Savers suffer as deposit rates dip

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Savers suffer as deposit rates dip

Savers suffer as deposit rates dip
The state-backed trio of Halifax, Lloyds and Bank of Scotland were among lenders that took the knife to interest rates on deposit accounts. The highest-paying fixed-rate account, from Skipton building society, offers 3.5% over seven years. The best-buy Isa is a five-year fix from Leeds building society at 3.05%, according to Moneyfacts.
The Sunday Times Money, p. 8

Bosses ‘bullying staff to quit company pensions’
Fears are growing that tens of thousands of employees of small and medium-sized firms are being bullied out of company pensions by being asked to pay higher initial contributions than Government legislation demands.
The Mail on Sunday, p. 99

Warning over £3bn scam on pensions
Employees could put billions of pounds worth of retirement savings into the hands of fraudsters over the coming years amid an “explosion” in scams, according to JLT, the employee benefits company. The scam is expected to “explode” following the introduction of automatic-enrolment, claims JLT.
The Sunday Times Money, p. 1
Also appeared in : The Sunday Times Money, p.7

Co-op to compensate mortgage customers
The Co-operative Bank must pay compensation to mortgage customers who took out Platform and Optimum mortgage products after it charged some borrowers just interest on their first mortgage payment, meaning subsequent payments were higher than they should have been.
The Sunday Telegraph Money, p. 5

Not so helpful?
The government’s Help to Buy mortgage scheme is unlikely to benefit most first-time purchasers in London and the southeast, according to Savills estate agency. A first-time buyer in the capital would need to earn £54,000 to meet the lending criteria on the 95% mortgage deals.
The Sunday Times Home, p. 7

Tips to profit from the buy-to-let market
According to a survey by Paragon, the buy-to-let specialist mortgage lender, the number of first-time landlords seeking a mortgage is at the highest level since the start of the financial crisis. The introduction of Crossrail from 2018 is expected to provide a significant boost to house prices and rental demand across the west-east route, from Maidenhead and Acton through central London to Whitechapel, Stratford, Forest Gate and Woolwich. Grainne Gilmore of Knight Frank, said: “Landlords should look for areas that are set to benefit from extra house price growth, either because of regeneration plans or transport links. Areas on the Crossrail line, from Woolwich to Acton, are classic examples.”
The Sunday Times Money, p. 4-5

Investors pile into buy-to-let
Landlords are expected to borrow £20bn in 2013 to fund house purchases as investors seek to capitalise on the recovery in the housing market.
The Sunday Times Money, p. 1

Osborne stops short of breaking up RBS
The Chancellor is expected to back away this week from plans to break up Royal Bank of Scotland into “good” and “bad” banks. George Osborne is due to receive a final report from Treasury officials that is expected to stop short of a radical split.
The Sunday Times Business, p. 2

RBS profits return as split looms
The Royal Bank of Scotland is set to report third-quarter profits of more than £400m on Friday, reversing a loss last year of £1.2bn.
The Sunday Telegraph Business, p. 1

Bank of England in new Co-op INQUIRY
The Bank of England has launched an investigation into the circumstances leading to the discovery of the £1.5bn black hole at the Co-operative Bank in May of this year. The inquiry will assess actions taken by the regulator and its supervisory predecessor, the Financial Services Authority (FSA), look at correspondence including letters, emails and telephone calls, and scrutinise its past assessment of the lender’s books. It is understood that the review will date back to before the Co-op’s merger with the Britannia Building Society.
The Sunday Telegraph Business, p. 3

Battle rages for ethical soul of the Co-op Bank
Some of Britain’s biggest charities are to demand that The Co-operative Bank defends its ethical principles as it prepares to hand almost a third of its shares to hedge funds.
The Mail on Sunday, p. 95

Pension fear put Co-op on block
The Co-operative Bank’s fall into the control of predatory US hedge funds was partly precipitated by the concerns of the Pensions Regulator who feared that under the terms of the original deal, the Co-op group would leave itself too financially stretched.
The Sunday Times Business, p. 2

IT’S BEEN A GOOD WEEK FOR
Santander UK, the British business of the Spanish banking giant, has disclosed its 123 current account had gained 183,000 customers from other banks since the start of the year.
The Sunday Telegraph Business, p. 2

Cash cheques without going near a bank
Rosie Murray-West looks at how bank customers should soon be able to pay in cheques from the comfort of their home. Barclays could be the first bank in Britain to allow customers to cash cheques from home, using their mobile phones as scanners.
The Sunday Telegraph Money, p. 4

Businesses warn on bank ring-fence plans
Up to 30 of Britain’s leading businesses have warned the Treasury that plans to split retail and investment banking could harm their operations. The businesses that have written the letters are thought to include utilities such as energy and water firms. Any increases in their costs will ultimately be passed on to the consumer.
The Sunday Telegraph Business, p. 1-3

Provident takes on Wonga
Provident Financial, one of Britain’s largest doorstep lenders, is to start competing directly with internet-based payday loan companies, such as Wonga, through a new online credit service.
The Sunday Times Business, p. 2

Cars repossessed by lenders ‘worse than Wonga’
The Financial Conduct Authority has said that logbook loan companies which allow borrowers to secure a loan against a car are more worrying than payday lenders such as Wonga.
The Independent on Sunday, p. 2

Investors seek share signs as Lloyds leads bank reporting season
Banks are reporting their third-quarter results this week. Mentions of Lloyds Banking Group, Royal Bank of Scotland, and Morgan Stanley.
The Independent on Sunday, p. 57

Payday loans defended by new consumer champion
Susie Mesure writes about Sue Lewis, who is the new head of the Financial Services Consumer Panel. Lewis has said that she thinks payday loan companies, such as Wonga, have been demonised at the expense of highlighting other problems in the credit market. She also cautioned against heavy regulation of them by the Financial Conduct Authority.
The Independent on Sunday, p. 2

The above articles appeared on 27/10/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.