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Switch to current accounts with free travel insurance and roadside assistance
February 17th, 2009
Switch to a bank account with added benefits. Free annual family travel insurance and free roadside assistance with HSBC Current Account Plus and 8% gross fixed AER with Current Account Advance.*
Earn 2.25% gross p.a. AER plus free annual travel insurance with Alliance and Leicester Premier Current Account and 6% Fixed AER with Premier Direct Current Account*
*Terms and conditions apply. Rates subject to change
Travel Insurance - Do you really need it?
February 17th, 2009
Travel Insurance - The real cost when things go wrong
Whether you are planning your annual family getaway, a short trip without the kids or maybe even an overseas wedding, one of the things that will be on your list of things to do is ‘Travel Insurance’. But, before you rush out and buy, check if you already have cover. Some banks, including HSBC and Alliance & Leicester will include annual family travel insurance free of charge with certain bank accounts. But if not, is it really necessary and what could go wrong if you don’t take out cover.
Medical expenses are potentially one of the biggest expenses you may incur if you have an accident or fall ill abroad. Remember, you are not at home now so if anything happens you may find the system works a little differently if something goes wrong. Many countries will provide you with some form of emergency medical treatment, but if you had to be flown back to the UK quickly, you wouldn’t be covered. This is what it may cost you:
- £35-45,000 - air ambulance from USA’s East coast
- £12-16,000 - air ambulance from the Canary Islands
- £15-20,000 - scheduled flight, stretcher and Doctor escort from Australia
Cancellation insurance should cover you for the full cost of the holiday if you or any members of your party can’t travel for a variety of reasons including accident, illness, redundancy, a home emergency or bad weather which causes your flights to be cancelled
Baggage and Personal Effects. Don’t take it for granted that your home insurance policy will cover all your personal effects if you travel abroad. Check the small print first, especially if you are thinking of taking some of your more valuable items with you.
Legal Expenses and Personal Liability cover. Imagine being faced with a ‘foreign’ legal system if you are involved in an incident and someone tries to sue you - especially in a country with no legal aid system. This will not only cover your legal expenses but also any payment you are ordered to make.
A good travel insurance will cover you for all of this and more, and with annual multi trip policies from as little £80 for a family of 4, is it really worth taking a chance?
Alliance & Leicester - Personal Loans, Unsecured Loans
February 17th, 2009
Unsecured Personal Loans £7500 - £15,000
Our unsecured loans cost you less! Apply online, by phone or in branch Our personal loans are available to both new and existing customers. Our typical* rate is 8.0% APR for personal loans between £7,500 and £15,000. Don’t forget our optional loan repayment insurance could cover your repayments if you can’t work due to accident, sickness or unemployment. It also includes life cover, so if you died the loan would be paid off. You’ll find our online loans application form both easy to use and completely secure. It takes about ten minutes to complete and in most cases we’ll get a decision to you within 24 hours.
UK and Overseas Wedding Insurance
February 17th, 2009
Advertisement Feature - E&L Insurance for weddings and receptions in the UK and abroad
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Personal Loans Comparison Tables
February 16th, 2009
Apply for a great rate personal loan - Rates from 8.1% Typical APR*
*Rates correct at time of publication. Actual rate will depend on your circumstances
Interest rates at lowest ever level
February 5th, 2009
Interest rates fall to lowest ever level of 1%
As widely predicted, interest rates fell today to 1% today, in an effort by the Bank of England to kick start the economy and the housing market. Ironically, the latest cut has come on the day that Halifax, Britains biggest mortgage lender announced that house prices rose by 1.9% in January, ending 10 consecutive months of price falls.
Bad news for savers
The latest cut of 0.5% will not have everyone cheering. In recent months, savers have been hit hard by the fall in interest rates.
With the average savings rate at just 0.81% APR, a further drop of 0.5% will more than half this to just 0.31%. This means that people with the average savings balance of just under £3,000 will get less than £10 a year in interest - a minimal return. Going forward, if we experience one more decrease this year it could mean 0% savings rates for consumers.
And this is having a huge impact on some sections of the population - especially those relying on interest from savings to boost their income, such as pensioners.
Someone who invested £20,000 in a typical fixed-rate bonds last year would have received £115 per month interest after tax, however those opening accounts at the new 1% rate from today would receive £45 per month.
Another issue is that low interest rates tend to hurt the pound.
Like savers looking for the best deal on their cash, traders tend to invest in currencies from countries with higher interest rates. Lower rates could mean the pound falls further.
Despite small rises in the week, the pound has been collapsing in the last few months as rates have fallen as investors continue to bet against the UK economy.
Who will gain from the fall in rates?
Gainers will be homeowners with tracker mortgages who will see the full benefit of the reduction immediately. A £200,000 interest only mortgage on a 1.5% above base tracker will now be costing £458 per month compared to £958 per month in August 07. Customers on standard variable rate mortgages will have to see how much, if any of the reduction the lenders pass on.
What next for interest rates?
Despite the negative impact on savers and the pound, many economists still think the base rate has to fall further to limit the impact of recession.
Henk Potts, equity strategist at Barclays Stockbrokers, predicted that as the economy weakened rates could fall to almost 0%.
“The UK economy contracted by 1.5% in the fourth quarter of 2008 - its weakest performance since 1980,” he said.
“The threat of inflation has now turned to the risk of deflation due to the sharp drop in commodity prices, the temporary cut in VAT and weakness in consumer demand.
“We now expect the Bank of England to cut rates close to zero by mid-year.”