Savers in Ireland continue to miss out on maximising the return on their savings

Derek Keogh, Head of Personal Savings at Anglo Irish Bank discusses recent official data which shows that the majority of savers lose out by not taking action to switch their savings from low rate payers.


Choosing the right account for you isn’t always a straight forward decision. There’s so much choice on the market and accounts can vary widely. However, doing something is better than doing nothing as the potential to greatly increase interest returns exists. Derek Keogh from Anglo Irish Bank answers some of the most frequently asked questions by savers regarding savings accounts:

“Given the wide range of products available in the market paying rates of up to 3.5% gross/AER fixed compared to low average rate that savers are actually earning (0.63% gross/AER variable for overnight / demand funds according to the Central Bank of Ireland’s latest statistics)”, Mr Keogh comments. “For the average saver, with €20,000 on deposit they could be earning over €500 more gross interest based on taking action to move from the low rate account.”

To ensure savers are comparing like-for-like, they should be familiar with the following terms as part of the comparison process:

Gross
This term generally means before deductions, when banks are promoting their products you will often see the interest rate followed by the term “gross”. This will generally mean the rate of interest earned on a deposit account for the duration and before the deduction of tax.

AER
This shows you what the interest on a savings account would be if the interest was compounded and paid out to you each year (instead of monthly or over any other period). You may earn less than the AER because your money may not be invested for as long as a year. Sometimes firms use Compound Annual Rate (CAR) instead of AER on savings and investment products.

Fixed Rate / Term Accounts
With fixed-term deposits you put money into your account for an agreed amount of time. Usually the interest rate is fixed for that period and if you take money out during that time you may pay a penalty.

Variable Rate Accounts
Variable rates rise and fall in line with general interest rate changes in the euro zone. Variable rates offer the most flexibility (over fixed rates) and allow you to withdraw part or all of your funds without having to pay any fees or penalties.

Notice Accounts
This is a savings account on which the customer is contracted to give a specified notice period before making a withdrawal. A penalty may be imposed by the bank providing the account if a withdrawal is made prior to or without the agreed notice period being undertaken.


The material contained in this article is for general information purposes only and does not constitute investment advice or an offer to buy or sell or a solicitation of any investment products or other financial product or service. You should not act or refrain from acting on the basis of any material contained in this article without seeking appropriate professional advice. All information is provided “as is” and without warranties express or implied and Anglo Irish Bank Corporation Limited accepts no liability whatsoever for any inaccuracies, errors, omissions, opinions or misleading information or for any action taken or not taken in reliance on the information in this message. Any expressions of opinion are current opinions as at the date of publication and are subject to change without notice.


Anglo Irish Bank Corporation Limited is regulated by the Financial Regulator in Ireland.



News update released by:


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4 key factors for efficient saving

As the Office for National Statistics releases new figures revealing that Brits are becoming increasingly prudent in their spending habits and investing more in saving, we take a quick look at the key factors to consider before selecting the best savings accounts to meet your needs.

There are a huge number of investment and saving products on the market, but in order to get the most out of your cash you need to evaluate four key factors: funds available, investment term, required access and acceptable risk. These will play a huge role in estimating the best return available and help establish which products meet your own unique economic situation and expectations.

Funds available
The main deciding vote for products here is whether you have a lump sum to invest or are rather looking at regular payments. For best results on a lump sum, products such as saving bonds and cash ISA transfers work really well. If you’re starting from scratch you’ll be looking to make regular payments, in which case a new cash ISA can take up to £5,100 tax free every year, or a high interest savings account allows savers to make regular payments and offers an above average rate of return.

Investment term
Essentially the longer you tie up your money, the better the rate of return offered. So if you’re happy to have your investment sitting pretty, accumulating interest in the depths of a financial product, you’ll do well to opt for a long-term high interest account or investment ISA. If the investment required is short-term, cash ISA’s offer excellent tax-free annual returns.

Required access
If you need to dip in and out of the savings pot, there are suitable products on the market that allow short or no notice withdrawals. For best results shop around for individual products, comparing minimum required deposit and ensuring that there are no penalties for withdrawals. However, for savers who are happy to follow the rules of ‘out of sight, out of mind’, products that limit access, such as high interest accounts that allow only one annual withdrawal, often offer better rates.

Acceptable risk
Your position both pre and post global recession will no doubt dictate how much risk you are prepared to accept, however there are different levels of risk - investment ISA’s and investment bonds run with the markets, whilst options such as savings bonds and high interest accounts offer fixed rate solutions.

Sarah Maple writes about the best savings accounts and fixed rate bonds.

It's Official - The UK Public Are Getting Cleverer With Their Cash

It would likely be surprising to few, but positive aspects of the ongoing recession are rarely mentioned in the press, in comment columns or on blogs. Yet, recent research from financial experts Moneynet and The Office for National Statistics has drawn attention to trends amongst the UK public showing that since the credit crunch we have become more sensible with our money.

Data recently published by the Office of National Statistics has shown that the household saving ratio has increased from 3.9 percent at the beginning of the year, to 5.6 during the second quarter. The rise has caused Andrew Haggar of Moneynet to comment: "People are now getting a bit wiser with their cash, putting it away to cover emergencies or unforeseen events such as unemployment."

Although the credit crunch and ongoing recession has seemed to make the UK public more conscious of the need to save, and to be more sensible with their cash, the competitiveness of fixed rate savings accounts have also been a direct influence on the habits of savers and spenders.

For example, interest on fixed rate bonds has increased from 2.87 percent to 3.53 percent according to moneyfacts. In comparison to average easy access accounts, the highest return on the best bond rates are around 2 percent more. Simply put, for anyone to make any interest out of their cash, they have little choice but to part with that money for a significant amount of time.

Similarly, ISAs have also hit the news again after new rules for over 50s were introduced in order to allow them to save more money tax free. Yet, despite the increase in options for older savers, competitive rates are still being seen by a range of providers with some banks offering accounts to savers both over and under 50. Prospective savers are becoming more savvy with the type of accounts they are opting for, but they are also willing to invest more time researching providers on and offline in order to get the best rates.

Paul Roberts writes about savings accounts, fixed rate savings, bonds and ISAs.

Savings 2009 - Can Debt Still Be a Friend?

As the era of tight budgets and scraping just enough to save continues, the notion that debt is a positive thing may seem ridiculous to many - it should be avoided at all costs, and it certainly shouldn't be available to someone who is likely not to earn enough to pay it back.

Yet, if debt wasn't as available as it is - i.e. if it were capped, what would happen when we really needed it? Most of us are paid by the month, and if at some point you need to make an emergency payment, on your car, or on your property etc, acquiring the capital to pay immediately is an absolute life-saver - and if for some reason it wasn't accessible could be potentially disastrous.

Thankfully, huge emergency payments are few and far between, but seeing as I'm writing this as thousands of university students invest a good chunk of their student loan in a Fresher's Week binge (I know I did), student debt is certainly worth a mention. Tom Cockreill (quoted in The Guardian) has the following to say about this: "Society seems to be happy to let debt accumulation start at university. It's all the more dispiriting that higher education, the bedrock of future prosperity and a more secure society, is paid for via debt."

This is certainly a curious aspect of modern day living. But would further education be as open and equal as it is if the system were not run this way? And additionally, what better time is there in one's life to come to terms with such an expensive, and important, investment - when they are enthusiastic and ripe for learning?

That said, it seems that for people of all ages there is still room for learning how to contribute to making their society less indebted - and it is going to be more difficult for borrowers to simply borrow to much in the future.

Perhaps more transparency is owed to students regarding how much they are paying and borrowing for university - and how much their course and grades are really going to be worth in the future if they achieve the best they can do so. But for those who are borrowing for other products, i.e. desirables, capping may be a good idea - at least to ensure that we are as a society are in control of debt - and it is no longer in control of us.

Paul Roberts writes about banking, student finance and savings accounts and best savings rates.

Can I Afford a Gap Year?

Much has been written recently about the cost of university, and the increasing number of young people put off by higher education due to the thought of so much debt after graduation. However, as the new term kicks off this month, it is clear that the recession has made the application process even more competitive as more mature students enrol, at the same time as jobs are cut, pay is frozen and more people find themselves without work. So what are the other options after college or sixth form?

Of course, a gap year has long been an acceptable way to spend time after secondary school in order to build up your 'life experience' and to enjoy some well-deserved freedom. But with so much concern about debt, can you really afford one? The easy answer is probably yes, but you must plan and budget carefully.

Whether you decide to volunteer close to home, or want to fly to the east coast of Australia, it is likely that you will need to save up some money for the experience. Of course, earning is one thing, but saving is quite another and it is important that you are taking enough money from your monthly pay and putting it somewhere safe. The more research you can do on this at the moment the better as the best savings accounts available tend to be fixed term - meaning you are more likely to get good returns if you leave your savings alone for a certain amount of time.

Another positive boon to your funding could come from tax. If you are only working for a few months before leaving and not working for the rest of the year, you may be eligible for tax back. If you earn £6,475 or less over a year you do not need to pay tax.

Once your funds are in place you need to estimate how you want to access it, and the currency (or currencies) you are likely to use. Internet banking is a great way for travellers because it is free and is available 24 hours a day. After you know what currency you will need and where, it may also be worth considering a prepaid credit card - despite the bad reputation there are certain credit card options available that are free of debt risk and allow you to take out foreign currencies abroad for no charge.

The next plan is to budget the trip. If you are travelling abroad it is becoming increasingly important to take out travel insurance - and it is a good idea to research specialist gap year cover. If you are planning any special activities such as extreme sports, ensure that these are included on your policy also.

Paul Roberts writes about finance for travellers, savings accounts and fixed term savings

Broadband tax to be made law - 50p per month

The 50 pence a month tax will apply to everyone with a fixed line telephone. Speaking at a debate in London, Mr Timms said the tax will be presented to parliament as part of the Finance Bill. But the Tory MP John Whittingdale said the tax, which could raise up to £175m a year to fund high speed networks, would be opposed by the Conservatives.

Are UK Universities Too Expensive?

As thousands of teenagers look over their A-Level results and decide what to do next, research from Child Trust Fund provider The Children's Mutual, has highlighted the cost of a three year university study to students and their parents. So are UK universities too expensive? And how can the financial strain be eased?

According to the latest figures from The Children's Mutual, for the average three year university course, a student will need to have around 42,000 pounds behind them - an amount of which a good proportion is likely to come from student loans. However, new research has shown that the rest of this funding is also likely to come from parents who are then either forced to take from their savings, or maybe even remortgage their house.

University costs are also likely to have been exacerbated by the lack of summer jobs available to those who are due to start their higher education in October. This has meant that unless children have been working during their A-Levels, they may have even less saved up for when they leave home.
Although it seems easy to label UK universities as too expensive, particular in regards to recent recessionary developments, in 2005 the government did establish the Child Trust Fund (CTFs) in order to ensure that future students will have a significant amount of money to fund their studies should they need it. CTFs are also intended as an incentive for both adults and children to open savings accounts - and to learn about the importance of putting money away.

However, it should be acknowledged that those eligible for a CTF must have been born on or after the 1st September 2002 - leaving a significant gap of future generations who are likely to be in a similar situation to this years graduates. Overall, the cost of this years graduates is said to be at around the 25 billion pound mark, 3 million pounds more than last year. If this is set to increase at the same rate, by 2015 this amount will have reached 43 million pounds. Consequently, if parents can afford to put any money away now, they should certainly do so - and as I write this, fixed rate bonds are currently a better option than ISAs in terms of average returns.

Paul Roberts writes about banking, savings and the best savings rates.

Research in Ireland Has Found That Women Are Better at Saving Money Than Men

Research in Ireland has found that women tend to be better than men at saving money. Of course, such 'data' will likely fuel the old 'it's official, women are better than men at something else - add that to the list above driving, multi-tasking and smelling nice,' argument that has been muttered, countered, and accepted since the dawn of time.

Yet, it also shows something more positive, i.e. that a nation also looks to be battling its way out of recession quite successfully - and that more people may now be aware of the importance of savings.


The research (collected and available at postbank.ie) shows that more than half (58 percent) of men and women asked in their Quarterly Savings Index consider the female of the species to be the better savers. Women themselves are confident that they the most frugal gender, with 65 percent claiming that they were the best savers. Yet, the actual statistics pitch men and women closer together - with 80 percent of men and 82 percent of women saving regularly - whilst men are said to put more away, with a third of those asked stating that they saved €250 a month.

The data is a good sign. The number of people devoted to saving is the highest in years, and the primary reason for doing so is security. This is a fact that is evident when one acknowledges the average decline in interest rates across the country - similar to that which is being seen in the UK and the rest of Europe - but it has also been backed up by nearly half (49 percent) of the postbank respondents who admitted they were concerned about the safety of their money at a time when possible unemployment is a lingering reality.
However, the risk of unemployment is clearly not the only reason that many are eager to put some money away each month. Clearly the system is showing its worth aside from the benefits of interest available at times outside of recession. With a small proportion of our income being deposited into our saving accounts automatically, it is easier to forget it is happening, and less easy for us to spend it without thinking. There is a barrier that doesn't exist when you're stuffing cash into your mattress.

With the global economic crisis, the public are seemingly reassessing the importance of saving and how it can best be managed at a time when it is seen as both difficult and vital. However, alongside each individual's assessment of their own responsibility and that of the banks over their savings, such control no doubt has a knock on effect on how they treat their finances generally.

How to Save for a Gap Year You’ll Never Forget

A gap year spent working or travelling overseas offers school-leavers or graduates the perfect opportunity to enjoy sun, sea, sand and adventure, before going to university or settling down to the world of work. So whether you fancy an extended holiday or a job volunteering for community or environmental projects in developing countries, the experience will be both unforgettable and could enhance your employment prospects when you return.

Start saving early

Before you start packing your rucksack, you need to remember that globe-trotting does not come cheap; fail to budget and your gap year could soon end up running into thousands of pounds. The key to a successful extended trip is forward planning – working out how you're going to finance it is just as important as deciding where to go.

Draw up a budget

Think carefully about your finances, and draw up a list of all the big expenses you might encounter, such as transport, food and accommodation. Also take the time to research the local cost of living – a good starting point is Lonely Planet.

Build up a cash reserve

While you may like the idea of working your way around the world, it may also be worth spending some time working here in the UK before you go. This will enable you to build up a cash reserve which could be held in a low-risk savings account paying a high rate of interest.

Where should I stash my cash?

A good starting point is a mini cash individual savings account (ISA) into which you can currently save up to £3,600 a year with no tax on interest (rising to £5,100 in April 2010).

Manchester building society is offering one of the “best buys” at the moment – paying 2.75% with no bonus on its Premier Instant Isa - although this does require a minimum balance of £1,000. For smaller balances, Standard Life is paying 2.65% on its Direct Access Isa on balances of just £1.

How to Ensure Your Savings are Safe

With so much turmoil in the banking sector over the past few months, savers are feeling justifiably jittery about the safety of their hard-earned cash – but just how safe are their savings?

Many are nervous about putting their faith in savings institutions, having had their fingers burned by the collapse of the likes of Northern Rock and the Icelandic banks. And while things seemed to have settled down a little of late, there are no absolute guarantees that other banks won't go the same way.

Are my savings protected?

The good news is, if you have your savings with a UK bank authorised by financial watchdog, the Financial Services Authority (FSA), you will have protection under the UK's Financial Services Compensation Scheme (FSCS). This is the official safety net for customers of financial firms that go bust, and guarantees your savings up to a limit of £50,000 - or £100,000 for a joint account.

Don't keep all your eggs in one basket



When checking the safety of your cash, you need to note that the FSCS level of protection applies per person, per authorised institution - and not per account. This means that if you have more than £50,000 with any one bank, you need to spread your money around between different providers.

You also need to beware that some institutions offer accounts under a number of brand names or subsidiaries which are all trading arms of the same authorised institution. If there is a single registration for the entire group, your compensation is limited to a total of £50,000 protection across all of its brands.

Some examples

HBOS, for example, operates savings accounts under the Halifax, Bank of Scotland, Birmingham Midshires and Intelligent Finance brands. However, all HBOS brands operate under a single FSA authorisation, so if you have £30,000 savings with the Halifax and £30,000 with Intelligent Finance, only £50,000 of the £60,000 total would be guaranteed.

In contrast, the UK banks owned by Santander are operating under two authorisations - one covers Abbey and B&B, and the other covers A&L. This means savers are covered for up to £50,000 across Abbey and B&B, and are also covered for a further £50,000 with A&L - but be warned that this could change from the middle of next year.

You can find more information on who owns who in this FSA download.

More info found here

Gold vending

Just an addition to our post about gold investments back in June.

Apparently it's soon going to be possible to buy gold from vending machines, just as you might buy a sandwich, a drink, a tube of sweets or a pack of postage stamps.

The idea is to install the new vending machines in airports, where people will be looking to disburse their money either on expensive guilt-assuaging last minute gifts. But the machines will also hold bullion - the notion being that it will also be possible to make investments by purchasing bars of up to 250 grams.

For the time being the only vending machine selling gold is in Frankfurt airport, but the machine's inventors hope to start moving their products in the UK and Asia soon, the best gold and precious gems markets in the world.

For those who dislike paying for their investments - think again - the machines are said to be built like tanks.

What's an Offshore Savings Account?

Offshore as a financial concept simply means placing money, wealth or assets in a country other than the one in which you live.

Typically it is the wealthy that place money offshore to take advantage of the favourable taxation regimes available in so called tax havens – but even for the likes of you and me there are advantages to the offshore savings world that we can all benefit from.

Offshore savings accounts allow people to either save a regular monthly amount or a lump sum, earn higher rates of interest from some offshore providers than we could if we saved ‘onshore’ with the local bank – and what’s more, we can earn our interest gross and only pay tax on it once annually which allows for extra compound growth in the interim which can give our savings a little extra boost.

1. Tax Free
   Most of us still have to pay tax on any income or gain that we derive even from investments or savings that are placed offshore. We are under an obligation to tell our local tax authority about any offshore savings accounts we have when we make our annual declaration to the IRS or HM Revenue and Customs. But because taxation is not deducted at source on the majority of offshore savings accounts we have up to a whole twelve months of compound interest giving our savings even greater growth power which makes saving offshore advantageous even when we ultimately do have to pay tax on the gains we derive from our savings.
   
   
2. High Interest
   The offshore savings accounts that offer the highest rates of interest are available to those in a position to regularly save large amounts monthly. Basically the more you can afford to save the higher the rate of interest you will be given, the higher the rate of interest the greater the compound growth you can earn and the harder your money will work for you.
   

A number of leading international banking providers offer offshore savings accounts that are easily accessible and secure. The award in 2009 for best offshore bank for expats was won by Anglo Irish Bank. You can open an account with them easily online and then have full access to your account and growth statistics online.

Gone are the days when saving and investing offshore was complicated, clandestine and the realm of the super rich or the super criminal – and we herald the arrival of an accessible concept of offshore from which we are all welcome to benefit.

Anglo Irish Bank - Best Expat Savings Account 2009

Leading expat magazine, Nexus, has voted Anglo Irish Bank Corporation (International) PLC winner in four categories in its 2009 Best Banks for Expats Awards, one of the most high profile and sought-after awards in the financial services industry.

The Nexus Awards are based on the number of times a savings account appeared in the magazine's monthly 'Best Buy' tables during the last 12 months. "Best Buy" accounts are those which offer the highest interest rate available at the time in the different categories of account.

Success in the Nexus awards confirms that Anglo Irish Bank has consistently offered competitive interest rates during the last year.

Anglo Irish Bank came top in four award categories:

• Best Offshore Bank for Expats, Overall (Winner)
• Best Offshore Bank for Expats, Sterling Notice Accounts (Winner)
• Best Offshore Bank for Expats, US Dollar Accounts (Winner)
• Best Offshore Bank for Expats, Euro Accounts (Winner)
  

Commenting, Anglo's Head of Personal Savings, Gary Quaggan, said: "When we launched our Privilege range of accounts we made a commitment to keep rates consistently competitive. Winning these awards for the fifth year running is a powerful and independent endorsement that we are delivering on that promise. The fact that we have also once again won in four award categories, including Best Overall Offshore Savings Bank, signals to expatriates, and others looking for international deposit accounts, that they can trust Anglo Irish to offer them a good deal across the board.

We aimed Privilege at a broad spectrum of investors, including expatriates who tend to have particularly busy lifestyles and can't always be expected to follow every rate change in the savings market. Many expatriates, therefore, find that Privilege's pledge to keep rates competitive over the medium to long term is something which particularly appeals to them. We like to think that our reputation for excellent customer service also plays an important part in winning and retaining investor loyalty".

Anglo Irish Bank Corporation (International) PLC first launched its Privilege range of deposit accounts in January 2002. Since then, its suite of deposit and fixed interest accounts has appeared regularly in the "Best Buy" tables.

All Anglo accounts are available to pay interest gross*, can be operated by telephone, in person, or online, and are available with a minimum opening balance of 5,000 in GBP£, US$, or Euro€.

*Subject to the provision of the European Savings Tax Directive

Sourced from Anglo Irish Bank [Link]

Invest in Gold?

Why right now could be a ‘golden time’ to invest

Another month, another statement showing your savings aren’t earning much interest. Maybe it’s time you thought about investing your money in something solid?

When recessions hit, the one reliable asset has always been gold – and in recent months, it’s outperformed almost every other form of investment.

But if you want to jump on the golden bandwagon, where do you start and how safe is it?

Why invest in gold?

It’s not just pirates who want to get their hands on gold coins these days. As stocks and property prices plummet, demand for the precious metal has rocketed.

The price of gold has been on the up since 2001, spiking at more than $1000 an ounce in March 2008. At the time of publishing, the gold price was $925.15 per ounce (£610.86)*.

The price of gold has been on the up for several years. In 2001, the gold price went as low as $255 per ounce. But the price spiked at more than $1000 an ounce in March 2008. At the time of writing, the gold price was $925.15 per ounce (£610.86)*.

Gold has been the traditional bell weather for investors over the centuries, particularly in times of economic stress. As governments around the world are spending more to prop up their economies, many people worry about inflation and whether the pound or the dollar will keep their value. If you can’t rely on paper money, the logic goes, rely on metal.

It’s also relatively easy to buy and sell and has a high unit value, which means a small amount is worth a lot! But it’s definitely not a short-term investment and remember, valuations can go down as well as up!

UK Banks Post Crunch - Who Owns Who

The financial turmoil of the past 18 months has led to a wave of consolidation in the banking industry, making it even harder to ensure you’re not putting all your eggs in one basket.

A recent article on Confused.com takes a look at today’s banking sector to find out who actually owns who on your highs street.

Why it matters

If a savings institution goes under, the Financial Services Compensation Scheme (FSCS) will provide compensation of up to £50,000 to single account holders and £100,000 for joint accounts.

However, it’s important to note, the compensation limit applies per banking licence and not per brand, meaning it’s crucial you know who owns who.

When it gets confusing

Staying within this compensation limit is not as simple as just making sure you don’t have more than £50,000 saved with one banking group.

Some banks have merged but continue to operate their bands under different banking licences. In some cases, special measures have been put in place so that merged groups are treated as having separate licences, even though they don’t.

While you won’t go wrong if you ensure you don’t have more than £50,000 saved with any one institution, you could potentially miss out on good returns if two brands within one group are operating under separate licences and both have competitive deals.

Read a guide to the big bank operators in the article

The Age of Insurance: Are we being discriminated?

The age of an individual has always been an issue when it comes to insurance. Yet, it seems that with the spotlight currently firmly on the industry as it finds itself at the heart of the economic crisis (at the same time striving to assure customers that cover is no less relevant and affordable), a wave of criticism regarding age discrimination by insurers has been seen in the media. So are we being discriminated against by insurance companies?

One of the issues that can be seen to hinder the trustworthiness of these discrimination claims is the fact that they seem to have been borne from the work of comparison websites. Without mentioning any comparison site specifically here (and I endorse the usefulness of such services), reports at moneynews.co.uk state of one site’s research which found “that young drivers pay more for their insurance”. (This is in April 2009 under the headline: Car Insurance Industry Rife with Discrimination.)

The first problem here is that this is nothing new: 17 and 18 year-old drivers have had to pay expensive premiums for car insurance cover for years now, and the shocker is that this is still increasing (as are most policies). I acknowledge, also, that a 17 year-old girl must pay 58 percent more than her 18 year-old friend – and this is alarming.

However, I do think we need to understand two things. The first is the process by which car insurance premiums are calculated for individuals with no or minimal driving background. Other than their peer group, where else can insurance companies look in order to ascertain the risk and its subsequent monetary equivalent? The second thing to remember is when the implied (or sometimes, outright stated) answer to a newsworthy issue is to compare quotes from different companies, possibly via a very hand comparison site, then such “reports” are likely to be biased.

That said, in a separate report at the same site (and with research carried about by the same comparison website), a more unfair and less justifiable trend has emerged in the travel insurance sector.

The report, Travel Insurance Prices ‘Hiked Overnight’, states that a 66 year-old individual will pay an average of 106 percent more for a policy than a 65 year-old – a difference that is far more extreme, and which doesn’t appear to need to depend so much on a general peer risk assessment when an individual medical report and the risk of destination can be taken into account. I suppose the lesson here is to keep an eye on your policies with the same fervour you question your information sources.

Home Insurance Fraud: Don’t Be Lured to the Darkside

When the going gets tough, the tough sometimes get fraudulent. Recent figures released by the ABI (Association of British Insurers) have shown a record level of fraudulent insurance claims, proving people are willing to use their insurance policies as a way of bringing in extra cash.

According to statistics, 2000 fraudulent claims are made every week, amounting to an estimated value of £14 million.

What is insurance fraud?

If you make an insurance claim for something that either hasn’t happened, or you know to be wrong, you’re committing insurance fraud.

How much fraud is there?

The most common form of fraudulent claims is for home insurance - 55,400 frauds were detected last year at an estimated value of £110 million.

Why are there so many claims?

There are more opportunities for fraudulent home insurance claims than for any other class of insurance.

Car insurance fraud, for example, requires a little planning to orchestrate a convincing accident or theft. However, spilling paint on your sofa in order to get a new three-piece suite, is much easier.

Who’s guilty of insurance fraud?

A YouGov survey of 3000 adults, showed one-in-five admitted they’d be tempted to cheat on their insurance - despite the likelihood of getting caught.

But if you think cheating’s a quick way to boost your bank account, think again – the insurance inspectors will be after you!

The crackdown on fraudsters

“Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats,” says Nick Starling, ABI’s Director of General Insurance and Health, on the ABI website.

Claimants may have to provide minute detail, and may even find forensic experts getting involved, all in an effort to stem the tide of fraudulent claims. And if found out, fraudsters may be blacklisted by insurers, or may even gain a criminal record.

Fraud makes home insurance more expensive

Cracking down also prevents honest policyholders paying the price.

“Fraud adds an extra £40 a year to the average premium,” says Starling, “which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.”

For more information on home cover, read Confused.com’s Home Insurance Buyer’s Guide.

Sourced from http://www.confused.com/featured-articles/household/home-insurance/home-insurance-fraud-don-t-be-lured-to-the-darkside-3540983065

How to Cope if you Lose Your Job - A Survival Guide to Redundancy

Tips and advice on how to deal with being made redundant

The dreaded ‘R’ word. It’s one you hope never to hear. But, worryingly, redundancies have been on the increase ever since the economy took a tumble.

The current economic climate has forced many companies to close and put many jobs under threat. Employers often resort to making staff redundant as a way of cutting costs. Implementation of new technology/systems or a workplace relocation can also deem a job redundant. 

Who can be made redundant?

• Any employee under contract of employment – written, verbal or a combination. Just turning up to work constitutes an agreement of employment.

Who is eligible for a redundancy payout?

To be eligible for a payment, you should meet all of the following criteria.

• You need to have been in continuous employment for at least two years.

• You are over the age of 20 at the time of dismissal.

• You have been dismissed by reason of redundancy.

What are your entitlements?

Unless a more generous settlement is written into your employment contract, you will receive only the statutory minimum redundancy pay. This is based on how long you’ve been employed, your age and your weekly pay.

Statutory Minimum Redundancy Pay

The amount is calculated as:

• Aged 41 or over - One and a half weeks’ pay for every full year

• Aged 22-41 - One week’s pay for every full year

• Aged 18-22 - half a week's gross pay for each year worked (as long as you worked in the same job beyond the age of 20).

If your employer doesn’t give you redundancy pay when you’re entitled to it, you should write to them asking for payment. If your employer still refuses to pay or cannot make the payment, you could make an appeal to an Employment Tribunal.

Note: The 2009 budget announced that the weekly rate of statutory redundancy pay will increase to £380.

Resource: The Advice Centre

Tips for dealing with redundancy 

Budget: Draw up a comprehensive plan of your out-goings. Where can you save money and how can you make best use of your cash? Speak to a financial advisor if necessary.

Claim your benefits: Depending on your savings and record of National Insurance contributions, you may be entitled to state benefits. Make an appointment with your local benefits office to find out more.

Invest: If you’re lucky enough to receive a substantial payout, think carefully about what to do with the money. You could pay off debts, or put it in a higher-interest savings account or ISA. Again, consider speaking to a financial advisor if necessary.

PPI: If you’re still employed and worried about the future of your job, you might consider getting payment protection insurance (PPI)? This could help pay a proportion of your monthly bills and offer support for a fixed period while you hunt for a new job. 

Source: How to Cope if you Lose your Job

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.