Savers fall victim to curse of the zombie

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Savers fall victim to curse of the zombie

Savings

Savers fall victim to curse of the zombie
Millions of savers have fallen victim to “zombie” accounts, which pay paltry interest rates, sucking the life out of our nest-eggs. Shockingly, four out of five savings products are reckoned to be zombie accounts, so called because of their lifeless returns and the fact that they are shut to new customers. Returns on the accounts are buried as rates fall to as low as 0.1 per
The Independent, p. 49

FIVE QUESTIONS ON FALLING INFLATION
More savings accounts are starting to beat inflation, with people receiving a more positive return on their savings.
The Independent, p. 54

Pensions & Life Assurance

Limit charge cap to 0.5% – study
Fresh research has claimed that there is no evidence that higher workplace pension charges deliver better outcomes for savers.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Money, p. 4

Pension charge cap shelved
Millions of workers saving for retirement in company pensions will remain unprotected from high or unfair fees after the government stalled on plans for a legal cap on automatic enrolment pension charges.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Money, p. 4

Drawdown limits unchanged
Cash limits for pension investors moving into capped draw-down in February will remain unchanged from January with the “GAD rate” stabilising at 3.25 per cent.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Money, p. 2

Mortgages & Residential Property

Private landlords gain the most from rising property market
House prices in London grew by 11.6% year on year, figures from the Office for National Statistics showed this week; meanwhile prices outside London and south east England rose by just 3.1%.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 4
Also appeared in : Financial Times Money, p.7

Yorkshire raises 95% loan rates
Yorkshire Building Society has blamed strong demand for its 95 per cent mortgages for raising interest rates across the range last week.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Money, p. 2

Earn 6pc on buy–to–let – without buying property
Specialist mortgage lender Paragon, quoted on the stock market and valued at £1.1bn, is seeking to raise capital by issuing bonds that will pay a fixed 6.125pc per year. Investors – who must buy a minimum £2,000 worth of bonds, but can subscribe above that figure in multiples of £100 – will be paid income in January and July.
The Daily Telegraph Your Money, p. 3

One million take out loan to cover mortgage or rent
Research from Shelter estimates that nearly one million people have taken out a payday loan in the last year to help cover their rent or mortgage costs.
The Independent, p. 51

Safety game
Latest Treasury figures show that 6,000 applications for Help to Buy mortgage support were made in the scheme’s first 12 weeks.
The Times, p. 49

Long-term mortgages are on their way — say hello to the loan you pass on to your heirs
The Bank of England considers the re-introduction of the 30-year fixed-rate mortgage as house prices rise and many turn to mortgages that could take up to 40 years to pay off in order to afford monthly payments. According to the Office for National Statistics the average price paid by first-time buyers rose by 6.4 per cent in the year to November.
The Times, p. 56-57

Champagne flows as house owners see surge in prices
According to Sequence, the estate agency group, the average house price in Britain rose by 15 per cent last year. Meanwhile, the Council of Mortgage Lenders has reported that 27,000 home loans were given to first-time buyers in November.
The Times, p. 2

Retail Banking

Miliband threat wipes billion off state banks
Ed Miliband’s proposals to limit the size of banks in Britain saw a billion pounds knocked off the value of taxpayer-owned banks yesterday. Shares in the Royal Bank of Scotland and Lloyds dived as the Labour leader promised to force the big five high street lenders to shed branches.
The Daily Telegraph, p. 1
Also appeared in : The Independent, p.8, The Times, p.46, The Times, p.8-9

Post Office moves to expand banking
The Post Office has tripled the number of branches offering current accounts as it moves to the next phase of its proposals to compete with high street banks.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Money, p. 6

TSB boss praises Labour proposal
The boss of the new TSB bank, a former executive at Lloyds, applauded Labour proposals for new “challenger banks”.
Independent i, p. 49

MONEY ALERT ZAPP MOBILE PAYMENTS SERVICE
A new mobile payments service – in effect an electronic wallet – has been backed by five of our major financial institutions. Zapp will launch this autumn with the backing of HSBC, First Direct, Nationwide, Santander and Metro Bank.
The Independent, p. 54

Round Up

Firms appointed to investigate RBS
The Financial Conduct Authority has hired Promontory Financial Group and Mazars to investigate allegations that Royal Bank of Scotland defrauded small business customers.
The Times, p. 50
Also appeared in : International New York Times, p.12

Real wages on verge of rising again, claims Bank expert
Ben Broadbent, an external member of the Bank of England’s Monetary Policy Committee, has predicted that the squeeze on UK household finances will start to ease this year.
The Daily Telegraph, p. 37
Also appeared in : Financial Times, p.4

London currency traders suspended amid global inquiry
Citigroup and HSBC have suspended London-based currency traders in connection with the investigation into the alleged manipulation of foreign exchange markets.
The Times, p. 45
Also appeared in : Financial Times, p.1

Forex probe sees London banks suspend traders
HSBC and Citgroup have confirmed that they have put four traders on leave between them in New York and London, as part of their investigation into the alleged manipulation of the trilliondollar currency market.
The Independent, p. 44

Deutsche Bank set for profit warning
Deutsche Bank is set to issue a profit warning as early as Monday after earnings for the fourth quarter were worse than expected.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 13

Islamic bank sale The Islamic […]
The Islamic Bank of Britain (IBB) was bought this week by Masraf al Rayan (MAR) one of the world’s largest Islamic banks.
The Times, p. 81

Easy does it
Amit Kara, UK economist at UBS, says the Bank of England should abandon its policy of quarter-point interest rate moves in favour of tiny 0.05 per cent to 0.1 per cent increases.
The Times, p. 49

The above articles appeared on 18.01.2014. Reproduced with the kind permission of Kantar Media UK. All rights reserved.

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