The Week Unzipped: Savers benefit from crunch

Published on Saturday 9 August 2008 19:19

THE credit crunch may have brought bad news for borrowers but it has been good for savers. Returns are 0.6% higher than a year ago, according to internet bank Cahoot.

The average instant access rate last summer stood at 2.72%, while the best-buy rate was 6.27%. One year on and the average rate is up by 0.5% to 3.32% and the best buy has risen to 6.51%.

The average best-buy one-year fixed rate bond has increased by 0.48% to 7.11% and there are more than 1,000 new products to choose from.

Last week Britannia launched an online and telephone savings account paying 6.25%. Abbey has issued its latest one-year fixed rate bond, paying up to 6.75%.

Leeds has a new postal bond paying 6.85%. The one-year fixed rate account allows savers to access up to a quarter of their funds at any time, without notice or penalty. The minimum investment is 5,000.

Holiday hassles

HIDDEN charges for using mobile phones or plastic abroad are the number one annoyance for holidaymakers, a survey from the Post Office has found.

Other money complaints included the high cost of exchanging money, pressure to leave tips even when service is poor, and the feeling that tourists are charged special high rates.

The holiday credit crunch is in full force, with the Post Office calculating that travellers today must spend 273 compared with 230 in 2007 to buy the same amount of euros.

A family of four travelling to Greece is looking at spending almost 90 more on meals and drinks than a year ago.

EHIC hiccup

CONFUSION surrounding the European Health Insurance Card, introduced in January 2006, has led to millions of tourists travelling with inadequate protection, according to American Express.

Last year, 2.3 million Britons did not take out travel insurance for trips made within the EU because they incorrectly believed their EHIC provided comprehensive cover.

American Express warns that the EHIC entitles UK residents to free or reduced cost healthcare depending on the country they are visiting, but it does not provide cover for holiday cancellation, curtailment or repatriation.

Cupid costs

FALLING in love is one of the biggest financial blunders you can make, says Fool.co.uk in its 10 top ways to lose cash.

Ranking fourth on a list of money mistakes is getting together with the wrong partner, which has cost 4% of people more than just heartache.

Taking the top spot, however, is "poorly judged investments", with one in eight people claiming buying into the wrong fund, stock or scheme to have been their downfall.

Conversely, "investing in the right stocks and shares" came out on top for the greatest financial successes.