Postcode pensions a possibility
by Gill Montia
Story link: Postcode pensions a possibility
Legal & General (L&G) has developed plans whereby postcodes will be used to help define pension benefits.
According to Simon Gadd, head of annuities at L&G, using postcodes gives pensions providers the ability to more accurately assess the longevity risk for those signing up to pension products.
The scheme is based on the premise that those [...]
Penalty fees survey shocks BBA
by Gill Montia
Story link: Penalty fees survey shocks BBA
uSwitch, the price comparison website, has published the results of a poll in which over 4,000 of its customers were surveyed about the penalty fees charged by leading UK banks.
The research was conducted by YouGov and concluded that UK bank customers who have been charged such fees have paid an average of £742 each, over [...]
Ethical fund performances impress
by Gill Montia
Story link: Ethical fund performances impress
Life & Pensions Moneyfacts, the independent financial website, has published new data on ethical investments, which shows ethical funds producing returns well ahead of traditional funds.
The survey compared ethical funds, conventional non-ethical funds, index trackers and the FTSE 100, over one, three, five and 10 years.
Looking at periods of both one and three years, the [...]
Order of payments confuses credit card users
by Gill Montia
Story link: Order of payments confuses credit card users
Which?, the consumer group, has been highlighting concerns about the order of payments (OOP) system operated by UK credit card providers.
OOP refers to the sequence in which a credit card bill is paid; for the consumer it is most advantageous to have the most expensive debt paid first.
For example, a credit card holder may have [...]
Internet banking steams ahead
by Gill Montia
Story link: Internet banking steams ahead
APACS, the UK body that represents organisations dealing in payment services, has published 2006 figures relating to the use of Internet banking.
The data reveals that in the past five years, the number of adults in the UK using online banking increased by 174% from, 6.2 million in 2001, to 17.0 million in 2006.
In terms of [...]
Abbey launches 5% cash-back
by Gill Montia
Story link: Abbey launches 5% cash-back
Abbey will be providing its credit card customers with a 5% cash-back incentive, from 3rd September until the end of January 2008.
The scheme will apply to the first £1,000 of purchases from major UK supermarkets, bought with an Abbey credit card.
As the average household spends £190.23 per month in large supermarkets, the £1,000 limit could [...]
Which? warns on bank charges
by Gill Montia
Story link: Which? warns on bank charges
Which?, the consumer organisation, has levelled criticism at the banking sector, which is says has introduced a new set of charges aimed at offsetting losses incurred by the controversy surrounding unreasonable fees for unauthorised overdrafts.
Last year the Office of Fair Trading ruled that the charge for going overdrawn without permission must not exceed £12.
In addition, [...]
Job losses in Nationwide and Portman merger
by Gill Montia
Story link: Job losses in Nationwide and Portman merger
The Nationwide, which was already the UK’s largest building society, has completed its takeover of the Portman.
The enlarged building society will rank as the UK’s second biggest mortgage provider, after the Halifax.
The Nationwide expects the move to improve customer service and create efficiencies.
However, it is also expected to result in the closure of 100 branches [...]
RBS launches contactless payment card
by Gill Montia
Story link: RBS launches contactless payment card
Royal Bank of Scotland (RBS) has been making use of its sponsorship of the AT&T Williams formula one motor racing team, to launch its new contactless debit card.
The AT&T team used the card, which is the first payment card of its type in the UK, to purchase a takeaway at a drive-thru in Billingsgate, London.
This [...]
Investors opt for safety
by Gill Montia
Story link: Investors opt for safety
Sainsbury’s Bank has published research giving evidence of a shift amongst savers who are making more use of high interest savings accounts.
According to the bank, investors are prioritising safety over returns because of the recent turmoil on the stock markets.
For the purposes of the survey the bank defined “high interest” as a rate above 6% [...]
HSBC angers graduates
by Gill Montia
Story link: HSBC angers graduates
HSBC has evoked a strong reaction from University graduates by its decision to charge interest on overdrafts that were previously interest free.
Some students who are graduating this summer are facing unexpected bills of up to £140 a year, because they continued to run an overdraft after the bank withdrew its interest-free offer, in July.
Previously, most [...]
Retirement saving drifts
by Gill Montia
Story link: Retirement saving drifts
The Pensions Advisory Service (TPAS) has published research indicating that in recent years, people have been less likely to put money into some sort of pension provision.
According to TPAS, many people approaching retirement have ceased saving towards a pension altogether.
The change is attributed to a number of factors, including pressures on personal finance and an [...]
County Court rules on Barclays’ penalty fees
by Gill Montia
Story link: County Court rules on Barclays’ penalty fees
Luton County Court has passed a ruling preventing Barclays bank from taking any more penalty charges and interest from a customer who is in the process of suing the bank over fees for unathorised overdrafts.
The court order will prevent Barclays applying the charges until a High Court test case is settled.
In July of this [...]
SMEs lose banking price controls
by Gill Montia
Story link: SMEs lose banking price controls
The Competition Commission (CC) has lifted the temporary price controls that it applied to the UK’s four largest banks, in 2003.
The controls determined the way in which Barclays, HSBC, Lloyds TSB and the Royal Bank of Scotland group run business accounts for small and medium-sized enterprises (SMEs).
The price controls were put in place following an [...]
Bleak prospects for debtors
by Gill Montia
Story link: Bleak prospects for debtors
According to experts in the field of credit, the current shortage of money in the debt markets resulting from the crisis in the US sub-prime mortgage market, is likely to cause a sharp rise in the number of people in the UK denied mortgages, loans and credit cards.
In 2006, seven million UK consumers were [...]
Banks face heavy loans to affiliate companies
by Gill Montia
Story link: Banks face heavy loans to affiliate companies
The difficulties in the US sub-prime mortgage market has left UK High Street banks with the prospect of having to use substantial funds to support affiliate companies involved in high risk investment.
The crisis has caused a shortage of money in the debt markets and a sharp increase in interest rates.
As a result, HBOS has already [...]
Savers unaware of rate reductions
by Gill Montia
Story link: Savers unaware of rate reductions
Nationwide Building Society is calling on the providers of savings accounts to keep their customers better informed as to when introductory interest rate offers come to an end.
The building society believes that savers are being attracted by the high rates applied to some new accounts, which last for a limited period only.
It is suggesting [...]
Fees for financial products increase
by Gill Montia
Story link: Fees for financial products increase
According to Moneysupermarket.com, the price comparison website, the number of charges attached to financial products has increased, despite the recent controversy surrounding such fees.
Moneysupermarket’s research shows that UK consumers are now subject to 112 such charges, as compared with 110 in August of 2006.
The fees cover five categories: current accounts, mortgages, savings accounts, loans and [...]
Lifetime balance transfers a boon to debtors
by Gill Montia
Story link: Lifetime balance transfers a boon to debtors
Sainsbury’s Bank is recommending lifetime balance transfers as a means of helping people to restructure their debts.
Currently many consumers take advantage of 0% balance transfer agreements, which offer a maximum of 12 months at 0% interest, but commonly come with a balance transfer fee of up to £50.
Making use of this type of balance transfer [...]
Unrealistic pension expectations expose millions to poverty
by Gill Montia
Story link: Unrealistic pension expectations expose millions to poverty
The Aegon group has published a report claiming that by today’s expectations, 22 million UK adults face a retirement in poverty.
Aegon, which is one of the world’s largest life insurance and pension companies, asserts that there is very large difference between the pension people expect to receive on retirement and what they will actually be [...]
