At the end of 2009 the average branch based instant access savings account paid a measly 0.17%, which a notice account wasn’t paying much more than 0.33%.

However, if you look at the top 10 savings accounts in the Which4U comparison tables, you will notice that the best rates are offered on fixed rate bonds, so if you’re willing to lock your money away for a fixed period of time, you could be earning up to 4.75%.

How do they work?

A fixed rate savings bond is a bank account that allows you to earn high interest rates in return for agreeing to leave your money without making any withdrawals until the agreed term is reached.

Returns on the investment are limited to the interest paid on the account, which can be calculated before the bond is opened, providing a predictable income.

Fixed bonds differ from standard deposit accounts as the interest rate is guaranteed to remain the same throughout the fixed period. The terms differ, with rates to reflect the term, but they usually last from between 6 months and anything up to around five years.

The interest accumulated every year is added onto the balance and paid on maturity.

It is generally possible to access your funds in an emergency, but doing so would result in the account being charged with a loss of interest.

Banks and building societies offer more attractive rates of interest on this type of investment because it gives them the ability to gain access to secure long term deposits.

Currently, the best five year fixed rate bond pays a rate of 4.75% (Nationwide bond) per annum compared to the best instant access accounts offering 2.80% (Halifax).

You could argue that rates will change over the next 5 years, so you need to consider this when making a decision on the term, as you could find that you are earning less than the current instant access accounts are paying.

Should you consider them?

Savers should consider a number of factors before deciding whether they should invest into a bond and the term they choose.

When will you need the money?

Avoid being drawn in by an attractive rate without fist making sure that you can do without the money until the bond matures.

The cost of borrowing money is usually greater than the return you will get from the bond, so this is a no no.

Are interest rates likely to go up during the term?

This can be a difficult call. The answer is simple, people can make predictions to the direction of interest rates, but no one knows for sure.

But considering how long the Bank of England base rate has stayed at 0.5% (since March 2009) and the fact that some economists believe it will remain this low for another 12 months, savers can be more comfortable with getting good rates for just one or two years, giving them the flexibility to reinvest again in a few years time.

What do you give up to qualify for a better interest rate?

For the better return, savers do give something up – the access to their savings for a set period and access now to the interest earned.

So for savers who need an income now these products may not be suitable.

There is also the possibility of losing the chance to use the money more profitably, perhaps by investing in other assets such as equities, or paying off a mortgage.

Investment bonds

Investment bonds are fundamentally different and involve investment not saving.

The policies are typically sold by life assurance companies which allow you to invest in a variety of funds (either investment trusts or unit trusts) managed by professional investment managers.

Bonds are usually used for long term capital growth but can also be used as a means to generate income.

Investment bonds tend to invest in a wider range of assets than savings bonds, including UK and overseas equities, commercial property, fixed interest securities, and cash- like investments.

In most investment bonds, investors can choose the amount in which they wish to invest into and can change the weighting of their investments several times a year.

Taxation

For tax purposes, investment bonds act as life assurance policies, therefore subjecting them to tax on the returns gained.

So here we go: the young couple chooses the house of their dreams and agrees to opt for a loan.

The compromise is as easy as a pie: if payments are not made in time, or not made at all, the company making the loan can take away both the loan and the property.

Obviously the new home owners have other things on their mind, than simply staying in their house. Youth reserves endless opportunities for people, in this spirit the young couple takes time to enjoy other things in life. Unfortunately here comes the catch, those who apply for loan are not among the wealthiest people, and there is always something to spend money on. It is never too late to save some money on your mortgage and use it in other directions.

Here are some ideas to pay less and enjoy more:

Use a simple interest mortgage rather than a standard mortgage.

The reason is very “simple”: the interest is calculated daily instead of being calculated monthly. Suppose the yearly interest rate is 6%, then the daily in a typical year is 0.016 %.

For example, a daily payment  deal based on a £100.000 loan would work out at £16.44 per day and even if you are late with the payment, the advantages outweigh the disadvantages.

Take care of your mortgage loan problems with a bi-weekly mortgage.

It is not brand new, it has a black tradition as it was first introduced as a method of saving money on mortgages by nobody else than the bank itself. So what is so extraordinarily revolutionary about it? It is the fact, that you can administer it yourself, without costing anything. The secret lies behind the average mentality of ordinary people. Gradually changing the way in which you pay is the answer.

Why bi-weekly and not another formula? Fortnight payments are the most simple and revolutionary methods. Americans especially and few other countries receive their paycheck in correspondence with this formula, thus you pay when you actually have most of the money. The mathematical advantage is relevant, because making 26 (there are 52 weeks altogether in a typical year) half payments would mean making 13 full mortgage payments. Splitting the payment, gives one additional payment!

Skepticism would force you to say that this is the work of a guy with a flourishing imagination, as banks do not agree to take such transactions. Correct, but don’t forget that you are the one administering your own budget. Easier said than done, wrong! Create a savings account and deposit the sum, then when the payment is due, open the account and let the money flow.

Accept my apologies if the article is based on pure numeric artifices.

The ones, who will adopt this method, will notice a change within 24 years suppose the mortgage was set for 30 years. By saving time, customers can save money, no wonder people say that “time is money”.

A mortgage calculator can serve as a saving method.

Calculators can efficiently educate one, in how to take decisions in case he plans buying a new home. Mortgage calculators are excellent tools when somebody wants to know how much a loan will cost him\her. At the same time, these tools evaluate the possibility of reducing debt gradually, by the help of accurate monthly figures.

So how do mortgage calculators help people save money, if actually all that they do is to propose a future plan of payment? The answer is simple: they prevent people jumping into uncalculated expenditures well before the moment of the investment.

Human factor is the most essential element in a mortgage saving plan.

Additional expenditures will definitely not be saved in this case but at least you know that besides luxury, a professional bank representative will take care of your mortgage. By doing this, you will save a lot of time and headaches caused by complex terminology (let’s face it, it is still a privileged business) and by bureaucracy. Another advantage is represented by the fact that lenders work more easily with a broker, after all they share the same background and language.

Coming to a conclusion, a saving plan no matter where it is implemented has to be done from the first moment, the sooner the better. The same applies for the mortgage business.

First of all, try to make yourself aware of the collecting agents’ behavior which suggests that the more pressuring they are, the most success will come out. Collectors believe that what they are doing (such as harassing calls and threats) actually helps in their bids to collect people’s debts on behalf of their clients, or from our point of view, the lenders. Such collection agencies would do anything, from very frequent calls to taking the borrower to courts. They also make use of psychology among the many strategies they use, which can be an explanation why they put focus on harassing people.

So in order to be efficient against debt collectors, people should learn the techniques referring to dealing successfully with such agencies, otherwise they have a few chance to handle the pressures. Keep in mind that the most important rule is the following: do not panic! Debtors should get the chance to contest the claim with the help of a written verification. This should contain the name of the debt collector who urged for payment, the owed amount, and everything that seems to be disputable in the account-statement. Debtors are also recommended to find a reliable credit counselor, who can implement an appropriate settlement that seems to be acceptable both for you and for the collector.

Nevertheless, do not take anything to be personal, meaning that collectors do not have problems especially with you. They do their jobs. It is their obligation to remind people of their dues through frequent collection calls. For some people these calls are so annoying, embarrassing or disturbing that they panic, and do not know what to do. But there are a plenty of options.

First, people can try to stop the collection calls by writing them a letter with such instructions. One is advised to save a copy of that letter and get evidence somehow that the other party received the letter. If they still keep calling you, this means they violate legal rules by using harassing and unfair debt-collection practices. But if one manages to stop the letters, this means that collectors can only communicate with them via letters. These letters have to state the debt’s amount and nature. When answering to such a letter people are advised to be very careful not to write any inappropriate information as these might be used against them. Moreover, people can check whether the information provided by collectors is true.

Second, people should know their rights, such as the term of years for instance within which collectors can file a lawsuit against them. If this period is over, debt collectors lose this right, so practically they cannot make any legal action against you. Such debts are referred to as time-barred debts, and if one finds out he or she has such a debt (so the time period during which collectors can file a suit is over), there is no much to do. Even if they get sued, they cannot be forced to pay, as they may use the time-barred nature of their debts as a defense. People however have to be very careful no to admit that they owe something; otherwise the contract can be extended.

Finally, in order to handle abusive debt collectors efficiently, people are recommended to keep records of everything possible, so of all contacts with one’s collectors. One should save seemingly useless letters for instance, such as letter asking for payment. Moreover, any kind of communication coming from one’s debt collectors should also be preserved. It is also a good idea to keep a note on all the calls, their date, duration, the phone number and the name of the caller. Retain copies of agreements and sent letters as well. These actions are important, as it happens very often that one resolves a problem, but the problem reappears without collectors admitting they have agreed to the solution. So it is always good to track all your accounts, know your rights as well as the history with your debt collectors.

All in all, people who are in debt are not in a good position. But by having a clear debt-elimination plan, and by knowing one’s rights, people can finally succeed. Do not forget that debt collectors are not allowed to call you before 8 am and after 9 pm, which refers to local time, so it is not an excuse that collectors are somewhere else, within another time-zone. Also, do not hesitate to inform collectors if your employer does not agree with their calls at your employment place. Remember, that debt collectors cannot misrepresent their identity as a collector, nor they are allowed to publish your name and address. Moreover, collectors cannot get information from third parties except from your current address or phone number. Similarly, they cannot threaten you with reporting false credit-report information.

Be aware of the fact that if a collector breaks these rules and is abusive, one has legal rights to ask for their supervisors. Make sure to save all kinds of communication (such as voice mails or letters) with detailed descriptions, such as who called, at what time, the duration of the call, the frequency, as well as the topic of the discussion. Many people actually manage to win lawsuits against debt collectors, but only if they have an accurate register of abusive tactics of the collectors.

Types of mortgage loans

Mortgage loans are short term as well as long term loans (generally over a period of 10 to 30 years) obtained to purchase properties. It requires a monthly or periodic payment .The principal or original loan amount is gradually paid down by amortization. There are two basic types of amortized mortgage loans.

• Fixed-rate mortgages: In fixed rate mortgages (FRMs), the interest rate and the monthly/periodic payment remain fixed for the entire term of the loan. Borrowers do not have to worry about the changing interest rates. FRMs are generally given for a term of 10 years, 15 years, and 20 years or even for 30 years. This type of mortgage is very affordable when the interest rates are low.During the early amortization period, a large percentage of the monthly payment is paid towards the interest. Fixed-rate mortgages are generally preferred by most due to its fixed interest charges and leveled periodic payments.

• Adjustable-rate mortgages: The interest rates in ARMs are generally fixed for a period of time after which it periodically increases or decreases at preset intervals as per the major market indexes. The rates charged for ARMs are lower in the initial period as compared to the fixed charges for FRMs. The initial period may vary from 1 month to 10 years.

Impact of down payment on mortgage loan

Most lenders require a cash down payment of 5 to 20 percent of the sale price of the property. A higher down payment enables the borrower to apply for a lower loan amount which in turn reduces his monthly payments. Borrowers may even obtain a private mortgage insurance incase they fall short on the down payment.

Lenders scrutinize the credit report of the borrower to determine the amount of the loan. A good credit score helps to qualify for a mortgage loan with an affordable rate of interest.

In addition, higher rate on dividends will move from 32.5% to 42.5% of the grossed up income (equivalent to 36.11% of the net dividend) for taxable income above £150,000.

As a result of the changes to become effective from 6 April, private banks and wealth managers have been advising those who will be affected to act now in order to protect their income. Many are taking steps to bring forward earnings to this tax year, or plan their finances in an attempt to lower the impact.

Below are some tips outlined by Which4U that higher earners should consider:

1. Make full use of all your tax allowances Many of us complain about how much tax we pay, but forget to take advantage of tax free breaks. The truth is, many of us could be missing a trick when it comes to tax relief.Always ensure you have used up your allowances by the end of every tax year. A popular tax free savings incentive is your first port of call, in the form of individual savings accounts (Isas), with an annual allowance of £10,200 (or £7,200 for those under 50 until April 6th), as well as tax-free National Savings & Investments products.No income tax is required to be paid for any interest or capital gains earned using Isas, so make sure you shop around to find the best Isa rates, or alternatively if you wish to invest in a stocks and shares Isa, do some research into the market.

   Transfer investments that provide an income to your spouse, if he or she does not work or has earnings that fall in a lower tax band. This now not only applies to spouses on the basic rate tax but also those paying 40%, if the other spouse currently earns above £150,000 per year.

2. Close your bank account According to advisers at Deloitte, those that have a savings account paying interest on an annual basis that is due to be paid after April, should consider closing the account before the new tax rules kick-in in, allowing the interest payment to be subject to a lower rate of income tax. After, you can simply open a new bank account.
3. Donate to charity in the new tax year After 6 April, high earners making donations using the Gift Aid scheme will qualify for higher tax relief, which means that more money will be given to the charity. However, you should think about the potential impact delaying your regular donations could have on the charity, especially in the current financial climate.
4. Accelerate your income Some employers have chosen to pay employees their salaries early to avoid the higher tax. Consider asking your employer if this is a possibility. This may be easier for those in entrepreneurial or family businesses.You can also make use of any share options you currently hold, as these attract income tax so you will pay the lower rate. Those already getting pension income are able to opt to receive annual payouts as a lump sum before the changeover date in April.
5. Add more to your pension fund in the new tax yearIt has become apparent that pensions are looking more of an unattractive option to higher earners, with tax relief cut to 20% on some contributions.However, if you do fall into this category, you may want to act fast. In the 2010/2011 tax year, those earning more than £150,000 will be eligible to put in at least £20,000 and up to £30,000 with 50% tax relief, before the new restrictions come into play in 2011.Advisers at Deloitte have suggested that people earning between £100,000 and £113,000 – who will effectively be paying 60% tax from April as a result of their personal allowance also being eroded – should also add to their pensions.
6. Consider venture capital trusts (VCTs) Although these start-up investment schemes can be quite risky, they are being labelled as an alternative to a pension fund for higher earners because contributions attract 30% tax on the way in.
7. Move your assets into an offshore bondOffshore bonds are investment bonds that are operated by life insurance companies and also have some life insurance attached to them. This enables you to avoid paying any tax until you encash the bond. The idea is that by the time you come to encash the bond, you may be subject to a lower rate of income tax, for example when you’re retired – or if you have become an expat or a non-dom, you may not have to pay any UK tax whatsoever. Many well known financial advisers are using this approach for clients.
8. Change from income investments to Capital Gains Tax In 2008, capital gains tax was lowered to 18%, and investors have since been looking to acquire returns that are taxed as capital gains rather than income. According to advisers, the 50% income tax band has sped-up this switch. Over the past year, demand for products such as zero dividend preference shares has significantly risen, as well as funds that work on a total return basis instead of generating income, such as absolute return funds.
9. Consider leaving the countryThis may seem like a rather extreme measure – but advisers at Cazenove and Schroders Private Bank have said that many of their clients are considering this option in response to the substantial tax demands.

This usually means transferring cash ISAs to get a better deal, but what are the rules around moving your cash between ISAs?

Which4U is aware that many savers are either baffled by the rules around ISAs, or not given useful information from providers.

Many accounts offer introductory bonus rates that only last for a specified period, after which the rate falls significantly, sometimes without savers even being aware.

This means that many savers are earning pittance on their funds, which defeats the object of opening an ISA in the first place.

Out of the £163billion currently invested in cash ISAs in the UK, the average rate paid is just 0.4%, down from 4.36% last year.

Some accounts, including the Alliance & Leicester Branch ISA, Abbey Easy ISA, Barclays Cash ISA and Halifax ISA Saver pay just 0.10%, the equivalent to earning a measly £1 per year for every £1,000 in the account.

However, do a bit of searching for the best ISA rate and you could earn around 3% – that’s 30 times more interest than the account mentioned above.

The Abbey Direct ISA pays 3% on balances of £9,000 or more, allowing you to transfer previous years ISAs. The account is based on a 12 month period, offering no withdrawal restrictions.

Alternatively you could go for the ING Direct Cash ISA, offering 2.5% on all balances, although you cannot transfer an existing ISA across to this account, so would be better for someone that is new to ISAs.

The Natwest e-ISA also allows savers to deposit between £1 and £10,000 to qualify for 2.0% AER, or 2.25% for balances between £10,000 and £30,000. anything over £30,000 pays 2.50%. This account comes with no withdrawal Penalties and allows customers to transfer existing ISA balances across.

Not all top-paying accounts allow transfers, it is up to each bank or building society to decide.

There are strict rules around transfers, so always make sure you understand them before attempting to switch ISA providers. First of all, the most important rule of all is to never attempt to move the funds over yourself. This is ALWAYS done by the bank/building society you wish to transfer to and attempting to withdraw your funds in order to move them across to the new account would result in you being unable to deposit your full balance back into an ISA, with you being limited to the annual amount and effectively ruining the previous years spent building up your pot.

Luckily, the ISA transfer process has improved since over the few years or so, when some savers were made to wait months for their money to be moved.

New guidelines have been implemented which will shorten the switching process from the 30 days permitted by HM Revenue & Customs to 23 business days for cash ISAs.

Several banking institutions have set up a new system to allow cash ISA funds to be moved between them electronically, which could reduce transfer times to just 12 days. These include Lloyds Banking Group, Abbey and RBS NatWest.

These are the basic ISA rules:

• You can transfer your savings from one cash ISA provider to another, provided that your chosen account accepts transfers.

• If you wish to transfer a cash ISA opened in the current tax year (April 2009 to April 2010), you can do so but if you transfer the whole balance to the new provider.

• With cash ISAs opened on or before April 5, 2009, you can transfer some of or all to the new provider.

• The current ISA allowance for those aged 50 and above is £10,200, and £7,200 for everyone else. In the new tax year (April 6th 2010) all savers will be eligible to save up to £10,200 in cash ISAs and stocks and shares ISAs.

• You can use your entire annual ISA allowance to invest in stocks and shares ISAs, but you may only invest half into a cash ISA.

If you are a businessman, you need business insurance quotes

just as you need home insurance or personal auto insurance. The insurance protects you against many mishaps, especially if you as a businessman have to do with other people who are under your jurisdiction (employees). Personal liability issues can almost never be solved if you don’t protect yourself through proper business insurance.

But let’s see firstly what types of business insurance you can find out there:

• Business insurance for simple shops (smaller ones usually)
• Insurance for personally owned offices
• Business insurance for hotel and / or restaurants
• Even if you run a smaller home business, you can buy yourself insurance as a protective measure

The criteria upon which these insurance types online
differ are mainly given by their degree of risk. For example, if you own a home based business, that is much safer than owning a shop where you have to directly interfere with clients, thus you become more exposed to liability issues like customer complaints.

There are three main business insurance coverage levels, which are also the most important and these are:

• Personal liability insurance
• Buildings and contents insurance
• Business interruption insurance

You have to protect your merchandise and the actual building through buildings and contents insurance. Whether the building itself, the physical location of your business is personally owned or not, it is till very important for you to have it insured. Depending on the type of merchandise you do have, so will insurance premiums cost more or less. For example if you only have clothes which in case of fire would cause a great damage everywhere on the site the insurance premiums will still cost you less than if you would have merchandise consisting of some dangerous materials (odor sprays for example which are highly inflammable). In order to somehow get your business insurance on cheaper terms, you should make all the safety measures you can:

• Install burglar alarms
• Install smoke detectors
• Fire extinguisher and other such safety measures

For what you fear the most, or the higher the potential of something to go wrong with your business, the more you will pay for the insurance. This is a well known strategy and you can do nothing about it. For example, if your business is located in an area where floods can happen at any time, then flood

insurance coverage will be missing from your standard business insurance policy. You will need to buy that separately, as an additional provision, and it will cost you more. Then, responsibility is a key point in business life; the more responsible for other people’s life you are the more protective insurance you should have. Think of someone who owns a hotel or a restaurant where there are new customers on an hourly basis with whom you have to deal, and where from the first minute you are exposed to liability issues. So, personal liability insurance is very important if your business involves dealing with a lot of people in general. Moreover, it is very important that you buy insurance only from trustworthy issuers and make sure that you understand each provision and statement on the fine print before you actually sign up for it.

You may or may not  have noticed it, but consumers are fighting a war against the firms they have to deal with after falling victim to mindless companies, whether it be due to faulty products that need replacing, or out-right poor service.

Sale Of Goods Act

Think twice before upgrading your cover to a five-year extended warranty.

The Scenario: Your 42” HD-Ready plasma TV, the totemic centre of your life, fails to switch on after just 366 days since you first met in the electric store. The firm you bought it from tells you that as you failed to extend your warranty, there is nothing they can do for you, and suggests you purchase the latest model together with the 5-year guarantee.

Tears begin to fill your eyes, dropping onto your lifeless grey screen as you ponder what to do next.

But as long as your tears didn’t cause your TV to smoke, hold that thought, because lucky for you the TV salesman didn’t know what he was talking about!

Here’s why. The Sale of Goods Act states that your TV must be fit for purpose upon purchase.

Dr Christian Twigg-Flesner, a consumer law expert at the University of Hull, says: “It must be as described. It must be of satisfactory quality, sufficiently durable, free from any defects”.

Before you get too excited, you need to make sure you didn’t ignore any of the warnings provided in the manufacturer’s handbook. This can be obvious things, for example you didn’t install it in your bathroom, or attempt to fix it by removing the back in desperation to try to fix the problem. If this is the case then you’re unlikely to have a leg to stand on.

However, if, in the short time you spent together, you treated your television with respect and despite this it still broke down, it could suggest that there was in fact a fault with it when you bought it, which would not meet the above regulation.

In this position, your legal rights will differ depending on the amount of time that has passed since you bought the TV. You could have a case for faulty items for any period of time up to 6 years. Here’s how it works. From the date of purchase, up until four to five weeks (depending on the retailers policy), you have the “right of rejection” – which basically means that if your TV/MP3 Player/Mobile Phone, stops working within this time, you can demand a refund.

Up to six months after the purchase date you are still entitled to get your TV replaced or repair, and if the retailer contests your request, it is up to them to acquire sufficient proof that it was you that was to blame, therefore avoiding responsibility. After this time, you can still get the retailer to replace or repair faulty goods, but in this case it is your responsibility to prove that you were indeed not at fault.

Many will be surprised to hear the next part. Goods are covered by the Sale of Goods Act for up to six years from the purchase date, but you need to be able to argue your corned, as you need to convince the retailer that your item was not “sufficiently durable”.

Government guidelines state that: “Goods are of satisfactory quality if they reach the standard that a reasonable person would regard as satisfactory, taking into account the price and any description.”

Something that should be pointed out is that if you go to the TV repair man and spend £50 in an attempt to diagnose an inherent fault, only to find out that your dog mistook your TV for the tree in your back garden and you failed to notice the damp spot where your TV once stood, then you will end up footing the bill, so be warned.

Another good piece of advice is to remember that your relationship in the Sale of Goods Act is through the retailer rather than the manufacturer.

Dr Twigg-Flesner points out that “The retailer likes shepherding you off to the manufacturer”.

Looking on the bright side of extended warranties, they can offer ongoing services such as technical support, providing useful information, from setting up your appliance, to getting the best use from it. But I wouldn’t necessarily recommend adding one when buying a new electric toothbrush.

The Sale Of Goods Act applies throughout the UK, but has several minor differences in Scotland.

Consumer Credit Act

Most credit card providers offer guarantees on purchases as standard when made using the card.

The Scenario: After lots of searching and emptying your savings accounts, you’ve finally found your dream computer. You’re extremely happy as surprisingly it was much cheaper than you could find anywhere else, so excitedly you complete the payment of £300 using your credit card. The date of delivery arrives, but after eagerly awaiting the delivery man, you don’t hear a peep. Gutted. After switching on the radio, you hear the news reader report that cheapestcomputers’r'us has gone bust. It turns out that £300 was too good to be true and the company had been going further and further into the red.

You call up the company to find out what’s going on and a displeased operator is rather unhelpful. You are told that won’t be receiving your computer, nor will you be expecting a £300 refund as all remaining money was passed to the liquidators to pay all of the creditors.

Head in hands, you break down into tears. No computer and £300 down. Gutted.

But hold onto your dignity, because the good news for you is that you don’t need to attempt to follow up further correspondence with cheapestcomputers’r'us as there’s another avenue you have yet to explore.

As you paid for the computer using your credit card, It is very likely that you can make use of section 75 of the Consumer Credit Act to retrieve your £300 refund. This regulation is used exclusively for credit cards and states that your provider will guarantee you for any purchases made using the card for items costing between £100 and £30,000.

So in terms of a refund, you may as well have purchased the computer from your credit card provider.

Supply Of Goods And Services Act

Think of services as goods.

The Scenario: Your car fails to start, so begrudgingly you take it to your local garage. The mechanic pops the bonnet and immediately lets out a lasting sigh – the kind of sigh that tells you things could get expensive. After handing over your hard earned cash you’re pleased to be back on the road, but the next morning, to your despair, you experience the same problem. After calling the garage you are horrified to find out that the garage refuses to fix the problem without leaving you further out of pocket.

Thank goodness you knew that services are covered in the same way as goods. It is in fact up to the garage to provide a service that is carried out with reasonable care and skill.

To sum up, you can demand to have the issue put right, either by the garage that failed to solve the problem in the first place, or charge the first garage to pay for another mechanic to sort it.

This applies throughout England, Wales and Northern Ireland, but has some small differences in Scotland.

Denied Boarding Regulations

Airliners can’t get away with messing with your schedule.

The Scenario: You book a flight to the south of France using low cost airliner ‘nickel-and-dime airline’. After arriving at the airport you are told that the flight has been cancelled, and you are not offered any compensation.

What you should know: The European Union recently brought in new regulations that have angered some sectors of the airline industry.

If upon arriving at the airport, you are able to meet the boarding criteria, for example checking-in on-time with a valid ticket, but you were denied entry onto a flight – or the flight is cancelled, fight your corner, because you have rights!

To begin with, you are entitled to refund within seven days, or another return flight to your destination.

You are also entitled to be at least fed and watered. The EU’s regulations state that “refreshments, meals, hotel accommodation, transport between the airport and place of accommodation, two free telephone calls, telex or fax messages, or e-mails” must be provided, with different levels of ‘care’ depending on how much you have been put out.

As well as the above, if your flight is cancelled and you were due to fly 1,500km+, you can claim compensation of 250 euros, and 400 euros for flights within the European Union of 1,500km or more. All other flights between 1,500 – 3,500km can also provide 400 euros compensation.

However, if you were informed of the cancellation at least two weeks before departure, then you cannot claim compensation. This also applies if you are told less than two weeks before, but the airliner arranges another flight causing you only minor delays.

Delays of five hours hours or more entitle customers to get a refund, although this probably won’t help you in your travels.

But unfortunately the legislation back the side of the airliner in some cases. In “extraordinary circumstances”, compensation does not have to be given.

The problem comes when airlines over-use the “extraordinary circumstances” reason for just about anything, from “shortages in crew” to “technical faults”. But worry not, as this shouldn’t be going on for much longer.

Dr Twigg-Flesner said: “The European Court of Justice has cracked down. Technical problems are not extraordinary circumstances.”

This is an EU regulation, so applies across the whole of the European Union.

Investment bonds can vary significantly, but the general rule around them is that in exchange for some kind of risk, they provide the potential to earn higher returns that those offered on standard savings accounts, as your investment is not generally tied to fixed interest rates, but on the success of the area you invest in.

There are different types of investment bonds, including:

* corporate bonds – issued by companies
* gilts – issued by the UK government
* bond funds – grouped investments investing in a range of bonds

Corporate bonds

Corporate bonds are often issued by companies as a method of raising capital that can be invested into their business. The amount invested, with interest added is returned to the investor on an agreed date.  Corporate bonds can be purchased and sold on the stock market and their value can increase or decrease.

Gilts (government bonds)

Gilts (or gilt-edged stocks) are bonds issued by the government paying investors a fixed interest rate. They are considered a safe bet, as it is highly unlikely that the government will go bust.

However, as gilts are also bought and sold on the stock market where their value can fluctuate.

Bond funds

Bond funds invest your money into several different bonds which can include corporate bonds and gilts, each offering a different interest rate and maturity dates.

All companies have different credit ratings and those with higher credit rating are considered safer  than those with a low credit rating, so the latter would have to offer higher rates in order to attract investors and compensate for the increased risk.

In June, the Investment Management Association (IMA) revealed that investment ISA net sales hit £247m, marking the highest quarterly ISA sales recorded in six years.

Investment ISAs allow you to use your ISA allowance as an investment to avoid having to pay any taxes on your earnings. In April 2010, the ISA allowance will increase to £10,200 (in October 2009 for anyone aged over 50), which means that you could invest this amount every year and receive 100% of your earnings. This technique has proven to be extremely successful for some investors, with many people earning over a million pounds simply through making good use of their ISA allowance.

For more information on investment ISAs and to see a detailed list of investment options, see our Investment Bonds page.

Fuel Prices

1. Keep your tyres fully pumped-up and cut your air-conditioning usage

It is estimated that half of all drivers in the UK are driving with under-inflated tyres. This increases the resistance and therefore raises the amount of fuel used. The RAC advises that your fuel bills will increase by up to 2% if your tyres are not fully inflated to the recommended pressure.

Ensure your tyres pressure is kept at the correct level by checking them once a week. You can find out the recommended pressure readings for your tyres by consulting your car manual.

According to the National Energy Foundation, using air conditioning will increase your fuel consumption by up to 25%, so only use it when absolutely necessary. An alternative method to stay cool is opening the air vents, or even simply opening the windows. However, if you’re travelling over 60mph an open window will increase drag which can end up costing more than having your air-con on.

2. Service your vehicle

If you fail to service your vehicle regularly you could be reducing fuel economy by over 10%. Some of the key areas that must be covered are changing the air filters, as according to the RAC, dirty filters can seriously increase fuel usage; and regular oil changes, as clean oil will reduce the wear caused from friction of all the moving engine components, thus improving fuel economy.

Both of the tasks mentioned above are inexpensive and can help to drive your fuel costs down.

3. Change your driving habits

Changing the way you drive can drastically reduce fuel consumption, and this isn’t just about refraining yourself from putting your foot down.

Try to keep you gears higher. This will allow the engine to not have to work as hard and thus reduce the amount of fuel required. When using this technique ensure you are in a safe environment to do so, as using higher gears gives you less control over the car.

The RAC claims that if you avoid braking sharply then accelerating, you could save you up to 30% on fuel costs. The National Energy Foundation recommends that those driving a petrol car should change up a gear at 2,500rpm and at 2,000rpm for diesel cars to get the best fuel-efficiency. When starting from a stopped position, accelerate slowly as this will keep your revs down.

If you drive at 85mph you will use approximately 25% more fuel than at 70mph, so keep to the speed limit, especially on long motorway journeys.

4. Lose unnecessary weight and reduce the drag

Remove things from your car that you don’t require for your journey, such as removable seats, roof racks, and boot luggage such as sports equipment. Reconsider installing accessories that will add significant weight to your car and wide tyres that will add rolling resistance. According to the website save-petrol.co.uk, on average, each additional 50kg in weight will increase your petrol consumption by 2%.

Novelty flags and fancy sun roofs will also effect the aerodynamic drag of your car, thus increasing how much fuel your car will guzzle. Another interesting fact is that the weight of the fuel you carry will also effect how much fuel is required to move your car, so never fill your tank up to the top.

Always shop around for your fuel to find the best prices, you will be amazed at the difference in prices between cities and suburbs. But don’t defeat the object of cutting your  costs by driving too far out of your way to find the best fuel prices, as this will cancel out your savings. Try to tie your trip to the petrol station in with a regular trip, such as your weekly supermarket shop.

5. Helping the environment will help your wallet

Try to get into the habit of using other means of transport when making small journeys as these can be the least fuel efficient of all, especially in towns where you are constantly stopping and starting. Cars also use more fuel when cold, so a car that would usually do 40 miles to the gallon when motorway driving, may fall as down below 15 miles per gallon on a short journey. If you could walk or even cycle these short journeys you will notice the difference.

If you have to use your car to commute to work, if possible it is definitely worth considering car sharing with a colleague, as this can cut your fuel bills in half. Alternatively, look into park-and-ride schemes. If you can’t do either of the above, plan your journey to make sure you are taking the most cost effective route, and keep an eye on traffic reports to avoid hold-ups.

Something also worth noting it that a small car will consume a litre of fuel every hour when stuck in a traffic jam, but larger cars guzzle double this amount

When looking to buy a new car, look around for the greenest in your price range as this will not only give you major savings in fuel costs, but also give out lower CO2 emissions which directly effects how much your car will cost to tax.

6. Clubcard points on your fuel

Supermarkets tend to offer the most competitive fuel prices, and they are very conveniently placed allowing you to kill two birds with one stone by doing your grocery shopping and filling up in one journey.

As well as offering good rates, some supermarkets also offer clubcard points for every pound spend, on petrol as well as in store. This means that if you stick to the same filling station, you can accumulate points later used to purchase goods that you wouldn’t have otherwise had.

To increase your reward points you could take out a Tesco Clubcard credit card, offering 5 points for every £4 spent. At the end of each month you receive clubcard vouchers based on the amount of points you’ve earned, which can be spent in-store on your petrol or at Tesco Direct. You can even turn Points into Airmiles!

The Tesco Credit Card also comes with a range of other attractive features and discounts, so it might be time to switch your card and make the most of your savings.