With the savings market in steady decline and interest rates at record lows, it’s hard to believe there is any upbeat savings news. But research by Moneyfacts.co.uk reveals that regular savings accounts have turned against the flow of rate cuts.
As a result, the average fixed regular saving rate has risen by 0.10 per cent in the last six months. Charlotte Nelson, finance expert at Moneyfacts, said: ‘It’s great news that regular savings accounts are seeing an improvement in rates, particularly as savers are currently struggling to get a decent return. These accounts are often overlooked as they require a monthly commitment. However, the fact is they pay far more than many other accounts on the market.
‘For example, someone who saves the maximum regular deposit in the best fixed rate regular savings account, which pays 6 per cent for one year, would earn a return of £119.17 per year. If they made the same regular deposit in the best paying easy access account, the interest rate of 1.45 per cent would mean they would earn £90.77 less.’
Have you heard the of the phrase ‘doomeranger’? No, neither had Spectator Money. But this new word has been coined to describe adults who move back in with their parents after leaving home. Unlike the ‘boomerang’ generation (those who return to the family nest not long after leaving home), doomerangers are fully grown adults, often with families of their own. According to research from Churchill Home Insurance, more than seven million people have been forced to move back in with their parents following a break up, divorce or separation.
These doomerangers make up 14 per cent of the adult population, as rising rent and mortgage costs mean many adults cannot afford to pay for separate accommodation as a single person following a break up. Financial reasons are listed as the main cause of needing to move back home with parents, but people are also returning home for parental emotional support and help with childcare. A quarter of those who have moved back with their parents did so following a bad break up, needing distance or independence from their ex-partner.
Meanwhile, a new study by conveyancing provider LV= Legal Services has found that tens of thousands of property purchases fall through between offer and exchange of contracts each year, as the average time it takes for property lawyers to progress to this stage takes just shy of three months.
The research showed that more than one in four sales have fallen through in the past five years — and of these, in nearly half of cases, fault was attributed to the conveyancers for taking too long to exchange contracts. This equates to more than 106,000 sales not going ahead last year as a result of poor conveyancing services.
The Times reports that the personal identification number is fast being replaced by ‘wave and pay’, as the number of contactless payments tripled in a year. Consumers’ confidence in the new system has led to contactless payments exceeding three billion in the past year, according to Visa Europe. Nearly three times as many people used contactless payments compared with the previous year, with consumers in Britain, Spain and Poland, making the most use of the system in Europe.
This morning’s Wake Up To Money on BBC Radio 5 Live reported on Brexit and its potential impact on travel. Stephen Dunk, from online travel deals firm Travel Zoo, said the European Union has bought in some ‘quite good’ protection for travellers, including bringing down roaming charges and agreeing compensation terms over cancelled and delayed flights. Brexit could also raise the cost of travel insurance as health care costs might rise for travellers, he added.
The emergence of low-cost airlines in Europe has been made possible by the single market, said Tim Hawkins, corporate affairs director of Manchester Airport Group. But Rory Broomfield, director of Better Off Out, said that it’s possible to get ‘too worked up’ over European travel.
The Daily Mail says that cash-strapped care homes are cherry-picking new residents by making elderly applicants prove they can afford a place. Money Mail claimed that Britain’s biggest nursing home groups are signing up teams of financial advisers to quiz older people — and their relatives — about their finances. They face invasive, half-hour phone interviews and lengthy meetings with advisers who will ask them to reveal details of their ISAs, pensions, investments and the value of their home.
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