The 6 Big Reasons to Switch Energy Providers

Now that all of the ‘big six’ energy companies have cut their prices, here are six reasons why right now could be a great time to switch.

nPower’s recent energy rate cut – 7.5% for electricity customers – means that all the major UK suppliers have dropped their prices since the start of 2009. So if you’re with nPower, British Gas, EDF, E.ON, ScottishPower, or Scottish & Southern then your bills could be about to drop – but only if you’re on the right tariff.

Finding a cheaper tariff is easy these days with the energy comparison sites. Enter a few details into simple online forms and you’ll see all your local energy options appear onscreen within seconds. And if like most energy customers you haven’t switched in a while, there’s a very good chance you can slash your energy bills by even more than the announced cuts.

For many, the chance to save up to £252* on their gas and electricity bill is all the reason they need to switch energy provider, but just in case one reason’s not enough, here are…

…The Big 6 Reasons to Switch Right Now

1. Save up to £252*
nPower, British Gas, EDF, E.ON, ScottishPower and Scottish & Southern have announced rate cuts, but some have cut more than others. Therefore, even if you're with one of these providers you could save even more by switching.

2. Lower your standards
If you're on a standard tariff then you're almost certainly paying too much. Don't believe us? Then compare energy prices right now to see what you could be paying.

3. Get online!
You could further increase savings by signing up to an online tariff. Posting bills and waiting for cheques to clear costs energy providers time and money, and they're willing to offer discounts if you agree to paperless billing and paying by direct debit.

4. Colder weather = more savings
Summer is still a way off, and as people use more energy during the colder months, switching to a cheaper tariff now means you'll save even more.

5. FREE smart meter
If you switch to a First:Utility tariff, they’ll install a smart meter for free. Ofgem want to have a smart meter in every household by 2020, so here’s your chance to beat the deadline by a dozen years. Plus, monitoring your energy consumption more closely means you could save as much as 15%** off future bills.

So now you’ve read our big six reasons to switch energy supplier, you’ll probably want to get straight to it, in which case, just follow the link below to see how much you could save.

I'm a Bank, I'm a Credit Union Video

Taking a leaf out of the i'm an Apple, i'm a PC adverts, here is i'm a bank, i'm a credit union video.

ISA Allowance Increased By £3k

Chancellor Alistair Darling's latest Budget has given savers a boost, with a £3,000 increase in the annual allowance under tax-free ISAs. The new total annual allowance will be £10,200, rising from the current £7,200 limit, and will apply to those aged 50 and over from this year. The increased allowance will be extended to everyone in 2010.

Mr Darling said that the new overall allowance included an increase in the cash limit from £3,600 to £5,100. Since their launch 10 years ago, almost £290 billion has been saved in tax-free ISAs, the Chancellor said, with 18 million people having taken them out.

All money held in an ISA grows free of tax, with savers currently able to put in up to £7,200 a year in equities or a combination of equities and cash. The latest Budget announcement marks the second ISA allowance increase since their introduction in the 1999 Budget to replace former tax-efficient savings vehicles PEPs and TESSAs.

The total allowance was increased last year from £7,000 to £7,200.

Savings: Tax-free savings boost to combat lower interest rates

Hard-pressed savers received a welcome boost in the Budget, with the Chancellor announcing that the amount of money they can pay into an Individual Savings Account each tax year will rise from the current £7,200 to £10,200. The popular cash element of ISAs will rise from £3,600 to £5,100. The new higher ISA thresholds will come into force this tax year for people over 50 and for everyone else from April 2010.

All money paid into an ISA is allowed to grow free of tax. The Treasury estimates there are 18 million ISA account holders and successive cuts in interest rates, as the Bank of England has slashed the cost of borrowing, have left them out of pocket. Pensioners, who rely on interest from their savings to cover living expenses, have especially felt the pinch as a result of the rate cuts. When the plight of savers became clear a few months ago, Treasury insiders promised a "Budget for savers" but in recent weeks such talk has been muted. Yesterday's move on ISAs was therefore greeted with some relief. Adrian Coles, director general of the Building Societies Association, said: "The recent interest rate cuts have meant savers have seen their income drastically reduce, so this will help give a greater incentive to save."

However, the tax break will do little to repair the damage already done to savers' finances from cuts in rates paid by banks and building societies. Raising the cash ISA limit will put an extra £30 a year back into the pocket of savers who have the maximum annual amount of money invested in an ISA, based on the current average rate of interest of just 2 per cent, according to financial information firm Defaqto. Last autumn, savers could routinely find cash ISAs paying more than 6 per cent interest.

Savers are also concerned by the cutbacks on pension tax relief for higher earners. "This could be the thin end of the wedge," said Peter Timberlake of insurer Friends Provident. "What is to stop the Government lowering this £150,000 limit to £100,000 or £50,000 in the future, gradually dragging people in? We have an ageing population and a pensions saving shortfall in this country. The Government should be encouraging saving for retirement, not making it less tax efficient."

Sourced from Independant [Link]

High Earners Given ISA Advice

High earners can avoid some the tax hikes announced in the latest budget by shifting more of their salary into a pension fund and increasing ISA contributions, according to experts.

The Institute for Fiscal Studies said the 50% tax rate may not deliver the full amount of revenue the Treasury had hoped unless the Government brings in more stringent measures to block avenues of tax avoidance.

Chancellor Alistair Darling has already cut pension contribution relief in a bid to stop those with high salaries placing more of their wage into a pension fund to pay less income tax.

But this still works out as a good option for the next two years, before the new 20% relief rate is brought into force.

Expanding on the revenue maximisation theme, senior tax partner at BDO Stoy Hayward Stephen Herring, said: "The first basis is to maximise pension contributions in the next two years, and maximise contributions to ISAs noting that the limit goes up to £10,200 in October for the over 50s and for everyone else in April next year.

"Then if you're of the mindset that you're willing to take a high level of investment risk, you can look at the Enterprise Investment Scheme and Venture Capital Trusts which provide tax relief."

Sourced from Confused.com [link]

Tesco's Bank Savings Balances Boost

As supermarket chain Tesco announced record annual results, it also revealed it has seen a near-doubling of savings balances at its retail banking arm since the downturn began.

Since last autumn's financial crisis began, Tesco has relaunched its banking operation, Tesco Personal Finance (TPF), as a safe haven for savers to deposit their cash.

TPF has gained success through low consumer confidence in established brands, particularly among its own loyal customers, as the saving balance rose from £2.5 billion in mid-October 2008 to more than £4.5 billion by the end of February.

The group appears to be turning TPF into a full-service retail bank as it has now bought out former partner Royal Bank of Scotland to take the 50% it did not own last December.

Tesco plans to open 30 bank branches in its stores by the end of this year, following a trial which has been running in Glasgow since 2006.

TPF now has six million customers since it launched 11 years ago and offers services including credit cards, pet insurance, bureaux de change and savings accounts.

Sourced from Confused.com [link]

Guide to Savings 2009

Need to save cash? Which account is right for you? With Bank of England interest rates at a record low, getting the best possible return on your savings has never been more important. In today’s market, it really pays to know your ISA from your fixed-rate bond.

Follow Confused.com’s guide to savings accounts to ensure your money is in the right place…

1. Instant access accounts

These accounts, also known as no-notice accounts, enable you to get your hands on your cash without restrictions.

The most recent figures from the Bank of England show the average interest rate paid on a branch-based instant access account has slumped to just 0.17%. But don’t despair - you can get up to 15 times this amount by shopping around for the best rate. Try Confused.com when comparing savings accounts.

GOOD FOR: People who want the security of knowing they can get hold of their money without having to wait. But, you’ll pay for the privilege, as these accounts typically offer the lowest returns.

2. Notice accounts

Under these accounts you generally have to provide notice of between 30 and 120 days to withdraw your money. As a result, these accounts may not be suitable for people who think they might need their cash in a hurry, but they do tend to offer higher rates than instant access accounts.

GOOD FOR: People who are confident they could wait for the required notice period.

3. Internet accounts

The overheads involved in running these accounts are lower than on branch-based ones. This is reflected in the interest rates they offer, which are usually higher than on instant-access accounts. Internet accounts often let you withdraw your money without giving notice.

GOOD FOR: Web savvy people who need instant access to their cash but want to get higher returns than on branch-based accounts.

4. Regular savings accounts

Banks and building societies have become increasingly reliant on using savers’ money to fund mortgage lending since the credit crunch struck, and this has led to many groups launching regular savings accounts.

Under the terms of the accounts, you agree to pay in a set amount of money every month for a year, although it’s sometimes possible to vary the sum. You can’t withdraw any of the money until the end of the year, when the interest is added to it and the total is usually transferred to a lower interest account.

GOOD FOR: People who have spare cash to set aside every month and for people who need a little help with the discipline of saving. Not so great for anyone with a lump sum to invest, as the money can only be paid in on a monthly basis.

5. ISAs

The benefits of ISAs shouldn’t be underestimated in the current low-interest rate environment. Not only do the accounts typically offer higher interest than instant access and notice accounts, but holders don’t have to pay any tax on the returns they receive.

As a result, a higher rate taxpayer needs to earn 1.67% on a normal savings account just to equal every 1% they earn through an ISA, while a basic-rate taxpayer would have to earn 1.25%.
You can pay up to £3,600 a year into an ISA, and with many of the best-buy deals offering instant access to your money, it’s hard to see a downside.

GOOD FOR: People who want to save long-term and can afford to lock in money for 12 months.

For more information on ISAs, see Confused.com’s guide to tax-free savings.

6. Fixed-rate bonds

These are the accounts that are paying the best return at the moment, with many fixed-rate bonds offering interest of more than 4%.

The reason for the high rates is depositors have to lock up their money for a set period of time, generally between one and five years. Interest is either paid annually or when the investment matures.

GOOD FOR: People whose main consideration is to get the best possible return on their cash.

7. Monthly interest accounts

These tend to be notice accounts upon which the interest is paid monthly rather than annually. The rates paid on the accounts are usually slightly lower than for notice accounts, to reflect the fact you get the interest sooner.

GOOD FOR: Retired people who are using their savings to boost their income. And those hoping to live off returns on their savings, such as during a career break or maternity leave.

Log on to Confused.com to compare savings account rates.

Sourced from Confused.com [Link]

Young People Turning Backs On Debt

Research has found that young people are turning their backs on spending and credit cards in favour of saving money.

A poll by Ci Research found that 70% of people aged between 16 and 26 are not comfortable with accumulating debts and would rather save up for things they want to buy. They added that they would only borrow money as a last resort.

However, figures show that there are young people who are less reluctant to take on debt, with 4% of the 500 people questioned saying they did feel very comfortable with debt.

The survey found that the economic downturn is having a significant impact on young people's saving habits. A quarter of people said they were now saving more than they had been and 19% plan to set aside more cash.

A further 62% said they did not have a credit card and 75% said they were keeping a close eye on their finances. Just 12% of those questioned said they were saving less or had stopped saving altogether.

Colin Auton, of Ci Research, said: "The report reveals undeniable proof that recent economic changes have influenced young people's behaviour and opinions on both spending and saving."

Sourced from Confused.com [link]

Top 10 tips to a budget friendly wedding

Top 10 tips to a budget-friendly wedding. While you want your wedding to be one of the most memorable days of your life, you don’t want to spend the rest of the marriage paying for it.

If you’re planning on walking up the aisle anytime soon, follow these top 10 tips and start your married life stress-free. First things first...

...Work out a budget (and stick to it!)

When it comes to tying the knot, the only thing you really need to pay for is the marriage licence - everything else is up for discussion.

Sit down with your husband or wife-to-be and think about what you both want from the day. How do you want it to look? What feel are you going for? Keep in mind how much you want to spend and how much you can realistically afford.

Remember, the tiny (and costly) details that can seem so important often go unnoticed by guests. It’s the overall atmosphere that you’re looking to achieve. Use the internet to gauge a rough idea of costs, and once you’ve arrived at a budget - stick to it!

Top 10 tips to a budget-friendly wedding

1) Maximise your savings

The first thing you’ll want to do is free up as much cash as possible to pay for the wedding. You could be wasting hundreds of pounds a year by paying too much for certain services.

For example, do you have the right savings account? Switching to a higher-interest account will earn you more on your savings, making it quicker to reach your wedding budget.

Less accessible but with generally better interest is a cash ISA account. Other ways you could free up cash to turn into savings include changing to a lower-interest credit card, switching gas and electricity supplier, replacing an expensive loan with a cheaper one, or saving money on home insurance, car insurance or life insurance.

All these potential extra savings could go towards your big day or honeymoon.

2) Prune the guest list

Look at the guest list. Don’t feel you have to invite anyone you haven’t spoken to in years or give singletons a plus one.

3) Bag a bargain dress

Keep an eye out for wedding and bridesmaid dresses on the high street or online. Discount sales can prove fruitful and as the wedding dress will only be worn once, you could even look at renting a second hand number.

4) Tie the knot on a cheap date

Carefully consider the wedding date. Does it really have to be on a Saturday at the height of summer? Winter months, weeknights and Fridays or Sundays can work out a lot cheaper.

5) DIY invitations

If you’re a whizz on the computer or have a talent for calligraphy, why not make your own invitations? The DIY route could save you a bundle.

6) Use your friends

Do you know someone who’s an amazing cook, photographer or DJ? If so, ask if they’d like to be a vital part of your special day. They may do it for love, or at least give you mate’s rates.

7) Flowers of romance

Buy flowers that are in season to help keep costs down. Maybe decorate the church with candles rather than flowers – a much cheaper option.

8) Get me to the church on time

Cars are another budget-busting cost. If you have a friend with a grand set of wheels, ask if they’ll do the honours.

9) Food and drink

This is the biggest cost of a wedding. A buffet can be more budget-friendly, and as for the bubbly, Cava makes a cheap and tasty alternative to Champagne. Serve it later in the evening and no one will know the difference!

10) The honeymoon

Honeymoons can be seriously expensive. These days, the most competitive deals can be found online, so get trawling for the best honeymoon packages. And don’t forget to get your travel insurance online as well – likely to be much cheaper than if bought on the high street.

Sourced from Confused.com [Link]

Confused.com’s Guide to Safe Savings

Top tips on how to keep your money safe. These are worrying times for savers. Not only have interest rates fallen to record lows, slashing the returns people can earn on their money, but there have also been a number of high profile banking collapses.

Unsurprisingly, many consumers have been left wondering if they wouldn’t be better off stuffing their savings under their mattress.

But, by following a few simple rules, people can easily keep their money safe, while still earning a decent return on their savings at the same time. Just follow Confused.com’s top tips…

The savings safety net

The good news for savers is that the UK has a savings safety net, known as the Financial Services Compensation Scheme (FSCS). The scheme will pay compensation of up to £50,000 to single account holders who have lost money as a result of a bank or building society going under, and up to £100,000 for joint accounts. The scheme currently pays out within three months, and there is talk of speeding this up to as quickly as seven days.

Banks versus brands

However, things can get a bit complicated. The FSCS will only guarantee up to £50,000 or £100,000 per banking licence and not per brand. As a result, those who have more than this amount in savings with different brands - which are part of the same banking group - could still lose out if their bank goes bust. It’s therefore important to ensure that your money is spread around different banking groups and not just different brands.

Things have been made particularly complex by the recent wave of consolidation in the banking industry. For example, Lloyds TSB and HBOS are now part of the same banking group, but continue to trade under different banking licences, meaning they have separate compensation limits under the FSCS. But Halifax, Bank of Scotland, Birmingham Midshires and Intelligent Finance all trade under the same licence.
Similarly, Abbey, Bradford & Bingley and cahoot are under the same licence, while Alliance & Leicester is under a different one, although they’re all owned by Spanish banking giant Santander.

Government Guarantees

For people who are worried about the safety of their cash, there are a number of institutions that have government guarantees.

National Savings and Investments is backed by the UK Treasury, which sees the group boasting that it’s 100% secure, while Northern Rock has also been nationalised – making it similarly secure.
All money invested in Irish banks is guaranteed by the Irish government, including money that is held in the UK arms of Irish institutions. As a result, the Irish government guarantees any money held in Post Office savings accounts, as the accounts are provided through a joint venture with the Bank of Ireland.

5 top tips to keep your money safe

1. Spread your cash around. Even if you don’t have more than £50,000 worth of savings, it’s still worth holding it with different institutions, just in case the worst happens, and you’re left without your money while you wait for the FSCS to pay out.
   
   
2. Check your savings provider is covered by the FSCS or a similar foreign scheme. All savings providers, authorised by the Financial Services Authority in the UK, are covered by the FSCS. Some foreign providers may also be covered by the scheme, while others will just be covered by their home country’s scheme, which in some cases could pay out less than the FSCS.
   
   
3. Make sure you know who would refund your money if things went wrong and how much you’d get back. The easiest way of establishing this is to simply ask your bank.
   
   
4. Make the most of the security offered by government-backed institutions.
   
   
5. Take advantage of the savings guarantees being offered by the Irish government.

While it’s important to keep your money safe, savers should still try to get the best returns on their cash. Compare savings with Confused.com to make sure your money is working hard for you.

Sourced from Confused.com [Link]