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.
New balance transfer system goes live
Britons will be able to make bank transfers in a matter of hours as of today, thanks to the introduction of a new system. Apacs' Faster Payment System will cut the time it takes customers to make one-off payments by phone or over the internet from the current duration of around three-days. The system is in place at Barclays, Citigroup, Clydesdale and Yorkshire Banks, HSBC, Lloyds TSB, Northern Ban...Read More
Barnsley Building Society saved from collapse
As news that the Barnsley Building Society is to merge with the Yorkshire Building Society hit the news wires it seems as though we have our first victim of the Icelandic banking collapse. While the operations of the Barnsley Building Society were coping well with the economic downturn the problems started when the Society announced a loss of £10 million which had been held with Kaupthing Singer...Read More
Have the Alliance & Leicester started a battle in the banking sector?
It has been revealed that the Alliance & Leicester, the popular UK bank, appears to have started something of a free for all in the current account market. The company is offering new account holders a £100 cash back payment (which would be paid within four months of opening an account), 6.5% interest and a 0% overdraft (within an agreed limit) for the first 12 months. This offer relates to the c...Read More
Irish government expands bank guarantee to 5 foreign banks
In a move which could actually see Ireland sidelined from major involvement in the EU over the next few years it has been announced the government has extended the 100% guarantee on bank deposits to 5 more banks, all foreign owned. This has caused fury in the EU where ministers have been scratching their heads as to why the likes of Ireland and Germany seem to be going it alone.
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