Tag Archives: bank accounts

Making The Most Out Of Your Money

Find out how you can make the most out of your money and avoid credit card and payday loan debt.

Unfortunately, since the financial crash (what credit crunch?!) back in 2008, British people have been feeling the effects. Unfortunately this has resulted in a growing number descending into credit card and payday loan debt as a result of not making the most of the money they do have.

On the face of it – it seems pretty difficult to make the most of your money during this time of “economic uncertainty”. Oddly enough there are things you can do to make your money work harder for you… but what?!

Check Out The Budget Supermarkets

Personally I’ve started doing some of my grocery shopping at the local Lidl or Aldi. Did you know that you can make significant savings by shopping at the budget supermarkets like this? What’s useful about these two stores in particular is the ability to bulk-buy – similar to a wholesaler but for consumers – not businesses. So if you need to do a big shop then you could make significant savings by shopping at a budget supermarket. Don’t get me wrong – I still pop into Tesco or Morrisons for quick buys but if you’re looking to do a big shop then try out Lidl or Aldi and compare what you spend to some of the other retailers out there. You might be surprised.

Invest Your Money Sensibly

There are bank accounts out there that can help you make the most out of your money – through high interest savings accounts and current accounts that will actually give you cashback every month that a set amount is paid in (usually over £1,000 a month).

In addition to this you could consider looking at opening an Interest Savings Account (ISA) to help boost your investments.

Earn More Money

Easier said than done isn’t it?! Ok – to help keep your financial health in top form it’s worth considering an additional job or, if possible, look at taking overtime in an existing job. Boosting your income could make all the difference to your financial situation and help you to meet monthly bills and charges. It could also help to prevent you turning to the likes of payday loans and credit cards to help meet payments and descend into debt.

Sell Sell Sell!

If possible look at selling some of those unwanted items you have lying around the house. These could be unwanted Christmas gifts, an old TV or out-of-date computer. Remember – your trash might be other people’s treasure so it’s worth popping along to your local car-boot sale or auctioning these items on EBay. Worth bearing in mind though that you may find a face-to-face sale at your local car-boot sale to be far more effective – never underestimate face-to-face. Online shopping isn’t always the be-all and end-all!

Tighten Your Purse Strings

Try to spend less – by setting a monthly spending budget for the year (that you stick to!) could help you to control your cash-flow and could mean that you have a little more left over at the end of the month or even the end of the year. Certainly worth considering.

Find out more about bank accounts and find one to suit your needs.

In the most basic terms a bank account is a safe, secure and convenient place to store your money. But let’s face it – a bank account is so much more than just that. Having a bank account is very useful as it makes it easier for employers to make wage payments to you so you don’t have to take cash-in-hand (which, let’s face it, is on it’s way out along with cheques).

Most bank accounts come with a debit card so that you can withdraw money, make deposits, make purchases in shops and online, etc. In addition to this you can even pay bills directly from your bank account, either by setting up direct debits, online banking and writing cheques.

Whether you are looking for a secured loan, payday loan or even a credit card – almost all lenders will need you to have a bank account otherwise they won’t be able to grant you a loan. Unfortunately some people with poor credit scores can find it difficult to get a bank account, however, Creditwindow not only offers standard bank accounts but can also find one for people with poor credit.

What Bank Accounts Are Available?

Let’s take a quick look at some of the bank accounts available to consumers:

A Basic Bank Account

A basic bank account is essentially a regular account that you can have money paid into – such as wages or benefits. You can also pay cash and cheques in yourself as well as pay bills by setting up direct debits. You will also be issued with a cash card to use at ATM or “cash machines”. Many basic bank accounts may also give you a debit card to buy things online or over the counter, however, you will probably not be allowed to take out an overdraft on a plan such as this.

A Bank Current Account

A bank current account is slightly more sophisticated as you will always be granted a debit card so that you can shop online, from restaurants, retail outlets, etc. A cheque book and overdraft facility may also be given to you but the overdraft will be set at an agreed limit and you may face high interest rates if you go over that set limit. However, on the plus side, some current account have an interest rate attached to them so you could earn interest on your money while it’s in your account.

A Bank Savings Account

A bank savings account is simply an account to place money that you don’t want to spend straight-away – i.e. money you plan on saving for whatever reason. All bank savings accounts have an interest rate attached to them so that you can earn on the money that you’ve placed into the account. However, if you’re looking for a savings account that allows you quick access to your money you should note that the interest rate will probably be lower than a standard savings account.

The Costs Of Banking

In the vast majority of cases bank accounts are free to setup and maintain, however, there are some bank accounts that require a monthly administration fee. These bank accounts tend to be premium accounts that offer more services than a standard current account – such as high interest rates, insurance services, overdraft facilities, etc.

In some instances people with poor credit scores may only have a select number of bank account options open to them. Some of these banking options may also charge a small monthly administration fee to offer what a standard bank account would give to customers with good credit.

Have you got a poor credit score and struggling to find a bank account? Check out:

Image: Kittikun Atsawintarangkul / FreeDigitalPhotos.net

Credit cards – in this economy?!

Are credit cards really the best solution in an economy ravaged by debt? That’s a good question and while credit cards might not be suitable for everybody and in every instance there is still a place for them, even in this post-recession, fragile economic state the UK has found itself in.

What benefits are there to having a credit card?

Get stuck in and read our top reasons to own a credit card, other than to lend you money… you may be surprised in what you learn.

1. Credit cards, when used sensibly, can help to repair a damaged credit rating. Even if you get a high-interest credit card, when used in moderation and, as long as you pay off debts monthly, you could see your credit rating sky-rocket!

2. Using balance transfers to pay off other debts could benefit you as, usually, it proves cheaper to pay off debt on a credit card as interest rates tend to be lower.

3. Use credit cards to help spread the costs – especially if you need to buy expensive goods or services but can’t pay-off in one go.

4. Earn cashback with credit cards, as long as you pay off credit card debts on a monthly basis.

5. Get exclusive discounts on certain goods or services with a credit card – many cards offer this service and certainly worth shopping around for to make sure you get the best credit card to suit you.

Whilst all of these are valid reasons to own a credit card Creditwindow understands that not everyone has a great credit score and it can prove difficult to obtain the one you want. As a result we have included a great list of both premium rate and poor credit score cards – check them out and find a credit card to suit your needs.

Finding the right bank account for your needs

Looking for a bank account to suit your needs? In this day and age it can prove difficult finding the right kind of current account for your personal requirements and each one undoubtedly offers different facilities, with different interest rates and charges. Managing your personal finances can prove difficult, which is why it’s vital that you choose a bank account that meets your needs.

So what are the basics that bank current accounts SHOULD offer:

The ability to withdraw money at any time of the day.
The ability to deposit money when needed.
Regular monthly statements.

A good bank account should also give you access to:

The opportunity to extend your line of credit with an overdraft facility.
The opportunity to add-on other extras such as credit cards.
Add-on high interest savings and ISA accounts if required.

When changing your bank account or if you’re opening a completely new account then you should be carefult as many banks may offer attractive introductory offers and benefits that may not continue in the long-term. It is certainly worth comparing accounts and shopping around for the best one to suit you.

Can I open a bank account with a bad credit history?

Find out how you can open a bank account even if your credit rating isn't so hot!

Suffering from a bad credit rating can be a difficult situation to be in, but the answer is yes, you can open a bank account with a bad credit history – simply apply for a bad credit bank account and you shouldn’t be turned down because of your credit rating. Just like any other account, you’ll need to prove your identity and address and you will need some documents to do so, such as a passport or driver’s licence.

Why you can’t open some accounts with bad credit

If you have bad credit, you could be turned down for a ‘standard’ bank account: you’ll need to pass the banks’ credit checks to open all sorts of accounts.

If a bank doesn’t like something in your credit history, they can turn you down.

If your credit history includes something more serious than a few missed payments – such as defaults, a CCJ (County Court Judgment) or bankruptcy – where do you go for a bank account?

Bad credit bank account

A bad credit bank account is another term for a basic bank account. There is no overdraft with an account like this but you can still arrange Direct Debits, use cash machines and pay in an income, pension or benefits. A bad credit rating won’t stand in the way of opening one of these accounts.

The bad credit, bank account from thinkbanking doesn’t require a credit check and is even open to undischarged bankrupts. You simply need to prove that you’re over 18 and resident in the UK. You can find out more about the bad credit bank account here: http://www.thinkbanking.co.uk/bad-credit/.

This type of account can also be suitable for people with a moderate credit rating – those who don’t have any really serious issues with their credit rating, but who may have been turned down for a standard current account elsewhere, or who may like the idea of a bank account with no overdraft facility.

Could Portable Bank Account Numbers Be On The Cards?

Numerous bank account customers are failing to realise the significant differences between interest rates, charges and special offers available from different High Street banks.

Unfortunately, when consumers do see better bank account services on offer they are failing to switch accounts to take advantage of better deals. It’s believed that they are reluctant to, due to the problems associated with changing banks.

Have you ever tried to? Switching current accounts can be a real pain as it means notifying service providers of changes to direct debits, changes to standing orders, etc.

According to the Financial Services Consumer Panel bank account holders would be more likely to switch banks for better deals if portable bank account numbers were introduced.

It is believed that fully portable bank account numbers would make it far simpler for UK consumers to move accounts should they wish to. It effectively means that any direct debits or standing orders already setup on an old bank account would automatically be transferred to a new account, thanks to the portable account number, saving you time, money and effort.

Consumer Panel member, Mike Dailly, commented:

“It’s only a matter of time before ‘trouble-free switching’ of current accounts takes-off in the UK, and consumer savvy bank customers start shopping around,

“Greater competition between banks and ‘trouble-free switching’ will drive choice and value for money for consumers.”

Mr Dailly added that “fully portable account numbers would be a great leap in the direction of greater competition as seen in the mobile phone industry.”

The call for portable bank account numbers has come after the Independent Commission on Banking made a very similar recommendation.

In spite of this it should be noted that changing bank accounts is still not that difficult. If you were to change accounts most High Street banks will call your current provider for a list of direct debits and standing orders so that these can be painlessly switched across. Portable account numbers would simply make this process even easier.

If you’re looking for a current account to suit your needs why not take a look at some of the excellent services on offer by comparing bank accounts in our banking section.

Fuel Prices Start To Rise… Again!

The price of fuel is still adversely affecting motorists’ credit cards and bank accounts throughout the UK, a new report by the AA has revealed.

A recent report by breakdown service, the AA, has revealed that the slight dip in petrol and diesel prices appears to be over. As a result British motorists could be in for a hard time, feeling the effects on their bank accounts and credit cards.

After fuel prices initially dropped lower in mid-June they appear to have edged up in the last few days. The average price of petrol now sits at 136.07p per litre, down by 0.86p on the same time last month but more than the 135.75p per litre reported in the first 5 days of June. Diesel prices have followed a very similar trend.

The AA have said that, in spite of the fall in fuel prices, UK petrol drivers have been denied much of the saving that the crash in oil prices should have allowed. It should be noted that their was a significant fall of 16 dollars a barrel. This indicates that the petrol companies are short changing their British customers by aroun 2p per litre, or £1 a tank.

Edmund King, president for the AA, suggested that on average a two-car family could have saved £8.49 over the month and potentially could have improved poor inflation figures.

Mr King added:

“Without transparency in the oil and fuel markets and a regulator to ensure fair prices, drivers, consumers and the nation are open to being ripped off by whoever wants to make an extra buck.”

Mid & Low Income Families Feel The Pinch

Middle and low income families are feeling the effects of credit card and personal loan debt, in spite of economic recovery, a new report has announced.

Whilst the UK’s economy has continued to improved at a laboriously slow rate it is unlikely that many low and middle income families will feel any real benefits until 2015, a recent report by the Resolution Foundation has revealed.

The organisation suggested that the living standards of many families on low and middle incomes were feeling the pinch even before the recession hit. With an estimated 11 million workers on low to mid incomes many continue to feel it’s effects.

The Resolution Foundation based its analysis on Government projections, indicating that average pay is set to flatline until 2015 when it’s expected to increase again. In fact, the group suggest that, come 2015, pay levels are expected to be back at what they were in 2001!

With personal credit card and personal loan debt at high levels, combined with falls in the volume of “middle skilled” jobs available the quality of living for many is likely to suffer.

James Plunkett, Secretary to the Commission on Living Standards for the group, commented:

“We all know that the recession has hit living standards hard but something deeper has changed in our economy – even during the so-called boom years, ordinary workers weren’t seeing their living standards rise.”

Mr Plunkett added that “the big question now is what will happen when growth resumes – will ordinary workers reap any of the benefits? This report suggests that is far from certain.”

British Consumer Credit Impacted By Rising Cost Of Energy

The rising costs of energy is severely impacting customer credit, with some experts suggesting that it could increase by 50% over the next 4 years.

Utility bills, including gas and electricity, are expected to increase by a whopping 50% over the next four years as gas and electricity suppliers look to offset rising wholesale costs. Further taking it’s toll on consumer bank accounts and credit cards.

This year alone we are expected to see an increase of 15% in energy prices, according to the Bank of England Governor, Mervyn King. However, it’s also been noted by Deutsche Bank that even higher bills are possible from 2013 should suppliers attempt to protect profit margins.

With the average household income dropping back to 2005 levels, high inflation levels and the ever increasing cost of living, many are concerned that this could further impact consumers throughout the UK. Some economists have even ventured that, should earnings and benefits fall further it could represent the most significant fall in “median incomes since 1981.”

Since many people around the UK are already suffering from significant from personal loan, credit card debts, unemployment and crippling taxes, it’s proving more and more urgent for changes to welfare reform and the availability of credit where it’s needed. The Work and Pensions Secretary,

Iain Duncan Smith, commented:

“This underlines the urgent need for our radical programme for Welfare Reform and especially Universal Credit which will make work pay and end the madness of generations living on benefits with no reason to aspire for more.”

Mr Duncan Smith went on to add that Government plans will help around 1 million people out of poverty and back into work. This is expected to end “the depressing spiral of a lifetime on benefits that blights too many of our towns and cities.”

In a positive move to controlling energy regulations and costs, Ofgem have been investigating the cost of gas and electricty suggested that energy companies respond very quickly in raising their prices when costs increase, however, they are a lot slower in responding when costs fall.

Hardly surprising is it? It’s all about profitability at the end of the day - it would just be nice to see an “ethical” energy company who responds to the needs of their customers – maybe it’s time for a shake-up, similar to the one the banks received when the British economy collapsed.

Image: graur codrin / FreeDigitalPhotos.net

Banking Reform On The Cards For Tax Payers

The UK’s economy has felt the reverberating affects of the recession and many of the country’s banks were brought close to collapse.

As a result the Independent Commission on Banking (ICB) has released proposals to change the way in which banks operate. If the UK government gives the go-ahead on these proposals the British people could see major changes in banking security and competitiveness, improving both services and products.

Published earlier this week, the ICB’s report sets out their plans for a new and safer banking system that limits the risk to customers’ money as well as liability to the tax-payer if a bank should fail.

Key changes to the banking system:

1. Retail banking (mortgages, savings, credit cards and current accounts) will be kept seperate from far riskier investment banking (stocks and shares dealing). In addition to this the ICB have suggested:

• Banks are to put a “worst case scenario” plan into place that allows their retail banking to continue servicing the need of customers, even if the investment banking fails.

• Banks will have to set a limitation on the extent to which the retail section can bail out the investment side of the bank should it get into financial difficulty.

2. Banks are to make it a simpler process to switch bank accounts. Including:

• Introducing portable account numbers so that customers will not need to change direct debits and standing orders if they switch accounts.

• A seven day transfer period to be enforced to speed up the process of switching accounts from one bank to another.

3. Lending Criteria for financial products and services, such as personal loans, mortgages and credit cards should be make more flexible.

4. Larger banks such as Lloyds Banking Group should be made to sell off more retail branches as they currently provide up to 30% of all british current accounts. The ICB feel that this financial burden should be reduced.

It’s believed that, once the proposals have been scrutinised, the ICB will present their suggestions for banking reform to the British Government.

The final decision will lie with the Government to decide whether the benefits outweigh the risks to the tax-payers and whether further rules and restrictions will push the large banks off of British soil.

In spite of this it should be noted that the ICB began this investigation at the insistence of the Chancellor. This suggests that, if not all, then many of their recommendations are likely to be put in place.

Check out our great range of bank accounts to find the right one to suit your needs.

Creditwindow's Blog

For All Your Financial Needs…