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.
Do Irish banks now have a competitive edge?
News that the Irish government has guaranteed all bank deposits in the country has led to some rather serious questions across Europe with the European Commission now taking a more of an interest in the situation. Aside from the fact there are many who actually believe that the scheme is illegal many are now starting to ask whether Irish banks have a competitive edge over their European counterpa...Read More
Student Financial Incentives Are Diminishing In Numbers
The once obligatory student credit card and overdraft facilities with a number of freebies and added extras have been shelved by many financial companies for the time being. Slowly but surely more and more basic financial incentives are being taken away from the student market, often replaced by free cinema tickets and the like. So what is going on?
The credit crunch has taken in...
Apple Pay to be introduced in July
10/06/2015 New Apple pay technology is set to be introduced into UK stores in July, and will be welcomed by stores such as Marks & Spencer and Waitrose. The technology will work by owners of an iPhone Six or an Apple watch paying for purchases by touching their devices to contactless pads. These payments will be capped at £20, similar to the contactless technology used on many debt and cre...Read More
Lloyds Bank to withdrawal interest payments on business current accounts
In a move which is sure to upset the UK business arena, Lloyds Bank has announced plans to withdraw interest payments on business current accounts, which is currently the norm at Bank of Scotland. While in reality Bank of Scotland business accounts have received zero interest for some time, due to the fact that the rate is set at two percentage points below base rates, businesses will miss out on...Read More
Lloyds Bank Chief Executive defends £1.7m bonus
14/02/2014 Lloyds Bank chief executive Antonio Horta-Osorio has defended his £1.7 million bonus, claiming that it is aligned with taxpayers’ interests. The bank has increased its overall staff bonuses for 2013 to £395 million, up from £365 million the previous year. Mr Horta-Osario claimed the reason behind this, was due to increased performance, which seen the bank report it’s first...Read More