial opening deposit, so make sure you put in the full amount you decide on at the start

This is a limited offer and subject to availability. Apply today as this product can be withdrawn at any time.

This years budget has proved to have its ups and downs, but a definite bonus to all you savers out there is that the amount of money in which you can invest into an Individual Savings Account (ISA) will be increasing from the current maximum of £7,200, to £10,200!

This means that you can boost your current annual £3,600 cash ISA savings to £5,100, and the same goes for your stocks & shares ISA allowance, but with this type of ISA you can invest up to your full ISA allowance, giving you the option to potentially invest £10,200 every year - either entirely into a stock & shares ISA, or a combination of the two.

This is great news, as it effectively means that you can invest a higher amount and receive 100% of the returns, without having to pass a penny on to the tax-man!

However, the new allowance will not be made available instantly. If you’re less than 50 years old, you will have to wait until the beginning of the new tax year (6 April), and even for those that are aged over 50, you will have to wait until 6 October before you become eligible to invest the increased amount.

Due to popular demand the Alliance & Leicester £100 switching incentive is back for one month only!

All you have to do to qualify for the free £100 is switch current accounts from your existing provider to the Alliance & Leicester Premier or Premier 50 Current Accounts. Apply online and benefit from the free Premier Switching Service.

The Alliance & Leicester Premier Current Account comes with a great overdraft facility with a 0% EAR typical on up to £2,000 for the first year, then a 50 pence per day (up to £5 per month) usage fee after this period, which will only be applied if the overdraft is used. You can also benefit from a points scheme, exclusive mortgage and loan deals, and free breakdown cover when you buy car insurance through Alliance & Leicester. You must be aged 21 years or over to  qualify for this account.

The Alliance & Leicester Premier 50 Current Account comes with some great features, like annual multi-trip travel insurance covering anyone up to 79 years of age,plus health care and fraud protection, as well as a great interest rate of 5.0% on balances up to £2,500. After one year, 1.00% AER (variable) applies. Balances over £2,500 earn 0.10% AER (variable). To qualify for  this account you must be over the age of 50. Get all of this for just £10 a month.

You can access to your account wherever and whenever you like with internet, phone and mobile banking services, or during opening hours at your local Alliance & Leicester branch.

On successful approval of your application, £100 will be deposited into your new Premier or Premier 50 Current Account within 15 weeks.

This great offer is only available until 28/05/2009, so if you missed out last time make sure you take advantage before it’s too late!

Virgin Money Credit Card

Virgin are now offering a fantastic 16 months interest free on balance transfers. This has increased from it’s previous period of 15 months, stepping it up to the longest period available on the credit card market.

This card is recommended for those that wish to transfer a balance over to pay it off, rather than a card to make purchases with, so if the Virgin money credit card sounds right you you, come and apply at Which4U

Please note: If you have one of Virgin’s sister credit card with MBNA, you are unlikely to be accepted.

How to save your money

By the time you hit 30, there are a number of steps you should have or are planning to take to build on your financial knowledge to secure your future finances.

Life has a way of passing you buy, and before you know it you’ve lived out your 20s and suddenly you’re a fully fledged adult.

Welcome to the 30s club! Up to now, you have probably learned enough about yourself and your finances to know at least the basics for managing your money. Now it’s time to build up the foundations of this knowledge and experience to set yourself up for the future.

There are a number of steps that should be employed by anyone in their 30s towards a better financial future. 10 principles have been outlined below that can help you in reaching your retirement goals:

1. Your first objective should be to clear all non mortgage debt. In Your 20s you are likely to have far less financial responsibility, but 30s tend to bring new financial obligations such as a family to support and a mortgage to repay. One of the most effective ways of freeing up your cash is by paying off your debts. It is assumed that you will have paid off any credit card debts over the last decade, but if this is not the case then this should be your priority.

The most effective way to pay off credit card debt is through transferring the debt to a credit card that has a 0% balance transfer period. This will allow you to set up a payment schedule to clear the debt over the 0% period, without incurring any more interest. Most credit card providers will charge a transfer fee of around 3%, but this is likely to be significantly lower that the high rates you’re currently paying.

After these high interest debts have been cleared, focus on clearing any student loans and other forms of debt.

2. Lose the debt habit. It’s no good clearing all of your debts if you go out and acquire new ones.
One way of avoiding debt is by saving up for costly purchases such as new car or kitchen appliances. Now you’re debt has been cleared, you could deposit the money you would have otherwise been paying in interest and repayments into a high interest savings account. For example, you have just made your final monthly repayment of £250 on a loan, rather than simply giving yourself more disposable income, continue to make the payments but into a bank account. After a year you will have saved £3,000 without even noticing any difference in your outgoings.

3. Start taking a serious view to retirement. Most people don’t plan for their retirement in their 20s. This wasn’t the time to start investing and you may not have been paying into a pension fund. Now it’s time to start planning for your future and looking at all of the possibilities in terms of retirement and a pension fund.

This is everything, from what age you wish to retire; how you would like to live - how much money you will require, all based on a realistic goal that you can reach through what can seem like a lifetime of investing. Time is still on your side, so use it before it passes you by and makes things difficult. The earlier you start the better, and the more chance you will have of enjoying a comfortable retirement without having to give up too much until then.

Before you begin to think about saving for your children’s futures, e.g. education expenses, ensure you have sorted yourself out. You can easily take a loan out to pay for college, but not for retirement.

4. Don’t put all of your eggs in one basket. You should diversify your investments to ensure your cash isn’t tied up in one sector, as markets have been known to crash and this could leave you with nothing.

It is generally recommended that you should try to invest around half of your portfolio to large companies, split evenly across growth and value.

You may want to look into putting some of your savings into fixed rate bonds. These accounts allow you to fix the interest rate paid on your balance for a specified period of time, allowing you to predict how much the investment will earn. This is also good as the base rate is on a downward path, as a variable rate savings account would reflect these changes by reducing the rates. By fixing the rate you can protect yourself from these reductions. There is an element of risk involved in fixed rate bonds, as rates could also rise through the life of your account, which would leave your savings subject to a lower rate than that offered to new and variable rate customers.

5. Every day’s a school day. Continue to learn and never stop investing in yourself. You will begin to widen your investment knowledge, and it is this that will help your earning power through informed decisions.

6. Protect your assets. There is only so much planning you can do to prepare yourself for the future and even what appears to be a full-proof financial plan can be derailed as a result of unexpected cost. It can pay off to cover yourself from every angle, allowing you to survive every “what if” scenario. This can be as simple as taking out adequate insurances to cover your possessions and even your life.

It is also a good idea to save for an emergency fund, covering yourself in the event of a job loss, medical emergency or anything else that life may throw at you. This should be enough to cover all of your outgoings for up to six months. This may all be too much to take on, so you may wish to start saving a small amount towards this fund so you can build up a more substantial amount over a time.

7. The simple life. Saving your gratification for a distant future might not be fun, but adopting a simple lifestyle is an effective way to reach the goals of today, while still achieving your long-term goals. Take a close look at all of your regular outgoings and spending to identify areas that could be trimmed for the cause. Small sacrifices can lead to big rewards.

8. Write a Will. This may seem like a hasty step to take, but if  the unthinkable happen, you would have no choice in where your possessions go. A will can ensure that your wishes are met, allowing you to specify who would be entitled to your assets.

If you’re a parent to children under the age of 18, think about who could take care of them should something happen to yourself and the other parent. This can also be specified in a will.

9. A price on your life. If you have somebody who depends on you financially, it is important that you consider taking out a life insurance policy. If you died, you would want to be sure that they were financially secure. At 30, there are some great life insurance deals available to you. The premium can be reduced based on certain elements, such as not smoking.

10. Tax free savings. An effective way of saving towards a better future and taking advantage of your tax free savings allowance is through cash and investment ISAs. Each year, all individuals are entitled to an ISA saving limit of £7,200, in which they can invest cash and investments. There is a £3,600 limit on cash ISAs within any one tax year, but you can invest the full £7,200 in a stocks and shares ISA, with a Capital Gains Tax (CGT) exemption of up to £9,600 per year.