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finance

Checking & Savings, Debts, Financial, Financial Information, Investment, ISAs, IVA, Loans, Money, Personal Finance, Profits

UK Savers Losing Billions Of Pounds In ISA Accounts Each Year

As billions of pounds of British savers money is being lost in ISA accounts, the government’s consumer watchdog Consumer Focus is due to launch an official complaint on the matter. The move which could potentially ‘shake up the ISA industry’ is a long time coming suggests Matt Spencer, founder of UK based personal finance blog Moneystand.co.uk.

Consumer Focus have highlighted numerous ‘unfair obstacles’ financial providers have put in place for savers to transfer their accounts to other banks, which pay higher interest rates.

The cash ISA market is currently worth around £158 billion, as savers flocked to the tax free service introduced in 1999. Upon its launch rates averaged a healthy 6.32 %, however this figure has plummeted to 0.42 %, a figure that is below the Bank of England base rate.

Mike O’Connor, chief executive of Consumer Focus suggests that a slow ISA transfer process and bureaucracy from the banks has caused many of these problems. He suggests that only 12 % of people have moved their ISAs to a more preferable savings rate, which is costing UK savers millions per year in lost revenue.

As a large consumer group, Consumer Focus can launch a ‘super-complaint’ to the Office of Fair Trading (OFT). This would force the OFT to give an official response within 90 days to the matter and a decision over what action it would take towards the issue.

Common issues that arose include the length of time it takes for transfers to occur when sending funds and information from one bank to another. Official government guidelines recommend a limit of four weeks for this process. Findings from Consumer focus show that a third of people switching their ISAs waiting more than five weeks for funds to clear into the new account.

Customers should be wary when looking for a new ISA provider however warns Matt Spencer, suggesting:

“Banks are offering introductory rates with high interest levels to entice new customers to open new ISA accounts. These short term bonuses often hide very poor interest rates once the honeymoon period is over.

It’s time for savers to get the rates they deserve, so be sure to make your money is working as hard as possible for you. This might mean that you need to change your current ISA provider, despite the long transfer times between banks.”

Personal finance blog MoneyStand provides unbiased personal finance, IVA help and debt related information. Founded in 2008, MoneyStand was created in response to the worsening financial situation of individuals in the UK and across the world. For more information on personal finance, visit www.moneystand.co.uk.

Via EPR Network
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Debts, Financial, Financial Information, Investment, IVA, Loans, Money, Personal Finance, Profits

British Banks Continue To Put Pressure On Customer Finances

According to recent data released by the Financial Ombudsman Service (FOS), banks are rejecting thousands of requests every month from customers looking for help with their finances.

The Financial Ombudsman Service, which is an independently run service that deals with complaints from consumers and businesses in the financial industry, revealed that 13,053 cases were brought to its attention from consumers looking for more leniency from their banks. Debt management and IVA company Debt Free Direct expect to see this number of complaints increase in 2010 as thousands of individuals sought debt advice with the company in Q1 of 2010.

Derek Oakley, Insolvency Director at Debt Free Direct comments:

“We are continuing to see an increase in debt help enquiries from individuals worried about their finances. For many of these people, overdraft charges are adding to their already stretched budgets. We would always recommend that individuals seek professional debt advice if they find themselves struggling to pay their bills each month.”

Compared with just 2,800 similar complaints to the FOS in 2008, the 360 per cent increase in complaints may indicate the UK banking organisations are responding poorly to their customers needs during the economic downturn. In particular customers concerns include individuals in debt who are being charged fees on their overdraft facilities or insurance policy holders who have not been paid out on their claims.

Although traditional legal routes for reclaiming money lost through overdraft charges have now ended, there are still ways in which individuals can claim this money back if they are in financial difficulties. With charges of up to £35 every time the overdraft limit is exceeded, such fees could be contributing to furthering levels of personal debt for many customers in the UK.

According to the Ombudsman service, many banks will ignore individual’s pleas of hardship and refuse to suspend overdraft charges, renegotiate overdraft limits or restructure outstanding debts, despite this going against the industry lending code for personal banking. In the case of most complaints put forward to the Obmundsman, the customer will have already been refused a refund by their bank on any outstanding overdraft charges.

Debt Free Direct recommends the best course of action for anyone with financial worries is to seek professional, confidential debt advice. Many individuals may feel ashamed of their financial difficulties, but seeking advice is one of the first steps to becoming debt free.

They state, “Our aim is to suggest an effective debt solution for every individual using our Best Advice Model (BAM). BAM quickly and accurately analyses the financial information for each person and recommends the most appropriate, least drastic solution for them.”

Debt Free Direct, the UK’s leading Insolvency practitioners receive thousands of insolvency inquiries each month for debt advice. The company, which was founded in 1997 specialise in providing impartial debt advice and guidance for individuals in financial hardship.

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Checking & Savings, Debts, Financial, Financial Information, Investment, IVA, Loans, Money, Personal Finance, Profits

Moneystand.co.uk: Take Advantage Of Saving Strategies

Savers must look for smart new ways to make the most out of their accumulated wealth in the midst of continual drops in saving rates. With easy access and notice accounts both dropping their rates in recent months, savers must act swiftly to ensure they make the most out of any savings they may have remaining.

For those relying upon savings accounts to support their income the consistently low rates of the past 12 months will have been particularly difficult to stomach. Moneystand.co.uk founder Matt Spencer suggests that there are ways around this reality for individuals willing to put in the extra effort to ensure they actually see a real return on their savings.

“Savvy consumers who assess how separate bank details can be played off one another are likely to see the best return on their savings. In these tough economic times, it is always important to make your money work as hard as possible.”

Some savings accounts, such as the Santander offer will reward you for making regular monthly payments in to their account; paying 6% as long as at least £1000 is deposited per month. Other banks, such as the Halifax are offering £5 per month payouts as long as a minimum £1000 monthly deposit is made.

Clearly logic implies that multiple accounts across banks will ensure maximum return and with both of these banks accepting direct transfer from other banks this technique is completely plausible. Many customers are already making use of this process to ensure that they acquire the saving rates they need to ensure they see a real return after tax and inflation are taken into account.

Moneystand suggests consumers must be wary not to fall into the overdraft facility if they do decide to take this approach. Multiple current accounts, all of which have had their overdraft facility used will reflect very negatively upon an individual’s credit rating and must be avoided at all costs. Proper planning must go in to making this decision to ensure that all accounts are clearing whilst still in the positive.

For the latest financial news and advice on individual voluntary arrangement, debt and insolvency issues visit our personal finance blog, http://www.moneystand.co.uk.

Via EPR Network
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Banks, Checking & Savings, College Finance, Financial, Financial Management, Financial Services, Financial Solutions, Insurance, Insurance Services, Loans, Money, Personal Finance

Millions Of Brits Head Abroad In 2010 Bucking The Staycation Trend

  • 35.6 million Brits are heading abroad for their main vacation this year, suggesting a shift from 2009’s ‘staycation’ trend
  • 1/3 of holidaymakers blamed the UK’s recent cold weather as their main reason for travelling abroad to sunnier climes
  • 1 in 3 Brits still plan to travel in the UK for shorter breaks
  • 1/3 of Brits have already booked their main holiday for 2010, thought nearly 60 per cent admit they have not organised travel insurance
  • 8.5 million travellers admit they have required medical attention on a previous overseas trip

Millions Of Brits Head Abroad In 2010 Bucking The Staycation Trend

A survey of more than 2,000 UK residents has found that almost 60 per cent of Brits plan to take their main holiday abroad this year, bucking last year’s ‘staycation’ trend.

According to new research from Lloyds TSB Added Value Accounts, a third of holidaymakers blamed the recent icy snap as their main reason for wanting to go abroad this year, in search of warmth. But holidaying in the UK still remains popular, with one in three Brits intending to stay in the UK for short excursions.

Although a foreign holiday is more likely to be on the cards, holidaymakers are not going too far afield, with over 60 per cent of Brits visiting Europe for a holiday this year, making it the number one continent to visit for 2010, followed by America (12 per cent), Africa (5 per cent) and Asia (4 per cent). Sun and beach are also the number one priority for travellers this summer (45 per cent), with city breaks also proving to be a popular choice (23 per cent). Only 5 per cent are planning a cruise and only 3 per cent have opted for a safari or wildlife trip.

A third of those surveyed have already booked their main holiday for the year, whilst a further 24 per cent are planning to book in the next few weeks. Almost 40 per cent of holidaymakers intend to pay for their holiday abroad on their debit card, with one in three planning to use their credit card, surprisingly nearly a quarter of travellers will pay in cash and only 2 per cent will pay by cheque.

Worryingly, nearly 60 per cent of those holidaymakers who have already booked their vacation this year have not organised travel insurance, with almost half (42 per cent) claiming it was just something they had yet to organise. An additional five per cent said it was too costly and two per cent have not booked travel insurance in order to save money on their holiday.

Via EPR Network
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Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Prudential Reports Pension Gap Between Men And Women Continues To Grow

According to new figures from the Prudential Class of 2010 retirement survey* women planning to retire in 2010 expect to receive an average annual pension of £12,169, while their male counterparts expect to collect an average pension of £19,593 – a pension gender gap of £7,424. And the pension income gender gap has widened by £782 since 2009 when the difference between men’s and women’s pensions was£6,642**.

The gap continues to grow despite a decrease in expected pension incomes as a whole over the last year. In 2009 men expected to collect an annual pension of £20,313 – down 3.5% to £19,593 for 2010 – while women expected to collect £13,671, down 11% to £12,169 for 2010.

The mean expected pension income for men and women is down from £17,779 in 2009 to £16,509 in 2010, a fall of £1,270, which equates to approximately £100 a month.

Karin Brown, director of pensions and annuities at Prudential, said: “The reason women appear to get less in their pensions than men is embedded in years of history and, to a certain extent, because some women take a career break to have children which has an impact.

“But there is plenty of scope for women who are working and contributing to a pension to help reduce this deficit in future. By talking to your employer you can find ways of boosting pension savings and maximising the tax advantages that pension savings can bring.”

Women who take a career break to have children can safeguard their state pension with home responsibilities protection but this must cover the full tax year from April to April, so July to July, for example, would not count. Women can also buy back any missing National Insurance contributions.

Karin Brown said: “Women could also consider trying to keep up any company or private pension contributions even if they are on maternity leave or an extended career break – or ask their spouse or partner to make contributions for them.”

32% of UK workers over 55 who said they were delaying plans to retire because of the economic slowdown and the falling value of investments or due to a financial emergency believe they will never be able to afford to retire completely.

Karin Brown continued: “Although many working people may not be able to remedy this situation at a late stage in their working lives, younger people do have a chance to start building a decent pension pot. Prudential believes people should, ideally, start saving for their retirement as early as their twenties or early thirties instead of putting off pension savings until later in life.”

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Assets, Financial, Financial Information, Financial Services, Insurance, Insurance Services, Money

Understanding Texas Home Insurance Options

It is a smart idea that no matter what state you live in, you familiarize yourself with the types of policies and market rates for that particular state. Texas is no exception to this rule so it is important that when you’re shopping online for home insurance quotes you know what policies insurance companies in Texas offer.

Understanding Texas Home Insurance Options

According to an article recently published on InsuranceAgents.com, searching for homeowners insurance quotes in Texas is just like searching for homeowners insurance quotes in any other state, only the rates may fluctuate from company to company. However, the types of policies are usually standard no matter what company you check out.

The article states, “Insurance companies in Texas offer their own particular policies that are relevant solely to Texans. Once you have a sampling of what Texas homeowners insurance offers you can shop for homeowners insurance quotes more effectively.”

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Debts, Financial, Financial Information, Investment, IVA, Loans, Money, Personal Finance, Profits

Consumer Price Index Rise Hits UK Savers Pockets

With bank rates predicted to stay low for the next 12 months, savers are in an increasingly tricky situation, according to personal finance website MoneyStand.co.uk.

As the Consumer Prices Index (CPI) is often greater than the savings account interest rates, MoneyStand.co.uk believes some individuals are actually poorer in real terms by keeping money in certain accounts. The UK website, which focuses on giving advice and information on personal finance, debt solutions, and IVA, has stated that simple and well thought out decisions can make all the difference to consumers in these instances. These are particularly testing times for those who live off the interest of their accumulated wealth to subsidise their pension.

Due to the low interest rates affecting most banks within the UK and the erosive affects of rising inflation, individuals with savings are feeling the brunt of the economic downturn. Even with substantial savings, British savers are missing out on a solid return on their investments once tax is taken into account.

With the Consumer Prices Index rising to 1.9 per cent, basic rate taxpayers need their banks to provide a minimum savings rate of 2.375 per cent before seeing any real return on their investments, and higher rate tax payers need a sizeable 3.166 per cent to see a return. In reality, currently only 9 out of 744 variable rate savings accounts available in the UK actually offer an interest rate higher than this. Compared with November, when 69 out of 744 accounts paid above this rate, experts argue that banks are profiteering at the expense of their customers, warning that the situation will now get even worse for the basic rate taxpayers.

Following a widespread media campaign for better deals for UK savers, the UK government has promised to start taking action against these low yield savings accounts. Despite these claims, Moneystand.co.uk suggests that UK individuals will soon have almost no reason to save.

Founder Matt Spencer said, “Due to the worsening interests rates offered by the banks, we have approached the stage where taxpayers are better off investing their money into gold bullion than they are with savings accounts.”

“Due to the Consumer Prices Index rising beyond economists’ expectations from 1.5 per cent to 1.9 per cent last month, basic rate taxpayers will also feel the knock on effects of the increase for some months to come. Economists have attributed this to amongst other things, rising fuel and energy costs.”

Personal Finance weblog MoneyStand.co.uk has been providing unbiased personal finance, IVA and debt related information since early 2008 specifically to help people through these testing financial times. The authors realise people are facing particularly pressing financial times and seek to alleviate this where possible by providing clear and easy to understand information.

“In times of recession individuals and families often overlook simple financial decisions that can make huge differences to their financial health.” Matt Spencer explained, “Our aim is to highlight and offer financial advice on these sensitive topics.”

For the latest financial news and advice on IVA, debt and insolvency visit our personal finance blog, http://www.moneystand.co.uk.

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Banks, Business, Career, Financial, Financial Management, Financial Services

Joslin Rowe Recruitment Reports Banks Recruiting In High Volumes For Senior Business Unit Controllers Within Commodities

Pockets of high volume product control recruitment still exist within the City, despite wider doom and gloom. In particular, senior business unit control jobs within commodities are increasing.

Simeon Hall, a senior consultant in the Joslin Rowe senior accountancy and finance recruitment division, stated: “Commodities is one of the fastest growing product areas of the moment. As credit is down, commodities is up. A number of investment banks are rapidly expanding their desks, whilst others are effectively starting up a commodities division from scratch. This means excellent opportunities for senior product/business unit controllers.”

According to Joslin Rowe research, the commodities product control jobs on the market will appeal to those professionals looking for senior accountancy jobs, who are keen to shape the future of a new division and develop, from scratch, the product control infrastructure.

“These product control positions are highly desirable,” stated Hall, “You’re not inheriting the status quo and instead can implement new ideas with the support of strong resources, as banks pump money into the commodities arena. All the banks are keen to get the very top people on board to set up or expand their offering.”

This keenness is translating into the finance jobs recruitment process. Joslin Rowe‘s product control recruitment desk has seen the times to hire within commodities slashed by around 30% in comparison to product control jobs in other areas, such as equities. Salaries are also strong for those moving within the market. Senior product controllers are typically securing around 10-15% more – a big premium when most other remuneration packages are rising in small increments because of the credit crunch. In fact, according to Hall, recent salary jumps for the most in demand product controllers have been from £65,000 to £75,000, with a £10,000 sign-on bonus on top.

Hall also points to excellent career progression. “It’s really a chance to write your own job spec and an opportunity to rocket up the career ladder. In these start up divisions progression will revolve around success – not just dead man’s shoes. One of the most desirable aspects of these commodities product control jobs are their exposure to the front office. Being able to move out of business unit control and into a front office desk job is much more likely.

About Joslin Rowe
Established in 1982, Joslin Rowe is one of the leading UK financial services recruitment firms in the UK and Ireland. In April 2006, international staffing services company Vedior (headquartered in Amsterdam, the Netherlands) raised its stake in Joslin Rowe’s parent company, The Blomfield Group, from 18% to 70%. Joslin Rowe recruits for banking HR jobs across London, Edinburgh and Glasgow including long-term contracts, temporary and permanent roles.

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Business, Financial, Financial Management, Financial Services, Insurance

Hays Insurance Reports London Staffing Trends Conflict With Recent Layoffs By Insurance Companies

The specialist insurance division of Hays recruitment consultancy in London has announced that despite general trends in the job market, it has experienced a record month in July for introductions of permanent candidates into the insurance marketplace.

David Carr, Regional Manager for London at Hays Insurance, said: “Whilst many commentators are saying there is a slowdown in activity within the insurance industry, we haven’t seen this to be the case. We put this rise in recruitment down to a re-prioritisation of the roles that insurance companies are hiring for. They are hiring more staff in roles where people are either protecting or generating revenue. Although our clients are being more cautious than ever when making decisions on recruitment there are some very good jobs out there at the moment that would suit ambitious jobseekers.“

Roland Seddon, Regional Director at Hays Senior Finance, commented, “Over the last two months we have seen a sharp increase in demand for senior level candidates in the Insurance sector, and over 20% of our role registrations in 2007/08 have been in the last 8 weeks.”

Hays Insurance has recently filled some high profile roles in the capital, including senior positions within a Big 4 consultancy firm, senior underwriter jobs within global insurers and director roles in specialist insurers and brokers. In fact, given the current Hays Recruitment figures on the state of the market, the insurance sector appears to possibly be benefiting from the present credit crunch.

Carr observed: “We have also noticed a vast increase in temporary and contract placements for experienced qualified individuals, which has highlighted the importance of the senior interim market during such uncertain times – and illustrates the value that the industry is placing on experienced people that can come in and offer something different.”

Hays Insurance is a subdivision of Hays Plc, the FTSE 250 Company which employs 7,753 staff operating from 376 offices in 27 countries across 17 specialisms. Hays Plc placed circa 68,000 candidates into permanent jobs and paid circa 46,000 temporary workers weekly during the year ending June 07.

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