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.
Conman jailed for £8 million bank scam
Conman Frageand Naseem was yesterday jailed for nine years after being found guilty of a simple but very effective scam which netted him £8 million although had him on the verge of a potential £100 million return. It appears that armed with just a mobile phone and a library card for ID, Frageand Naseem was able to obtain, by persuasion, an array of personal and very confidential details about la...Read More
Santander confirms Royal Bank of Scotland branch offer
Spanish giant Santander has today confirmed a potential £1.8 billion for the 318 Royal Bank of Scotland branches which are up for auction. It is believed that Santander is the only firm bidder for the branches despite the fact that a number of parties came forward when the auction process began. The branches are being sold because of an EU ruling in relation to state aid for Royal Bank of Scotlan...Read More
Bank branch closures on the rise
The number of bank and building society branches has fallen by around 11 per cent in the past five years, according to a report by local information website Locallife.com. Closures mean that the number of branches in the UK has fallen from 11,640 five years ago to 10,423 today, a ratio of just 1.88 branches per 10,000 people. Banks are, in part, closing branches to cut costs, but a rise in popular...Read More
Santander bids to increase share of UK savings market
Spanish banking giant Santander, the owner of Abbey and Alliance & Leicester, has this week revealed plans to introduce a £100 payment per customer switching to any of the above banks after 7 September. This particular offer is one of very few currently available on the market and while there are some conditions attached it is sure to catch the eye of many who are still feeling the effects of the...Read More
Was the FSA warned about the management of Icelandic banks trading in the UK?
In a rather startling revelation the former Singer and Friedlander chief executive Tony Shearer has told MPs on the Treasury select committee that he previously warned the FSA about the standard of management at the Kaupthing Icelandic bank which eventually took over Singer and Friedlander. This is the first time such a revelation has been disclosed and certainly turns attention to the FSA and wha...Read More