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Tesco Bank advice to savers over Bank of England update
Tesco Bank advice to savers over Bank of England update

Daily Mirror

time2 days ago

  • Business
  • Daily Mirror

Tesco Bank advice to savers over Bank of England update

Brits are being urged to take action as soon as possible with their savings, as Tesco Bank has said that many are currently losing money, and the Bank of England could make cuts to interest rates A high-street bank has sent out a stark warning to its three million customers, advising that inaction is costing them money as inflation looms large. On the cusp of the UK's latest inflation figures release on Wednesday, Tesco Bank has raised the alarm after discovering that 39% of Britons do not understand how inflation affects their savings. The financial institution flagged particular concerns for younger savers, stating nearly half of those aged between 20 and 40 (49%) are unclear about the effect of inflation on their savings, potentially missing chances to protect their nest eggs and get more bang for their buck. ‌ With the Bank of England on the brink of unveiling fresh inflation data on Wednesday July 16, Tesco Bank warns this could spell trouble for those stashing cash in savings accounts. ‌ Tesco Bank noted the critical nature of inflation rates to consumers, pointing out it signifies the rise in goods prices and how it can diminish the purchasing power of consumers - and mean the savings are worth a lot less. Among the many who fail to grasp inflation's implications, the survey by Tesco Bank uncovered that 11% mistakenly believe inflation boosts savings values, whilst 7% erroneously think it has no effect. Furthermore, one in five (20%) confessed they're simply clueless about the meaning of inflation. Tesco Bank's Save and Pay Director, Chris Henderson said: "Given the cost of living, it's concerning that so many people are in the dark on inflation and the impact it has on their money. ‌ "Knowing what inflation does to your money, and how you can protect your savings when the inflation rate is higher, is an important part of managing personal finances. When the rate of inflation is on the rise, it means the costs of things in our everyday lives are going up more quickly, so the money we have in the bank doesn't stretch as far. As an example, if inflation remains at 3.5% for the next 12 months, the £100 you have in the bank today would buy you £96.62 worth of goods in a year's time. "The truth is that inflation is different for everyone depending on what you buy, or pay for, each month but being aware of the UK's inflation rate is important. While there is no fail-safe way to protect your money from inflation, making sure you are getting a competitive interest rate on your savings can certainly help." Meanwhile, Bank of England Governor Andrew Bailey has indicated that interest rates could be cut if the job market slows down. The governor also mentioned to The Times that businesses are "adjusting employment" following Chancellor Rachel Reeves ' decision to increase national insurance contributions (NICs) for employers. Companies are "also having pay rises that are possibly less than they would have been if the NICs change hadn't happened", Mr Bailey commented. In his interview with the newspaper, he observed that the British economy is lagging behind its potential growth. Mr Bailey has expressed his belief that the base rate, which the Bank of England opted to hold in June, is on a trajectory to be reduced. The prevailing Bank rate of 4.25% impacts all borrowing within the UK, from mortgages to personal loans, and it's set for reassessment on August 7 by the Bank's Monetary Policy Committee. "I really do believe the path is downward," Mr Bailey said in an interview with The Times. He further added: "But we continue to use the words 'gradual and careful' because... some people say to me 'why are you cutting when inflation's above target?'"

Has the Barclays share price hit a peak?
Has the Barclays share price hit a peak?

Yahoo

time4 days ago

  • Business
  • Yahoo

Has the Barclays share price hit a peak?

The Barclays (LSE:BARC) share price has delivered a 191% gain over the past five years. Yes, that was from a low base, but investors could still have picked up shares in the bank for 130p in late 2023. Today, the banking stock trades for 343p a share. What's more, if an investor bought stock around 130p, they'd also have locked in a very sizeable dividend yield. If I'm not mistaken, the yield was around 5.5% when I built most of my position in 2023. This performance has been underpinned by the bank's ongoing strategic transformation, strong financial results, a renewed focus on efficiency and diversification, and a vast improvement in investor sentiment. These factors were most apparent in the first quarter earnings. The group reported an 11% year-on-year increase in total income to £7.7bn, with profit before tax rising 19% to £2.7bn. The investment banking division stood out, posting a 16% revenue increase and capitalising on heightened market volatility. The bank's return on tangible equity (RoTE) — a key metric for measuring profitability in finance — reached 14% for the quarter. That's well above the group's unchanged full-year target of around 11%. Management also upgraded net interest income guidance for 2025. This is further evidence that the strategic transformation's already delivering tangible results. Recent acquisitions including Tesco Bank, and expansion into private credit have diversified revenue streams and reduced reliance on more cyclical segments. However, the question remains whether Barclays' share price has peaked. The current valuation, with a price-to-earnings (P/E) ratio of around 8.4, remains discounted compared to many global bank peers. This suggests there could still be room for further appreciation if the bank continues to deliver on its strategic objectives and market conditions remain supportive. This P/E figure falls to six times by 2027, while the dividend yield grows from 2.6% to 3.4%. However, risks to the outlook are significant. Macroeconomic uncertainty persists, with concerns about global growth and rising US debt. Moreover, UK house price declines potentially impact credit quality and consumer demand. Barclays' US Consumer Bank division continues to struggle, and any deterioration in the US economy could weigh on group results Personally, I'm not adding to my position in Barclays. But the reason is concentration risk. A lot of my invested capital is in Barclays and Lloyds. Adding more probably wouldn't be wise. However, that doesn't mean I'm not bullish over the long run. Avoiding any economic disaster I'd expect the stock to make steady gains. And one reason for that is the interest rate environment. If central bank rates sit between 2% and 3.5% in the long run, and the economy chugs along, it's likely to be a profitable environment for lenders. This is crucial for banks. And that's why I believe Barclays is certainly worth considering. The post Has the Barclays share price hit a peak? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has positions in Barclays Plc and Lloyds Banking Group Plc. The Motley Fool UK has recommended Barclays Plc and Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Five tips to help people on any income get into the habit of saving this summer
Five tips to help people on any income get into the habit of saving this summer

Daily Record

time18-06-2025

  • Business
  • Daily Record

Five tips to help people on any income get into the habit of saving this summer

Simple steps from Tesco Bank on boosting your savings pots by over £1,000 in just six months. Income tax rises for Scots in April - how the changes affect you New research from Tesco Bank suggests that over a third (35%) of Brits have increased their savings in the last six months, by an average of £1,076. Despite continued cost of living pressures, many people have stuck to their savings goals and priorities in the last six months with almost half (47%) contributing monthly to their savings pots, while 20 per cent of savers top up when they can. Tesco Bank found that 39 per cent of savers see their goals as long-term, such as working towards retirement (43%) or long-term financial stability (41%), while 17 per cent are saving towards shorter term goals like holidays (36%) or building an emergency savings pot (36%). Delving into which age groups are leading the savings charge over this period, millennials and baby boomers have both stashed away an average of £1,127 in the last six months, while Gen Z aren't far behind with an average of £1,118 in their savings pots. Meanwhile, Gen X have saved on average £1,006. Only 17 per cent of people said their savings had dropped in the last month but, more worryingly, the research showed that 12 per cent of people don't, or can't, contribute to their savings at all. Some 32 per cent of savers said they didn't have a savings goal they are working towards. Commenting on the findings, Chris Henderson, Save and Pay Director at Tesco Bank, said: 'Getting into the savings habit isn't always easy, especially when life feels a bit more expensive, but it's great that so many people are setting goals, sticking with them and seeing their savings grow. 'Little and often is usually the best approach to saving, with some flexibility for those months where your spending rises, like the summer holidays. 'We know, however, it isn't always as simple as that and we see from our research that a considerable number of people around the UK aren't saving anything at all. This is maybe because they can't, or they simply aren't in the saving mindset. 'If you have some spare cash, setting savings goals is important as it can motivate you, and remember you can start really small and steadily grow your money over time.' Tesco Bank's five tips to start saving this summer To help you get into the habit of saving, Tesco Bank have shared five of their top tips to help everyone - no matter their income - start building better savings habits. It might help change your mindset and boost your bank balance by over £1,000 before Christmas. Give yourself a goal To help you stay on track it's good to have a goal in mind. Giving yourself something to work towards is a great way to stay motivated. Create saving pots, at home or in your banking app, so you can see the money grow as you work towards your goals. Budget, budget, budget Budgeting is your friend. If you don't have one in place already, it's worth getting a budget tracker set up as it can be a useful tool to track your spending. Your spending may vary from week to week, so having a monthly overview can help you assess where your money is going and whether you need to make any changes to cut costs. Ringfence money for your savings Setting up a monthly transfer into your savings account will help earmark money for savings, so you don't spend it elsewhere. A good time to do this is right after you've been paid, so you could set up a standing order to go out on, or just after pay day. Small wins can boost your savings Additional savings can also come from money you budgeted for but didn't end up spending. Perhaps your weekly shop cost less than you had budgeted for, or you decided to eat at home rather than go out. If you can take some of that money and divert it into your savings, even if it's just a few extra pounds, you'll be able to build up your savings pot and reach your goals quicker. Set yourself a savings challenge There are lots of different savings challenges out there, whether it's saving a certain amount every day or increasing the amount you save each day or each week. Each is designed to get you in the habit of putting money away and seeing it grow over time, so have a look and see which one could work for you and start saving today.

Credit card customers can save up to £1,679 with a simple debt ‘spring clean'
Credit card customers can save up to £1,679 with a simple debt ‘spring clean'

Metro

time14-06-2025

  • Business
  • Metro

Credit card customers can save up to £1,679 with a simple debt ‘spring clean'

If you're one of the millions of Brits who have a credit card, you could be pouring hundreds – if not thousands – of pounds, down the drain. But a quick balance transfer could help you clear your debt faster and save money in the process. New research from TotallyMoney revealed that half (48.8%) of credit card customers are currently paying interest on their balances every month. And by making use of a balance transfer deal, the finance company claims they could save up to a whopping £1,679 each. A balance transfer means moving some or all of your credit card debt from one to a new provider offering 0% interest for a set time, currently up to 33 months. While there's usually a small transfer fee of around 3% or 4%, the interest savings can far outweigh this, adding up to a huge amount as the months go by. 'They're an effective way to cut costs, and you could start saving money before the start of summer,' Alastair Douglas, TotallyMoney CEO, says. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video According to TotallyMoney, the top balance transfer deals available right now are from Tesco Bank, HSBC and Barclaycard, each of which are offering 33 months interest free. A person with an average interest-bearing balance could avoid paying £1,679 by switching to the HSBC 33-month card. It has one of the lowest fees on the market at 3.19% too. The average saving with Tesco Bank is £1,675, but Alastair also notes that it comes with 0% interest on further money transfers for nine months, 'which you could use to clear expensive overdraft debt.' Barclaycard's 33-month deal comes with a slightly higher fee of 3.45%, meaning a typical customer could save £1,671. But, for those who want to skip fees entirely, the bank has a 14-month fee-free balance transfer card too, allowing successful applicants to save an estimated £753. Other providers, including Vanquis and Fluid, are next on the list with their balance transfer offers – 18 and nine months, respectively – which could help you cut your interest bill by £881 and £394. Bear in mind though, you'll need a good or excellent credit score to be accepted with these lenders – and making multiple applications can harm your credit – so it's best to check eligibility before submitting. More Trending Plus, although a balance transfer can be beneficial, it only saves you cash if you pay off as much of your debt as possible during the interest-free period. Personal finance expert at CredAbility, Aaron Peake, advises: 'If you're regularly carrying a balance month to month, switching cards might offer breathing room, but it's also worth using this time to build habits that help you avoid falling back into the same pattern. 'It's easy to focus on the interest-free period as a way to delay, but to make the most of it, you should treat it like a repayment deadline. Set yourself a realistic repayment plan and automate it if you can. Divide your balance by the number of months you've got interest-free and aim to clear it within that time.' Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@ View More » MORE: 'Everyone asks what fragrance I'm wearing – it's this little-known niche perfume' MORE: Millions could be paying off debt well into retirement amid 'pension postcode lottery' MORE: Martin Lewis warns everyone with a mobile phone contract to check now for 'dodgy trick' Your free newsletter guide to the best London has on offer, from drinks deals to restaurant reviews.

Finance experts suggest ways to teach children good money habits over the summer
Finance experts suggest ways to teach children good money habits over the summer

The Independent

time08-06-2025

  • Business
  • The Independent

Finance experts suggest ways to teach children good money habits over the summer

The summer holidays can be a 'perfect time' for parents to teach children about budgeting and spending, finance experts have said. Introducing children and young people to good money habits from a young age can help to build financial confidence and set them up for life, they added. They made the suggestions ahead of My Money Week (June 9-13), a campaign and activity week which aims to encourage children and young people to learn about money matters. Chris Henderson, save and pay director at Tesco Bank, said: 'It's so important to teach children about money, and how to manage it, from a young age. 'The skills and knowledge that are gained, which we carry with us into adulthood, can really impact how we live our lives and our financial wellbeing.' He suggested making everyday spending a 'fun challenge,' adding that the summer holidays 'can be the perfect time to talk about budgeting and spending'. Mr Henderson added: 'It might be a quick trip to the shops to pick up dinner or something bigger, like a day out. Let your children take charge of the budget and see how they would spend the money – you could even set them a challenge, like planning a day out.' With many transactions taking place digitally rather than with physical cash, Mr Henderson also suggested showing young people 'what it looks like when you get paid, the money landing in your bank account, and then the things that you have to pay for – like water, electricity or housing costs. 'For older children, you can start introducing them to things like national insurance and your pension.' He also suggested introducing the idea of savings with a 'wishlist' of items children want, inviting them to consider how much money they would need to save and how they might reach their savings goals faster. Mr Henderson added: 'Not only will this help them save, they'll also value their purchases more and only spend on items they really need, rather than the first thing that catches their attention.' Brian Byrnes, head of personal finance at financial app Moneybox, suggested that some parents could consider opening a junior Isa. He said: 'By the time your child turns 18, a junior Isa is automatically transferred into an adult Isa, allowing them to decide on how they wish to spend, or invest their hard-earned savings.' Mr Byrnes added that if parents are concerned about how their children will spend the Isa money once they reach adulthood: 'You could put a small amount into a junior Isa and the rest of your savings into a different account earmarked for your children's future.' As with adult Isas, junior Isas have tax advantages and the money held in them is ringfenced from the taxman for as long as it remains in its Isa 'wrapper'. Mr Byrnes also suggested talking openly about money with children, adding: 'Talking about any money you have put aside for your children with them is a fantastic way to include them in your plans and educate them on savings and investing.' Susan Hope, a retirement expert at Scottish Widows, highlighted recent research it had commissioned which indicated that more than two-fifths (44%) of adults doubt they will ever achieve financial independence, 'with confidence in making everyday financial decisions a driver of this'. She suggested that going through payslips with young people could help them to understand concepts such as tax and national insurance (NI). Ms Hope added: 'Let your children see how you budget, compare prices, or plan for your weekly spending. Involving them in decisions, like choosing between two activities based on cost, teaches practical skills they'll use for life and should instil money confidence.' As children get older, she suggested talking to them about 'important topics like saving into a pension and what this means. A pension is something they will likely encounter for the first time when they start full-time work and we know that engaging early gives people the best opportunity to build a healthy pot for later on in life.'

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