‘General’ News
High interest rate on current accounts up for grabs
Posted 2008-06-8
Lloyds TSB announced today a new six per cent current account following increasing competition between leading banks.Customers who open a Plus account before July 13th will receive six per cent AER (5.84 per cent gross variable) on balances as high as £2,500.To qualify for the account customers need to deposit at least £1,000 a month and after 12 months the bank will offer a competitive four per cent AER.Those without the £1,000 a month required to qualify will have to make do with a standard current account, which offers 0.1 per cent AER.Catherine McGrath, director of current accounts, Lloyds TSB, said: "While many of our competitors are cutting the interest they pay to customers on their current accounts, were bucking the trend offering one of the best deals on the market.""By upping the interest we pay on our Plus accounts everyone will be able to make the most of their current account balance."Alliance & Leicesters Premier Direct current account and Abbeys Preferred In Credit Option account offer more interest than Lloyds new Plus account, but they both expect a minimum monthly deposit to qualify....
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One in three Brits ‘concerned about debts’
Posted 2008-06-2
A recent poll highlights that more than one in three Brits are concerned about their level of debt.Moneyexpert.coms survey shows that 38 per cent of respondents are worried that they will not be able to pay their loans and credit card bills, a rise of five percent compared to three months ago.It also emerged that eight per cent of those with debt are "very concerned" about their financial situation.Of those questioned during the survey, 23 per cent admitted to taking on more debt in the past three months, to help them cope with rising fuel and food prices.Speaking about the results, Sean Gardner, director of the financial website, said: "These latest figures add up to a collective cry for help as Britains enormous debt mountain looms larger than ever."He added that anybody struggling to repay their loans or bills should seek immediate help to avoid getting into more difficulty.Meanwhile, the Financial Services Authority has advised people to stay on top of their mortgage payments and is launching a new campaign to help people stabilise their finances. ...
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Brits ’splash their cash abroad’
Posted 2008-06-1
New research has revealed that Brits become more extravagant with their money when they arrive on foreign shores.A study conducted by America Express highlights that one in three people will spend left foreign currency for the sake of it, to save having to convert it back to sterling.Despite the effects of the credit crunch being felt at home, 83 per cent of UK holidaymakers do not stick to their budget, while 20 per cent splash out on duty free items they cannot afford. The research also shows that Brits are disorganised when it comes to withdrawing their cash abroad, with 25 per cent of respondents making several trips to the cash machine to draw out small amounts, which could see them being charged if they are using a credit card.It was previously reported that fewer Brits are heading on holiday this year due to the economic uncertainty.According to the Family Holiday Association, fewer families than last year will be able to afford to take a trip abroad due to other strains on their finances, such as food prices and utility bills....
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Grocery bills increase by 5.8%
Posted 2008-05-29
Grocery prices have increased by 5.8 per cent in May compared with the same month last year.British shoppers are now spending £514 million a month more on their shopping than in 2007, according to new research from Verdict.The study also highlighted that groceries now account for 13p in every pound spent by UK shoppers."Food shopping is something most people do regularly, so they immediately notice increases in prices more than they do in other areas," said Neil Saunders, consulting director at the company.The cost of fresh fruit and vegetables has shown the most marked increase, with a rise of 15.9 per cent being noted. Meat and fish prices increased by seven per cent, while dairy rose by 6.2 per cent.The increase in wages during the same period was two per cent, according to the study.Increased food bills could see some consumers resorting to using credit cards and loans to maintain their standard of living.Meanwhile, credit card provider Egg claims that one in four Brits do not have a financial safety net to help them through an emergency. ...
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Holidays ‘affected by credit crunch’
Posted 2008-05-29
The number of people taking holidays abroad is likely to fall due to the impact of the credit crunch, it has emerged.According to the Family Holiday Association, fewer families than last year will be able to afford to take a trip abroad due to other strains on their finances, such as food prices and utility bills.John McDonald, the director of the association, said that it was a shame that people would miss out on a summer break, adding: "I think holidays are really important for the wellbeing of both the children and the parents, the family unit and the local community and society in general.""Its a huge problem," he concluded.Recent research by Abbey Credit Cards highlighted that parents who planned to jet off a half-term holiday during the recent break were hit by premiums of up to 80 per cent.This follows news from Alliance and Leicester that almost 35 million Brits have made a cutback in their spending to help them cope with inflated living costs....
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Global Insight: Bank won’t cut base interest rate
Posted 2008-05-28
An economist has predicted that the Bank of England will keep the base interest rate unchanged at five per cent next week.Howard Archer, chief European and UK economist for Global Insight, states that the Bank will "tread extremely carefully on the interest rate path for the time being", in a bid to keep inflation stable.However, he added that rates could drop as low as four per cent in 2009, with cuts beginning this August "at the very earliest"."It will be a gradual process," he continued.The next interest rate announcement will be made on Thursday June 5th.This news could come as a blow to mortgage buyers who will have been hoping that the bank and lenders would cut interest rates.Since December last year, the Banks Monetary Policy Committee has cut the base interest rate three times, lowering it by three-quarters of a percentage point in total.This follows news that the number of mortgage approvals for April fell by 40 per cent compared to last year, according to British Bankers Association figures. ...
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Quarter of Brits ‘unprepared for financial emergency’
Posted 2008-05-27
One in four Brits do not have a financial safety net to help them through an emergency, it has emerged.A recent poll by credit card company Egg also highlighted that a further 52 per cent dont have enough savings to see them through the four months on average it takes to find a job after redundancy.Some 69 per cent of respondents admitted to needing a cash injection to help them deal with unforeseen circumstances such as car or home repairs or being out of work.Tobias van der Meer, head of banking and investments at Egg, noted that families should have at least three months income in a savings account to help cope with an emergency."However, our research highlights that far from being a precaution, these savings are a necessity, with two thirds of people likely to need quick access to a lump sum as an emergency," he added.Meanwhile, in related news, research conducted by Alliance & Leicester Current Accounts has shown that some 35 million UK residents have made a financial cutback recently in an attempt to save money....
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Brits ‘finding it harder to switch financial products’
Posted 2008-05-26
A new survey has found that British households are not switching financial products as the credit crunch has taken hold on their finances.The poll, by MoneyExpert.com, has revealed a 17 per cent drop in the switching of products such as mortgages and credit cards.Figures show that 32.2 million households switched their bills in the first quarter of 2008. This is compared with the 38.9 million switched in the same time period in 2007.Sean Gardner, of MoneyExpert, told the website that the fall in numbers could be a result of the credit crunch, tougher lending criteria and a fall in mortgage lending."Other areas are feeling the chill of the credit crunch and general concerns about rising cost of living and inflation. Some people are staying put rather than seeking out the best possible deal," added Mr Gardner.Recent research by Sainsburys showed that 4.7 million people in the UK have no home insurance to cover the contents of their house from burglary, accident or catastrophe....
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Brits cut back on spending
Posted 2008-05-22
Brits are reducing their spending on fashion and luxury food items it has emerged.Research conducted by Alliance and Leicester Current Accounts shows that almost 35 million Britons have made some form of financial cut back recently and one-third anticipate that their disposable income will decrease in the next six months due to the rising cost of living.Fashion is the first indulgence that Brits are going without as they tighten their belts, with 39 per cent of respondents saying that they will not be hitting the high street.A further 36 per cent will not be splashing their cash on socialising, while four-in-ten are reducing the amount they are spending on day-to-day living.Emma Walkley, current account manager at Alliance and Leicester, said: "It seems many of us are feeling the pinch and looking for ways to cut back. The good news is that people are taking action now and looking at ways of making their money go further rather than burying their heads in the sand."This follows news from Moneysupermarket.com that increasing numbers of people are relying on payday loans to fund the cost of living, with the number of applicants for such loans rising by 55 per cent since September last year. ...
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Brits turn to pals over financial troubles
Posted 2008-05-22
Brits are increasingly discussing their financial woes with their friends, it has emerged.Research conducted by IVA.co.uk reveals that 27 per cent of people are now happy to discuss their loans and credit card debt with their pals.Andy Davie, spokesperson for IVA.co.u...