Archive for the ‘Finance’ category

Order Your Travel Money Online And You Can Make Great Savings

October 2, 2012

If you are thinking about going away anytime soon, whether for a holiday or business trip, have you thought about how you will spend money once you are there? Planning ahead is paramount. Most people leave getting their travel money until they get to the airport but this is most often the least cost effective option. By ordering your travel money online you can get access to some of the best possible exchange rates meaning you will get more for your money and have more to spend once you are away.

You can order your travel money online or over the phone or you can visit a local branch if you wish. With most companies you can then arrange to have securely delivered to your home or workplace or even arrange to have it picked up at the airport. Travel currency services are convenient, fast and easy to use. Another advantage about travel money companies is that if you come back with money unspent they can buy back your remaining cash without commission.

When deciding on which service to use you should make sure you choose one that deals in the currency you are looking for. Bear in mind if want larger amounts of money or require a more unusual currency you may have to place your order further in advance. You should also look at the delivery methods and costs and read the terms and conditions thoroughly. Make sure you are aware of any other fees that might be involved as commission charges may vary but there are many providers who do not charge commission on most currencies.

Remember exchange rates fluctuate on a daily basis so it is worth taking the time to research the market and compare different companies against each other. You can do this through sites like Which Way To Pay which offer unbiased comparison tables full of some of the leading travel money services on the market. to help you make great savings on your hard earned cash. The amount of currency that your money will get depends on the exchange rate, which can vary from day to day so keep checking back to see how the rates can work in your favour.

Credit Card Interest Rates Hit A Thirteen Year High

February 2, 2011

The Bank of England’s base rate may be set at a record low of 0.5% but this has not stopped the average credit card interest rate rising to 18.9%, the highest rate in thirteen years. Members of the British public are twice as likely to have plastic credit as people in any other western European country: This goes some way to explaining why Britons owe more than £52 Billion on credit cards.

These high interest rates would be understandable if the excess was channelled back into small businesses or loans for first time buyers, but mortgage approval rates have fallen. Some banks claim that the interest rates are a necessary precaution needed to cover bad debts as rising unemployment and pay curbs make lending more risky.

Critics have argued that the bank’s priorities are their partners’ bonuses and these exorbitant interest rates deliver the massive profit margins needed to pay them.

Pound Suffers As UK Economy Contracts

January 26, 2011

The British pound suffered its worst performance in over a month on Tuesday as data revealed a shocking 0.5 percent contraction in the UK economy for the December quarter.

Sterling dropped over two cents to $1.5821against the US dollar and reached a ten week low against the euro at £0.8648.

After four quarters of growth, economists had forecast a rise in the UK’s gross domestic product of 0.6 percent and expected an immediate rate hike by the Bank of England in order to quash growing price pressures.

However, the loss in GDP of 0.5 percent has put any hopes of a rate rise on hold and fuelled fears of a double-dip recession.

Whilst the government has blamed the financial impact of the winter weather, many analysts fear that the fragile UK economy is unable cope with government spending cuts and austerity measures.

Maurice Pomery at Strategic Alpha told The Financial Times that the central bank now faces the complex issue of rising inflation and a shrinking economy.

“This is really bad news for both the government and the Bank of England as it continues to wrestle with stubbornly high inflation,” Mr Pomery said. “Sterling is set to fall further.”

Euro and Pound rise as Eurozone fears eased

January 24, 2011

Both the Euro and British Pound had a positive close to the week on Friday after fears were eased over the Eurozone debt crisis.

Strong economic data from Germany and a weakening US dollar boosted the euro last week resulting in its best performance since 23 November when it climbed 1.6 percent to $1.3586 against the US dollar.

The sterling also gained as stronger than expected UK consumer price inflation data indicated likely rises in interest rates. Against the US dollar the pound rose 0.8 percent to a two month high of $1.5990.

Despite reports over recent weeks of a possible bail-out for Portugal and debt restructuring in Greece, investors seem to have to regained confidence that the debt crisis can be contained.

“The euro continues to find support, which appears to reflect the view that ultimately the eurozone will survive its crisis,” Jane Foley, analyst at Rabobank told The Financial Times.

“We are of the view that the euro will move higher against the dollar. The combination of loose fiscal policy and monetary policy in the US could push the euro towards $1.50.”

In addition to a weakened US dollar, it is believed that the euro is also being strengthened by increased buying by Asian central banks wishing to diversify their previously US dollar-based currency reserves.

Euro Strengthened By Eurozone Debt Reduction Measures

January 19, 2011

The euro has pushed higher in the market amid discussions over an increase to the eurozone rescue fund and plans for a tougher round of stress tests for European banks.

The euro gained more than a cent against the US dollar on Tuesday to reach a high of 1.34 whilst the pound, boosted by the prediction of an interest rate rise, reached 1.194 euros.

The European Commission and European Central Bank have called for an increase to the European Financial Stability Facility (EFSF) which can only contribute 250b to any future bail-out without risking its maximum triple A rating.

The EC and ECB fear that this would not be sufficient enough to rescue Spain which is thought to be next in line for a possible EU bailout.

However, Jen-Claude Juncker, chair of the EU ministerial meeting has denied that such an agreement has yet been made. He said only that, “The discussion was broad and will be narrowed in the next couple of weeks.”

Meanwhile, the currency market has also been strengthened by discussions in Brussels of a tough round of stress tests for European banks.

The tests, which serve to strengthen the banks’ financial standing, are widely seen as an important step in resolving the EU crisis.

Economists Warn Against Interest Rate Rise

January 17, 2011

The Bank of England is being urged to keep UK interest rates low despite pressure from the recent VAT increase, the BBC reported on Monday.

The Ernst & Young Item Club, influential economic forecasters, have warned that an increase on the current 0.5% base bank rate could have serious consequences on the UK’s economic recovery.

Peter Spencer, the Item Club’s chief economic adviser has urged the Bank of England to ‘hold its nerve,’ despite inflationary pressures.

“If the Bank has been pushed into a rate rise this year it will find itself with a depressed economy, a low rate of inflation below target, and of course having to cut interest rates,” Mr Spencer told the BBC, “That would seriously damage its credibility.”

It is thought that the Bank of England is under pressure from the government to raise rates in response to the recent VAT increase and rise in commodity prices.

Deloitte, the leading accountancy and consulting firm, also sided with the Item Club stating that too much fiscal tightening could result in a delayed economic recovery for the UK over the coming years.

What is a charge card?

January 5, 2011

A charge card can be used in much the same way as a credit card; the definitive distinction between the two being that a charge card must be paid off in full each month.

Although this kind of credit might not be everyone’s cup of tea, charge cards can be incredibly useful for those who use them because the certainty of having to pay off your outstanding credit bill each month means that there is no real way you can fall behind and get caught up in dire financial situations. You simply borrow money and then pay it back each month, simple!

It is a simple agreement between you and the issuer which cites that the debt incurred on the charge account will be paid off at the end of each month. It is not hard to see why certain people would find more piece of mind with such an agreement, but again, it is essential that you are sure you will always have the necessary funds to pay off your balance in full as if you do not, you will most definitely fall into trouble.