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Last year’s budget saw Chancellor Alistair Darling raise the amount people could invest in an ISA from £7,200 to £10,200, and of that, some £5,100 can be held in a cash ISA. And because of that, says Barclays, people are potentially going to lose thousands through not fully exploiting their tax free ISA allowances.

The Barclays research revealed that just over 40% of people were not aware of the changes and what’s more, some 75% did not know that they could invest in a cash ISA from the start of the new tax year.

Andy Gray, head of savings for Barclays said:
“It’s surprising to see that the plans to increase ISA limits across the board haven’t really registered with UK consumers yet. We would urge people to review their savings to ensure they don’t miss out on their tax-free allowance for this year and from 6 April 2010 when the new limits apply to everyone.”

The research went on to break down the towns and cities where people lived who did not know about the changes.

The most ‘ISA aware’ locations turned out to be Cheltenham, Colchester, Derby, Edinburgh, Newport, Portsmouth and Worcester. Some two thirds of people living here were aware of the changes.

Contrast that with people living in Blackburn, Bradford, Brighton, Manchester, Newcastle and Wolverhampton. Here, over half of the people were unaware of the ISA changes.

As to the change in limits – from £7,200 to £10,200 – it came into force, for people born before 6 April 1960 on 6 October, and for all others over the age of 18, it will come into effect on 6 April, 2010.

No doubt the Government will hope that the increased tax allowance levels will stimulate saving, but it appears that it will be up to the financial sector itself to make people in the UK fully aware of what those changes are and when they will be effective.

Guest Article by Neil Camp

The research coincided with the new ‘10’ registration plate vehicles which were out on sale on 1 March, 2010.

And Marks & Spencer are worried.

A spokesperson said:
“Whether it’s a brand new car or a used vehicle, most garages should talk you through a vehicle before you drive it away. To avoid taking risks and potentially causing an accident, it is important to take time to familiarize yourself with the features of a car that’s new to you.”

Their report shows that only just over 10% of drivers will fully examine the car’s manual before setting off for the first time.

What’s more, well over a third of drivers taking their new car out for a first spin, don’t even turn one page of the manual. And just over a half give if the merest glance whilst flicking through the pages.

And what might surprise many, is that women and more guilty of this than men. The research found out that some 40% of woman drive away without consulting the manual, as opposed to around 30% of men.

Such is the supposed confidence of many men, some 20%, that they rely on figuring out the controls as they drive, which does little for concerns over safety as they no doubt drive whilst ‘fiddling’ their way around various essential items like windscreen wipers, lights and music player.

But the research goes on to point out that perhaps a little more manual studying might be a good idea, because a list was created of the top ten issues that car drivers have to grapple with when they get into a new car, or indeed, one that is unfamiliar to them.

The top of that list is headed by that old chestnut of trying to find the handle to release the bonnet, which can try even the most determined of drivers.

Next comes the in-car music centre, which in some modern cars can take a day’s reading of its own manual just to get working properly.

A little less irksome, but still trying, is how to alter the drivers seat position, which many drivers appear to try and adjust whilst moving; never a good idea.

Fourth is trying to find the switch to operate the side lights and headlights and fifth is locating the windscreen wipers.

So be warned, if that car in front has just been bought, then give the driver plenty of room.

Guest Article by Neil Camp

Compare car insurance quotes online and save money using our easy comparison tool

The complaints relate to banking, insurance and investment products. In the period, the ombudsman received over 80,000 new complaints, compared to just under 70,000 for the first six months of 2009.

And leading the way in complaints, having the dubious honour of being most moaned about, was Lloyds TSB with a whopping 9,952 whinges, covering all aspects of its business, with Barclays close behind with 9,836.

Perhaps worryingly for the financial sector is the fact that over half of the complaints (53%) were upheld in favour of the customer, although to be fair, that was down from 59% in favour in the first six months of 2009.

Very few members of the financial sector escaped the wrath of their customers, but the ombudsman was keen to point out that it was natural for the bigger concerns to have more complaints than the smaller companies, just by virtue of their size and number of operations and products.

David Thomas, interim chief ombudsman, imparted some encouraging news:
“While the number of cases referred by consumers to the ombudsman has continued to increase substantially, it’s encouraging to see that some businesses are committed to handling complaints better.”

Although he added that things were not yet perfect:
“However, there is evidently still room for significant improvement in the way other financial businesses handle complaints – judged by the proportion of cases where we overturn the decision that the businesses have themselves come to in their own earlier investigation of their customer complaints.

“The data we have released today clearly shows that some businesses still need to do more to ensure that they deal with their customers’ complaints effectively and fairly – so that consumers do not then need to escalate their dissatisfaction to the ombudsman. We hope that businesses will continue to use this data to focus their attention on addressing these key complaints-handling issues over the coming months and years.”

Only time will tell whether complaints will drop off as the economic situation improves, or whether the problem is more deep-seated than a reflection of the financial climate.

Guest Article by Neil Camp

As with all financial products, people should not thank that they owe their bank loyalty, or indeed, stay with a bank just because they have done so for years.

Banks are smart operators when it comes to what they will offer their customers and they realise, as everyone should, it’s a highly competitive market and in today’s comparison world, the consumer has the edge.

Without a good bank account comparison website, it would take a log time trawling through all the bank accounts of offer to find the right one for you.

Now one caveat on all that. People do build good relationships with their banks and there is something to be said for staying loyal if that translates to a good account and other financial product deals, such as loans and mortgages. That said, even those with good bank relationships, can always look to opening another account if that suits them at the time. Nothing is fixed in stone in today’s modern personal finance sector.

Current accounts come in various types which tend to include high interest current accounts, business current accounts and current bank accounts.

A good current bank account comparison tool should be able to calculate what you might gain per year from a different account.

They should also divide the accounts into key categories, making comparison easier. You could then start off by comparing all current bank accounts, then easy access accounts, straightforward current accounts, fixed rate accounts and ISAs.

This allows the user to then take each category in turn and see which account offers then the best deal.

Take the category current accounts. The information laid out before you should include the financial institution offering the account (Alliance & Leicester, NatWest for example), the account name (something like Premier Current for example) and any incentives to attract you as a customer, or keep you as a customer; how much interest is paid, if any, and when; and, details about any overdrafts that might be available and what interest rate is charged.

So there you are. Choose a good current bank account comparison website and it’s all mapped out in front of you.

Guest Article by Neil Camp

There are a huge number of credit cards out there all vying for your business and the best way to get a handle on what’s on offer is to use a good credit card comparison site.

And without a good credit card comparison site, it is very difficult to find the deal that best suits you, not only in terms of interest you’re paying on the money you might ‘borrow’ on the card, but also in terms of its flexibility.

Also, it’s best to be aware that each card has particular strengths and weaknesses, which means it is worth matching a card with your particular purchasing profile, so as to get the best deal out there.

So a good credit card comparison website will make that search so much easier for you and categorise cards in terms of their strengths. For example, up first in any comparison list should be the top cards, the ones that not only are good in terms of money, but also have a few other goodies attached as well.

Next category often features those cards which offer good balance transfer deals. This is a key starting point for those wishing to compare credit cards. If a card won’t give you a good deal on a balance transfer, then ignore it. What you’re after here is a low-rate incentive to get you to move and then some more goodies thrown in (such as purchase protection schemes).

Then the comparison site might look at those cards which give the best rates when it comes to purchasing goods, a good thing to consider if you intend to hammer your credit card.

Further categories might include those cards that offer rewards, are geared towards travel offers, or standard rates. A upmarket section is usually included, as Platinum cards tend to cost more, but do have added incentives attached. Business cards for those that need that facility are also usually included and an interesting category, and on highly relevant in today’s straightened times, are Credit Builder cards.

These are geared towards people with a less than perfect credit history who want to demonstrate that they can use a credit card sensibly again over a period of time. The downside with these cars of course are high interest rates and low amounts of credit on offer, but they can make all the difference to someone who needs to prove they are financial viable again.

A more advanced search will look at particular needs, including 0% balance transfers; no balance transfer fees; purchase incentives; low interest rates; no annual fees; high credit limit; 0% charges of foreign currency transfers; and, cashback deals.

And once you have decided upon your personal parameters, you then get down to the business of comparing. A good search engine for comparing credit cards should give you the name of the provider (Barclays, HSBC etc); the rate offered on balance transfers (plus the length of that rate); same with the purchase incentives; the typical variable Annual Percentage Rate, or APR as its known; and, any benefits that the card might have.

Armed with all that, you will then be able to make a sound decision when it comes to comparing credit cards.

Guest Article by Neil Camp

Mainly because the power has returned to the consumer. Not only are there are a large number of companies out there trying to sell you goods and services, but never before has so much comparison between companies and their products taken place.

Companies can no longer hide. Their price, as well as a description of exactly what they offer, can instantly be compared with a load of other companies. What’s more, there are often comments on what other people thought of them.

This gives people a tremendous power; one that has not been exercised before. It’s as though the internet offers you a complete market in which you can browse from product to product, taking in almost everything on offer, then hear what others have to say and then, choosing the best for you.

What the internet has done, and more particularly comparison sites, is give you everything at your fingertips to make a very informed decision. You no longer have the excuse to make a mistake, to say that there wasn’t time to find the best deal. And it can almost be a fun task to find the product that suits you, at a price that suits you, then show you what you are saving. How cool is that?

And the key with comparison sites is to build your profile properly. The more accurately you describe yourself and what you need in the way of insurance, the better the comparison site will be able to provide you with the best deal. But one word of caution, don’t always just plumb for the lowest. Okay, that’s what you’re after, to pay the least amount given your personal circumstances, but bear in mind that the companies offering their products are not daft.

Let’s take car insurance for example. There are hundreds of companies that offer car insurance and they know full well that people will be comparing their prices alongside most of the competition. So you can quickly work out which companies are keen on particular sectors within the car insurance market. For example, some car insurance companies work hard at attracting the older driver and will therefore be very competitive at certain age brackets. They will then almost bid themselves out of the twenty something market by quoting uncompetitively high prices. You can soon spot the trends.

What’s more, you might get a quote ten pounds cheaper, but fail to realise that the higher quote might contain a few more incentives, such as free breakdown cover, a replacement car, or some other deal which could actually save you a lot more money than the ten pounds you might save on the original quote.

With car insurance comparison tools, it’s best to be canny.

A good car insurance comparison site needs to allow you to compare car insurance across a number of areas, including for example online car insurance, budget car insurance, new car insurance and young driver car insurance.

It has to be simple and quick, with a registration process and a questionnaire about your personal profile that insurers need to build their quotes (including age, address, car type, and business/social use).

It should be able to quote from at least 50 separate insurers and not only give you a price, but show you how much you can save on your current quote.

In short, a good car insurance comparison site is not only good fun to use, but can save you a lot of money in the bargain for a policy that closely matches your particular needs.

Guest Article by Neil Camp

A mortgage is a financial product just like any other and they are very susceptible to not only consumer market forces, but also the financial markets. Indeed, they could be seen as a fluctuating financial product that just because maybe they are based on a long term deal, does not mean that they are dormant.

The mortgage market itself is in a constant state of flux as lenders adjust their prices to keep abreast of external financial forces, including interest rate changes, and also to adapt to consumer trends and needs.

It is also a sophisticated market and one which requires a degree of research and care, so as to get the best deal. And with a mortgage switch leading to potentially hundreds of pounds less in payments – especially acted upon when good rates are around – it’s always best to do your homework and if you feel in any way intimidated, get professional advice.

And for people with certain types of mortgages – mostly those with a ‘suppressed’ payment element which have a limited time to run, which then revert back to another rate – the exercise of switching mortgages is more a necessity, rather than a luxury if they want to avoid higher repayments. Thus, standard rate mortgages, known as SVRs, tend to have higher payments, than the incentives types which are known as tracker mortgages, fixed-rate mortgages and variable rate mortgages.

And competitively priced mortgages are used as short-term marketing tools in order to get people signed-up. And once that period ends, often in two years, the rate reverts to the rates offered by the SVRS and this then is the most common time to switch a mortgage. Of course, when taking out a special mortgage deal, it is extremely difficult for the consumer to try and guess where the mortgage market will be once their special price has finished.

The worry in the current recessionary times for many people is that they were on such good deals offered at a time when the market was extremely competitive, but they will be forced into re-mortgaging when the market is in the doldrums and many lenders do not want, or cannot afford, to write new business at low rates. Therefore, for those people, switching mortgages is imperative.

If you’re asking yourself, which mortgage should I switch to, then it all comes down to personal circumstances; it is not a matter of one size fits all. It can be a fast and simple process, but it does require some paperwork. Always bear in mind that the cheapest looking deal is not necessarily the right one for you.

It may be that you fancy a repayment mortgage, because the idea of paying off the mortgage capital and lump sum together appeals to you. It may be that an interest only mortgage, which does not repay the capital, with some other financial vehicle should be in place to do so, might also be appealing. Such things as security and flexibility also play their part.

In practice, most mortgages are switched to a limited number of mortgage types. When you switch to a fixed rate mortgage, it means that, for an agreed period, you will be paying, as the name suggests, a fixed amount of money. On the other end of the scale, a tracker mortgage moves up and down tracking an agreed base rate, so can be a little bit of a gamble, but can, if taken out at the right time, save thousands of pounds. The other two products that people often switch to are discounted rate mortgages (an agreed discounted rate for a certain period of time) and variable rate mortgages (rate moves up and down in line with the rate dictated by the lender).

The actual cost of transferring is of course a consideration, but if completed properly, then these are usually outweighed considerably by the savings of the cheaper mortgage. But expect to pay such things as legal, product, arrangement and valuation fees. Also, some borrowers may charge for a switch, or moving out of a mortgage early. As always, read the small print if you want to avoid heavy penalties.

The simple message is, if you have a mortgage, consider swapping it, as you could save yourself a fortune.

Guest Article by Neil Camp

Egg won the gong for Best Online Savings Provider for 2009.

The awards were created to let consumers highlight and praise the companies who were offering a good service and some 40,000 of them voted last September in an online poll. The main idea was to find those banks and building societies which people thought were doing a good job, despite the current economic downturn and recession.

In the category won by Egg – Best Online Savings – consumers were asked to consider their top choices when it came to awarding merit to the best all-round online account, considering both on product value and charging structures, which had to be fair and transparent. A number of things had to be considered, including ease of use, account availability, additional terms and services and applicable introductory offers.

Sharon Maguire, Head of Egg’s Retail Banking and Wealth Management trilled:
“We’re thrilled with this award which is a reflection of all the hard work that we’ve been putting in to our savings products this year.”

For those that don’t know, Egg is a leader in the online banking sector, and their activities include a whole range of products, from savings, borrowing, through to insurance.

In their blurb, they put their success down to “…proudly offering value for money and great service, which has made us popular with savers, particularly for our savings accounts and Fixed Rate Bonds. This success has come about through helping customers to understand and manage their money more effectively.”

So there you are , if anyone doubted the idea of having an Egg for breakfast, then think again, it might make you a few bob.

Guest Article by Neil Camp

Barclay Payment Acceptance, which is one of the largest processors of credit and debit card transactions, said that UK shoppers spent more using their plastic than they did last time. The figures compare 19th December to 31st December, 2009, to the same period in 2008.

And the busiest day turns out to be the 23rd December, when a whopping £497 million was spent using credit and debit cards. Further examination of the data might show of course that this was men doing their last minute shopping.

The next busiest day was 29th December when no doubt attention turned to sale bargains. On this day some £376 million was passed through the tills using plastic.

The total turnover for the period under review was a quite staggering £4 billion, not bad considering the country is still officially in recession. It was a 2.4% increase over 2008 which saw just shy of four billion being spent.

Breaking the data even further, reveals that spending after Christmas was also up from 2008, with £1.68 billion compared to £1.64 billion.

On Christmas Day itself (thought that was a holiday), there were 700,000 transactions totalling £24 million. These appeared to peak at 12.08pm (maybe in readiness for lunch and the Queen’s Speech), with 32 transactions a second. The online retailers accounted for £9.5 million’s worth of trades on the day itself, compared to £8.1 million in 2008 (up 17%).

On boxing day, many of the transactions, which averaged around £73, were driven by the DIY sector.

Head of Sales at Barclaycard Global Payment Acceptance, Marc Pettican, said:
“Our retailers have seen an increase in turnover compared to the same period last year with over £4 billion being spent. We’ve also seen a stronger post-Christmas performance as shoppers take advantage of the sales discounts and consider the effects of the imminent VAT increase.”

Guest Article by Neil Camp