Asda Home Insurance

Asda Home Insurance

Asda are the company that have bombarded our TV screens with adverts for 'low, low prices' and now they've turned their attention to home insurance with a brand new home insurance product. With Asda Home Insurance you get 15% off if you apply online and can potentially save hundreds of pounds on your premium. It's not just the prices that are superb however.

Some of the great features included with Asda Home Insurance include:

• New for Old cover - brand new replacement goods if your originals can't be repaired


• We deal direct with the tradesmen for you - no need to get quotes: all you pay is your excess


• Claims dealt with quickly - one phone call is normally all it takes


• Cover options to suit your lifestyle and your pocket


• Friendly helpful service


• Choice of ways to pay

Why Asda Home Insurance?

Lets say you have a problem at your home. We've all had problems in this area before (and I'm sure many of us havn't been helped by their insurance company). So what will Asda do for you?

1. The call comes into ASDA Insurance and our friendly and experienced Incident Manager will start the ball rolling.

2. We'll arrange for one of our approved repairers to visit you at your convenience.

3. With "New for Old" cover, badly damaged household goods will be replaced with new ones, so you can carry on enjoying the things that make your home... your home.

4. We've repaired the damage, replaced the goods, all with the least amount of fuss and interruption.

Summary

Whether it's just to protect your building in case of emergency or to cover all your belongings inside and outside of it too, Asda Home Insurance can tailor cover to suit your specific needs and your budget too.

Get a quote here

Two in five do not plan financial futures

Two Britons in five spend no time at all planning for their financial futures, new research from Barclays has revealed.

Moreover a further 38 per cent spend less than 15 hours a year thinking about what will happen to their money.

Barclays also found that of the people who think about their money, almost one in five (18 per cent) relies on friends and family for advice - with just one UK resident in four seeking professional help from a financial advisor.

"We are not a nation of planners - 33 per cent of us don't even spend time planning our annual holiday. It is more worrying, however, that so many of us fail to spend time planning for our financial futures," commented Ray Greenshields, managing director of Barclays UK Private Client businesses.

While more than three quarters of the nation (77 per cent) spend less than two and a half minutes a day thinking about their financial futures, Barclays found that there are certain prompts that lead people to seek help.

The bank found that a sudden windfall or inheritance would see most Britons (53 per cent) take a trip to a financial advisor. Additionally, 44 per cent of people getting close to retirement seek advice, while moving home sees 41 per cent of the nation look for advice on money matters.

Less happy reasons for approaching an advisor include getting divorced (which would see 37 per cent of people seek financial help) and the death of a close friend or family member, after which 33 per cent of people seek out advice.

Having children or grandchildren motivates one person in four to look for professional help with their money, while a conscientious 19 per cent of the population go to an advisor after changing jobs or getting a pay rise.

New Loan Rules to help make things clearer

After tommorrow consumers will have a new level of clarity on their loan agreements and be given up-front information to help them shop around for the best deal, the Department of Trade and Industry has said.

The changes, which will force lenders to provide information including the total amount repayable on a loan, have been welcomed by consumer groups.

"With debt now affecting a wider spectrum of people - including the better off - and personal bankruptcy figures on the increase, these new obligations on lenders are extremely welcome," said Claire Whyley, deputy director of policy at the National Consumer Council.

"Lenders must now make sure they don't pull the wool over people's eyes from start to finish of a credit deal," she added.

Consumer Minister Gerry Sutcliffe added: "Hidden payments and lack of clarity are very unhelpful for people trying to manage their credit commitments, which is why we've brought in these changes.

"The pre-contractual information will help people shop around and make informed choices between the different products available to them, and the new level of clarity on loan agreements will mean that no-one is in the dark about what they are signing up for."

From today lenders are required to provide the following information:

- Pre-contractual information for borrowers - this should set out the main factors of the loan, including: total amount borrowed, total amount repayable, amount and frequency of repayments, APR, the cost of any default penalties and examples of early settlement charges;

- A similar list of clear information displayed prominently on the loan agreement itself;

- Separate information on the loan agreement about any additional payment protection insurance, with an additional signature box for the borrower so they can be clear what they are signing up for.

Other rules coming into effect today give borrowers who want to settle a loan early what the DTI calls a fairer deal. Lenders will still be able to recoup some administration costs for early repayments, but the burden on consumers will be lowered.

Tax Freedom Day

Don't let the post-Bank Holiday return to work get you down. Today, after 150 days of working for the Government, your time is at last your own as Britain celebrates "tax freedom day".

What is Tax Freedom Day?

When you fill out your self-assessment tax form - or collect your weekly pay packet and see all the deductions for tax and national insurance - it might seem that you spend more time working for the government than for yourself.

But just how much time do you spend working for the government? How long does it take to work off the burden of taxation?

In fact, the average taxpayer works for the government from New Year's Day until sometime in late May - a date which the Adam Smith Institute calculates each year as TAX FREEDOM DAY.

How bad can it get?

Back in 1963, our tax freedom came at the end of April. But the burden of taxation was higher throughout the 1980s than it is today, following Mrs Thatcher's early and sharp tax increases to pay for large-scale economic restructuring.

From its 1982 peak, Tax Freedom Day started to arrive ever earlier, making the UK an attractive low-tax economy for both foreign and domestic investors. This trend has not lasted, however: the tax burden rose again under Tory Chancellor Kenneth Clarke, and the present government has steadily - and stealthily - raised the tax burden. The Labour government remains committed to increasing the tax burden further. Table C9 (p. 261) in Budget 2004 shows the tax burden rising from an estimated 38.7% of GDP in 2004-05 to 40.5% by 2008-09. Assuming that the forecasts in Budget 2004 are entirely correct, Tax Freedom Day will advance by three days in 2004, to 30 May. Comparing the last ten years (1995-2004) with the previous ten-year period is rather depressing. Then, the tax burden was clearly trending down. Since 1994, it has been clearly trending up.

That is the day when economists reckon that Britons finally pay off their annual tax bill. Based on the net national income of taxpayers, the Adam Smith Institute (ASI) calculates that tax freedom day falls on May 31 this year, a little later than last year's May 27. Taking account of the leap-year day last year, that means we are all working three days more to fill the Exchequer’s coffers than we were a year ago.

Gabriel Stein, chief international economist at Lombard Street Research, who compiled the figures, said that the day was poised to move forward to June 2 next year and was likely to reach June 7 by 2009.

He said: "The low and simple tax systems have been a major competitive advantage for Britain, and that advantage is being eroded."

The latest tax freedom day in Britain was June 15 in 1982, still a fortnight earlier than last year's day for the eurozone. By contrast, in the United States tax freedom day has never fallen later than May 3.

John Whiting, tax partner at PricewaterhouseCoopers, said that taxpayers could start earning for themselves earlier in the year with good planning.

He said: "It is possible to reduce your tax burden by taking advantage of the tax breaks available to you, such as effectively using the allowances for capital gains tax, inheritance tax and Isas."

Michael Howard, in his first party political broadcast as Conservative leader in November 2003, called for tax freedom day to be made a bank holiday. A Conservative spokesman said yesterday that after the election the pledge was no longer party policy. Asked how Mr Howard would mark the day, he said: "I don't think there will be a specific celebration, but I am sure he will be bearing it in mind as he enjoys his recess."

Young people shun pensions

Almost three 19 to 25-year-olds in four have not joined a company or personal pension scheme, with more than 90 per cent of them believing it is the Government's job to look after them in retirement.

However, just one 19 to 25-year-old in seven is confident that Westminster will be able to provide for them after they finish work, according to Clerical Medical's latest A snapshot of Modern Britain report.

But a third of this age group said that if pensions were easier to understand and buy, it would have a big impact on their behaviour.

Clerical Medical found this a potential source of optimism, ahead of the publication of the Pension Commission's report in Autumn 2006.

Overall, less than half (49 per cent) the UK' population said they were regularly contributing to a pension, with 55 per cent not confident they would enjoy a comfortable retirement.

"It is rare that a week goes by when we’re not reading about the UK' so called 'ensions gap'in the news. Therefore, it is frightening to discover that nearly half of the UK population appear to be ignoring this message, and subsequently failing to put aside some pension savings for retirement," said Graeme Riddoch, Clerical Medical sales director.

"In order to boost pension contributions, we believe that it is essential that the UK population is provided with simple to understand products, sound information, and visible incentives for saving," he added.

The report also found that over three quarters of UK adults think they should do more for their retirement, but two in five are putting off thinking about saving for retirement until a later date.

Surprisingly, almost one in five of over 55s (18 per cent) were amongst those putting off retirement plans, while 17 per cent of under-18s were already thinking about putting money away for later in life.

Motorists waste £1.5bn on car insurance breakdown cover

British motorists are wasting £1.5 billion a year on breakdown cover on their car insurance policies, insuresupermarket.com has found.

The price comparison website warned UK residents thinking of taking road trips over the bank holiday weekend that by choosing breakdown cover from big brands like the AA and RAC they could be wasting money.

"For as little as £36, you can buy the peace of mind that you won't end up wasting your long weekend break stuck on a roadside verge for hours or paying an extortionate call out charge as a non member to the AA," explained Richard Mason, director of insuresupermarket.com.

"Equally, don't just opt for the big two when you buy your cover, as they can cost over four times more than the cheapest comprehensive policy," he added.

However, the cheapest cover is not always the best, Mr Mason pointed out.

"Breakdown policies do not automatically provide cover for driving in mainland Europe so anyone intending to take their car abroad on holiday should make sure they have the appropriate cover - breaking down is bad enough, but if you are in a country where you don't speak the language, and don't know the names or numbers of the local breakdown services, you could ruin your holiday with a lot of unnecessary stress - not to mention cost," he commented.

Save £900 a year on travel

Six million people in the UK could save £900 a year each on travel costs, simply by walking to work.

That is according to new research from private medical insurer PruHealth, but the total £5.4 billion saved on transport costs is not where the story ends.

Along with the savings on fares and petrol, consumers choosing to walk or cycle into the office can make significant savings on health and life insurance.

And for people whose journey to work makes walking or cycling impractical, PruHealth points out that getting off the bus or Tube a stop or two early can provide similar health benefits, and possibly make journeys cheaper too.

"Walking some or part of the way to work, or cycling, is an easy way to burn off some of those excess calories without having to go to the gym or play sport or unduly disrupt your daily routine. It can be as easy as getting off the bus one stop early," said Rosan Meyer, nutritional advisor for PruHealth.

To help people see the impact of leaving the train or tube a little earlier, PruHealth has devised a calorie counter that lets London's commuters work out how much fat they can burn on their specific journey.

Stephen Rowe, marketing director at PruHealth, commented: "We're hoping to encourage people to integrate walking into their everyday routine as walking is one of the simplest and most accessible forms of exercise there is.

"Whilst a brisk half hour walk won't have quite the same impact as, say, a gym workout or a run, doing it regularly can have a significant impact on your health and wellbeing."

But there are strong disincentives to walking to work as well.

PruHealth's found that time was the biggest problem, the nation's average commute is over 61 minutes, rising to 84 minutes in London, and around half of those who could walk to work are rejecting the idea of waking up even earlier to get in on time.

The weather was found to be a problem for 33 per cent of people while 22 per cent said safety was a concern.

Alliance & Leicester Personal Loan Scoop Award

Alliance & Leicester personal loans have been given the seal of approval with an award from a consumer magazine.

The readers of Personal Finance & Savings magazine have voted Alliance & Leicester Best Personal Loans Provider for 2005.

The bank beat off stiff competition from several other top high street financial providers to win the top place, whilst Tesco and Halifax came second and third, and Lloyds TSB and Nat West took the eight and ninth positions.

"We are delighted to have been voted Best Personal Loan Provider by the readers of Personal Finance & Savings magazine," said Andy Bayes, head of Alliance & Leicester personal loans.

"We pride ourselves on giving our customers a great loan experience, both in terms of the customer service they receive and great value we offer."

More than 6,200 readers voted to choose the top banks over a three-month period.

Alliance & Leicester has built on its success, being highly commended in last year's awards.

About the Alliance & Leicester Personal Loan

The Alliance & Leicester personal loan is a straightforward easy to use offer. With one of the lowest APR's of only 6.4% The Alliance and Leicester personal loan gives great value for money. As with all personal loans the rate you are offered is dependant on your credit rating.

The 6.4% APR is applicable for personal loans taken out at between £5000 to £15000. Alliance % Leicester have made it very easy to apply and you will get a very quick decision on your loan application.

You can have the option of up to 5 years to pay off your personal loan and the interest rate that is offered you is fixed for the term of the loan.

An Alliance & Leicester personal loan is available for any purpose be it a holiday, car or home improvement.

Applying for an Alliance & Leicester Personal Loan is really easy too. All you need to do is fill in an online application form which takes about 15 minutes to complete. They will email you a response within minutes. Once you've been approved, Alliance & Leicester will send you the necessary paperwork for you to sign and once you return it, the money will be on its way.

British Gas Loans

A British Gas Loan makes rolling outstanding credit into just one manageable monthly payment quick and easy.

The APR of 6.2% is competitive with other personal loan providers on the market and you can borrow between £1,000 and £25,000 with a 3 month repayment holiday period included.

The British Gas Personal Loan also comes with fixed monthly repayments and a decision in minutes. When you're accepted onto the program the cheque is delivered to you in 24 hours.

How does a British Gas Loan compare to other loans?

If you're a British Gas customer, you'll know that the company is pretty expensive for gas and electricity prices. Surprisingly, though, the British Gas loan is really competitive in terms of the interest rate. The typical APR for a British Gas loan of over £5,000 is among the lowest on the market.

With the British Gas loan you can borrow up to £25,000 for up to seven years, and you'll get a three month payment holiday at the start of your loan term - you won't need to make any payments at all for this time. And, once you do start paying, you can be secure in the knowledge that your payments per month won't change; the interest rate is fixed for the lifetime of your British Gas loan.

Summary

The British Gas loan can be a good choice but there are a few hidden costs and conditions. For instance, if you want to borrow a smaller amount (under £5,000) your interest rate with the British Gas loan will shoot up. You'd be better off with a different lender if this is the case.

The British Gas loan is heavily advertised under the slogan 'click today, cheque tomorrow' - if your application for a British Gas loan is accepted you can ask for the cheque to be forwarded to you on the next working day. The unfortunate thing is that British Gas will charge you £45 for this service.

The sneakiest thing that British Gas does to its customers is to charge a redemption penalty. This is an industry-wide problem: many lenders make this charge but there are plenty out there that don't. A redemption penalty can be the equivalent of two months' interest, payable if you can afford to pay back the entire loan early. It might not sound like much money, but it's a charge you shouldn't have to pay.

The more you review the British Gas loan the more you begin to find yourself getting very excited about the product and starting to feel the urge to apply now.

Click here to apply for your British Gas Personal Loan.

Women buying more life insurance

The number of women in the UK buying life insurance has doubled in the last six years, LifeSearch has found.


The company revealed that in 1999 only one in five of its customers were female, but figures for 2004 and 2005 show that now twice as many of its customers are women.

LifeSearch policy adviser, Linda Tyson commented: "We attribute this increase to the growing awareness of the importance of protecting the financial stability of the family. More and more women are either the main or the only breadwinner and are realising the importance of protecting their incomes."

And women receive an added boost when applying for cover; they pay less in premiums than men.

LifeSearch pointed out that women's higher average life expectancy means a discount on the cost of cover.

The average life expectancy of a baby girl, born in 2002, is 81 years. A boy born in the same year has a life expectancy of 76 years.

This life expectancy difference means that women can save up to £425 a year on the cost of premiums, compared with what a man of a similar age would pay.

But it is not all good news for the UK's females, as some women can pay more for insurance products such as income protection and critical illness cover, LifeSearch points out.

And this could be a problem, as LifeSearch's senior technical adviser Kevin Carr highlighted that these products can be a more effective way of looking after loved ones or paying the mortgage in times of trouble.

He explained: "Income based products such as family income benefit and income protection can often be the best way to protect a family's financial future.

But despite the benefits, this type of protection is often ignored or difficult to find, Mr Carr added.

"While many think the public are spoilt for choice when it comes to shopping around for protection products, in truth hardly any banks, building societies, supermarkets or web-sites offer these products or write them under trust, preferring instead to deliberately limit the customer’s options and make the choice seem overly simple," he warned.

Visit the Finance Choices Life Insurance Guide for more information

Government to help out first time buyers

The number of towns where key public-sector workers cannot afford to buy a property has nearly doubled in the past three years, according to a new survey.

Nurses are now priced out of the property market in 93 per cent of towns in Britain, while firefighters are unable to buy homes in 90 per cent, a study by Halifax reveals.

Police officers fail to get on the property ladder in 71 per cent of towns and the number of places that teachers cannot afford to purchase houses almost doubled from 34 per cent to 77 per cent since 2001.

The research found that the property divide was no longer confined to London and the South East, with the number of towns in the North deemed too expensive for nurses up from 13 per cent in 2001 to 79 per cent in 2004.

Struggling first-time home buyers could however gain cheap mortgages funded by public money under plans revealed by Chancellor Gordon Brown.

Couples would have to raise as little as half the cost of homes sold on the open market, he told the Observer.

The remaining equity in the house would be shared by the government and the bank or building society.

Mr Brown said the scheme would help hundreds of thousands of people get on the property ladder.

"It means that people who couldn't afford the full price of a home can afford the partial price, and they can gradually ramp up their stake - it's putting home ownership within the reach of thousands of people who would not be able to do so," Mr Brown told the newspaper.

The Observer said the scheme would affect about 100,000 purchases and cost hundreds of millions of pounds over three years.

Mr Brown said many people felt home ownership was "beyond their grasp".

"This is part of our idea of helping people meet their aspirations for themselves: I have no doubt that more people want to be able to get a foot on the housing ladder earlier."

Under the new scheme, average monthly repayments on a £200,000 home could be cut by up to £372 a month.

The mortgage help will not be restricted to key public sector workers previously helped by the government, and there will be no means test.

However banks and building societies will have to sift out deserving applicants whose salaries simply will not stretch to the average-priced house, from those simply angling to buy dream homes well above their means, the Observer reported.

Are you still paying interest on your credit cards?

Paying interest on credit cards is simply unnecessary for anyone with a decent credit history. This week's deal is the best balance transfer cards, which move debts to where they're cheapest, possibly saving you £1,750.

What is a balance transfer?

This is when one card pays off the debts on other cards for you, so you owe it the money instead. This 'transferring the balance' is usually done because the debt is moved to a special cheaper rate.

To do it you need to ask for a 'balance to be transferred from another card'; don't try to do it yourself by withdrawing cash on the new card. Just tell the new provider which cards other debts are on and how much to pay off them and it should be done.

WARNING. Never, ever, ever, ever spend on a card after balance transferring to it!

Choosing the right deal

Two questions decide which balance transfer type is tastiest for you.

1. Can you pay off the debt within roughly a year?

Yes. Get the longest 0% deal possible, so you can pay off your debts without being charged interest.

No. Then answer the next question.

2. Are you willing to change cards every six to nine months?

Yes. It's still 0% offers for you, as you're ready to become a credit card tart, which means disloyally re-balance transferring your debts each time the 0% period ends, so your debts are interest free. Yet this requires a decent credit score, so those who sometimes fail when applying for new cards should answer No.

No. Forget tarting. Go for a 'stable relationship' life of balance transfer offer, a no-hassle way to get a long term low interest rate.

Being a credit tart

For anyone using the 'Tart' route there are a couple of golden rules to remember before you begin.

1. Always switch the month before the 0% ends.

In the month before the 0% ends move the debt again to another 0% offer. To do this you'll need to apply about 6 weeks before the deadline. Be disciplined.

2. Interest-free doesn't mean nothing to repay

All cards have a 'minimum monthly repayment' and if you don't meet this you may be fined and lose any special offer deals. Set up a direct debit even if its just for the minimum repayments as you can always make further repayments each month on top.

3. Changes to 0% offers over the past few years

While it used to be 'the longest 0% the better', this is no longer strictly the case. There are a range of other factors to consider.

• Balance transfer fees. Do a balance transfer and you may be charged a fee e.g. 2% of the amount transferred, capped at a maximum of £50, so you may pay no interest but you pay more on top.
• Low credit limits. Many cards with 0% are decreasing the amount they're willing to lend, as an easy way to cut costs. Unfortunately there's no easy way to assess the likely credit limit, though anecdotal evidence suggests Barclaycard's are low and cards managed by MBNA (Virgin, Alliance & Leicester, Abbey) are high.
• Super balance transfer ability. Super Balance Transfers allow customers to pay off loans or overdrafts with them, as well as credit cards.
• Existing customer balance transfer offers. Many providers will offer existing customers the ability to move more debt to them again at a cheap rate . If you are going to add to your card arsenal it is good to consider a card which may provide future benefits too.

The winning credit card

The winner is the Virgin card's 9 month 0% with no balance transfer fee for any transfers made during the entire 0% period and the ability to perform super balance transfers.

Is your child missing out on thousands?

The nation's teenagers could be missing out on thousands of pounds, simply by not having a savings or current account.

New figures from MORI reveal that 24 per cent of Britain's 16 year olds do not have such an account and are therefore unable to receive an Educational Maintenance Allowance (EMA).

EMAs provide anyone still in education past GSCEs (be it a vocational course or A-Levels) with up to £30 a week, as long as their family income is less than £30,000.

But in order to receive this payment, the teenager must have a valid savings or current account for the money to be paid into.

"All it takes to start receiving EMA is to open a bank account, fill in a form with your parents or carers and then show you are committed to your course," said Celebrity Fame Academy's Reggie Yates who is backing the scheme.

Sixteen year olds in London are most likely to miss out, with 40 per cent of them not having bank accounts, while teenagers in the South East look best prepared to start receiving EMA as more than nine in ten of these have an operational account.

However, the Learning and Skills Council is urging all 16 year olds to make sure that they have an account, or risk missing out on the payments.

EMAs are available to people aged 16 or 17 between 1 September 2004 and 31 August 2005 as long as they spend at least 12 hours a week in guided learning.

As well as the weekly payments, students can earn £500 in bonuses over two years, depending on how well they do on their course.

Since it was launched nationally in March 2004 close to 300,000 students have signed up to the EMA scheme.

Students interested in applying for the scheme can call the EMA help line on 080 810 16219 or log on to www.direct.gov.uk/ema.

To find out some of the best savings and current accounts available have a look at the Finance Choices banking best buys table

Morgan Stanley Platinum Card

The Morgan Stanley Platinum Credit Card is one of the new American companies entering the UK credit card market. The Morgan Stanley Platinum credit card has one of the most rewarding cash back offers compared to other UK credit cards. The introductory offer of 2% cash back on everything that you buy using the card for the introductory period is one of the best cash back credit card offers around. Only American Express Blue credit card has an offer to rival Morgan Stanley for a generous amount of cash back.

The cash back offer from the platinum credit card will award you 2% in the introductory period and when the standard rate is applied you will receive 1% up to a spending level of £2,000 and 0.5% thereafter. This is slightly different to the American Express Blue credit card which offers 0.5% up to £2,000 and 1% thereafter.

The Morgan Stanley Credit card offers 0% on purchases and balance transfers fixed for 6 months from account opening - Got a balance to transfer? How about 0% for the first 6 months? On their own these benefits would be very competitive, combined with 2% cash back on everything you spend (up to £2,000) it's very exciting indeed.

In addition to these features you get the usual add-ons with any decent credit card, online fraud guarantee, Internet based account management, no annual fee and free travel insurance.

Morgan Stanley Platinum Card In Brief

• 
  5.9% on balance transfers for life of balance, on balance transfers made before August 2005


• 2% cash back up to 1st August 2005


• 1% cash back standard (up to £2000 spend limit, 0.5% thereafter)


• Online fraud guarantee


• Manage your account online


• Payment and card protection plans available


• Free travel accident insurance


• Free travel assistance


• No annual fee


• 15.9% typical APR variable

Morgan Stanley Platinum Card Summary

A fine offer from Morgan Stanley, with a very impressive cash back incentive. There is a 2% cash back offer up to 1st August 2005, reverting to a 1% standard cash back rate. Only American Express can rival this for cash back offers.

Apply for your Morgan Stanley Platinum Card now

The savings market: more is less?

Britons in 2005 have more choice than ever before in how and where to deposit their savings, but the returns on offer are lower than the average of the last 45 years.

That is according to new research from Halifax, the UK's largest savings institution, which examined the "real" rate of return on savings accounts since 1960.

This was calculated by looking at the amount of money being earned on investments, and then subtracting the rate of inflation (how fast goods rise in price) for the year.

The research discovered that the 1980s was the best time to have money in the bank, with returns of 7.5 per cent, after inflation had been deducted, in 1986.

Savers in the 70s were stung the most, as the value of investments fell in real terms in eight of the decade's ten years. Things were at their worst in 1975 when raging inflation meant in real terms the value of savings fell 14.1 per cent in a year.

Overall savers have seen returns of 1.33 per cent ahead of inflation over the last 45 years, Halifax revealed, compared with 2004's rate of 0.9 per cent.

"The evidence suggests that savers have fared well during most of the last 40 years. What is very clear however, is that periods of high inflation eat into the real rates of returns that savers receive," said Cheryl Millington, head of savings at Halifax.

The bank pointed out that things really stared to pick up in the mid 1980s, after the building societies' "cartel" fell apart in October 1983 and new entrants to the savings market increased competition.

In the 1990s savings accounts operated by phone and post began to open up new channels of investment, and government action saw TESSAs (Tax Exempt Special Savings Accounts) introduced in April 1991.

1997 also saw large changes as Halifax, Alliance & Leicester, Woolwich, and Northern Rock converted from building societies to banks and the new Labour government introduced ISAs (the tax-free Individual Savings Accounts). The following year savings accounts operated over the internet began to appear.

Halifax points out that as a result of the changes in the 1990s, today's savers have more choice than at any time in history, it's just that the return from your savings aren't as good as in previous years.

Use our bank best buys table to find some of the best savings accounts available today.

Dieting costs £4 per lb

A new calculation has found that it costs £4 to shift each pound of excess weight.

Overall this means health-conscious Britons will spend a total of £874 million on dieting this summer alone, Morgan Stanley Consumer Banking has found.

And a large number of us are looking to lose weight as the temperature rises, with more than one person in three (37 per cent) looking downsize before bikini wear becomes necessary.

"Dieting can be stressful, as well as costly but there are several ways to save the pennies whilst shifting the pounds," commented Patrick Muir, marketing director, Morgan Stanley Consumer Banking.

Exercise was found to be the top way Britons were looking to shift their spare tyres, with gym memberships the largest single cost.

UK residents looking to tone and shape are set to spend an average of £37 each on working out over the next 12 weeks, with exercise accounting for 72 per cent of slimming costs.

The next largest outlay is on slimming clubs, at £11, with women leading the way and splashing three times as much on this than men (£15 compared with £4).

Overall, women are set to pay-out 40 per cent more on cutting the flab than men in the next three months. The average woman is set to spend £59 on weight loss over the summer, while the nation's men are planning to spend £35.

Teens are most concerned about their size, with 18 to 19-year-olds set to spend the most on their weight loss programmes (£118), but getting in shape for the summer is not just the preserve of the young, with fifty-somethings spending £38 each.

Morgan Stanley Buy & Fly Credit Card

Morgan Stanley have just launched their new UK credit card offer, the Morgan Stanley Buy and Fly credit card. The credit card is one of the best on the market, with some of the finest introductory offers currently available amongst UK credit cards. The Morgan Stanley Buy & Fly card offers you 0% balance transfers for 6 months and also 0% purchases for 6 months, superb stuff.

In addition to this Morgan Stanley will award you travel points every time that you use the credit card (hence the Buy & Fly name), build up enough of these travel points and you could be jetting off to many destinations around the world free of charge. Pretty cool huh?

The travel points is a real bonus if you're a frequent flyer. When compared to Air Miles you can see just what a great deal the Morgan Stanley Buy and Fly credit card is. Use the credit card often and you will get bucket loads of travel opportunities and distance allowances with the Morgan Stanley card.

If the great travel deals aren't enough you also get the standard credit card fare of online fraud protection, no annual fee and an online account management facility.

The more you review the Morgan Stanley Buy & Fly card the more you begin to find yourself getting very excited about this credit card and starting to feel the urge to apply now.

So, to sum up those great offers:

• 0% on balance transfers for 6 months


• 0% on purchases for 6 months


• Earn travel points every time that you use the card - it is possible to estimate your future travel points (and possible future destinations) on the Morgan Stanley web site


• Online fraud guarantee


• Travel accident insurance


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5 million Britons reject company pensions!

More than one in four British employees have not, or will not, join their company pension scheme, costing them more than £3 billion a year.

That is according to a new study by insurance giants AXA, which pointed out that many of the schemes people are avoiding see employers pay money in on the workers' behalf.

"Our study reveals that the majority of people who are members of occupational pension schemes benefit from contributions paid into these schemes by their employers and in many cases these contributions are equivalent to five per cent or more of their annual income," said Mark Rowlands of AXA.

"By failing to join company pension schemes British workers are losing out financially. My conservative guess is that they could be losing out by as much as £3 billion per year and probably significantly more," he added.

Sixty-three per cent of those who belong to company schemes said they knew their employer paid into the fund on their behalf, with one company pension member in four saying their employer pays between five and ten per cent of their salary into the fund.

But AXA found that of those who did not pay into occupational pensions, one in nine said they could not afford to join, seven per cent said there was no point as they were too old and another seven per cent said they did not know how to join. 13 per cent of respondents said they had no faith in pensions at all.

"The harsh reality is that the state pension is unlikely to provide a sufficient income to enable most people to enjoy a comfortable retirement," AXA's Mr Rowlands commented.

"We strongly encourage people to review their retirement planning and joining an occupational pension scheme could be an excellent way for British workers to boost their retirement income."

With the population ageing it is more and more important that people start to think and plan for their retirement. By ignoring such obvious steps as your company pension it is surely a time bomb ticking away waiting to go off.

There are many options available to you to put some money away for your retirement and there is never a better time to start planning than right now.

Are you saving for your children?

Parents are putting their own needs on the backburner to save £250 million a month for their children's future, new figures show.

According to savings bank ING Direct, 44 per cent of parents are now putting money in the bank for their offspring's education, with many cutting down on socialising to help their children.

This is a massive increase on the 12 per cent of parents that were saving for their children's education three years ago, ING revealed.

On average proud mothers and fathers are investing £36 a month, with one in ten putting a lump sum away rather than a monthly deposit.

"It is encouraging to see almost half [of the UK's parents] are making financial provisions for their children's future," said Lindsay Sinclair, spokesperson for ING Direct.

"We advise parents to start saving as soon as they can so that they are fully prepared for the increasing financial burdens that education often brings," he added.

ING also uncovered the lengths to which parents are going to in order to provide for their children's education.

Close to one in two (46 per cent) said that they have cut back on nights out with friends, and almost as many (43 per cent) said that they are holding back from going shopping and buying fewer clothes. More than one parent in three admitted to ditching holiday plans or not upgrading their car to increase their child's education fund.

Mr Sinclair added: "Clearly parents up and down the country are taking the funding of their children's education seriously, with many making sacrifices along the way.

"By putting away a manageable amount every month into a savings account, parents can be assured that they are taking control of the situation and building a strong foundation for their children's future."

ING found children in Scotland have the most generous parents, with 58 per cent of their mums and dads putting money away for their education, and close to a quarter of these saving well over the UK average at £76 and £100 a month.

Egg deals a blow to rate tarts

People looking to transfer their credit card balance to internet bank Egg have been told they will have to pay a 2% charge for the privilege.

Egg joins banks such as Barclays, Alliance & Leicester and MBNA in imposing balance transfer charges.

This move, whilst unsuprising remains very significant as Egg were one of the pioneers of 0% introductory rates.

With this development joining other similar moves in recent times it should be interesting to see what the future holds for 0% introductory rates.

Northern Rock Loan

A recent report by More Than announced that 1 in 4 people wanted to pay off their loans as a matter of priority.

One of the best ways to do this is to refinance your loans and get a competitive interest rate and Northern Rock provide one of the most competitive loans on the market today.

At first glance, the Northern Rock loan seems too good to be true. The interest rate offered on your borrowing is one of the very lowest available in the UK, and you can apply for a Northern Rock loan of up to 25,000, to be repaid over 10 years (or less). This certainly represents one of the best deals on the market at the moment.

The best thing about the Northern Rock loan is the interest rate, but this doesn't mean you pay for your loan in other ways. In fact, even ignoring the APR completely, the Northern Rock loan is still a really good deal. You can borrow large amounts and benefit from a long repayment period, and the APR is fixed for the lifetime of the loan - it will stay at the same competitive rate for as long as it takes you to pay it off.

With a lot of low-price lenders you're hit with a penalty if you decide to pay off some or all of your loan amount early. Not so with the Northern Rock loan - some companies charge the equivalent of up to two months' interest for early repayments (in an attempt to put you off cutting your term short), but Northern Rock saves you this expense. If you pay off just a small amount early you can reduce the term of your loan and, therefore, the amount you'll pay back in interest over all.

There are some factors you should look out for when applying for a Northern Rock loan:

• As with all cheap lenders, Northern Rock's credit scoring system is a bit strict. If you haven't got a perfect credit rating you might be offered a loan at a higher Apr or Northern Rock might decline your application altogether. And if you're looking for a lender that offers payment holidays - a break in payments to take advantage of when you're strapped for cash - you'd better go elsewhere. Northern Rock doesn't offer payment holidays for any circumstances.


• You should also check the age limit for any loan you're thinking of applying for - Northern Rock won't accept your application if you're below 21 or above 80.


• Some lenders charge an early repayment fee if you choose to pay off your debt early. Even if you don't think you will be able to settle your debt before your loan term has expired, you might benefit from choosing a lender that doesn't do this, just in case. Fortunately, the Northern Rock loan allows you to make extra bulk payments along the way, with no charge. This will not bring your interest rate down, but you will save money by cutting your loan term.


• The Northern Rock loan is a cheap, no-frills service. It does not offer benefits such as repayment holidays, and does not allow you to change your Direct Debit payment date after your loan term has started.

The pros and cons of applying for a Northern Rock loan might make the decision sound complicated, and it is even more so when you consider that there are plenty of other cheap loans to choose from in the UK. Use the Finance Choices Loans Table to compare Northern Rock with other lenders.

Quick links
- Apply for a Northern Rock loan online
- Compare Northern Rock loans with other UK loans

Should you be a mortgage tart?

I wrote an article last week explaining how so called credit tarts (people who exploit 0% introductory offers before moving on) were exploiting the credit card industry and now it seems that more of you should be adopting a similar approach to your mortgage.

Seven million Britons have not changed their mortgage since John Major was the Prime Minister, new data has revealed.

And this group of people could save as much as £5 billion a year, or more than £750 each, by swapping to market leading rates, mortgage broker Charcol has revealed.

Perhaps more surprisingly, there are 2.4 million homeowners who have not changed their mortgage since Margaret Thatcher was in power and interest rates were 13.9 per cent.

"Millions of homeowners are missing out on potentially massive repayment savings by sitting on their hands instead of taking advantage of today's low rates," said Elliot Nathan of Charcol.

"A typical borrower on standard variable rate can save around £120 per month by remortgaging, and you can quickly check online or over the phone whether this applies to you," he added.

Since Tony Blair came to office more people have remortgaged than under any other Prime Minister, Charcol revealed, but remortgaging per year peaked during the Tory-led period between 1989 and 1993, as interest rates climbed to 15 per cent in 1990, then fell to 5.4 per cent.

Mr Nathan concluded: "There may be a general feeling of apathy over the election on May 5, but there's simply no excuse for apathy over one of the biggest financial commitments of your life."

So there you are. If you want to make the most of your mortgages it helps to shop around so that you get the best deal possible. Have a look at the mortgage offerings of Promise Finance.

Until next time,

BW