Category Archives: Checking & Savings

Checking & Savings

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Experian To Create And Manage New Reference Database For The Payments Council

Experian, the global information services company, has been appointed by the Payments Council to create and maintain an industry database of corporate customers’ payment information. The central biller database, which will improve the accuracy of payments made using online and telephone banking, is scheduled to go live in late 2012.

Experian will collect, verify and standardise information from banks on how their corporate customers (billers) receive payments. The full database is to be used by banks to make it easier for online and telephone banking customers to find accurate information when paying their bills – for example, via simplified drop-down menus. The service will also benefit billers, who will find it easier to reconcile incoming electronic payments by providing more accurate billing information for customers to use.

The central biller database is an initiative from the Payments Council’s recently published National Payments Plan (2011-2014), forming part of the Payment Council’s programme of activity to enhance existing payment services through innovation.

Jonathan Williams, Director of Strategy at Experian Identity and Fraud comments: “Experian estimates up to a quarter of customer references are invalid or incorrectly formatted, increasing the time it takes to credit payments and sometimes preventing them from being credited altogether, particularly when bill issuers change their account details, switch banks, or are involved in a merger or takeover.

“This database will help ensure banks hold correct and up-to-date information for billers and it will give both corporate and consumer customers’ confidence their payment will reach the right recipient and will be processed quickly.”

Hilary Plattern, Head of Strategy for the Payments Council, said: “This innovative solution is a win-win: consumer customers making payments benefit from increased confidence in the accuracy of the information they use to pay bills online or over the phone, while companies can be confident their customers are using up-to-date bank account and sort code details, as well as correctly-formatted references.

“This new database is an excellent example of the Payment Council’s commitment to put customers’ needs at the centre of the way payment methods are designed. We look forward to working with Experian to develop and deliver this service.”

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company helps businesses in the areas of fraud prevention and fraud solutions (including banking fraud), as well as helping to manage credit risk, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

Via EPR Network
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Prudential Reveals Research On The Importance Of Women’s Retirement Plans

Prudential has revealed that nearly half (46 per cent) of women over the age of 40 who live with a partner have no pension of their own, according to new research into couples’ attitudes to retirement.

The extent of women’s reliance on a partner’s pension and the State is not the only shock finding from the research, which also highlights that many UK couples could be sleep-walking into retirement poverty as they have no idea what pension income they will need to live on.

More than half (56 per cent) of couples aged over 40 have not worked out how much money they will need to live on in retirement, with two in five (40 per cent) admitting to having no financial plans in place for life after work.

British couples also seem reluctant to discuss with each other the finances that will support them in later life. One in five couples (20 per cent) admit to never having discussed joint retirement financial planning, while only half of those who have already retired made a joint decision about the annuity they bought.

Vince Smith-Hughes, head of business development at Prudential, said: “Pensions may not seem like the most exciting topic for a couple in their forties to be discussing, but couples who have not put time aside to discuss their retirement income plans run the risk of spending their later lives worse off than they had expected.”

In regard to retirement planning, Smith-Hughes stressed how important it is for women to discuss their future finances with their partner, and preferably with a financial adviser too. According to Smith-Hughes, women who don’t engage in these discussions could find themselves in financial trouble, especially if they outlive their loved one.

Smith-Hughes continued: “People may feel they can’t afford to significantly boost their retirement savings in the current financial climate, but taking even the smallest of steps can have a positive impact. Joining a workplace pension scheme, considering a joint life annuity, so the income will continue after one partner dies, and topping up National Insurance contributions are all options which can increase income in retirement. These crucial issues should be discussed between couples and, in turn, with their financial advisers.”

Via EPR Network
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Standard Life Reveals Losing A Loved One Is Greatest Fear In Retirement

Standard Life has revealed that a third (32 per cent) of retired Britons declared that losing a partner, loved one or close friend is their greatest fear in retirement.

The savings and investment specialist Standard Life is using the research to encourage the public to consider their estate planning requirements, including the creation of a Will, so they can ensure their loved ones are financially secure after their death.

Standard Life is highlighting to the public they should seek professional advice as the legislation associated with passing on wealth is very complicated and the rules between married and civil partnered couples does not apply to cohabiting couples or close friends. The simplest way for individuals to ensure their estate is paid to the right people is to create a legally binding Will – previous research from Standard Life showed that as little as 48 per cent* of the people in the UK have a Will in place.

Further results from the research shows in light of the current inflationary pressures the public is facing, the rising cost of living (20 per cent) is the retired population’s country’s second worst fear in retirement and worries about getting returns on their savings and investments (11 per cent) coming in third for those surveyed.

Julie Curtis, technical manager at Standard Life, said: “Regardless of an individual’s age losing a loved one can have a serious financial impact, but this problem is accentuated in retirement. And while married and civil partner couples benefit from the spousal inheritance tax exemption and the transferable nil rate band, cohabiting couples or close friends don’t.

“The complications of dying without a Will can be devastating on others and this is made even worse when going through the heartache of personal loss. Seeking the right advice when creating a Will ensures loved ones will be financially secure and that their wealth is passed on correctly. The cost of creating one will be far less than any legal fees your family, partner or friends will incur in trying to reclaim the estate.”

The research also shows that nearly half (47 per cent) of the UK want to leave an inheritance to their children, with a tenth (11 per cent) directing it to their grandchildren.

Julie continued: “It’s understandable that parents and grandparents want to pass their wealth on to the next generations and they should ensure they have a Will in place, which reflects this. Dying without one can create a complicated and costly process, possibly causing family rifts and further grief for those left behind.”

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Standard Life Announces That Economic Climate Could Force Retirement Rethink

Standard Life, the savings and investment specialist, has published new insight that suggests that the UK could be heading towards a perfect retirement storm; one in five (21%) of 45-65 year-olds who have financial plans in place to provide for their long term future no longer feel that their financial plans will support them into the future. Six per cent in this age group who aren’t already retired don’t think they will ever be able to retire, equating to over three quarters of a million people.

Of those who have financial plans in place to provide for their long term future, 64% of 45-65s feel confident that their financial plans will support their future post retirement. Twenty-one per cent of these adults no longer feel their plans will support them into the future, with a further 10% having never felt confident. Thirty-seven per cent of 45-65s have no financial plans in place for their long-term future; yet 72% of people currently aged between 45 and 65 who aren’t retired think they will retire between 61 and 70 years old.

John Lawson, Head of Pensions Policy at Standard Life said: “The current financial crisis has brought into sharp focus the need to make and review appropriate plans. This will clearly be challenging but there are many things you can do to make your retirement years as secure as possible.”

As part of the Changing Face of Retirement research, Standard life has published a list of top tips to help people re-engage with their financial planning, which includes seeking professional advice, continually reviewing financial goals, making a clear plan, reviewing investments, considering deferment of the state pension and increasing savings. Also included in Standard Life’s top tips is to claim tax-relief, as Standard Life estimates that 300,000 people are not claiming this currently.

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Northern Rock Launches Competitive New Fixed Rate Cash e-ISAs

Northern Rock has launched three new online issues of its Fixed Rate Cash e-ISA to complement its competitive portfolio of internet-based savings accounts.

The e-ISA offers those who prefer to operate their accounts via the internet an online option for their tax-free savings. The e-ISA is a cash ISA set at a competitive fixed rate of interest over a choice of one, two or three years and can be opened with no minimum initial deposit.

Interest, which can be added to the account or paid into another account, is paid annually on the first business day following 5 August on minimum balances of £500 (balances which fall below this amount will earn Northern Rock’s prevailing rate of interest, 0.10% tax free pa /AER).

Strictly limited issues, the Fixed Rate Cash e-ISAs (issues 25, 26 and 27) allow transfers in from other providers and additional deposits can be made to the cash ISAs, within HM Revenue and Customs limits (£5,340 per tax-year from 6 April 2011) within 30 days after the product is withdrawn (excepting postal applications to transfer in from other banks and building society ISA accounts, which must be received while the product remains on sale).

To ensure funds are accepted into new accounts, Northern Rock must receive all funds within 30 days from the account opening date. Therefore, individuals must initiate any Cash ISA transfers in as soon as they receive their new Cash ISA details. After the 30 day period one may not be able to make any additional deposits into the Cash ISA. Subscriptions are not allowed to any other Cash ISAs in the same tax year(s) that one subscribes to this Cash ISA, even if the full annual allowance(s) haven’t been used.

Thirty days following the products withdrawal, no further deposits will be accepted and all three issues may be withdrawn without notice, once fully subscribed.

Minimum withdrawals of £1 by BACS and £250 by CHAPS can be made, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 25), 90 days’ loss of interest on the amount withdrawn (Issue 26), or 120 days’ loss of interest on the amount withdrawn (Issue 27). There is a £35 fee for transfers out via CHAPS.

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Standard Life Reveals Inflation Can Reduce A Retiree’s Purchasing Power By 68%

Standard Life, the savings and investment specialist, has warned that the effects of inflation can seriously damage one’s retirement wealth. New data released today shows that a 90-year-old who retired in 1981, when petrol cost 35p a litre, would have seen the purchasing power of a £10,000-a-year level pension income fall to just £3,207 today.

John Lawson, Head of Pensions Policy at Standard Life said: “Inflation can have a huge impact on the purchasing power of your retirement income. As people are living longer, retirement income needs to go that much further, with a 60-year-old man retiring today living on average for another 26

years.

“Our research shows that 57% of people do recognise that an income keeping pace with inflation is attractive. But currently, and somewhat inevitably, the majority go for the higher starting income of a level annuity, leaving only 3% choosing an inflation linked annuity. This is perhaps understandable given that annuity rates have reached record lows and level annuities start at a higher rate than their inflation linked alternatives.

“People approaching retirement need to consider their own personal inflation rate may be higher in the future than that of the average person in the UK due to the types of products and services they will consume. After 10 years in retirement, a 60-year-old man who had purchased a RPI linked annuity with a fund of £100,000 could achieve a higher annual income than someone who had purchased a level annuity.”

An example provided by the data shows the purchasing power in today’s money of a £100,000 pension fund being used by a 60-year-old man retiring in October 2011 to purchase a level or RPI-linked annuity. Various rates of inflation are shown over a 30-year period. If inflation averaged 7% over a ten-year period, the then 70-year old man would begin to receive a higher annual retirement income than if he had purchased a level annuity.

Please note in this example the level annuity receives a higher starting income than the RPI-linked version. At year 10, with inflation at 7%, there is a crossover when the RPI-linked annuity annual income exceeds the level annuity annual income. At year 22, the total payments from the RPI-linked annuity exceed the total payments from the level annuity.

Lawson concluded: “Low inflation has persisted for the last 15 years or so, but there is no guarantee that it will continue. Rising world demand for food and fuel, without a similar increase in supply, has seen prices for the basics rocket. People retiring today need to consider that they will still need to pay for food, fuel and other essentials for a long time into the future and that these basic items are likely to cost a lot more in 10 year’s time than they do today.

“There are many options to consider at retirement which could minimise the impact of inflation on your income, so seeking financial advice is vital.”

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Standard Life Plc Joins Top 10% Of Companies In The World

Standard Life plc is pleased to announce it has earned a place in the Dow Jones Sustainability World Index (DJSI World) for the first time, joining the ranks of the top 10% of sustainable companies in world.

This placement in the Index reflects a strong and steady increase in Standard Life’s sustainability credentials over the past few years. Membership of the DJSI World Index is widely recognised as being an impartial and definitive measure of sustainability. Membership shows a good performance across a wide range of sustainability measures. However, Standard Life’s score was particularly strong in the areas of stakeholder engagement, corporate citizenship and philanthropy, brand management, labour practice and for its environmental management system.

Last year Standard Life plc entered the Dow Jones Sustainability European Index for the first time. Several new initiatives over the last 12 months – to strengthen relationships with customers, further reduce Standard Life’s environmental impact and to invest in the community – have now earned it a place among the best in the world, alongside companies such as Roche, BMW, Pearsons and Swiss Re.

Graeme McEwan, Group Director of Communications at Standard Life, commented: “Sustainability is vital to Standard Life and something we take very seriously. So we are proud of this achievement – we’re one of only 16 companies in our sector, from across the world, to have made it into the 2011 World Index.

“One of our most improved areas was around customer relationship management. In the past year we have set up a website, Standard Life Listens, to provide a forum to exchange views and help our customers learn more about Standard Life. Listening and responding to customers is at the heart of our business strategy and our brand, so it’s great to achieve an improved score in this area.”

Having a trusted, differentiated and preferred brand is also vital to Standard Life. It is a strategic business imperative and the way the brand is being managed has also contributed to a strong sustainability score.

McEwan explained: “We support customers by regular analysis of their needs, the choices they make and how our products are working for them. Through this insight we are able to develop relevant and innovative products, and ensure we communicate their benefits in a way that our customers easily understand. This is something we are now doing across our group.”

The work of the Standard Life Charitable Trust (SLCT) – an independent charity established by Standard Life – also helped to increase Standard Life’s sustainability score. The vision of the trust is to benefit society by building capability and supporting independence. It is focused on supporting people most in need of developing skills to manage their finances. The Trust is currently working on three key projects; with the Royal British Legion to develop and deliver a new strategy that aims to improve financial capability within the Armed Forces; Shelter, the housing and homelessness charity, to fund three telephone advisers who can offer advice and support via Shelter’s helpline to anyone who is at risk of losing their home and Grand Central Savings, a Scottish Charity that offers financial services to people who are socially and financially excluded, by providing access to banking facilities and offering advice and assistance to people who cannot access or benefit from mainstream banking.

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Experian Data Shows Identity Fraud Attempts Double In First Half Of 2011

Experian, the global information services company, has released its latest Fraud Index which reveals that identity fraud attempts doubled in the first half of 2011, compared to Q4 in 2010. This pushed up the overall level of application fraud attempted against UK financial services firms for the third successive quarter. Experian also predicts a nine per cent increase in application fraud attempts during 2011*.

The analysis, published at Experian’s annual Identity & Fraud Forum, reveals that identity fraudsters were responsible for eight in every 10,000 applications made in Q2 2011 (April – June 2011), double the number of fraudulent applications recorded in the final quarter of 2010. This was driven by a 340% increase in current account identity fraud, from five to 22 in every 10,000 applications.

Experian’s analysis also highlights that 18 in every 10,000 applications for automotive finance, credit cards, insurance, loans, mortgages, current accounts and savings products made in the second quarter of 2011 were found to be fraudulent. These were five per cent higher than January to March 2011, and up nine per cent on the year.

Over the same period the number of first-party fraud attempts – where a genuine individual misrepresents their circumstances – remained constant at 10 in every 10,000 applications.

42 in every 10,000 applications for current accounts were detected as fraudulent between April and June 2011, up 20 per cent on the first three months of 2011 and 59 per cent higher than during Q2 2010. For the second quarter in a row, current accounts were the most targeted financial product by fraudsters.

Experian’s Fraud Index collects data from both the National Hunter and Insurance Hunterfraud prevention systems, which are managed by Experian on behalf of its clients. Both systems provide a way for financial organisations to protect against fraud by comparing applications with previously submitted ones and pinpointing inconsistencies.

Nick Mothershaw, Director of Identity & Fraud at Experian UK & Ireland, commented: “Identity fraud is back with a vengeance. Our analysis shows that we are witnessing a surge in the number of detected identity frauds, with current accounts the number one target in the UK. Fraudsters see the current account as an easier option, giving them a springboard for money laundering and from where they can also target more lucrative credit products such as mortgages, credit cards and loans.”

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Northern Rock Staff Star In Latest Campaign To Help Bring Mortgages To Life

Northern Rock has placed its own staff in a starring role in its new mortgage campaign. The new campaign aims to build on the success of the helpful video guides available on its award winning mortgages website.

Two customer service agents from the lender’s Tyneside call centre are the first to have lent themselves to the latest campaign – ‘Mortgages Made For You’ – by appearing in video clips designed to bring their own warmth and personality to the business of mortgage lending.

The videos, which feature call centre workers Leanne and Joanne, along with some details about their own lives and circumstances, highlight not only that the bank’s staff are there to guide borrowers through every step of their mortgage journey, but also feature details of the lender’s popular incentives, Cashback, and free basic valuation and standard legal costs for all re-mortgage customers.

The move comes just months after the successful launch of the bank’s brand campaign, ‘Works for Me’, which features real Northern Rock customers pictured in their own homes, and is the latest improvement to a website which has won a string of accolades since its redesign last year.

Andy Tate, Customer and Commercial Director at Northern Rock said: “Buying a home can be stressful and daunting for anyone. Here at Northern Rock, we regularly receive great feedback from our customers about how friendly and warm our staff are to deal with, and how straightforward they help make the mortgage journey.

“So, building on ‘Works for Me’, which is all about letting our customers speak for us, we thought our dedicated colleagues in our branches and contact centre would provide the perfect next step. After all, they are the human face of Northern Rock, providing the first point of contact to all our customers.

“We hope our customers will find the most recent videos, and ‘Mortgages Made for You’, a welcome addition to the website.”

The videos can be viewed at www.northernrock.co.uk/mortgages/Mortgages-Made-For-You along with more details on the bank’s current range of mortgages and other tools including a mortgages calculator.

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Prudential Reports Britons Favour Spending On Holidays Over Saving For Retirement

Prudential has revealed that nearly three million working age adults will prioritise going on holiday over continuing to save for their retirement as their finances are squeezed.

The survey asked non-retired adults in the UK to outline their spending priorities when faced with a reduction in monthly expenditure as incomes are frozen for many and living costs increase.

Prudential’s research also found that an estimated 2.5 million Britons (or 10 per cent of those who have started saving for retirement would, if forced to make the choice, continue to spend money on nights out with friends and trips to the cinema ahead of maintaining payments into their pensions.

In a similar vein, more than 2 million would choose clothes shopping or going to the hairdresser ahead of payments into their retirement savings.

The figures highlight how saving for retirement is less of a priority for many in the current financial climate. Having previously revealed that more than 1 in 3 non-retired UK adults have no private or company pension, Prudential’s research has also found that almost a quarter wait until they are 31 years old before paying anything into a pension.

Vince Smith Hughes, Head of Business Development at Prudential, said: “Given the choice, many of us would opt for the immediate benefits of a holiday or a night out with our friends over saving for retirement. However, I’m sure we would all like to be able to continue topping up our tans occasionally or going out for meals after we have retired. So it is really important to strike a balance and keep building up a pension that can support the lifestyle we want to have in later life.

“As people tighten their belts it is important to think about the long-term impact of financial decisions and spending patterns. Those looking to maximise their retirement income should start saving as much as possible as early as possible in their working lives. Even small contributions can make a significant difference to a pension if invested early. And a consultation with a professional financial adviser will help you make the right long-term and short-term financial decisions.”

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Northern Rock Launches New eBond Issues

Northern Rock has launched two new issues of its new online fixed rate e-bond account, providing competitive interest rates for those savers who wish to operate their accounts online. e-bond (issues 18 and 19) will are available now.

With a minimum deposit of just £1, customers can benefit from a competitive fixed rate of interest until 20 October 2012 on e-bond issue 18, which pays 3.00% gross*/AER** annually. Alternatively, they can choose e–bond issue 19, which pays 3.25% gross*/AER** pa, fixed until 20 October 2014. Monthly interest rate options are also available on all three products. Accounts must be opened and operated online and initial deposits can be made online by electronic transfer from another bank or building society.

Account holders can choose to have their interest paid annually (interest is calculated daily) on 5 August, or monthly (the monthly interest rate is 0.30% below the gross* annual rate) on the 7th of the month (available next business day).

Additional deposits to the bonds can be made during the offer period up to a maximum of £500,000 per customer. The fixed rate bonds (Issues 18 and 19) are non-redeemable and none of the issues allow any withdrawals or closure during their respective fixed rate periods. The bonds are offered on a strictly limited issue basis and will be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits will be accepted.

Full product details are available at Northern Rock’s website at northernrock.co.uk/savings.

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Prudential Reveals More Than A Third Put Their Pension Savings On Hold

Prudential has revealed new research which shows more than a third (35 per cent) of British adults who are yet to retire have stopped paying into their pension pots.

The results of the nationwide study show that one in three (33 per cent) of those who have put pension payments on hold have done so because they are out of work, while over a quarter (27 per cent) say that they can no longer afford the contributions.

More than two-fifths (43 per cent) of those who have stopped paying into their pensions do not plan to start again, despite the long-term impact it will have on their retirement income.

Prudential’s calculations show that irregular contributions could reduce the values of savers’ pensions by thousands of pounds. In fact, a saver who misses a year of gross contributions of £2,400 could see their final pension fund reduced by £7,000*.

Vince Smith-Hughes, head of business development at Prudential, said: “Tightening your belt when times are hard is sometimes necessary, and putting pension contributions on hold might seem an easy way to save money; however, neglecting pensions today means throwing money away tomorrow, as savers will miss out on perks, such as tax relief and employer contributions.

“Abandoning your pension pot really should be a last resort when times are tough. By getting into the routine of saving into a pension as early as possible, savers will be able to ensure the comfortable retirement that they deserve.”

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Standard Life Reveals Financial Commitments As Significant As Key Emotional Relationships

Financial commitments are as significant as key emotional relationships for people in the UK, according to research from Standard Life. It found that many would liken the majority of their regular financial commitments to the kind of relationship they have with their partner or spouse. Over three quarters (81%) of people paying into a pension view their relationship with their pension in this way and almost half (47%) of gym-goers liken their membership to a ‘husband or wife’ relationship too.

Standard Life’s full ‘Your Commitments, Your Future‘ report can be found at www.knowyourcommitments.co.uk and defines how financial and relationship commitments change during a lifetime. It also investigates the different attitudes people have to different kinds of commitments. It found that while most consider their regular financial commitments, such as paying bills or contributing to a pension, to be significant, on average people spend much more time thinking about their relationship commitments instead.

Other findings include:
– Over three quarters of men (77%) who pay a mortgage are most likely to liken the relationship to the same as with a spouse, rising to four out of five women (83%).
– Three in five men (59%) who have paid-for TV admit that they view their subscription as most like a ‘husband and wife’ relationship.
– While the longest relationship people in the UK have tends to be with a partner or spouse, their longest financial commitment is held for just two years less on average over their lifetime.
– The longest relationship for adults aged 18 to 24 is with a financial product, (two years and ten months, six months more than their longest relationship with a partner).
– Men and women who have a partner spend just 50 minutes a day thinking about their partner and just over half an hour (37 minutes) a day thinking about the financial commitments we listed.

John Lawson from Standard Life commented: “Our financial and relationship commitments change throughout our life and understanding how they are linked is essential when planning for the future. Our research found that although our financial commitments are significant, we devote less time and attention to them than our emotional relationships.

” We’ve identified three core commitment life stages, so people can see where they are in the financial and emotional commitment cycle. In that way, they are in a better place to plan their finances for the future and feel confident about what lies ahead.”

Psychologist Professor Janet Reibstein who worked with Standard Life on the report said: “An interesting aspect of this research is that people regard financial and emotional commitments as separate entities to be treated differently. Yet if people understand that financial and emotional commitments are linked, then they will be able to align their commitments with their aspirations.”

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Northern Rock Maintains Healthy Interest Rates For Fixed Rate Cash ISA Savers

Northern Rock is launching three new issues of its fixed rate cash ISA, offering savers the chance to take advantage of tax-free* interest rates.

The new accounts, which are fixed over one, three and five years, are available now with a minimum initial deposit of £500.

A strictly limited issue, the fixed rate cash ISAs (issue 174-176) allow transfers from other providers and Northern Rock has increased the interest rates it pays for savers who are happy to lock their tax-free* savings away, whether for the short or long term.

The product can be opened either by post or through Northern Rock’s branches and additional deposits (£250 minimum) can be made to the cash ISA, within HM Revenue and Customs limits (£5,340 per tax-year). This issue may be withdrawn without notice once fully subscribed.

To ensure funds are accepted they must be received within 30 days from account opening. Any deposits received after 30 days may be returned. This includes any funds transferred in from existing cash ISAs. Subscriptions are not allowed to any other Cash ISAs in the same tax year(s) that customers subscribe to this Cash ISA, even if they have not used their full annual allowance(s).

Interest, which can be added to the account or paid into another account, is paid annually on 30 November. Minimum withdrawals of £250 can be made from the account, subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn (Issue 174), 120 days’ loss of interest on the amount withdrawn (Issue 175) and 180 days’ loss of interest on the amount withdrawn (Issue 176). If balances fall below£500, our current basic rate of interest will be paid (0.10% tax-free* pa /AER**).

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Northern Rock Launches New Fixed Rate e-ISAs

Northern Rock has launched three new online issues of its Fixed Rate Cash e-ISA to complement its competitive portfolio of internet-based savings accounts.

e-ISA offers those who prefer to operate their accounts via the internet an online option for their tax-free* savings. e-ISA is a cash ISA set at a competitive fixed rate of interest over a choice of one, two or three years and can be opened with no minimum initial deposit.

Interest, which can be added to the account or paid into other savings accounts, is paid annually on the first business day following 5 August on minimum balances of £500 (balances which fall below this amount will earn Northern Rock’s prevailing rate of interest, 0.10% tax free* pa /AER**).

Strictly limited issues, the Fixed Rate Cash e-ISAs (issues 22, 23 and 24) allow transfers in from other providers and additional deposits can be made to the cash ISAs, within HM Revenue and Customs limits (£5,340 per tax-year from 6 April 2011) within 30 days after the product is withdrawn (excepting postal applications to transfer in from other banks and building society ISA accounts, which must be received while the product remains on sale).

30 days following the products withdrawal, no further deposits will be accepted and all three issues may be withdrawn without notice once fully subscribed.

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Experian Reveals Unlawful Social Housing Subletting In The UK Could Be Costing £2bn A Year

New research by Experian Public Sector has revealed that the threat of social housing tenancy fraud in the UK could be significantly larger than previously thought.

Based on an initial analysis of 125,000 social housing arrangements at just ten UK local authorities and housing associations in both rural and urban areas, Experian Public Sector’s experts estimate that potential fraudulent occupancy of social housing, such as subletting, could exist at a minimum of 157,077* properties when extrapolated up across the rest of the UK.

The Audit Commission estimated the level of tenancy fraud at 50,000 properties in 2009** but Experian Public Sector’s analysis suggests that the figure could now be at least three times higher than this.

The preliminary findings follow a series of data matching exercises which analysed social housing tenancy lists at ten UK local authorities and housing associations. The analysis looked for data that might suggest subletting and warrant further investigation. This involved the use of compliant information to identify a range of fraud indicators, including the number of tenants not currently occupying their tenancy address and found living at another address.

The analysis indicates that potential fraud, such as subletting, could exist within a minimum of 3.1 per cent of social properties. When extrapolated nationally, based on 5.06 million social properties, this suggests potential fraud could exist at a minimum of 157,077 properties in the UK.

If all of these social properties were subject to fraudulent activity and made available to people currently in temporary accommodation, the reduced cost and saving to the tax payer would be in excess of £2.0 billion*** a year. Freeing up existing social housing means reduced waiting lists which could also mean fewer new social properties need to be built.

Nick Mothershaw, Experian’s director of Fraud and Identity Solutions, commented: “Our initial research suggests that the level of social housing tenancy fraud in Britain could be much higher than previously estimated. It also demonstrates how more effective data matching can quickly provide a reliable indication of what could be illegal occupancy and subletting. This means investigators can prioritise and deal swiftly with fraudulent cases. Reducing social housing tenancy fraud will significantly reduce the cost of temporary accommodation which we estimate to be at over £2 billion a year.”

Via EPR Network
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Prudential Reveals One In Three UK Workers Don’t Have A Pension

Prudential has revealed that more than one in three (35 per cent) workers in the UK admit that they don’t have a pension, meaning that they will have to rely on the State Pension and any savings in retirement.

The survey of 1,600 working adults also found that those who do contribute to a company or private pension pay in an average of 6.2 per cent of their annual incomes. Women are far less likely to save for their retirement with 41 per cent saying they do not have a pension, compared with 29 per cent of men.

To make matters worse for those who do not save into a pension fund, as well as facing a sharp drop in income at retirement, they are also missing out on significant tax relief during their working lives. Office of National Statistics figures suggest that the average worker in the UK earns nearly £1 million over the course of their working lives. An individual making the average pension contribution of 6.2 per cent of this income could receive a total of more than £15,000 in pension tax relief.

While the average tax relief on pension contributions is £334 per year for a person paying the basic rate of tax, higher rate taxpayers stand to lose substantially more by not paying into a pension scheme.

Vince Smith-Hughes, head of business development at Prudential, said: “Failing to save into a pension means not only having to rely solely on the State Pension in retirement, but also missing out on the ‘free money boosts’ which come with pensions, such as tax relief and employer contributions.

“Making regular pension contributions is a vital part of securing a comfortable retirement. Although saving for retirement may not be a priority for young people, the more money which is stashed away from an early age, the more likely that significant rewards will be reaped later in life.

“When coupled with the benefits of any additional employer contributions or gains through fund performance, a pension is the best way of saving for retirement, for many people. In order to maximise pension benefits, to understand the impact of tax relief, and ultimately to secure a decent retirement income, it’s important to seek professional financial advice.”

Via EPR Network
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Experian Reveals Mid-Life Makeover Trend

Experian CreditExpert, the UK’s most trusted credit monitoring service, has revealed that men and woman in their 40s and 50s are taking ownership of their existential questions and seizing the opportunity to take real life-changing and self-affirming steps in their life.*

The mid-life crisis is often perceived as a ‘curse’ of middle age, associated with men of a certain age attempting to relive their youth through extravagant purchases like sports cars and designer clothing. But as average life expectancy, and with it the age of retirement, creeps ever upward, this is all changing for men and women in their 40s and 50s.

85% of 40-59 year-olds surveyed by Experian CreditExpert had felt the need to change their life situation in the last five years, with responses demonstrating that, far from the expected plans to splash out on cosmetic surgery or fast cars, mid-lifers are making decisions that directly impact their work and life happiness, giving themselves a second chance at achieving their ambitions and desires – from changing career or learning new skills to seeing the world.

70% gave ‘travelling the world’ as one of their goals in later life, with the next most popular options being ‘spending time learning new things’ (46%) and ‘dedicating my life to a favourite hobby’ (29%). By comparison, only 13% (and only 3% of men) would have a cosmetic makeover, and purchasing a sporty new run-around did not feature at all.

The most clear gender divide was over what middle-aged men and women were most hoping to achieve by making life changes. Among men, gaining a better work/life balance was the most popular answer which was given by 32% of males (compared with just 20% of females). By comparison, women’s priorities were focused on adventure and gaining new life experiences with 36% giving this answer, compared with 30% of males.

Simple life changes were shown to have the biggest effect on most people’s happiness, as ‘making a career change’ and ‘making new friends’ were both expressed as having had a significant positive impact on their lives in recent years by 51% of those polled.

Money was predictably shown to play a big part in achieving one’s life goals. 69% said that a sudden change in their financial situation, such as an unexpected windfall or pay rise, would be the factor that was likely to kick-start their own ‘mid-life makeover’. 74% felt that their financial situation was the only thing still holding them back from making significant changes.

“People entering their late 40s in 2011 are still only halfway through their working lives”, said Pete Turner, managing director of Experian Interactive. “These results show that, far from throwing money at new toys in a ‘quick fix’, many are channelling their energy towards making positive, fulfilling changes. Preparing for the ‘mid-life makeover’ by cleaning up your credit rating can, for many, be the first step towards achieving those dreams.”

Via EPR Network
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