Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21

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