Do I really need an overdraft?
Many people in the UK will have access to "interest-free" overdrafts for which they may be charged a small administration fee on a monthly basis. However, do we really need an overdraft or is it simply a long-term extension of our own credit facilities?
The ideal of an overdraft should simply be access to emergency credit at very short notice. However, it can be very easy to fall into the trap of accumulating your overdraft facility with your income on a monthly basis to arrive at "accessible credit limits". This can often lead to situations where we fall into our overdraft facility earlier and earlier each month which can often lead to extended overdraft facilities which are often more expensive and attract higher interest rates.
Even an interest-free overdraft facility, although often very useful at the time, can be the first step towards more debt and more charges in the future. We all need to be vigilant and keep within our budgets and not automatically assume that our overdraft facilities are part of our "everyday budget". It is easy to suggest that a £100 overdraft is simple to pay back but this could become £200, £300, etc and the situation can easily get out of control.
Is George Osborne about to hit the UK banking industry?
Many believe that George Osborne will use his Mansion House speech this evening to launch a number of new initiatives aimed at the UK banking arena. He will warn them that they need to pay for the damage which "they inflicted" on the UK economy and indeed there will be talk of new banking taxes and a banking levy discussed. It is also believed that many Liberal Democrat politicians are pushing...Read More
Irish government steps in to save its own banking system
They could not do it in the US, they keep talking about it in the UK but the Irish government has taken the bold step of guaranteeing the debts and deposits of the country's six largest financial institutions. The move, which has given a massive lift to the sector after weeks of concern, will cost around $700 billion in its entirety but the chances are that the vote of confidence will be enough a...Read More
Calls for investigation into Scottish banking sector
A number of MSP's have today stepped forward to demand an investigation by the Office of Fair Trading (OFT) into the Scottish banking arena and an apparent lack of competition. The move has been championed by a number of business associations up and down the UK and when you bear in mind the near collapse of Royal Bank of Scotland and HBOS (part of the Lloyds bank group) it is perhaps easy to see w...Read More
1.1m people switch bank accounts with Switch Service
12/09/2014 1.1 million people have decided to switch current accounts in the last year, due to a nation switching service introduce a year ago. Current Account Switch Service is a free-to-use service for consumers, small charities, small businesses and small trusts, and is designed to make switching current accounts from one bank or building society to another simpler. It is supported by mo...Read More
Should we have a national consumer bank?
The UK government has effective control of Lloyds bank and Royal Bank of Scotland, by virtue of the massive share stakes taken using UK taxpayer funds, and there are some in the Labour Party and other areas of the population who feel it is time for a national consumer bank. However, against this background of renewed optimism and hope for a national consumer bank is the fact that the UK economy is...Read More