Kaupthing investigated by SFO
by Gill Montia
Story link: Kaupthing investigated by SFO
The Serious Fraud Office (SFO) has launched an investigation into the UK activities of Kaupthing, the Icelandic bank that collapsed in October 2008.
Enquiries will centre on the bank’s Kaupthing Edge brand, which held money from over 30,000 individual British savers and organisations, and whether savers were misled into making deposits into accounts that promised high-yields. [...]
Best savings rates disappear
by Gill Montia
Story link: Best savings rates disappear
Moneyfacts is urging savers to stay alert because the best rates on the market are disappearing fast.
According to the financial information website, since the beginning of November 62% of savings product changes have been withdrawals and where replacements have been launched, returns are lower.
Fixed-rate offerings have been worst hit with last month’s top deals having [...]
Untaxed offshore savers face 200% penalty
by Gill Montia
Story link: Untaxed offshore savers face 200% penalty
The Chancellor of the Exchequer is raising the penalty for offshore bank account holders who haven’t come clean with HM Revenue & Customs to 200% of tax owed (currently 100%).
In his pre-Budget report, Alistair Darling declared: “I am determined to tackle activities, such as avoidance and evasion, which undermine tax receipts.”
He also confirmed that [...]
Brewin Dolphin attacks PBR on pensions
by Richard Kilner
Story link: Brewin Dolphin attacks PBR on pensions
Today’s Pre-Budget Report (PBR) has come under attack from Brewin Dolphin, which has criticised Chancellor Darling’s decision to reduce the qualifying earnings for higher rate tax relief to £130,000.
The firm lambasted the Government, stating that such action did nothing to reassure savers and was the work of inept policy-makers leaving people facing uncertainty.
Brewin Dolphin has [...]
Britons opt for savings stashed in cash
by Gill Montia
Story link: Britons opt for savings stashed in cash
The financial crisis has encouraged an increasing number of Britons to keep their savings close at hand, in the form of high denomination bank notes.
According to the Bank of England, the value of notes in circulation has been on the rise, despite the fact that less are being passed around the High Street where cash [...]
BSA calls for “level playing field” in UK financial services
by Gill Montia
Story link: BSA calls for “level playing field” in UK financial services
The Building Societies Association (BSA) is calling on the Government to create a “level playing field” in the UK’s financial services sector.
The Association believes its members are unfairly disadvantaged in the current regulatory environment, which demands lenders hold higher levels of capital.
The UK’s mutuals are limited in the ways in which they can raise funds [...]
Private banks: threats and opportunities abound
by Gill Montia
Story link: Private banks: threats and opportunities abound
Booz & Company has issued a report on the private banking sector which claims that London faces both significant threats and important opportunities as a global banking centre.
According to the management consultancy, income for UK private banks dropped by between 30% and 40% from 2007 to 2009, and changing tax regulations plus future tax uncertainty [...]
Consumer borrowing plummets as BS savings accounts raided
by Gill Montia
Story link: Consumer borrowing plummets as BS savings accounts raided
New figures from the Bank of England show consumer lending falling by a net £0.6 billion in October, with the decline well below the previous six month average of -£0.1 billion.
While credit card lending rose by £0.1 billion other loans and advances fell by £0.7 billion.
However, the Bank said the value of mortgages approved for [...]
HMRC extends amnesty for offshore savers
by Gill Montia
Story link: HMRC extends amnesty for offshore savers
HM Revenue & Customs (HMRC) has extended its amnesty for offshore savers.
The “Disclosure Opportunity”, which allows savers to settle up any outstanding tax, plus interest, plus a penalty of 10% of tax owed, now ends on 4th January 2010.
According HMRC, the extension from the previous cut off date of 30th November will give banks additional [...]
Recession encourages more saving and less debt
by Richard Kilner
Story link: Recession encourages more saving and less debt
The difficult economic climate is affecting the behaviour of British people towards savings and borrowing, according to research commissioned by database marketing and consumer insight firm KDB.
The survey shows that over half (56%) of Britons intend to cut their borrowing and almost half (45%) intend to bolster their savings, with the young particularly in favour [...]
IBB lowers deposits for fixed-term accounts
by Gill Montia
Story link: IBB lowers deposits for fixed-term accounts
Islamic Bank of Britain (IBB) has lowered the minimum deposit required to open a fixed-term savings account to £1, 000 (previously £5,000).
The bank is expecting a strong response to the move as its 24-month fixed-term account boasts a target profit rate of 4.5%, which IBB claims is a market leader.
For a shorter 18 month period [...]
NS&I to refund £1m over interest miscalculation
by Gill Montia
Story link: NS&I to refund £1m over interest miscalculation
A Daily Telegraph campaign has been successful in securing refunds for around 15,000 holders of index-linked savings certificates with National Savings & Investments (NS&I).
According to the newspaper, some investors who redeemed their certificates earlier this year, between anniversaries, are to receive over £1 million in total, or an average of £68 each.
The Government-backed savings [...]
Last call on Icesave compensation
by Gill Montia
Story link: Last call on Icesave compensation
Icesavers who have not yet claimed compensation need to take action immediately.
When Britons logged on to their Icesave accounts last October only to find they were frozen, the Treasury stepped in with a 100% guarantee for individual savers.
The Financial Services Compensation Scheme (FSCS) has therefore ensured that no individual depositors with the failed subsidiary of [...]
LV= and Royal Liver in merger talks
by Gill Montia
Story link: LV= and Royal Liver in merger talks
The UK’s two biggest friendly societies, Liverpool Victoria (LV=) and Royal Liver, are reported to be in merger talks.
Such a move could create a £10 billion mutual business with over five million customers.
A proposed merger could also be the reason for the recent resignation of Royal Liver chief executive, Steve Burnett, who is rumoured to [...]
New ISA limits for over 50s take effect
by Gill Montia
Story link: New ISA limits for over 50s take effect
As of today, the limit on a cash ISA has been raised to £5,100, for anyone aged 50 by 6th April 2010, meaning an extra £1,500 can be invested, tax-free.
The limit on a stocks and shares ISA has also increased to a maximum £5,100 for those taking advantage of the full cash ISA limit, or [...]
Islamic Bank of Britain offers 4.5% on savings
by Richard Kilner
Story link: Islamic Bank of Britain offers 4.5% on savings
The Islamic Bank of Britain (IBB) has stated that its new Fixed-Term Deposit Account will have an impressive target profit rate of 4.5%, beating rates offered by the average high street bank in the UK.
Customers opting for the 24 month Fixed-Term Deposit Account will enjoy 4.5% per annum (gross), and those preferring an 18 month [...]
Household savings ratio increases to 5.6%
by Gill Montia
Story link: Household savings ratio increases to 5.6%
Britons have heightened their capacity to save in response to the credit crisis and recession and are putting away a larger proportion of income.
Official figures have revealed that the UK’s savings ratio increased to 5.6% in the second quarter of 2009, up from 3.9% in the three months to the end of March.
While there is [...]
Brewin Dolphin criticise ISA age change limit
by Richard Kilner
Story link: Brewin Dolphin criticise ISA age change limit
Investment bank Brewin Dolphin has criticised measures in the Budget which amend and complicate the rules on ISAs.
The overall annual ISA limit has been raised from £7,200 to £10,200, with £5,100 available for a Cash ISA or the full £10,200 for a Stocks and Shares ISA.
However, Brewin Dolphin has criticised Chancellor Alistair Darling’s decision to [...]
Lloyds investigated over offshore savings
by Gill Montia
Story link: Lloyds investigated over offshore savings
Lloyds Banking Group is being investigated by HM Revenue & Customs (HMRC), over allegations that the bank is encouraging British offshore savers to avoid tax.
According to the BBC’s Panorama programme, to be screened tonight, the Jersey unit of the bank is chanelling money through China.
The Panorama team has secretly filmed a journalist posing as [...]
NS&I increases premium bond payout rate
by Gill Montia
Story link: NS&I increases premium bond payout rate
With competition for savers’ money remaining hot, National Savings & Investments (NS&I) has raised the value of the premium bond prize fund by 50%.
From October, the government-backed savings provider is increasing the payout rate from 1% to 1.5% of the fund.
In value terms, the monthly draw will rise from £33.8 million to £52.5 million, allowing [...]
