Virgin Money launches new fixed rate ISAs and fixed rate bonds - easier.com
Virgin Money has launched new issues of its popular Fixed Rate Bond and Fixed Rate Cash ISA range. The accounts offer customers a competitive rate, combined with certainty of returns for either one or three years. Accounts are available through Northern Rock branches, online, by post and over the telephone, and interest rates are the same through all distribution channels. ISA customers receive the same rates as those with a non-ISA account.
Virgin Fixed Rate Cash ISA
The Virgin Fixed Rate Cash ISA offers customers a rate of 3.30% for one year (issues 9 &13) and 3.60% for three years (issues 10 & 14) respectively. This matches the rate available for a non-ISA savings account and savers also benefit from the tax-efficiency of the ISA wrapper. These accounts allow transfers in from existing ISAs. Customers can withdraw subject to a charge equivalent to 60 and 120 days’ loss of interest respectively.
Virgin Fixed Rate Bond
The one year Virgin Fixed Rate Bond offers customers a fixed rate of 3.30%, while the three year Bond pays 3.60% per annum. Accounts can be opened with a minimum deposit of just £1, and additional deposits can be made into the bonds during the offer period, up to a maximum of £2 million per customer. Interest can be paid annually, or for those who prefer a monthly option, on the last day of the month (available first business day of the following month). Customers choosing to receive their interest monthly receive the same AER as those receiving annual interest.
The Bonds are non-redeemable and do not allow any withdrawals or closure during their respective fixed rate periods. They are strictly limited issues and may be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits can be made into existing accounts. Upon maturity the account will become a no notice matured bond account and investors will be notified in writing upon maturity of the interest rate payable.
More information on Northern Rock’s savings range is available at northernrock.co.uk/savings.
Banks told to display 'your money is protected' notices - Daily Telegraph
The notices will also have to state whether banking licences are shared with another brand, as in this case customers who have money in both are still subject to an overall compensation limit of £85,000.
For example, Halifax and Bank of Scotland – which also own BM Savings – count as one group, whereas NatWest and Royal Bank of Scotland are treated as separate entities by the FSCS.
Andrew Bailey, the FSA's director of UK banks and building societies, said: "Customers need to feel confident about their money and to do this they need to know what the compensation limits are and which scheme would provide cover in the event of a bank, building society or credit union failure.
"Too many people assume that because their branch is located on a local high street in the UK, they are covered by the FSCS. This is not true for UK branches of EEA [European Economic Area ] banks where the home country's deposit guarantee scheme applies."
He added: "Banks, building societies and credit unions will have to display these compensation stickers or posters in the branch window along with a sticker at the cashier's window or desk and a further poster in a prominent position inside."
Similar stickers must also be displayed on websites. The rules will take effect on August 31.
Money Wisdom for Women book tour is coming to Charlotte North Carolina - Examiner
Anita Renee Johnson, a native of Oakdale, Louisiana, has been passionate about finance for many years. She received her Bachelor of Business Science in Financial Accounting from National University in Sacramento, California, she then continued on to obtain her Masters of Science in Taxation. Currently she is enrolled in a Doctoral program with Walden University, in Minneapolis Minnesota, studying for her degree in Applied Management and Decision Sciences, specializing in Finance.
Ms. Johnson has extensive experience in teaching throughout the Sacramento area. She was a facilitator for the Elk Grove School District Adult Education Always Learning program, faculty member at Heald Business College, math tutor for Genesis High School, and Adjunct Assistant Professor at Cosumnes River College. The coursework ranged from preparing high school students for the mathematics exit exam, basic bookkeeping, business management, and how to be a successful entrepreneur.
Currently, Ms. Johnson is part of the faculty for Brandman University, in Sacramento, California. Here she instructs graduate students in financial statement analysis through online coursework. In addition, she is a faculty member at University of Phoenix also in Sacramento, California, where she provides instruction to adult students in such course topics as accounting, finance, writing, American Psychological Association (APA) Citation, conflict management, and how to conduct research.
In 2010, Ms. Johnson was awarded the Success Story Blog, from Walden University. She received the Business of the Year, Northern California, from the California State Black Chamber of Commerce, award in 1999, as well being recognized as Business of the Year, Sacramento, California in 1999.
Her professional affiliations are numerous, they include: Chairperson for the Small Business Development & Employment Advisory Board for the City of Sacramento, National Associates of Women Business Owners, Member of the Public Policy Committee, National Association of Black Accountants, to name a few.
During her career, Ms. Johnson has developed and instructed numerous courses designed to assist all ages in making sound financial decisions. These courses include: “Big Girls Don’t Cry – Taking the Emotion Out of Finances”, “Emotional & Financial Freedom”, “Entrepreneur Planning”, and “The Game of Life-Foster Youth”.
The most current project for Ms. Johnson is AR Johnson & Associates- “Money Wisdom for Women”. Established in 1998, her goal is to provide sound financial advice to her clients. This information is offered either in one-on-one consulting sessions, workshops, seminars, or conferences. Through ARJ & Associates, Ms. Johnson and her team have counseled over two thousand businesses and individuals in personal and business finance. Their topics include: tax preparation and planning, estate planning, Money Wisdom – the Board Game, Money Wisdom for Small Businesses, pre-retirement for Federal Employees, specifically the Environmental Protection Agency, and Race to Retirement.
I had the opportunity to interview Ms. Johnson and ask her some additional questions about her career and upcoming book signing event.
Who or what sparked your interest in finance?
I have been around money for over 30 years. I enjoy finances. It is interesting.
Why did Financial Advisor become a career path for you?
I have been in business since 1998, first with taxes and accounting. Now I am helping women realize their true worth when it comes to their finances. Women are emotional and do things that put their finances at risk.
I see that you are the CEO of your own company called Money Wisdom for Women; what made you decide to focus on women and their financial wellbeing?
For years I have been servicing women with their finances, there are some who have no clue.
Tell me a little about your book ‘Big Girls Don’t Cry: Taking the Emotion out of Finance’. How did you come up with the title of the book and briefly what is the book about?
This is not a novel about finances, but a book that you need a pencil or pen. When you finish you will have an idea of how your finances work and what you want to do about it.
It is estimated that 80% of women live in poverty after they retire. Women are care givers, always taking care of others and not ourselves.
The title is saying it is time we take care of ourselves, be selfish, don't cry about it, and stop being emotional.
For women we need to know we can control our finances.
Where is the location of the book signing?
Springhill Suites
12325 Johnston Road, Charlotte, NC 28777
What is the time range that you will be present?
6:00pm until 8:00pm
Ms. Johnson says: “my commitment is to inform and educate my clients so that they can make sound financial decisions” and “my job, purpose, mission is to equip women with wealth building skills”.
Anita Renee Johnson and associates website is www.moneywisdomforwomen.net
More Australians can't access money: report - Sydney Morning Herald
More Australians are having difficulty accessing emergency funds through mainstream financial services.
More than 300,000 West Australians do not have adequate access to day-to-day financial products such as a basic banking account, car insurance or even a credit card, a landmark study has revealed.
The research by the Centre for Social Impact - backed by the University of Western Australia - shows the ability to secure as much as $3000 in funds for an emergency through the mainstream financial system is becoming increasingly out-of-reach for Australians.
Instead, more people are relying on family or friends or turning to fringe credit products, such as payday lenders, who regularly charge substantially higher interest rates than banks.
Such products have seen a surge in uptake in recent years.
The report, to be released today, and partly funded by National Australia Bank, found even a moderate amount of credit was crucial to accessing key household goods that go beyond a monthly budget, such as a washing machine.
The lack of access to banking services impacted on people's ability to pay for basic household items such as electricity, telephone, food, clothing, car-related expenses, repairs, rent, education, health and repayment of other debts.
The report reveals 12,500 West Australians have no financial service products and an additional 293,000 are severely excluded, with only one service.
Residents in south east Perth are among the nation's top regions for financial exclusion, with more than one in five without access to basic banking services. That was 33 per cent more than the national average.
Regional West Australians also rated highly, with 20 per cent unable to access appropriate and affordable financial services.
South western Perth (18.7 per cent) and central Perth (18 per cent) also were below the national average.
Eastern Perth (11.9 per cent) was among the nation's most well-off areas, followed by northern Perth (13.3 per cent) and south western Perth (15 per cent).
Wollongong in NSW tops the nation with almost 7 per cent of adults without access to basic banking services.
The cost of basic financial services was the prime cause of financial exclusion, according to the research. The average annual combined cost of banking, credit card and either car or home insurance is $1794 annually.
A survey of financially excluded people also found the level of official identification needed to establish an account was often a hurdle, while many banks denied personal loans of less than $5000 as a personal loan, instead steering customers to credit cards that they were unable to access.
The distance to a bank branch, language and literacy challenges and poor credit records also were hurdles.
The report found capital city areas tended to have higher levels of access to credit, but lower levels of access to insurance, while country areas have lower access to credit, but very high levels of access to insurance, particularly car insurance because public transport is limited.
Many financially excluded people were reliant on government services such as Centrelink and also used fringe credit providers, such as payday lenders.
NAB chief executive Cameron Clyne accepted the banking industry was partly to blame, conceding it needed to lift its game by providing affordable products to more people.
''The absence of access to mainstream financial services does preclude people from advancing socially and economically,'' he said.
''Often it's the unexpected expenses [such as] if the car breaks down or someone needs to get to a job interview.
"There's an obligation for the banking system to improve financial inclusion."
The report comes just days after the federal Treasurer Wayne Swan brokered an agreement with the banking industry to provide free ATM transactions for Indigenous people in remote communities.
The study found the number of Aboriginals and Torres Strait Islanders severely excluded from access to day-to-day financial services is more than double the national average, with 43 per cent operating outside the mainstream banking system.
While there are efforts to improve access to basic bank accounts and efforts to promote low cost credit products, there is a substantial gap in general insurance where there is little movement about delivering affordable insurance products.
- with Eric Johnston
Spain Runs Out Of Money - Daily Telegraph Blogs
A Spanish protester burns a euro note
El Mundo reports that the country can no longer resist the bond markets as 10-year yields flirt with 6.5pc again, and the spread over Bunds – or `prima de riesgo' — hits a fresh record each day.
Premier Mariano Rajoy and his inner circle have allegedly accepted that Spain will have to call on Europe's EFSF bail-out fund to rescue the banking system, even though this means subjecting his country to foreign suzerainty.
Mr Rajoy denies the story, not surprisingly since it would be a devastating climb-down, and not all options are yet exhausted.
"There will not be any (outside) rescue for the Spanish banking system," he said.
Fine, so where is the €23.5bn for the Bankia rescue going to come from? The state's Fund for Orderly Bank Restructuring (FROB) is down to €5.3bn, and there are many other candidates for that soup kitchen.
Spain must somehow rustle up €20bn or more on the debt markets. This will push the budget deficit back into the danger zone, though Madrid will no doubt try to keep it off books – or seek backdoor funds from the ECB to cap borrowing costs. Nobody will be fooled.
Meanwhile, Bankia's shares crashed 30pc this morning. JP Morgan and Nomura expect a near total wipeout. Investors who bought the new shares at flotation last year may lose almost everything.
This all has a very Irish feel to me, without Irish speed and transparency. Spanish taxpayers are swallowing the losses of the banking elites, sparing creditors their haircuts.
Barclays Capital says Spain's housing crash is only half way through. Home prices will have to fall at least 20pc more to clear the 1m overhang of excess properties. If so, the banking costs for the Spanish state are going to be huge.
The Centre for European Policy Studies in Brussels puts likely write-offs at €270bn. We could see Spain's public debt surge into triple digits in short order.
As I wrote in my column this morning, the Spanish economy is spiralling into debt-deflation. Monetary and fiscal policy are both excruciatingly tight for a country in this condition. The plan to slash the budget deficit from 8.9pc to 5.3pc this year in the middle of an accelerating contraction borders on lunacy.
You cannot do this to a society where unemployment is already running at 24.4pc. Either Europe puts a stop to this very quickly by mobilising the ECB to take all risk of a Spanish (or Italian) sovereign default off the table – and this requires fiscal union to back it up – or it must expect Spanish patriots to take matters into their own hands and start to restore national self-control outside EMU.
Just to be clear to new readers, I am not "calling for" a German bail-out of Spain or any such thing. My view has always been that EMU is a dysfunctional and destructive misadventure – for reasons that have been well-rehearsed for 20 years on these pages.
My point is that if THEY want to save THEIR project and avoid a very nasty denouement, such drastic action is what THEY must do.
If Germany cannot accept the implications of this – and I entirely sympathise with German citizens who balk at these demands, since such an outcome alienates the tax and spending powers of the Bundestag to an EU body and means the evisceration of their democracy – then Germany must leave EMU. It is the least traumatic way to break up the currency bloc (though still traumatic, of course).
My criticism of Germany is the refusal to face up to either of these choices, clinging instead to a ruinous status quo.
The result of Europe's policy paralysis is more likely to be a disorderly break-up as Spain – and others – act desperately in their own national interest. Se salve quien pueda.
I fail to see how Spain gains anything durable from an EFSF loan package. The underlying crisis will grind on. Yes, the current account deficit has dropped from 10pc to 3.5pc of GDP, but chiefly by crushing internal demand and pushing the jobless toll to 5.6 million. The "unemployment adjusted current account equilibrium" — to coin a concept – is frankly frightening.
The FT's Wolfgang Munchau suggested otherwise last week, saying Spain's competitiveness gap has been exaggerated. I can see what he means since Spain's exports are growing even faster than German exports. But this is from a low base. It is not enough to plug the gap.
Spain is quite simply in the wrong currency. That is the root of the crisis. Loan packages merely drag out the agony.
A Spanish economist sent me an email over the weekend after the Bankia details came out saying:
"It looks like game over for the sovereign and the financial sector at the same time. Unless we get a Deus ex Machina, we'll be discussing much more seriously the benefits of a return to the peseta in no time."
It begins.
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