Ridden with inaccuracies, half truths, and plain old news.
Posts tagged money
ISA Limits Increased
Oct 23rd
The amount of money that can be saved in a tax free ISA was increased on the 6th of October for those aged 50 and over. The rest of us will see our ISA allowance increase at the beginning of the new tax year in April 2010. The new top limit is £10,200 half of which can be cash with the other half being shares:
- A cash component: a cash deposit that is similar to any other ordinary savings account, apart from the tax-free status. A TOISA must consist solely of a cash deposit.
- A stocks and shares component: the money is invested in ‘qualifying investments’ consisting of any combination of stock market equity investments (with no geographic restriction), public debt securities such as government or corporate bonds, or cash “awaiting investment”. As a consequence, the risk profile of the ISA may be anything from low to high. The investments may also include or consist of property funds or derivatives such as options. This element may be self-invested and managed through a stockbroker, but the majority of investors invest collectively through a collective investment such as a unit trust, OEIC or investment trust.
The limit has risen from £3600 per year cash allowing us to save an extra £1500 tax free. Unfortunately 40% of Britons feel unable to save. Those who can save may not see a great deal of benefit in having their money in a low-interest ISA rather than a standard savings account. Still an ISA is a good way of saving and keeping the dreaded tax man at bay.
Today it was reported that the country is still in the grips of a recession much to the surprise of most. The nation’s economy contracted by 0.4% between July and September which was the sixth consecutive quarter to see a reduction.
As the graph above shows the GDP has reduced by less this quarter but the fact that there was a reduction means that this is the longest recession we have witnessed.
40% of Britons Unable To Save
Sep 17th
A recent survey has shown that almost half of Britons are unable to save. Only 60 percent of those asked managed to put money into their savings account each month, saving on average £206. Back in January 34% said that they were unable to save. Of those who were able to top up their savings 65% used instant access savings accounts.
Another survey back in July found that a quarter of people had no savings put aside at all. With unemployment still rising those who are not saving must be concerned about what will happen if the are made redundant. We are lucky enough in this country to have support systems in place for those out of work but it is still not a good time to be job hunting.
Those unable to save should console themselves with the fact that ISA interest rates have hit an all time low. Its great to have saving to fall back on but those savings wont be growing by much until the economy recovers.
Bangers and Cash Scheme Proving Popular
May 19th
The government recently unveiled car scrappage scheme is proving popular particularly with older drivers. The scheme was introduced to try to kick start the sales of new cars whilst reducing the amount of old cars on the road. In order to tempt drivers to update they have offered £2000 discount on a new car to those who scrap a car that is over 10 years old.
So far the scheme is proving most popular with retired drivers with fixed incomes. They often feel that as they are not receiving much in the way of interest on their savings them might as well invest in a new car.
Smaller, cheaper to run models such as the Citroen C1 are the most asked about so far suggesting that most drivers are concerned about ongoing fuel costs.
The World’s Most Expensive Hire Car
Apr 21st
Your average car hire vehicle is reliable and clean but not necessarily eye catching. Small hatchbacks or family friendly estates are popular and those who offer cheap car hire normally get the most custom. But what if you want to drive something a little unusual?
You can now hire a Bugatti Veyron for only £15,000 a day. Apparently there are only 25 of these cars in the world, having searched for a picture I can see why. If I had a spare 15 grand I wouldn’t spend it on driving around for a day in an overpriced car especially not one that ugly.
According to the car rental company people driving the Bugatti “need to consider that it will attract a lot of attention.” I think this means people will look at you as if you are either crazy or just going through a rather tricky mid life crisis.
The car has an eight litre engine which generates 1001bhp and needs 10 radiators to keep it cool. It can excelerate from 0-60 in 3 seconds and has a top speed of 254mph which is handy if you need to be 254 miles away in 60 minutes time.
Bank Account Holders Concerned About Data Loss
Mar 31st
A recent study has shown that customers in the UK are concerned about data loss by their banks to the extent that they would move their savings or business account if information was lost. Security is a big concern and although the government has lost sensitive data on more than one occasion so far most of the major banks have not. The study, which was undertaken by ArmstrongAdams risk management, will make compelling reading for the banks in what is now an even more competitive market.
55% of bank account holders would move their savings account if their existing provider lost the personal data of their customers. 22% were “very likely” to switch and 19% were “certain” they would switch current account.
“The survey results clearly show the continuing concerns that British consumers have with regard to the security of their personal information held by British banks as well as the safety of their money. And although the survey only looked at personal bank accounts, it, it is not an unjustified extrapolation to say that all financial institutions that deal with large amounts of customer data should continue to pay serious attention to the concerns of their customers and ensure they are taking a very robust approach to information risk management.” -Tim Kipps
Recent Comments