Inflation is still tumbling but is still way above the government’s 2% target.

The Consumer Prices Index (CPI) – the official measure of inflation – slipped 0.4% to 4.1% last month as fuel and food costs cheapened.

The CPI fell at its fastest rate for 16 years between September and November mainly pushed along by fuel prices falling by a third since their high in July. The rate stood at 5.2% in September – the highest for many years.

Despite the fall, management of inflation is still outside parameters set by the government and bank of England governor has had to write to the Prime Minister Gordon Brown to account for the situation.

Cash strapped customers at the Halifax who exceed current account borrowing limits may have to pay up to £2 bank charges.

The new Reward current account takes a carrot and stick approach to customers – offering them the same fees on for a £2,000 overdraft as slipping £20 in to the red accidentally.

“The idea of the account is to get rid of confusing interest rates,” said a Halifax spokesman.

Reward takes over from the standard current account and high interest current account from 9 February. Old fee and interest charges will be swept away and offers a £5 credit to customers paying in at least £1,000 a month.

Savers are piling cash to Tesco, which has the most competitive savings rates on the market.

In November, more new savings accounts were opened at the supermarket than in the whole of 2007.

The lure is 6% interest rate on deposits of less than £100,000 the Tesco Internet Saver account. This more than doubles the return of similar accounts from similar high street accounts.

• Is The Economy Recovering? Had dinner last night with an old family friend at...
• ING Direct's CEO: American's Opening 100,000 New Savings Accounts per Month. Apparently, there is one positive to be found amid the...
• Looking For The Best Rates On CDs, Checking And Savings Account? Look no further than Rate Brain. Let's face it, interest...

Tags: Accounts, Bank, Bank of England, Banking, Current Account, Financial News, Interest Rates, Savings, UK Banks

Picture three accounts which act like buckets. The first account is you current account. This is where your income goes…your wages or your salary. The first step is to sit down each month and work out your known expenses and bills. You pay as many as you can using direct debits and then withdraw a weekly or monthly amount of cash from your current account to have as discretionary spending money, ensuring that you are saving an appropriate amount. If you aren’t saving as fast as you would like, cut back on your discretionary spending money. It’s that simple folks!

Once you have done that, you’ll have an amount left over. This goes into bucket two which is a savings account with a high rate of interest and some penalty attached to it for withdrawing the money inside the notice period. This little trick instils discipline in people who might lack a little bit of will power not to buy those shoes/have that holiday/get the newest gadget. Over time, your aim here is to have between 6 and 12 months expenses in this account.

Once this account is filled up, you then progress to bucket three. This is an investment account which you use to build up your equity base. Once bucket two is filled, all excess income month goes into bucket 3 to get you into the fast lane of wealth accumulation. This is the stock market bucket where long term goals are saved for. In reality, this is your lifetime income bucket. Some day you will use this money to generate an income for yourself to subsidize your pension (which is paid for as part of your living expenses). The faster you fill bucket three to the extent that it can produce a suitable income for you, the faster you can retire.

• Alliance & Leicester
• Barclays
• Capital One
• Child Trust Fund
• First Direct
• HSBC
• Post Office
• Tesco Savings

• Teach Your Kids about Money Management It is never too early to teach your children the...
• Interview Series: Little House in the Valley This is a guest post from Little House in the...
• How to Keep Your Money Safe As some of the biggest and most respected banks in...

Tags: Budget, Current Account, Money Management, Nest Egg

The lending business has come a long way from the days of illegal loan sharks and shady business transactions. In fact, taking a loan has become a common and beneficial financial choice for thousands of people around the UK. These people, like you, are looking for some financial assistance to help them get through a difficult time or achieve their life’s goals.

Looking Back on Lending

Of course, no one can really say where the history of lending began. It is likely that people have been creating loans for as long as there has been the concept of ownership. Yet, the official history of loans has been documented for at least several thousand years; forms of creating loans were evident in ancient Greek and Roman times, and monetary loans are even mentioned in the Bible.

One of the earliest forms of lending is the indentured loan (otherwise known as the “indentured servitude”). It was initially practiced in the Middle Ages and throughout the 19th century. Indentured servitude allowed poor individuals to borrow the money they needed for expenses such as travel and real estate. The money was usually borrowed from a wealthy individual, such as a land owner, and the borrower would have to work off their debt over the course of several years.

Unfortunately and predictably, many land owners were dishonest and would greatly inflate the debt or would continue to add provisions to the debt long after it had been repaid.

The Advent of Banks

It eventually became very clear that dishonesty in indentured servitude was becoming a rampant and a growing problem. As an alternative, individuals known as “moneylenders” became an important part of money lending and loans. In fact, it is from these moneylenders that today, people use the terms “bank” and “bankrupt”.

These moneylenders, who were initially Italian, would set up benches in the local marketplace or “banca”, known as bank in English, and would charge interest on their loans at a rate that they set. Sometimes these moneylenders would become successful and very wealthy. However, those who did not become wealthy and left the business became known as “banca rupta”, or in English “bankrupt”.

Modern Loans: The Evolution

Fortunately, things have come a long way since those marketplaces in Italy. The business has become more refined and respected – and most importantly – fair to its customers. Interest rates are much more controlled, and detailed regulations must be met. The modern banks, finance companies, and online lenders that provide loans to the public and private sectors provide a great service to the world economy.

Today, lending has never been easier and simpler. No longer are people financially wasted by taking out a loan – loans can actually help build wealth. Best of all, you won’t be put to work on a wealthy landowners’ farm to work for several years! Lending has sure come a long way.

• Prosper Ordered to Cease and Desist by SEC http://www.sec.gov/litigation/admin/2008/33-8984.pdf It appears to me that the ruling is that they...
• Paying Off Loans Too Early Hurts My Lending Club Returns As you have probably gathered by now, I am in...
• Resisting Panic: A Quick Guide to Surviving The Credit Crunch A few years ago if you referenced the term "credit...

Tags: Bank, Banking, Current Account, Loans, Money Management, UK Credit Cards

If you are looking for ways to improve your chances of receiving a loan, the best option is to build your collateral in order to show the lender that you have a strong financial history and are a dedicated to repaying the loan.

In banking terms, collateral is used to indicate assets that secure a debt obligation. In the case of a house mortgage, for example, the house serves as the collateral for the mortgage loan. This way, the bank is completely secured against the risk of the borrower not being able to meet the interest payments – if you cannot make the payments, the bank will seize your home.

There are two different types of collateral that banks will consider. The first type of collateral is secured lending, otherwise known as asset-based lending. The other type of collateral refers to more ‘liquid’ assets such as cash or securities, often known as ‘margin’.

Depending on the needs of your lender, having a strong amount of collateral will likely help you secure a loan more easily, and may even allow you to negotiate lower interest rates.

One of the best ways to improve your collateral is to start making smart investments. These don’t have to be large; you can start small and build yourself up over time. In fact, most people build their collateral using the loan system – they use small loans to make smart investments and eventually they have a large amount of collateral to their name.

Easy Ways to Improve Your Image without Collateral

You don’t have to buy a home to improve your image in the eyes of a lender. Here are some simple ways to improve your financial image:

• Make bill payments on-time: avoid trying to wait until the last possible minute to pay your bills. Get on-top of the bill payment situation – and pay your bill as soon as it arrives in the mail
• Avoid maxing out your credit card: interest rates and payments can become very difficult to manage and can become easily out of control. Try to make more than the minimum payments each month
• You don’t have to carry a credit card balance: one of the many myths of building collateral is that you need a credit card balance. In fact, many credit scores don’t distinguish the fact if you carry a credit card or not
• Open a checking or savings account: although not critical, many lenders will look at your credit history and look favourably on the fact that you represent stability
• Obtain a secured credit card: these cards allow you to make a deposit with a lender – and the amount usually becomes your credit limit. The issuer takes on very little risk because if you don’t pay on time, it can go into your account to cover the bill
• Use a co-signer if possible: If it is feasible to obtain a co-signer for your first few credit accounts. In these circumstances the credit rating of the co-signer will be added to your own
• Make smart financial decisions: Make sure your credit is in place before you make large purchases

Building collateral is one of the most important things you can do in order to obtain a healthy financial situation. Start today, as the process does take time. However, the rewards for having good credit will far outweigh the problems associated with having no collateral.

• 9 Steps for Establishing Credit Credit is the catch all term for the act of...
• Use Prosper.com to Repair Your Credit This blog is mostly dedicated to Prosper.com lending.  However, I...
• 4 Easy Ways to Raise Your Credit Score For many Americans, dealing with a low credit score can...

Tags: Accounts, Bank, Banking, Current Account, Money Management, Mortgages, negative equity, Savings

Legal advocates and many institutions are imploring people to be wary of situations in which their personal information can be stolen. When details about your life, your identification, and your financial situation fall into the wrong hands, they can lead to you becoming a victim of identity theft. This is a very serious concern, which costs individuals, businesses, and the government a great deal of money and time.

There are several ways that we are all encouraged to protect ourselves and prevent identity theft from occurring. Here are a few of the easiest protection habits that you can implement:

• Never share your personal information with anyone outside the relevant institutions. This means not giving out your banking codes and asking for confirmation whenever someone asks you for such details.
• Securely destroy old documents. Identity thieves are not above looking through the trash – in fact, it is one of the best places for them to mine information. A few scraps of paper, each with a different bit of information on them, can quickly lead to a stolen identity when they fall into the wrong hands. Instead of simply tossing old documents, use a shredder.
• Be safe when using the internet. The internet is becoming a quick favourite with identity thieves. Phishing scams, stolen passwords, and other hacker activities can lead to the theft of your personal information. Protect yourself by installing the latest version of antivirus and be wary of sites that ask for too much information.

By following these simple strategies, you are making strong strides toward protecting yourself and ensuring that you never become a victim of identity theft. Unfortunately, even the most vigilant can be victims of bad luck or poor timing.

For example, in a major recent event the Child Benefit Agency lost the personal details of every parent who receives child benefit. This information included their names, addresses, dates of birth, national insurance numbers, child benefit numbers, and bank account information. This is a substantial amount of very sensitive data and this catastrophe has put about 25 million people at severe risk of identity fraud.

Unfortunately, situations like these undermine the public’s faith in the institutions they are meant to trust. In a recent survey by Canvasse Opinion over 30 per cent of respondents states that they did not trust the government to safeguard their personal information.

Yet, this information must be shared with at least some institutions. This is why it is not only important that you make it difficult for identity thieves to get your information, but also that you monitor your personal information to identify any security breeches.

The following are some ways to identify a personal identity theft issue quickly. You can use these strategies any time that you have reason to suspect that you are at risk, or simply make them part of your regular routine to reassure yourself that your identity is safe.

1. Monitor your bank account. When you receive your bank statement, you should take the time to look at more than just your closing balance. Review the statement a little more carefully and watch for any unfamiliar transactions. Remember, identity thieves can be very smart and sneaky in the way that they steal your information and your money.

2. Review your credit report. With the right information, an identity thief can apply for loans, obtain credit cards, or even mortgage a home in your name. This information can also allow them to purchase credit-based services such as mobile telephones and catalogue accounts. Unfortunately, unless the bill collector comes directly to you, these activities can go on for a long time without your knowledge. A quick review of your credit report will confirm the types of loans that you have secured and also the ones that have been applied for recently. By reviewing this document, you will be able to identify any problems quickly and make quick steps to fix them.

3. Change your bank and credit card account passwords regularly. You should already create account passwords that are difficult to break (they should not be personal ones, such as your child’s name, or easy to figure out numbers like sequences). Yet, this is not quite going far enough; you should also schedule yourself to change your passwords regularly.

• 5 Significant Strengths To Credit Card Processing For Little Corporations With the proper product or service or service, even the...
• Is Common Sense Returning to Consumer Lending? Yesterday I read a post by The Finance Buff which...
• The Four Rules Of Debt Freedom Debt freedom is a scary proposition for some people because...

Tags: Bank, Banking, Current Account, Identity Theft, Money Management, UK Credit Cards

Opening an account for your child is an excellent way to introduce them to the world of finance. Many parents do it with the hope that their child will learn the value of money management early, and will look after their financial situation in adulthood as a result.

Benefits

Young children (and sadly, some adults) buy into the idea that “money grows on trees”. Most parents reach a point where they would like their children to understand that the cost of living must be paid for with work, and that unless the money is budgeted carefully it can run out.

By introducing your child to the concept of budgeting and banking, you may just find they have a completely new respect for you and your money.

Spending Account, Not Savings

If you open a savings account for your child and keep it under lock and key, you will not be teaching them any sort of lesson. Although savings accounts are certainly valuable (and much appreciated once the child has grown), they are not as useful of a learning tool, because the child never gets to make decisions regarding the money’s use.

Instead, open an account for your child that is meant to have money go in and come back out. The amount of freedom that you give your child with respect to this account will depend on their age. If you are starting young then it is appropriate that all purchases and withdraws be cleared through you first. However, be careful not to be too strict with the rules. Allowing your child to make mistakes now, when the costs are low, is much better than when they are an adult.

Account Features

Your child’s account should be the most basic one possible. There is certainly no need for any credit features such as overdraft and cheques are likely not a good idea. The concept of this type of account is that your child understands that once the balance reaches zero, they will no longer have any money to spend.

When Cash is Better

Before your child is able to understand the value of money in a bank account, it is important that they fully grasp the value of the currency. We have all seen a child who is drawn to coins rather than bills, ascribing the heavy, pretty items with more value and willing to trade a note for a coin.

Until your child can understand the relative value of the money itself, they are unlikely to understand how a bank statement can have any worth. So, before opening an account for your little financial planner, start by giving them a variety of currency and help them to understand the relative purchasing power of each denomination.

• 5 Pieces of Advice to Tell Your Child About Money- Part 2 5 Pieces of Advice to Tell Your Child About Money...
• Do You Really Need Home Accounting Software? Life is becoming more and more complicated.  If you have...
• Ways for Busy Parents to Teach Young Children About Money You want your kid to be financially savvy. You know...

Tags: Bank, Banking, Current Account, Money Management, UK Credit Cards

Do you need to open a new bank account? There are many reasons why a second, third, or even fourth account can be appealing; it can help with budgeting or managing different funds. Additional bank accounts are also often obtained when you have two sets of needs, each of which are best provided by two different banks.

When opening a new bank account you will likely experience a very daunting process of forms and application requirements. This can be time consuming and frustrating if you do not know what to expect and come unprepared. This article will provide you with some general information about the application process and a few strategies on how to make it run as smooth as possible.

Identification

The first thing to ensure, when going to apply for a new bank account, is that you bring all of the necessary identification and paperwork with you. Missing just one item from a bank’s required list will stop the process cold, so it is best to call ahead and ask exactly what they need. You can expect this list to include photo identification, proof of address, and possibly information about any other accounts that you have.

You may also be required to prove that you are registered to vote at your current address, that you do not have any outstanding debts, and that you have a regular monthly income. If any of these conditions are difficult for you to prove, then you may not be able to take advantage of the banks full account services, but you should not be discouraged. Speak to a representative at the bank and let them know what your situation is, as well as the type of banking product that you are looking for. They may be able to offer you a basic account that will store your money, but will not offer cheque guarantee or debt facilities.

Joint Accounts

If you are opening a joint account with your spouse or any other partner, then both of you will have to be present at the time of application. Additionally, both of you will have to provide complete identification and documentation, just as if you were opening accounts on your own.

Online Accounts

Online accounts have similar application processes, although they are often quicker at approving your status. There are a variety of ways that online accounts verify your identification. Although some do require copies of your documents, others will accept a proof by proxy, such as your registration with another bank or a government institution.

• High Yield Online Savings Accounts   Photo Credit: Refracted Moments™ People spend time figuring out how...
• Selecting the Best Personal Bank Account Most banking institutions offer a wide range of personal account...
• Dodging the Credit Card Punishment You may have been reading about record low interest rates...

Tags: Accounts, Bank, Banking, Current Account, Debt, Money Management, Savings, UK Credit Cards

Take Control of Your Security

Most online banks go to extraneous measures to protect your privacy and keep your information secure. There are limits to what they can do, however, and there are ways that you can help their efforts.

• Select a complex password and keep it secret: Your password should be something that is easy for you to remember, but difficult for anyone else to guess. Birthdays, last names, and other common details of your life are not good candidates for passwords because they take little effort to figure out. Once you have selected a sufficiently complex code be sure to keep it secret. Do not share your code with anyone and if you suspect that someone know it, change it.
• Do not Get Hooked by a Phishing Expedition: Phishing is a strategy that thieves use to bait people into willingly passing over details about themselves and their accounts. Often phishing takes place in the form of an email that has been designed to look like a message from your bank. The email will ask you to confirm your security information and password, and may even direct you to a fake website that looks similar to that of your bank. By entering your information, you will be putting it directly in the hands of the thief. To keep yourself safe, do not ever respond to one of these emails without first calling your bank to confirm that they are the ones who sent it to you.
• Limit your use of public computers: banking and other sensitive online activities are best limited to your home computer. There are some technologies, such as keystroke recorders, that allow thieves to monitor what you are typing into a public keyboard. With the right motivation, this thief could then search for your passwords.

Your Computer is Your First Line of Defence

If you are banking online then it is likely that your computer is storing banking information. If accessed by the wrong people, this information could lead to identity theft. The first thing that you must do is ensure that your computer is secure and safe.

• Update your antivirus: Simply owning antivirus software is not enough. You must ensure that this software is up to date since new viruses and malware are developed daily. If your antivirus software does not update itself automatically, consider purchasing a new version that does. You should also ensure that your computer has been scanned recently and that it is clean from any viruses or malware that could already be present.
• Set up a firewall: A firewall works like a checkpoint between the internet and your computer. Essentially, it stands as a locked door, ensuring that no one obtains unauthorized admittance into your files. Without a firewall hackers from the internet can sneak in through backdoors and access your computer’s hard drive and, consequently, your banking information. If you already have a firewall, ensure that it has been set to monitor the flow of information in both directions. This means that the firewall will work to prevent unauthorized information from being sent as well. It is a scary thought, but some malware will work behind the scenes on your computer and send your files home, without your knowledge.
• Back up your information: In addition to the threat of others gaining access to your computer files, computer banking without back ups can also create a situation were information is lost when a hard drive collapses. Back up your information regularly and keep the disks separate from your computer so that one will be secure in the event of a fire or other destructive disaster.

• Marketing Advice: Youtube Software YouTube software is often a file management process that delivers...
• Canadian Bank Earnings Week: CIBC Surprises and Expectations of Dividend Increases This week of August 24-28, all the talk on Bay...
• Saving Time With Your Finances Keeping track of your finances can be a time-consuming activity....

Tags: Accounts, Bank, Banking, Current Account, Money Management, Savings, UK Credit Cards

Every bank offers a different range of products, but at the very least, you are certain to find a set of basic products that are available through every institution.

Which Card?

Even the most basic account will usually offer a cash card. These cards are provided so that you can use cash machines and are often part of the process for banking online.

However, there are a variety of cards available. Do you need a simple cash card? Or, would a cheque guarantee card or a switch card better serve you? Most banks also offer a fourth type, which is a card that combines all three purposes in one.

How Convenient?

One of the most important factors to consider is whether the bank is convenient for you. Be sure to consider the bank’s physical location and its hours. Ask about the availability of the bank manager and even try to schedule an appointment with them to see how easy it is.

Think about what you require from the bank when you evaluate its convenience. If you are unlikely to visit the branch then its hours may not be as much of a concern; instead, evaluate the bank’s call centre and online services.

Lowest Fees?

In addition to considering the overall fees, be sure to look at them objectively from your unique perspective. Ask yourself which fees and penalties you will likely be subject too and evaluate the bank giving priority to those figures. For example, do not be put off by a bank that charges a high amount for sending out an extra statement if that is a service that you are unlikely to require.

One of the most important fee systems to look at is the bank’s overdraft policy. While some banks charge interest at a rate of 8%, others can go as high as 34%. Banks will also vary in their willingness to provide overdraft protection. For example, you may receive £500 automatically with your account or you may be subject to a lengthy application process.

Is Premium Right For You?

Many banks now offer premium accounts that cost a monthly fee, but provide several extra services not included in the basic accounts. Of course, the value of a premium account depends on how useful these extras are for you. For example, premium accounts can include cheaper borrowing rates, travel insurance, and roadside rescue. If these are services that you are likely to use, then the modest monthly fee may actually be a bargain for you.

Online or High Street?

Why would you want to bank online? For many it is simply because a good internet bank offers a wider variety of services and substantially higher interest rates. In fact, some internet banks offer up to 30 times more interest than the high street banks.

Online banking also provides the convenience of the internet. You are able to manage your accounts from the comfort of your home, at any time of the day or night.

• Finance Professionals Bid to Help You Online I'm mostly a do-it-yourself financial planner. But sometimes we all...
• Frugal Friday Pt 2 Last week's assignment was to track your expenses, to the...
• Things to Remember When Getting a Cash Advance Every now and then, you may find yourself in need...

Tags: Accounts, Bank, Banking, Current Account, Debt, Money Management, Savings, UK Credit Cards

The Bank of England has tried to help mortgage borrowers, and prevent a further decline in the economy from a repeated fall in house prices by reducing interest rates earlier this year. Interest rates currently remain unchanged for the time being and stand at 5 per cent…

What does the Credit Crunch mean for Mortgage Borrowers?
Unfortunately, many mortgage lenders have been unable to pass these savings onto home-owners because of the uncertainties in UK economic growth and in some cases (such as the difficulties experienced by Northern Rock in August last year) because the cash has quite literally run out to fund their current housing stock at the same lower interest rates. What is potentially more worrying for home-owners is that interest rates are unlikely to reduce any further in the near future because of rising inflation which currently stands 1 per cent above the UK Government’s target of 2 per cent – there is even the possibility that they may rise again. All this means that there exists an economic stalemate for the time being, with market predictions bringing little joy to home-owners, businesses and employees over the next few months, and possibly well into 2009.

What the Credit Crunch means for mortgage borrowers is uncertain. Banks other than Northern Rock have also felt the ‘credit crunch’. Such a case is that of Bradford and Bingley, the latest bank that has found itself being unable to fund its Buy-to-Let business as the cash it requires is simply not available from their traditional avenues of finance. As a result, Bradford and Bingley has recently suffered massive falls in its stock share price because of a profits warning for 2008 – more and more of their mortgage customers are increasingly missing their monthly repayments on property that is potentially decreasing in value as average house prices continue to fall month on month. These figures also echo a steep rise in repossession figures for the first quarter of 2008…

Credit Crunch Budgeting and Financial Planning for Everyone
For many, one way to cut a path through these difficult times, when cheap re-mortgaging and low fixed rate deals are harder to come by, is to revise how they manage the money that’s already in their pockets, ensuring that they make the most of every pound by making savings and reductions wherever possible. Ensuring that sensible financial budgeting is at the forefront of everybody’s minds is very important, as well as keeping both eyes open for the best deals on mortgages rates, the banks’ current account deals and where it is possible to save money, on the highest interest savings accounts.

Most banks want you to deposit money regularly with them due to their shortage of cash liquidity, so high interest rate accounts are being offered to tempt you to give them your business.

Here are some recommendations for mortgage accounts, personal bank accounts, business bank accounts and high interest savings accounts available online

• Securing A Buying Sacramento Bank Owned Homes As Investment Properties Sacramento Bank owned homes are houses that have been repossessed...
• How to Protect Your Pension in the Credit Crunch As news of bank failures continues, and government officials are...
• Home Loan Rates: Things You Must Know Without the usage of a mortgage, countless persons would not...

Tags: Accounts, Bank, Banking, Current Account, Money Management, Mortgages, negative equity, Savings