Barclays has bumped up its overdraft rates by 1.4% to 19.3% on its standard Barclays Bank Account. Meanwhile, Additions Active customers’ agreed overdraft rates have risen 3% to 12.9%. Current Account Plus customers, who pay a £3 monthly account charge, have had their overdraft rate cut by 1% to 16.9%. The average interest rate for current account overdrafts is around 12.8%, according to Moneyfacts – the highest level since 1996.
• The following banks and building societies have cut their savings rates this month, despite the Bank of England holding the base rate at 0.5%, says The Sunday Times:
Manchester Building Society Premier Ninety is down 0.5% to 2.26%;
ICICI HiSave down 0.45% to 2%;
Citibank Easy Access down 0.36% to 2.4%;
Egg Easy Access down 0.35% to 2.5%;
ING Direct Savings Account down 0.25% to 2.75%;
Anglo Irish Bank 7 Day Notice down 0.30% to 1.75%.
• Nottingham Building Society has issued a market-leading two-year bond, says Michelle Slade in The Daily Telegraph. It’s Fixed Rate 67 offers 4.35% and matures on 1 June 2011. Savers can invest between £1,000 and £250,000, with further additions allowed while the offer is open. No withdrawals are permitted before maturity. For further details, call 0845-423 8464, or visit Thenottingham.com.
• A little-known law can completely exempt an estate of any size from inheritance tax. The “killed in war” exemption applies to anyone whose death is caused by an injury or disease received or aggravated while they were on active service in the armed forces. For example, the family of the 4th Duke of Westminster successfully argued that his death in 1967 from cancer was hastened by septicaemia from a war wound he received in 1944. As a result his estate attracted no inheritance tax.
• The Children’s Mutual Tooth Fairy Index [pdf] shows that the fairy paid out £1.3m less this year than it did last year. Payouts averaged £1.15 – 6% down on last year.
A survey by the Halifax has revealed that 64% of wedding guests believe couples planning their big day should consider the financial burden on their invitees, says The Observer. The average wedding costs each guest £450, including the stag or hen do, wedding gift, drinks, clothes and accommodation. Men spend an average of £123 on their gladrags, compared with £105 for female guests.
Money-saving tip of the week
If you have a water meter and pay for what you use rather than just paying a standard water bill, consider fitting tap aerators on your household taps, says Kara Gammell also in The Daily Telegraph. They cut the flow of water from a tap by about 60% but maintain the water pressure. But at £4.95 each from Biggreensmile.com, it’s probably only worth getting them for the taps you use frequently.