Mums Finance

Remember the days when you could withdraw the simple amount of £5.00 from an ATM…? and then one day you could not do it anymore. I always found this to be a pain as there were times when I only had £5.00 in my account (yes, it’s been that bad at times…) and it has not helped that many banks and Building Societies now will not even let you withdraw that small account over the counter due to their minimum-withdrawal-in-branch limits. Now cash machines that only dispense the £5.00 notes, regardless of how much money is withdrawn, are to be installed across the UK. The nationwide introduction of small fund-only ATMs comes after support by Bank of England bosses. They want to increase the circulation of the notes so that less crumpled fivers are handed out as change in shops.

On the other hand, while I welcome this re-introduction, charges are likely to be introduced on these smallish withdrawals and there is the possibility of the ATM’s running out of cash faster than usual. I, however, like the idea of the small-change dispenser – ever dashed in a hurry to withdraw some cash to pay for your bus ticket on a Monday morning only to get a £50.00 note pop out…? and then there’s the look on the face of the bus driver…

Popularity: 13% [?]

All you smart savers who made the most of the top paying accounts boosted by bonuses a year ago need to move your money now. If you stay put you will end up earning as little as 0.08pc after tax (0.1pc before) – or 80p interest a year on every £1,000 in your account. A spate of accounts launched last year came with headline rates lifted by a bonus for the first 12 months. Or they offered a decent fixed rate on the first year you were in their new easy access accounts.

These bonuses and fixed-rate deals are running out, leaving savers with poor returns. New rules introduced last month demand banks and building societies warn you before your bonus runs out. Any bonus which ran out before the start of May would have been exempt from these rules. Last week Egg, now part of Citibank, launched another version of its Internet Saver Issue 2 paying 2.24pc (2.8pc), including a 1.84 (2.3) percentage point bonus payable for a year. The offer is open only to savers bringing new money to the bank. Existing customers cannot move their account here. But if you are in its older Egg Savings Account (Internet) you will see much less interest. Savers who have been in this account for more than a year earn a much lower 1pc (1.25pc).

Savers in the Halifax Guaranteed Saver Reward version on sale until July last year will see their rate drop from 1.6pc (2pc) to 0.4pc (0.5pc) once they have been in the account for 12 months. The account offered a fixed rate for a year, after which you earn its Guaranteed Saver rate, currently 0.4pc (0.5pc). And if you bought the attractive version launched in July last year, your rate will be cut from 2.08pc (2.6pc) to 0.4pc (0.5pc) next month, bringing your interest down from £208 to just £40 a year on £10,000.

If you were tempted by Halifax’s tax-free Isa Direct Reward – on sale until May 29 last year – your rate will drop to 0.5pc from 3pc once you have been in the account for a year. You’ll also see your rate plummet to 0.4pc (0.5pc) on Santander’s (the old Abbey) eSaver 2, launched last May, once your 1.6 (2) point bonus runs out after a year. It’s not as bad as the 0.08pc (0.1pc) that savers in the original Abbey eSaver earn, but well below the best deals on internet accounts.

Popularity: 8% [?]

Billions of pounds are sitting unclaimed in old accounts, share certificates and out-of-date bank notes. But just because the company is no longer around, or the notes are out of circulation, it doesn’t mean they’re worthless.

One of the most common practices is hunting down an insurance policy issued by a company that seems to have vanished. Many of these are so-called ‘penny policies’ taken out years ago with an insurer or a friendly society for a small monthly premium, often collected door-to-door. Insurers stopped collecting premiums on these years ago because of the cost, but they still have a value. Don’t expect more than a few pounds, though…if you locate your policy that is.

Many old insurance policies were issued by friendly societies, often with a name reflecting the occupation or beliefs of the people the policies were sold to. At the end of World War II, there were more than 1,000 of these member-owned institutions: today, there are just 40. Both the FSA and Policy Detective should carry details, or try the Association of Financial Mutuals. For example, the Domestic Servants Insurance Society now comes under Reliance Mutual.

Shares Certificates: First, check if the company is still trading under the name on your shares – a look at the share price page in newspapers should help with bigger companies.If you can’t find the company, then it might have been renamed, taken over or disappeared. Companies House can help and has drop-in centres in London, edinburgh, Cardiff and Belfast. If you haven’t received any communication from the company for a while, you may need to update your details with its registrar. You can find this out from the London Stock exchange website if you select the Tools & Services option and then company profile.

If you think you own shares in a company ( i.e. an electronics company) but have lost the certificate, then you need to find out who the registrar is. Be prepared to pay for a replacement certificate.

The Premium Bond prize draw has been taking place for 53 years and prizes are always claimable, regardless of time. The oldest unclaimed Premium Bond prize – £25 in today’s money – dates back to the November 1957 draw. There is more than £30 million in unclaimed prize money: there are two prizes for £100,000 dating back to the same draw in Febuary 2007. One is on a £25 bond bought by a lady with a last known address in Outer London, number is 8LK522839; the other is also held by a lady, last known address in Australia, with just a £ 6 holding ( number 5eT395766). Premium bonds can always be cashed in at their face value: you can get a repayment form from a post office or from its website.

Now go get your detectives hat on and find those missing pounds!

Popularity: 22% [?]