The Nationwide Building Society informs us that people are losing around GBP248 million through expired or unpaid Child Trust Fund vouchers.
According to data gathered by them a quarter if the vouchers have expired while over 40 percent of the valid ones have not been used so far this year. In financial terms this, said the Nationwide Building Society, means almost GBP13 million each year is being lost in interest earnings alone.
A further word of caution came from a Nationwide Building Society spokesman who explained that if a suitable provider is not chosen by the parents then the government can allocate one for them, though this may not be in the best interests of the child. Child Trust Fund Vouchers are an excellent tax efficient savings vehicle and it is a shame more people are not using them.
A Sainsburys Bank spokesman feels that there are more restrictions and conditions applied to savings accounts than ever before.
Having looked at the current state of the market the Sainsburys Bank spokesman has noticed how many savings accounts have restrictions on withdrawal amounts and periods, as well as how it impacts on interest rates, with some quite hefty penalties on some for making withdrawals during the year.
Another aspect that has been noted is the use of age limits on some savings accounts, targeting either the younger or older market. Ideally all categories of customer should be able to enjoy similar levels of interest and benefits believes the Sainsburys Bank spokesman.
Tesco Finance has just announced an improved rate for its internet saver account, paying 6.25 percent AER for 12 months.
The finance arm of Tesco has brought in a 12 month additional interest bonus of 1.5 percent, enabling them to bring this outstanding rate to the market. As a spokesman for the company said, this offer could not be timed any better, since consumers are now looking for the best savings rates possible as they look to make the most of their money.
Customers can invest up to GBP100,000 in the Tesco Finance Savings Account, enjoying the bonus interest rate for the first 12 months, after which it will revert to its regular 4.75 percent AER.
