Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
AI Tech Stock PORTFOLIO NAME OF THE GAME - 29th June 22
Rebounding Crude Oil Gets Far Away from the Bearish Side - 29th June 22
UK House Prices - Lets Get Jiggy With UK INTEREST RATES - 28th June 22
GOLD STOCKS ARE WORSE THAN GOLD - 28th June 22
This “Bizarre” Chart is Wrecking the Stock Market - 28th June 22
Recession Question Answered - 28th June 22
Technical Analysis: Why You Should Expect a Popularity Surge - 28th June 22
Have US Bonds Bottomed? - 27th June 22
Gold Junior Miners: A Bearish Push Is Coming to Move Them Lower - 27th June 22
Stock Market Watching Out - 27th June 22
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22
AI Tech Stocks Current State, Is AMAZON a Dying Tech Giant? - 20th June 22
Gold/Gold miners fundamental checkup - 20th June 22
Personal Finance Tips: How To Get Out Of A Tough Financial Situation - 20th June 22
UK House Prices Relative to GDP Growth - 19th June 22
Will Global Markets Be Pushed Deeper Into Crisis Event By The US Fed? - 19th June 22
Useful Things You Need To Know About Tweezer Top Candlestick Pattern - 19th June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Personal Finance Update - A&L Regular Saver, Mortgages and PPI

Personal_Finance / UK Banking May 08, 2007 - 11:43 PM GMT

By: MoneyFacts

Personal_Finance

Rachel Thrussell, Head of Savings at Moneyfacts.co.uk – the money search engine, comments:

A&L regular saver makes a comeback

“Alliance & Leicester has relaunched its regular saver, but savers should still be ware of the limitations that such an account offers. Whilst the account offers a market-leading rate of 12%, this is limited to a total investment of £3K over a year, spread across maximum monthly contributions of £250. The account also requires that a Premier Current Account is opened, which pays 1.49% credit interest; that’s 4.45% lower than the award winning Premier Direct Account which Alliance & Leicester offers.


“If the thought of receiving 12% interest on your savings is appealing, the maximum possible return is £195, which is also subject to tax. Compare this with the best buy ISA from Barclays paying 6.31%, which does not have the caveats of requiring linked accounts or restricting the monthly investments, the return is £104.22. If you had the full £3000 to save at the start of the year, investing the full amount would net you a tax-free return of £194.89.

“The A&L account undoubtedly offers a great return, but only for savers prepared to make a commitment to a fixed amount each month, and who don’t require any flexibility. Also they must consider the ‘hassle’ factor of switching current account providers. Is the extra interest worth it?

Savings for the forgotten children

“While the Government has been actively encouraging savings in Child Trust Fund account, those children born before its introduction seem to have been forgotten. The good news it that providers are now realising this gap in the market, and this week we have seen the launch of Chorley & District BS’s Foxley Fund. An account paying 6.35%, using terms similar to that of a Child Trust Fund account. The maximum yearly investment is £1,200 and it matures on the child’s 18 birthday.

“It is great to see that providers are offering the forgotten children the same opportunities as those eligible for the Child Trust Fund scheme. This is a great rate of return but is a long term savings plan so you must consider that these funds will be tied up until your child reaches 18.

Mortgages

Julia Harris, mortgage analyst at Moneyfacts.co.uk – the money search engine, comments:

Rates going up, down and disappearing

“With a base rate rise almost certain to be on the cards next Thursday, the fixed rate market continues to be volatile. This week a further 12 lenders have increased their fixed rates by as much as 0.40% and six have withdrawn selected fixed rate deals.

“On the other hand, discounted rates have been gradually falling. This week Bradford & Bingley have reduced rates by 0.15%, while several other lenders have made similar changes over the last month. It will be an interesting market to watch over the next few weeks if, as expected Base Rate rises.

Loans

Michelle Slade, personal finance analyst at Moneyfacts.co.uk – the money search engine, comments:

Watch out for rising PPI

“For some time personal loan rates have been on the increase, with sub six percent loans now non existent. But lenders are more frequently using their PPI premiums to subsidise lower interest rates. This week Alliance & Leicester and Moneyback Bank both made changes to their loan offerings, including an increase to rates and PPI.

Alliance & Leicester:
• Rates increased by 1% on loans below £5K
• PPI increased on loans of £10K. Over a five year term this increases the monthly repayment from £234.49 to £246.21
• This increase to PPI adds an additional £703.20 to the final repayment amount, with the total PPI premium standing at £3127.20.

Moneyback Bank
• Rate increased on lower tiers by 1.3% and reduced on higher tiers by up to 0.3%.
• However the PPI premium has risen. Take for example a £10K loan over 5 years repayment with PPI increased to £244.80 (6.1%) compared with £233.83 (6.2%). While rates have fallen the monthly repayment amount has increased by £10.97. The total cost of PPI is now £3,095.40.

“These latest changes illustrate just how important it is to compare the monthly repayment amounts rather than rate alone when shopping for a loan. And remember you don’t have to take the insurance on offer from the loan provider; other independent providers such as paymentcare.co.uk and British Insurance offer more competitively priced and more flexible policies.

By Rachel Thrussell,
http://www.Moneyfacts.co.uk


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


09 May 07, 00:49

The A&L regular saver is useless unless you move to their current account, and its not worth the hassel for the extra £60 interest a year. Unless you need to move your current account.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in