The Financial Services Compensation Scheme
Q. What happens to my savings if my bank goes bust?
MPs have been expressing their dismay that so few people are aware of the compensation scheme for UK based savings, which they believe could help to restore public faith in savings accounts.
A recent poll has shown that MPs would prefer it if financial bodies were required to tell consumers about the Financial Services Compensation Scheme protection when selling relevant products and services.
To some degree, it’s in banks’ best interests to make sure that consumers feel at ease about the security of their savings – unless the bank is Passport protected or the customer has a large volume of savings at their disposal.
But as Secure Savings and Compensation is one of our favourite subjects – exemplified by an editorial, a savings guide, and a healthy proportion of the main saving account page – we are glad to oblige in spreading the word again.
A. The Financial Services Compensation Scheme
TBC
A Time of Trial: Ombudsman News
It looks – and sounds – like a publication that exists purely to hit notoriety in the ‘Missing Words’ round of Have I Got News For You.
For all that, and its bookish layout, Ombudsman News is a surprisingly interesting read.
The recent decline in living standards, the high-publicised banking malpractices, and the ongoing technological changes that make financial management a more intricate affair, have all contributed to a surge in the number of complaints passed on to the world’s biggest arbitrator, which already employs close to 2,000 people.
And the Ombudsman News bulletin features plenty of complaint case studies, along with investigative details, the final resolution and the adjudicators’ reasoning.
King & Country: Who Wants the Blame for the Economic Crisis?
Even in the world of literary theory, semantics is a thorny field. Transpose that to an uncomfortable argument about where to attribute blame for the onset of the financial crisis, and we’re all on tenterhooks.
Bank of England Governor Sir Mervyn King made an unlikely admission this week that the Bank, under his stewardship, should have done more “to prevent the disaster”.
“Our banking and financial system overextended itself”, he observed, in a speech for the BBC Today Programme Lecture.
He even turned to the tale of The Emperor’s New Clothes to demonstrate the fundamental ineffectiveness of contingency loans dished out by central banks – a thought that most would prefer not to visualize.
Cutting down on your bills can really save you money
The easy way to slash your bills
There may not be anything you can do about the constantly rising electricity prices, but there are little changes that you could be making around your house right now to save money on your energy. If you’re feeling stifled by an ever-increasing energy bill, take these shortcuts to a more efficient home and a more reasonable energy budget.
1. Call your energy company. With nearly nine million UK citizens experiencing ‘fuel poverty’, hearing from customers who can’t make a payment in full is not a new occurrence for energy companies. The first thing you should do if you can’t meet your energy bill all the way is get on the phone and get in contact with someone from your energy supplier. You may be able to sort out a payment schedule that permits you to catch up with what you owe over time.
2. Switch providers. If all else fails, try working with a new energy company that can offer you lower prices and better service. With the backlash against major energy suppliers, many smaller energy companies have cropped up to provide service with a different philosophy in mind–and it’s one that better suits the customer. To compare energy prices and find out what new suppliers are servicing your area, all you have to do is go online.
Cheshire Draws Swords with Santander over ISAs
Previously, on IS4
- 27-02-12: Nationwide leads the way, at 3.10%.
- 02-03-12: Cheshire strikes the front, at 3.16%.
- 05-03-12: Santander’s new rates reach 3.30%.
- 08-03-12: Cheshire is poised to re-take the lead at 3.35%.
The battle over ISAs has taken another development as the Cheshire Building Society, parented by Nationwide, re-raised its instant access cash ISA rates to 3.35% to seize the initiative back from Santander.
It seemed like Santander’s ‘Promethean’ revelation of its latest ISA rates would prove to be the last word on the matter – at 3.30% AER for the instant access cash ISA and 4.00% AER for the two-year fixed-rate ISA. But Nationwide and Cheshire were not ready to surrender there and they have struck back with interest.
The ISA Contagion
There’s a new contagion going around during ISA season. It’s called longevitus. And it’s catching fast.
As it stands, the usual game of cat-and-mouse is taking place as banks continue to snare UK savers seeking the right home for their tax-free cash ISA allowance.
Some banks have declared their rates early, hoping to tempt savers into an early decision. Others have paused, observed their rivals, and tried to usurp them with Promethean intent.
As more reveal their sparkling new ISA products, there is a distinct pattern emerging which differs from the recent past. Few institutions are still banking on a one year plan. The assumption must be that consumers are not thinking this way either.
Changes Regarding ISA’s – Good News or Bad?
Although only introduced in April 1999, individual savings accounts (ISA’s) are now a huge part of our everyday lives. The majority of the nation should be able to vaguely explain what one is, with the remainder of the population going as far as being able to give advice about where to get one, which ISA is the best on the market and even being capable of knowing what ISA stands for; but not too many people could go into great detail about the specifics surrounding ISA’s, how they’ve changed over time and what this means to different salary bands.
ISA’s are constantly evolving and change over time, but is this good news for the account holder or bad news? It’s dependent on their income. The good news is, regardless of how much or little you may know about ISA’s, HM Revenue & Customs‘ (HMRC) statistical release late last year, offers evidence to suggest that ISA’s are in fact becoming bigger and better which will only become beneficial for the account holder – but here’s the catch – only if they increase their monthly instalments being paid into their ISA. It is of the opinion of the account holder whether this is good news to them or not and it will likely depend on an individual’s personal circumstances as to their opinion on the matter.
I will explain my findings, but firstly, if you are of the majority with little knowledge about ISA’s, we’ll go back to the drawing board and explain what an ISA is and then explain how they are changing for the better, or worse.
Morrisons to offer huge cuts on petrol
Supermarket chains are waging price wars by offering eye-catching discounts on petrol for customers who spend in their stores.
Following Asda’s petrol price cuts in November and Tesco’s fuel offer last month, supermarket chain Morrisons has raised the bar by offering a record 15p per litre discount off petrol for customers spending £60 in store.
Supermarkets clashed over the issue last year. In April 2011, Morrisons’ Fuel Britannia scheme offered 6p off a litre of petrol for customers spending over £40 in store. This was branded no more than a ‘gimmick’ by a disgruntled Asda, upset that its below-average fuel price longevity was being supplanted by a rival’s deal that required high levels of in-store spending.
But campaigners have little care about favouritism, it would appear. Having voiced their concerns at the soaring cost of fuel, they are preparing to take a stand early next month to demand lower fuel duty ahead of the budget. Oil prices forced the price of diesel to a record high last week, while unleaded petrol currently sits within reach of the record high reached in 2011.
What To Do With Your Savings
It’s an interesting time in the UK economy. The cost of living has started to fall sharply, as many (including ourselves) expected it would. With the rise in VAT from January 2011 now leaving the 12-month comparison, the RPI measure of inflation has dropped below 4%.
Now, for the first time in several months, fixed-rate bonds and fixed-rate ISAs are in a position to offer real rates of return. But even so, none of us can be absolutely sure whether this will hold in the medium term. The Bank of England has announced further quantitative easing measures, and opinion between forecasters varies considerably.
This fall in inflation has prompted consumers to think about saving. However, many remain unsure about their best options. Which4U’s new savings guides focus on these savings issues to present the best options. Let’s preview a few of these now:
“All in this together”? Banking Bonuses in the UK & Australia
Plenty of financial concerns have struck the UK and Australia in parallel in recent months, and not all directly as a cause of the global slowdown either.
There’s been the odd major banking scandal; the issue of fee-driven banking products; and the issue of payday loans, which is also gripping both countries.
Now the focus turns to individuals and, more specifically, the issue of bonuses.