“Waste not, want not”: How Much Could You Be Saving?
This may prove an interesting week of parallels. A recent post on our sister site’s Finance Blog in Australia compared details of how fee-driven banking products have come under scrutiny in both countries.
Another area of comparison is to be found in what we might call household efficiency or discipline savings. How much could we be saving by organising our food shopping more carefully to reduce wastage, or by switching off our electrical devices rather than leaving them on standby? Quite a lot, as it happens.
What consitutes happiness? Not marriage…
They say that money can’t buy you happiness.
But what does bring happiness, and can it survive in this global financial downturn that shows little sign of abating?
The UK government’s plans to monitor the wellbeing of its citizens through a ‘happiness survey’ have humoured and horrified its populace in equal measure.
But the choices and priorities that people are having to make in different economic environments are decidedly revealing in how we view British levels of consumer confidence and attitudes towards life. One example that stands out vividly this week is the approach to marriage.
Santander Upfront Interest Bond: Quite How ‘Revolutionary’ Is It?
Revolution is a more powerful term than most people realise. It implies a rising order to be witnessing – and even delighting in – its overthrow of an old and failing order.
So, how does that work exactly for a savings account?
Santander’s new Upfront Interest Bond has caused some controversy across the web this week, so perhaps it’s time to investigate this particular product a little closer.
The Older Generation Lead the Way in Savings
They say that you can’t teach an old dog new tricks. Yet, in an age of digital technology and mobile apps, the older generation are still able to teach the young one of the most fundamental financial tricks: saving.
Stats from Halifax’s ISA report shows a striking correlation between age and average ISA savings. The average ISA balance stands at roughly £8,500.
The results show a remarkable contrast in the amounts that different age groups hold in their ISAs.
Read more >>
Inflation above 5%. What now for savers and spenders?
Soaring energy bills and rising food prices have driven inflation over 5% in the month of September, causing more misery for savers. The retail price index (RPI) has risen to a 20-year high. So, what now for savers who are set to lose out considerably in real terms?
It has been estimated that savers at the basic level of tax would need to be investing at a rate of at least 6.5% to avoid losing out in real terms, and greater still for higher rate taxpayers. However, the low base rate set by the Monetary Policy Committee to aid growth is leaving very few products available at a percentage that can offset the high inflation rate.
What are the options?
Students Are Urged to Go Through Insurance Policies with a Fine Tooth Comb
Those who have decided to move on to further education by going to university have been warned that their personal possessions may not actually be automatically covered by general annual insurance at their halls of residence.
This is the opinion of the head of consumer finance at Love Money, Ed Bowsher.
Mr Bowsher has urged future scholars to take the time to find out if they are protected before moving into their home-from-home, so as to avoid any potential confusion or unexpected high costs whilst studying.
The expert went on to say that “students should also check their parents’ home insurance policies,” adding that “some policies will cover students even if they’re living away from home” Read more >>
Financial Unrest Hits Pension Incomes ‘by £1,300′
Those with defined contribution pension schemes look like they have lost an average of £1,300 in potential retirement income over the last six months, a firm has said.
The statisticians at Alexander Forbes, who calculated these figures, have gone on to blame the drop on falling share values and annuity rates.
This is because, between the beginning of March and the start of September the FTSE 100 share index has 9 per cent to only 5418, and has since fallen a further 4 per cent to 5066 as of last Friday (23rd September).
Alan Carey, of Alexander Forbes, went on to say “the last six months of 2011 have been dire for defined contribution pension savers,” adding that “a combination of falling growth asset values, reduced bond yields and ever increasing longevity has further reduced the value of workers’ pension savings.” Read more >>
Nationwide Increase Savings Rates
Nationwide have increased their rates on a wide range of its saving products from last week (September 7th).
The interest that is paid on their six-month and one-year Fixed Rate Bonds and e-Bonds has raised by 0.2 per cent. This will also apply to their 18 month Tracker Bond and Tracker e-Bond.
As well as this, Nationwide have also announced the launch of a new two-year deal to go along side their existing three-year option, which is set to stay the same.
For Fixed Rate ISAs, the rate has grown by the same percentage for the one-year deals, stays the same for the three-year option and there is a new two year account now available to customers.
In related news from Nationwide, there has been an interest increase on their MySave Online Plus account, and in addition to this a new 75 Day Saver product has now been launched by the bank.
Richard Marriott, head of savings at Nationwide, has recently said: “As one of the country’s leading savings providers we aim to ensure our savers get a competitive return on their money and these new rates will help do just that. In the current climate, it is important to cater for a variety of savings needs.” Read more >>
Savings fall as bills rise
Figures have suggested that many people are failing to save as much as a result rises to the cost of household bills.
According to the British Bankers’ Association (BBA), The high street banks saw a rise in personal deposits and savings of £6.1bn in the first six months of the year.
However, the year on year rise over the same period in 2010 was more than double at £15.9bn, suggesting that an increase in the cost of bills may be to blame, the group said.
Mortgage and credit card activity also remained subdued, it added, after house prices continued to fall in recent times.
Different areas of household bills have been on the rise throughout the year, including fuel costs to drivers, as well as the cost of heating homes.
This has meant that consumers’ disposable income has been reduced, leaving less cash available to set aside for savings accounts, the BBA said. Read more >>
Santander Increase Cashback on Current Account
As of September 5th, you can now earn up to £300 cash back by switching your current account to Santander.
In a recent move, Santander have tripled the amount of cash back available to customers taking out their ‘Preferred Current Account‘, making the gap between it and it’s competitors even greater.
With very few accounts offering a money back scheme, this sets Santander apart from the rest of the market and gives potential customers a very big incentive to reel them in.
However, this fantastic offer is not available to everybody as there are certain limitations to applying for this cash back amount. With Santander’s preferred current account there are 3 levels of cash back that are available. Read more >>