Identifying and describing the main financial service needs for a student starting at university
UNIT 14
FINANCIAL SERVICES
Produced By
A.Akil
IDENTIFYING AND DESCRIBING THE MAIN FINANCIAL SERVICE NEEDS FOR A STUDENT STARTING AT UNIVERSITY
One of the most important steps in life as a student is when starting University. A lot of investigating, research, planning and organising is needed to achieve the best option, including financial needs. Here is a list on what the student may need.
> Currents Accounts
> Savings Account
> Credit Card
> Student Loan
> Overdraft Facilities
> Parental Contribution
> Contents (chattels) insurance
Current Accounts
There are a variety of banks and building societies that offer current accounts, but not all are specifically for students.
The Halifax Student Current account offers all the benefits of a Halifax Current Account, but with special overdraft terms. During the first year with Halifax, the students can apply at any branch for an interest free overdraft of up to £750, increasing to £1,000 in the second year and £1,250 in the third. They give a credit interest of 3.00% gross on the account without the need to make a monthly credit of £1.000 to benefit from the full interest as a normal current account holder. A minimum of £50 is required to open the account.
If you pay £1,000 or more into your Current Account per month*
If you pay less than £1,000 a month into your Current Account per month
3.04% AER (3% gross) interest on your full balance
0.25% AER / gross interest on balances up to £500 and 1.76% AER (1.75% gross) over £500
8.9% EAR interest charged on arranged overdrafts of over £100
8.9% EAR interest charged on arranged overdrafts over £100
NO authorised overdraft fee
£5 per month fee if you use more than £100 of your authorised overdraft
A dedicated transfer team to do the hard work for you and keep you informed every step of the way. If you prefer, you can use their online transfer pack to help you move your account to them. A special switcher's overdraft for 120 days of up to £2,500, interest and charge-free. Interest and charge-free arranged overdraft of up to £100. Use of virtually all the cash machines in the UK with no Halifax charge. Switch debit card and cheque book with £100 cheque guarantee facility. Cirrus and Maestro facility on your card which allows you to use cash machines and pay for goods and services abroad.
Halifax has Card cash which is an easy, straightforward alternative to Current Account. You don't need to have a credit rating to open one and it offers:
* Solo debit card and optional cheque book
* 24 hour access to your money at home and abroad
* Use of virtually every cash machine in the UK with no Halifax charge
* Cash withdrawals by ATM of up to £300 a day. Withdrawals of over £300 can be made at any branch counter
* Access to your account through the internet, branches, cash machines, WAP phone, or for customers with a touch tone phone, our automated telephone banking service on 08457 20 30 40
* If you're aged 16 or 17, you only need £10 to open an account and we'll pay you a special rate of interest
* If you're over 18, you can open a Card cash account with just £50
We know it's not easy making ends meet when you're a student. That's why Halifax Student Current Account offers all the benefits of our Current Account, but with an extra-special deal on overdrafts:
* During your first year with us, you can apply at any branch for an interest-free overdraft of up to £750, increasing to £1,000 in your second year and £1,250 in your third year.
Barclays offer an account for Students and Graduates with a minimum opening of £500. It offers an interest free overdraft for the first £1250 but then charges interest of 8.9% for anything up to £3.000. They also offer a credit card the student Barclaycard with a credit limit of up to £600. On opening the account up to £50 worth of vouchers are given for use in Water stone's/HMV.
Lloyds has a Classic Account and Classic Plus but they are not specifically designed for students. They offer and interest on a credit balance of 0.10%. The interest will increase if there is more than £5000 in the account.
Barclays and Halifax offer students reduced prices on Travel Insurance and Commission free traveller's cheques and currency.
All current account cards can be used on ATM machines (Automated Teller machine) and the maximum withdrawal a day is £300.
Internet Banking is available 24 hours a day. This can be used to register accounts and transferring money from one account to another. It is also used for setting up standing orders or paying bills. It is instant access to see information at a glance.
Telephone banking is another option which is similar to internet banking but with more services, such as requesting a new pin or applying for an overdraft.
Current accounts at NATWEST
Current Plus All you need for straightforward banking, with a Cash card or Service card subject to application and a flexible Credit Zone overdraft option.
Student Account Nat west account specially designed for students keeps you in touch with your money from Fresher to finals and beyond.
Graduate Account The current account that helps guide you from student life to work or taking a break, with a Service card and interest-free overdraft or loan options, all subject to application.
Current plus
This is the straightforward bank account for day-to-day access to your money which is convenient for a student
Having Cash card you could get instant access to your money 24 hours a day through their nationwide network of over 30,000 cash machines, and abroad where you see the Cirrus logo. You could use the Cash card as a debit card, to pay for goods and services where you see the Solo logo and abroad where you see the Maestro logo. You could also bank at any time of the day or night, from home, work or abroad, with our 24-hour telephone and Online Banking Service. System updates may mean that the service is unavailable for a brief period during the early hours of the morning.
You could be eligible for Credit Zone Overdraft, they have a flexible overdraft that you can use whenever you need to.
Student accounts
A specialised account for students from Fresher to finals and beyond.
Banking on campus
We have more branches on or near campuses than any other bank or building society, with specially trained teams in 55 branches. You'll find student advisers in all campus branches, to help you manage your money and give you advice on how to stay out of debt. Bank at any time of the day or night, from home, work or abroad, with our 24-hour telephone and On Line Banking services. System updates may mean that the service is unavailable for a brief period during the early hours of the morning. We won't charge account fees, even when you're overdrawn, and all agreed overdrafts are interest-free. This means that we may be able to help you reduce your living costs.
There's no annual fee if you get a Student Master card and no commission to pay on travellers' cheques or foreign money. We'll even give you a discount on our travel insurance range. Our optional Student Belongings Insurance Protects your personal belongings and your landlord's property, whether you live in Halls, rented or shared accommodation, at specially negotiated rates. To apply, you must be studying full-time at a university or college of higher education in the United Kingdom. Your course must be at least two years long, or a postgraduate course.
Graduate Account
A current account to help you through the transition from student life as you begin work or take a break. You can apply for an interest-free overdraft, or an interest-free loan to pay off an existing overdraft, of up to £2,000 in the first year after you graduate, £1,000 in the second, and £500 in the third, with preferential rates if you borrow more and no account fees. You can use your Service card to get instant access to your money 24 hours a day through Nat west nationwide network of over 30,000 cash machines and abroad where you see the Cirrus or Maestro logos. If you apply for a Master card and take advantage of a preferential introductory interest rate and no annual fee. You can bank at any time of the day or night, from home, work or abroad, with our 24-hour telephone and Online Banking services. System updates may mean that the service is unavailable for a brief period during the early hours of the morning.
Borrow more. Pay less
Take out a Graduate Loan and borrow between £1,000 and £15,000, with preferential rates and no arrangement fee, to fund a new job, take a break, furnish a new place or buy a car.
Help with finding a job
Nat west Graduate Job-Finding Service includes access to a national job database, and advice on CV preparation and interview technique. Also Graduate Travel Club offers discounts on package holidays and flights, and you'll pay no commission when you buy travellers' cheques or currency from us. You can also get a 10% discount on Nat West Single Trip and Long Stay Travel Insurance. Graduate Home-Finding Service (provided through Property World) and search on-line for properties for sale or rent throughout the UK.
Nat west also offer a fixed rate mortgage with a preferential rate and no deposit to pay, plus a £1 valuation fee, £200 cash back and no reservation fee, and a discounted rate mortgage with a preferential rate and with no valuation fee or deposit to pay. If you need contents and possessions cover, our specially negotiated Graduate Insurance has optional extra cover for computers and personal possessions
Current account rates and charges
Interest we pay if you are in credit
Gross rate p.a.%
AER (%)
Net rate p.a.%
Advantage Gold
0.25
0.25
0.20
Current Plus
0.10
0.10
0.08
Card Plus
3.60
3.66
2.88
Students/Graduates
0.10
0.10
0.8
Step Account
0.10
0.10
0.08
Interest you pay if you are overdrawn
Advantage Premier
If you use your agreed overdraft by up to £250 you will not be charged any interest. If you overdraw more that £250 within your agreed limit you will pay the following rate of interest. Save for the subscription, there are no arrangement or usage fees.
Monthly rate
Nominal annual rate
EAR
Advantage Premier
0.71%
8.50%
8.84%
Compared Rates with different Banks
When you're in credit
When you're overdrawn
Halifax
3.04% AER/ 3% gross
8.9% EAR
Royal Bank of Scotland
0.1% AER/gross
7.9% EAR
Barclays
0.1% AER/gross
5.6% EAR
Nat West
0.1% AER/gross
7.8% EAR
HSBC
0.1% AER/gross
4.8% EAR
Savings Account
It is unlikely that a student at university have a great deal of money left over to save, However the first part of the student loan comes through, it is advisable to dump it as soon as possible.
The sort of savings account that might be recommended could be from simple choices as follows:
BANK
GROSS%
NET%
Nat west
3%
2.40%
OR
Halifax ISA
3%
2%
Tax free savings such as ISA's. These are Government Schemes that allow each person to have only one Tax free saving. You can invest a maximum of £3000 per tax year in a Mini ISA or £7000 per tax year in a Maxi ISA; you can only have one or the other and only at one bank or building society. This is an on going scheme set up by the Government to encourage people to save more money without being taxed and is up to the year 2006. After this it will be £1000 in each tax year. Interest rates vary from bank to bank so shopping around is advisable. Other savings accounts are available with different amounts to open and different rates of interest. I have looked at leaflets from, Halifax and Nat West. I have set out a table showing the different types of saving accounts.
ISA at Halifax
AMOUNT
AER
GROSS p.a.
£18,000+
4.15%
4.15%
£12,000+
3.95%
3.95%
£6,000+
3.85%
3.85%
£3,000+
3.65%
3.65%
£1+
3.55%
3.55%
You can open an ISA Account with a minimum opening balance of £1. Tax free interest paid annually every April. Interest rate will be no lower than 2% below base rate. Minimum amount for withdrawal is £10. Halifax ISA Saver meets the Governments 'CAT' Standards (charges, access and terms). However, this does not necessarily mean that the ISA is appropriate for you. Halifax ISA saver also offers fixed interest rates for terms of up to 5 years.
E-Savings at Nat west
Save using the Internet and benefit from their highest interest rates. Start saving with £50, you can open an e-savings account with as little as £50, and save regularly by standing order. On-line only savings, The e-savings account is operated entirely through Nat West Online Banking - their Internet banking service. Higher rates than branch-based saving, because you don't deal with a branch, they can offer higher rates of interest. The more you save, the higher the rate you can benefit from.
Direct access to your account, You can access your account directly on-line and make same-day transfers between your Nat West accounts before 6:30pm on weekdays. Interest paid monthly, they pay your interest monthly so you can earn more as your savings grow. If you are a non-taxpayer, you can have interest paid gross. Stay in touch with your money every 6 months, To keep you in total control of your savings, they will send you a statement twice a year.
Credit Cards
NATWEST
There's no annual fee for having a Natwest Credit Card, and they ...
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Direct access to your account, You can access your account directly on-line and make same-day transfers between your Nat West accounts before 6:30pm on weekdays. Interest paid monthly, they pay your interest monthly so you can earn more as your savings grow. If you are a non-taxpayer, you can have interest paid gross. Stay in touch with your money every 6 months, To keep you in total control of your savings, they will send you a statement twice a year.
Credit Cards
NATWEST
There's no annual fee for having a Natwest Credit Card, and they will reward you with Air Miles - one air mile for every £20 you spend on your card. You can exchange them for everything from airline tickets to cinema seats, city breaks, theatre tickets and meals out. Up to 56 days of interest-free credit before choosing whether to pay off what you owe in full or just pay the minimum amount. Natwest offer the choice of either the Classic Card or, if you earn over £20,000, a Gold Card.
Nat west Credit Card
5.9% APR on balance transfers - Transfer your balance from existing credit or store cards and take advantage of a low APR of 5.9% for the life of the balance. Our standard rate is 17.4% APR. 0% sounds fantastic, but normally is only offered for five or six months, and then reverts back to the standard rate. At Nat West, they guarantee that their balance transfer rate stays at 5.9% APR for however long it takes you to pay off the balances you transfer, so long as you pay the minimum monthly amount. So it could actually work out considerably cheaper than 0%, and it takes the pressure off paying back quickly. Up to 56 days' interest free credit if you repay your bill in full and on time each month. Also every time you use your Nat West credit card you'll get AIR MILES - whether you're filling the car up or shopping for groceries. For every £20 you spend they'll reward you with one AIR MILE.
Worldwide acceptance in over 20 million shops, hotels and restaurants and a choice of MasterCard or Visa. You can withdraw cash every day in the UK and abroad, wherever you see the MasterCard or Visa sign. You can withdraw cash as long as the principal cardholder is within his or her credit limit. You have to pay a cash handling fee of 1.5% (minimum charge £2) on all advances, including buying foreign currency and travellers' cheques. You also pay an administration charge of 2.75% of the transaction amount on each foreign currency transaction. Natwest also offer up to £50,000 travel accident insurance when you use your Nat West Credit Card to pay for travel tickets.
Student MasterCard
Free up your cash at University with the credit card that offers a 17.9% APR rate, no annual fee and up to 56 days' interest-free credit.
Accepted around the world 20 million shops, hotels and restaurants and a choice of MasterCard or Visa. Up to 56 days' interest free credit if you repay your bill in full and on time each month. Withdraw up to £100 cash a day, up to your credit limit, wherever you see the MasterCard or Visa logo in the UK or abroad. You can get up to £50,000 travel accident insurance when you use your Nat West Credit Card to pay for travel tickets.
There are a variety of banks and building societies that offer credit cards, but not all are suitable for students. Having a credit card is a natural part of banking. It's like part of your account. With these credit cards you can pay for goods and services all over the world - in fact, in over 24 million outlets that display the Visa or MasterCard Symbols. When receiving monthly statements you can pay the monthly balance in either full or just pay the minimum amount.
HSBC
HSBC credit card offers convenience and financial flexibility. It helps you make better use of your money. There are no hidden charges, Interest free credit for up to 56 days, special interest rate for first six months and cash withdrawals of up to £300 a day at cash machines. They provide a Cardholder Repayment Protector scheme which is available to provide cover in the event of accident, unemployment, sickness or death. This valuable protection is available if you are aged 18 to 64, working at least 16 hours a week and resident in the UK.
Credit Interest
Gross Rate The rate before the deduction of tax applicable to interest on savings account.
AER (Annual Equivalent Rate) A notional rate which illustrates what the gross rate would be if interest was paid and compounded each year.
Net Rate The rate after the deduction of tax applicable to interest, currently 20%. Higher rates taxpayers will have an additional liability.
The Halifax Gold Card 15.9% APR (variable) on purchases and balance transfers. Plus, enjoy our lowest rate ever - 0% p.a. for the first 5 months. We offer these other great benefits too:
Gold
* 15.9% APR (variable) on purchases and balance transfers
* Special introductory rate of 0% p.a. on all purchases and balance transfers fixed for your first five months.
* A credit limit that reflects your financial status - up to £25,000
* No annual fee
* Interest-free credit for up to 59 days on purchases - no other credit card offers a longer interest-free period
* Credit card cheque book for simple balance transfers and for purchases in places that don't accept credit cards
* Manage your account online, day and night, seven days a week
* Choice of Visa or MasterCard, accepted at over 23 million places around the world
* Free Purchase Protection to cover most major items against theft or damage for up to 100 days
* Customer helpline - 24 hours a day, 365 days a year
Peace of mind when you travel
* Free Travel Accident Cover - up to £250,000* cover when you book travel tickets using your card
* Free Flight Delay and Lost Luggage Cover when you charge your travel tickets in full to your card
* Worldwide Emergency Assistance to refer you to an English-speaking doctor or lawyer
Platinum
The Halifax Platinum Card 14.9% APR (variable) on purchases and balance transfers. Plus, enjoy our lowest rate ever - 0% p.a. for the first 5 months. We offer these other great benefits too:
* 14.9% APR (variable) on purchases and balance transfers
* Special introductory rate of 0% p.a. on all purchases and balance transfers fixed for your first five months
* A credit limit that reflects your financial status up to £25,000
* No annual fee
* Interest-free credit for up to 59 days on purchases - no other credit card offers a longer interest-free period
* Credit card cheque book for simple balance transfers and for purchases in places that don't accept credit cards
* Manage your account online, day and night, seven days a week
* Choice of Visa or MasterCard, accepted at over 23 million places around the world
* Free Purchase Protection to cover most major items against theft or damage for up to 100 days
* Customer helpline - 24 hours a day, 365 days a year
Student Loan
Student Loans form LEA
These replaced grants about 4 years ago. The amount of loan given depends on the students financial circumstances, whether he is a dependant or a non dependant student and is only paid back after leaving university. Repayment of the loan will depend on your income. (see repayment table below).
INCOME EACH YEAR
MONTHLY REPAYMENT
REPAYMENT AS A % OF INCOME
UP TO £70,000
0
0%
£11,000
7
0.8%
£12,000
5
.5%
£15,000
37
3%
£17,000
52
3.7%
£20,000
75
4.5%
Every student has to pay a tuition fee of £1.100 (2002/03) if the course is at a publicly-funded university. The balance of the cost of the course (costing an average of £4.400 a year) is automatically paid for by the Government.
The loan is to cover living costs such as accommodation, food clothes; travel etc., and varies from £3.090 to £4.815 for 2002/03. (See maximum loan table below) 75% of this is the basic entitlement and 25% of the loan is assessed on the students or the students family's income. Interest on the loan is linked to inflation, so what you repay will be worth what you borrowed.
Maximum loans in 2002/2003
Full Year Rates
Maximum Available
75% that does not depend on income
25% that does depend on income
Students living away from their parent's home and studying in:
London
£4,815
£3,610
£1,205
Elsewhere
£3,905
£2,930
£975
Students living at their parents home
£3,090
£2,320
£770
Final Year Rates
Students living away from their parent's home and studying in:
London
£4,175
£3,130
£1,045
Elsewhere
£3,390
£2,545
£845
Students living at their parents home
£2,700
£2,020
£680
75% of the maximum loan available does not depend on your or your family's income. The loan will be paid to you in three instalments. This should help the budget more effectively.
Personal Loans from Banks
The most popular methods of burrowing money are loans. This is a fixed sum of money lent for a stated period of time, for example £2,000 for three years. Each month part of the loan will be repaid plus an extra payment called interest. Loans are usually arranged to finance specific expenditures such as computers, car etc.
Some loans are deferred for three months before repayment starts.
Student Loan at Bank
These loans are designed to help you meet your living expenses during your time in higher education. You will have to pay the loan back, with interest, after you graduate, but as the interest is linked to inflation this is still one of the cheapest ways of borrowing money.
You'll need to apply for a Student Loan each year through your Local Education Authority (LEA) in England and Wales, Scottish Office in Scotland (SAAS) or the Department of Education in Northern Ireland.
The amount of Student Loan you'll receive depends on:
Where you live and where you're studying
Which course you're studying
Which year of the course you're on
How much you and your family are expected to contribute
The length of your course
75% of the maximum loan available does not depend on your or your family's income. The table below shows the highest amounts available to students in 2001/2002.
Full year
Final year
Students studying in London
£4,700
£4,075
Students studying elsewhere
£3,815
£3,310
Students living at their parents' home
£3,020
£2,635
How to get your Student Loan
Once the education authority has informed you how much you can get in that academic year, you can then apply to the Student Loans Company for any amount up to that limit. You'll usually receive the amount in instalments every 3 months. The first instalment will be a cheque that you collect from your university administration office at the start of the term. The other instalments will normally be paid directly into your bank account.
Repaying your Student Loan
you'll be asked to start repaying your Student Loan in the April after you graduate. If your income after you graduate is less than £10,000 a year, you will not have to make any repayments. If your income is above £10,000, you'll be asked to repay 9% of this amount. So monthly repayments will vary depending on your income, e.g. £7/month from £10,001 - £11,000, £75/month from £17001 - £20,000.
The Student Loans Company will work with the Inland Revenue to collect repayments directly from your salary.
Overdrafts
With Halifax you can easily arrange an overdraft by just phoning or call into any branch and they can usually give you an instant answer. An arranged overdraft of up to £100- totally free. So if you slip into the red line there are no extras to pay. You can apply for an overdraft of up to £750 at the same time as you open your current account. The amount they agree will be available from day one. Then once your account has been open for three months you can apply for a higher amount, if you wish.
Natwest Credit Zone overdraft- has an agreed overdraft available. Credit Zone Overdraft is a flexible and convenient overdraft. You agree a limit with any Natwest Branch how much overdraft you want based on your salary and account history. If you use your credit zone overdraft by up to £50, you do not pay interest. If you use your credit zone overdraft by more than £50, you pay monthly interest.
Parental Contribution (As back up)
Depending on their income, parents are expected to contribute towards the fees and living costs of their student children. The LEA works output the parent's residual income. This is done by taking their Gross Income (before tax and National Insurance) and taking of allowances for the following
> A dependent adult who is not their husband or wife, where that dependent's residual income is less than £2,360.
> Parent's pension scheme and superannuation payment that qualify for tax relief
> The cost of wages to a domestic help where this is required because of disability
> Living abroad if your parents live outside the UK in a country where the cost of living is higher than in the UK
> A parent who is also a student
Once your LEA has taken away the right amounts and worked out the parents' residual income, they decide on the parents' contribution according to the following calculations:
> No contribution if income is less than £20,480
> £45 if their residual income is £20,480
> plus £1 for every £9.50 of residual income over £20,480
For example, a parent whose residual income is £22.000 is expected to contribute £45 plus £160, giving a total contribution of £205.
The most parents can contribute is £6.749. However, the actual parental contribution cannot be more than the maximum contribution fee of £1.100 plus the maximum level of maintenance support that you are entitled to from the LEA income assessment
Contents (chattels) Insurance
With Natwest they have policies specially designed for a student. With there student Insurance Policy you can insure up to £5000 worth of contents, while with there Graduate Belongings policy you can insure up to £8000 worth of contents. You will also receive
> Cover on your university or landlords property
> Protection against credit card fraud
> Cover for you belongings while you are transporting them between your term-time and permanent address; and
> Access to legal and domestic help lines at no extra cost
A REALISTIC ESTIMATE OF THE LIKELY INCOME AND EXPENDITURE AND SURPLUS OR DEFICIT SET OUT IN THE FORM OF A PERSONAL BUDGET
A lot of investigating, research, planning and organising is needed to achieve the best option. Once the student has decided which university he wants to go to, he has to consider his accommodations, funding and life-style.
Accommodation
> Halls of Residence- Usually offered to students in their first year
> Rent property in or near Kingston
> Living at Home- Travelling to University
Funding Of the Course
> Parental Contribution
> Student Loans from Local Education Authority
> Personal loans from Banks
> Hardship Loan- From Student loans Company
> Student working Part-time
> Trusts And Charities
Life-styles
> Leisure Activities
> Travelling Expenses
> Stationary Equipments e.g. Books
> Social Activities
Halls of Residence
Halls of residence are available for first year students; this is from September to July. These are in modern halls in close range of university campuses. They are all single and self-catering flats including bathroom, shower and kitchen.
Renting Externally
To rent in or near Kingston, the University of Accommodation Staff can supply you with information. The Accommodation Office provides a list of houses and flats to share rooms which are offered to students with a resident landlord or landlady within reasonable travelling distances of the university. This is also on self-catering basis.
Staying At Home
A lot of students prefer to stay at home, if within a reasonable distance as they may find it hard to cope with being independent. Staying at home may help you save most of your money on accommodation and other expenses.
Parental Contribution
Depending on their income, parents are expected to contribute towards the fees and living costs of their student children. As previously explained.
Student Loans form LEA
These are loans from the local borough as previously explained.
Personal Loans from Banks
The most popular methods of burrowing money are loans. This is a fixed sum of money lent for a stated period of time, for example £2,000 for three years. Each month part of the loan will be repaid plus an extra payment called interest. Loans are usually arranged to finance specific expenditures such as computers, car etc.
Some loans are deferred for three months before repayment starts.
Hardship Loan
These are available for students who get into financial difficulties during the course.
Student working Part-time
Having a part-time job the student could earn some money to pay towards his expenses plus he could gain experience in the working environment.
He will need a bank account for transactions to be made; therefore he will have to look around at different banks that offer good deals for students. He will need to have a cheque book, cheque card, a good overdraft facility with low interest rate and possibly a credit card, and a savings account
Trusts and Charities
They offer small grants to specially selected groups.
Personal Budget for a student
MONTH 1
MONTH 2
MONTH 3
MONTH 4
MONTH 5
MONTH 6
RENT
£175
£175
£175
£175
£175
£175
GAS
£10
£10
£10
£10
£10
£10
ELECTRICITY
£20
£20
£20
£20
£20
£20
WATER
£10
£10
£10
£10
£10
£10
MOBILE
£40
£40
£40
£40
£40
£40
TV LICENCE
£9
£9
£9
£9
£9
£9
INSURANCE
£15
£15
£15
£15
£15
£15
FOOD
£125
£125
£125
£125
£125
£125
CLOTHES
£150
£200
£150
£200
£200
£200
SOCIALISING
£200
£200
£200
£200
£200
£200
HAIR + BEAUTY
£35
£10
£35
£10
£10
£35
BOOKS
£20
/
£20
/
/
£20
TUITION FEES
£75
£75
£75
£75
£75
£75
TOTAL
£884
£889
£884
£889
£889
£884
INCOME
STUDENT LOAN
£200
£200
£200
£200
£200
£200
PART TIME JOB
£300
£300
£300
£300
£300
£300
SHORT FALL
£334
£339
£334
£339
£339
£334
TOTAL EXPENDITURE
£884
£839
£834
£839
£839
£834
My Recommendations for a person starting university.
For a person starting university, I would recommend they use Nat west as they have special accounts for students that offer those tax-free overdrafts and tax-free loans. All the other banks i.e. Halifax and Barclays etc, offer students accounts as well but its not all tax-free.
I think that students need a credit card but only if they have a part time job to help to pay for it with a limit of £500-£1,000, so that they can't get into to much debt if they don't make the repayments. Nat west loans are designed to help a student meet its living expenses during the time you are in higher education. You will have to pay the loan back, with interest, after you graduate, but as the interest is linked to inflation this is still one of the cheapest ways of borrowing money. Another reason I think Nat west are good for students is when you finish your graduation they will help you look for a job and help you any way possible. With the overdraft facility I am going to choose Nat west again because you can agree a limit with any Nat west Branch how much overdraft you want based on your salary and account history.
IDENTIFYING & DESCRIBING THE FINANCIAL SERVICE NEEDS FOR A PERSON SETTING UP A HOME FOR THE FIRST TIME
The financial services for a person moving home first time will need the following:
> Mortgage
> Current Account
> Credit Card
> Savings Account
> Overdraft facilities
We all know that buying a new home can be stressful and probably the most expensive investment anyone makes. Before a person decides what type of house to buy they have to work out the financial costs that are within their budget. They have to find out how much they can borrow and how much savings they have to give them a rough idea of the price range that they can go for. The cost of making the purchase, such as survey fees, legal costs etc., and furnishings must also be taken into account.
The next step is to decide on the area in which they want to buy taking into consideration personal requirements, issues that are most important to them, like public transport, good schools, shops, pubs etc.,
Then they have to decide what type of property: how many bedrooms, garage, modern or old, being aware that older property may have more space for your money, but the maintenance costs could be higher. If the property needs renovating, this is another expense to be thought about.
Finally, when visiting property they can find out when the house was rewired or when any damp proof course was installed, are there any guarantees. They can ask about running costs such as the average electricity and gas bills and the council tax.
There is a lot of information available for first time buyers and step by step guides can be found in most high street banks. There is a lot of competition on mortgage deals amongst banks and financial institutions, therefore it is advisable to shop around for the best mortgage deal that suits you..
I have listed charts on the types of mortgages that Halifax, Barclays and Cheltenham & Gloucester (part of Lloyds TSB) offer.
Which Mortgage is best for you?
There are so many different types of mortgage for people to choose from. Understanding how they work and what benefits each one offers helps people make an informed choice. There are a variety of banks and building societies that offer different types of mortgages.
HSBC offer a Home Start Mortgage. This revolutionary mortgage gives customers the opportunity to pay only interest during the first three years. This means that during those early months when your budget may be stretched. Your monthly commitment can be substantially lower compared to the traditional capital repayment mortgages.
Turning over to the next page you will see what other banks have to offer.
TYPES OF MORTGAGES
ABOUT THE MORTGAGE
WHATS THE BENEFITS?
WHAT SHOULD YOU KNOW?
HALIFAX
DISCOUNTED RATE
They'll give you a discount off Halifax Variable Rate 1 until an agreed date on your mortgage. Your rate & monthly payment will vary with changes to the Halifax Variable Rate 1.
Your interest & monthly payment will be reduced during the discounted period. If Halifax VR 1 reduces so will your interest rate & monthly mortgage payment. You can take your discounted rate with you if you move home.
If Halifax VR 1 increases so will your rate and monthly mortgage payment.
TRACKER RATE
Your rate will be linked to the Bank of England base rate. Your Rate will be an agreed % above or below the Bank of England base rate until an agreed date. The rate and your monthly mortgage payment can vary with changes to the Bank Of England base rate
The Bank Of England base rate is set independently from the Halifax. If the Banf Of England base rate reduces, so will your interest and monthly mortgage payments. You can take your tracker rate with you if you move home.
If the Bank of England base rate increases so will your interest and monthly mortgage payments.
FIXED RATE
Your interest rate will not change until an agreed date. This is both the interest rate you pay, and what is charged to your mortgage
You can budget knowing your rate won't change during the fixed rate period. You can take your fixed rate with you if you move home.
Your interest rate will not change even if Halifax VR 1 reduces. There's usually an agreement fee to pay for there fixed rate mortgages. You may have to pay a repayment fee if you repay your mortgage early
CAPPED RATE
Your rate won't go above an agreed level - the 'cap' - during the capped rate period. Capped rates can be linked to Halifax VR 1 or tracker rates. You'll pay interest at either Halifax VR 1 or the tracker rate when it is lower than the cap
You can enjoy any rate reduction yet relax knowing your rate wont go above the cap. You can take your capped rate with you if you move home
There's usually an agreement fee to pay for our capped rate mortgages. You may have to pay a repayment fee if you repay your mortgages early
Mortgages offered by Halifax
TYPES OF MORTGAGES
ABOUT THE MORTGAGE
WHATS THE BENEFITS?
WHAT SHOULD YOU KNOW?
BARCLAYS
DISCOUNTED RATE
Pay less in the early days of the mortgage.
Offer you a discounted rate of interest guaranteed to remain below The Woolwich standard variable rate for a fixed period.
After the time, Interests moves in line with this standard VR for the remaining mortgage period.
TRACKER RATE
Your mortgage keeps pace with the base rates, so you pay a variable interest rate over the entire mortgage period.
You pay a fixed margin of interest above Barclays Bank base rate, so if that goes down, your mortgage repayment also reduces and vice versa
/
FIXED RATE
The interest rate is fixed for a set period at the beginning of the mortgage
You always know you monthly payment will stay the same for that period
After this your mortgage will revert to the Woolwich standard variable rate.
CAPPED RATE
The interest rate you pay is guaranteed not to rise above a set rate during the capped rate period.
With this loan you are in a win-win situation.
If the Woolwich standard variable rate drops below this capped rate, your payments also fall.
Mortgages offered by Barclay's
The Mortgage Code
The mortgage code provides protection to the customer as a mortgage borrower. It sets out minimum standards which mortgage lenders and intermediaries have to meet.
The Mortgage Code defines three 'levels of service' a lender can provide to help customers reach a mortgage decision. Banks usually provide all three levels of service and you can choose which of these you want:
Execution only, This is where you simply decide for yourself, based on your own knowledge or following discussions with someone other than the bank and then informing the bank which of the mortgages you want.
Informed choice, This is where you ask the Bank to give you all the information you need about their mortgages and then make your own choice based on the information given to you.
Advice and a recommendation, This is where you ask the Bank to recommend which of the mortgages they would consider is best for you based on the information you provide about your circumstances. There is no additional charge for this.
Current accounts at NATWEST
Advantage Gold You could save hundreds of pounds with the account that comes with extra benefits on borrowing, shopping, travel and your home, for just £6 a month
Advantage Premier The select account with an exclusive package of services, with a Premium Manager who will be allocated to you, for £150 a year - with a 90-day, money-back guarantee.
Advantage Gold
The current account designed to save you time and money on a range of services, for just £6 a month - with a 90-day, no-quibble money-back guaranteed. As an Advantage Gold customer, you can enjoy a reduction of over 1.7% on your Credit Zone interest rate - from 17.80% EAR to 16.06% EAR.
% discount on all Personal Loans -Take out a Nat West Personal Loan and get a 1% discount on the typical standard rate of 12.9% APR - a saving of over £290 on a £7,000 loan over 5 years with Loan Protector. Extensive travel discounts - They also offer a range of travel discounts, including free travel insurance, commission-free travel money and American Express travellers' cheques and savings on package deals, cruises, car rentals and hotel bookings.
Advantage premier
An exclusive package of services, including a Premium Manager who will be allocated to you, for £150 a year - with a 90-day, no-quibble money-back guarantee.
When you open an Advantage Premier account you'll receive a Service card 250 that lets you withdraw up to £750 a day and guarantees cheques up to £250. You'll also get the Premier Card - gold MasterCard with a tailored spending limit, and many other benefits including AIR MILES and interest free credit. Bank at any time of the day or night, from home, work or abroad, with our 24-hour telephone and On Line Banking Service. Nat west offer a £2,500 overdraft at a preferential rate with no arrangement fee. You can also enjoy special loan deals, a flexible loan package (with no arrangement or early repayment fees and a flexible repayment period) or a 1% APR reduction on their standard Personal Loan rates. This account also allows you to Extensive travel discounts
Current account rates and charges
Interest we pay if you are in credit
Gross rate p.a.%
AER (%)
Net rate p.a.%
Advantage Gold
0.25
0.25
0.20
Current Plus
0.10
0.10
0.08
Card Plus
3.60
3.66
2.88
Students/Graduates
0.10
0.10
0.8
Step Account
0.10
0.10
0.08
Credit Cards
NATWEST
There's no annual fee for having a Nat west Credit Card, and they will reward you with Air Miles - one air mile for every £20 you spend on your card. You can exchange them for everything from airline tickets to cinema seats, city breaks, theatre tickets and meals out. Up to 56 days of interest-free credit before choosing whether to pay off what you owe in full or just pay the minimum amount. Nat west offer the choice of either the Classic Card or, if you earn over £20,000, a Gold Card.
Nat west Credit Card
5.9% APR on balance transfers - Transfer your balance from existing credit or store cards and take advantage of a low APR of 5.9% for the life of the balance. Our standard rate is 17.4% APR. 0% sounds fantastic, but normally is only offered for five or six months, and then reverts back to the standard rate. At Nat West, they guarantee that their balance transfer rate stays at 5.9% APR for however long it takes you to pay off the balances you transfer, so long as you pay the minimum monthly amount. So it could actually work out considerably cheaper than 0%, and it takes the pressure off paying back quickly. Up to 56 days' interest free credit if you repay your bill in full and on time each month. Also every time you use your Nat West credit card you'll get AIR MILES - whether you're filling the car up or shopping for groceries. For every £20 you spend they'll reward you with one AIR MILE.
Worldwide acceptance in over 20 million shops, hotels and restaurants and a choice of MasterCard or Visa. You can withdraw cash every day in the UK and abroad, wherever you see the MasterCard or Visa sign. You can withdraw cash as long as the principal cardholder is within his or her credit limit. You have to pay a cash handling fee of 1.5% (minimum charge £2) on all advances, including buying foreign currency and travellers' cheques. You also pay an administration charge of 2.75% of the transaction amount on each foreign currency transaction. Nat west also offer up to £50,000 travel accident insurance when you use your Nat West Credit Card to pay for travel tickets.
HSBC
HSBC credit card offers convenience and financial flexibility. It helps you make better use of your money. There are no hidden charges, Interest free credit for up to 56 days, and special interest rate for first six months and cash withdrawals of up to £300 a day at cash machines. They provide a Cardholder Repayment Protector scheme which is available to provide cover in the event of accident, unemployment, sickness or death. This valuable protection is available if you are aged 18 to 64, working at least 16 hours a week and resident in the UK.
Credit Interest
Gross Rate The rate before the deduction of tax applicable to interest on savings account.
AER (Annual Equivalent Rate) A notional rate which illustrates what the gross rate would be if interest was paid and compounded each year.
Net Rate The rate after the deduction of tax applicable to interest, currently 20%. Higher rates taxpayers will have an additional liability.
HALIFAX
Halifax offers a choice of credit cards with great rates and benefits. With the Classic and Charity cards you can enjoy 17.9% (variable) with a special introductory rate of 0% for the first five months on balance transfers and purchases. As well as being a convenient way to pay for things, tour credit card gives you these extra benefits:
> no annual fee
> up to 59 days' interest-free credit on purchases if you pay off what you owe in full each month
> Automatic insurance, on most major purchases made with your Halifax Credit Card for 100 days, against theft and accidental damage
> A 10% discount on Halifax Car Insurance premiums when you take out a new policy and use your Halifax Credit Card to pay the premium.
Classic
The Halifax Classic Card, 17.9% APR (variable) on purchases and balance transfers. Plus, it is the lowest rate ever - 0% p.a. for the first 5 months. They offer these other great benefits too:
* 17.9% APR (variable) on purchases and balance transfers
* Special introductory rate of 0% p.a. on all purchases and balance transfers fixed for your first five months
* No annual fee
* Interest free credit for up to 59 days on purchases - no other credit card offers a longer interest free period
* Credit card cheque book for simple balance transfers and for purchases in places that don't accept credit cards
* Manage your account online, day and night, seven days a week
* Choice of Visa or MasterCard, accepted at over 23 million places around the world
* Free Purchase Protection to cover most major items against theft or damage for up to 100 days
* Up to £100,000 free Travel Accident Cover* when you book travel tickets in full using your card
* Customer helpline - 24 hours a day, 365 days a year
Savings Account
Savings accounts have been designed to give each customer flexibility and choice. Also you don't have to be a member of that bank to open a savings account. You can choose many different ways of saving money by using your local branch to deposit money, cash machines, telephone if you want to transfer from your current account into your savings account or a cheque in the post if you can't make it to the bank etc...
Tax free savings such as ISA's. These are Government Schemes that allow each person to have only one Tax free saving. You can invest a maximum of £3000 per tax year in a Mini ISA or £7000 per tax year in a Maxi ISA; you can only have one or the other and only at one bank or building society. This is an on going scheme set up by the Government to encourage people to save more money without being taxed and is up to the year 2006. After this it will be £1000 in each tax year. Interest rates vary from bank to bank so shopping around is advisable. Other savings accounts are available with different amounts to open and different rates of interest. I have looked at leaflets from, Halifax and Nat West. I have set out a table showing the different types of saving accounts.
ISA at Halifax
AMOUNT
AER
GROSS p.a.
£18,000+
4.15%
4.15%
£12,000+
3.95%
3.95%
£6,000+
3.85%
3.85%
£3,000+
3.65%
3.65%
£1+
3.55%
3.55%
You can open an ISA Account with a minimum opening balance of £1. Tax free interest paid annually every April. Interest rate will be no lower than 2% below base rate. Minimum amount for withdrawal is £10. Halifax ISA Saver meets the Governments 'CAT' Standards (charges, access and terms). However, this does not necessarily mean that the ISA is appropriate for you. Halifax ISA saver also offers fixed interest rates for terms of up to 5 years.
A maxi ISA is a single account, which can hold a mix of stocks and shares, investments, cash, life assurance of up to £7,000.
Overdrafts
With Halifax you can easily arrange an overdraft by just phoning or call into any branch and they can usually give you an instant answer. An arranged overdraft of up to £100- totally free. So if you slip into the red line there are no extras to pay. You can apply for an overdraft of up to £750 at the same time as you open your current account. The amount they agree will be available from day one. Then once your account has been open for three months you can apply for a higher amount, if you wish.
Nat west Credit Zone overdraft- has an agreed overdraft available. Credit Zone Overdraft is a flexible and convenient overdraft. You agree a limit with any Nat west Branch how much overdraft you want based on your salary and account history. If you use your credit zone overdraft by up to £50, you do not pay interest. If you use your credit zone overdraft by more than £50, you pay monthly interest.
Personal Budget for a Parent moving home
MONTH 1
MONTH 2
MONTH 3
MONTH 4
MONTH 5
MONTH 6
RENT
£300
£300
£300
£300
£300
£300
GAS
£20
£20
£20
£20
£20
£20
ELECTRICITY
£30
£30
£30
£30
£30
£30
WATER
£15
£15
£15
£15
£15
£15
TELEPHONE BILL
£35
£35
£35
£35
£35
£35
MOBILE
£20
£20
£20
£20
£20
£20
TV LICENCE
£9
£9
£9
£9
£9
£9
INSURANCE
£25
£25
£25
£25
£25
£25
FOOD
£200
£200
£200
£200
£200
£200
CLOTHES
£150
£150
£150
£150
£150
£150
SOCIALISING
£30
£30
£30
£30
£30
£30
HAIR + BEAUTY
£35
/
£35
/
/
£35
CHILD CARE
£70
£70
£70
£70
£70
£70
CAR TAX
£75
/
/
/
/
£75
INSURANCE
£50
£50
£50
£50
£50
£50
INCOME
£1,600
£1,600
£1,600
£1,600
£1,600
£1,600
TOTAL EXPENDITURE
£1,214
£1,154
£1,114
£1,054
£1,114
£1,054
My Recommendations for a parent moving home first time.
There is a lot of competition on mortgage deals amongst banks and financial institutions that's why it is hare for me to recommend which is suitable for this parent, but I think I'm going to choose the Barclays fixed rate mortgage because the interest rate is fixed for a set period at the beginning of the mortgage and that way you will always know your monthly payment will stay the same for that period.
The current account for Nat west is designed to save you time and money on a range of services, for just £6 a month - with a 90-day, no-quibble money-back guaranteed, so I would recommend this to the parent.
For a parent using a credit card I'm going to choose Halifax. Halifax offers a choice of credit cards with great rates and benefits. With the Classic Card you can enjoy 17.9% (variable) with a special introductory rate of 0% for the first five months on balance transfers and purchases.
I think the parent should have a simple savings account that gives him easy access to his money. And if he has some extra cash at the tax year he could open an ISA. Which is a high interest rate; if he does this with Halifax he could save tax free. This means ha doesn't pay any income tax on his savings.
IDENTIFYING & DESCRIBING THE FINANCIAL SERVICE NEEDS FOR A BUSINESS CUSTOMER
The financial services for a business will need the following:
> Business Card
> Insurance
> Current Account
> Credit Card
> Savings Account
> Overdraft facilities
The need for financial services often depends on the size of the business. Smaller businesses are often more dependent on outside providers, whereas larger organisations are more likely to have in-house departments to provide the expertise. Business can be classified into three sizes:
Small businesses, typically sole traders and partnerships, which have both business and personal financial needs
Medium sized businesses, typically private companies which need a range of services such as money transmission, finance, payroll, leasing, hire purchase and insurance
Large businesses, typically public limited companies and public sector organisations operating on a national and international scale, which require services such as international banking, share issue and pension management.
Business Card
The business card can help with your business cash floe forecast, whether you are a sole trader, partnership, limited company etc. and with the power of the Master Card behind it, is accepted in one 660,000 places in the UK and over 24 million worldwide.
Because the business card is a charge card, you won't have to pay interest on any spending linked to your business. You pay off the balance each month by direct debit giving up to 38 days interest free credit.
With a business card you can -
> Track your spending with monthly statements that show individual cardholder spending as well as the whole business.
> Avoid the need to set up separate credit agreements with suppliers.
> Buy a wide range of goods and services face to face, over the telephone, by mail order or by internet.
If you're a new business customer, then you pay no annual card fee for the first year.
Making Sure Your Business Is Insured
You need to make sure your business is properly insured for the following reasons
> Employers' liability insurance is compulsory if you employees
> Legal liability insurance is necessary to cover you in the even of accidental death or injury to members of the public or accidental damage to their property caused by your business activities.
> Insurance can protect your business from the damage caused by fire, theft or unexpected incidents leading to loss of trade.
Nat west service includes one of the best no-claims discounts in the market, with up to 20% off for three or more claims free years. There is a choice of payment options with a 5% discount if you pay for a years cover in one electronic payment.
You can arrange quotes and cover instantly with just one telephone call, and without any forms to fill in.
Current Accounts
NAT WEST
Advantage premier: An exclusive package of services, including a Premium Manager who will be allocated to you, for £150 a year - with a 90-day, no-quibble money-back guarantee.
When you open an Advantage Premier account you'll receive a Service card 250 that lets you withdraw up to £750 a day and guarantees cheques up to £250. You'll also get the Premier Card - gold MasterCard with a tailored spending limit, and many other benefits including AIR MILES and interest free credit. Bank at any time of the day or night, from home, work or abroad, with our 24-hour telephone and On Line Banking Service. Nat west offer a £2,500 overdraft at a preferential rate with no arrangement fee. You can also enjoy special loan deals, a flexible loan package (with no arrangement or early repayment fees and a flexible repayment period) or a 1% APR reduction on their standard Personal Loan rates. This account also allows you to Extensive travel discounts
Halifax has Card cash which is an easy, straightforward alternative to Current Account. You don't need to have a credit rating to open one and it offers:
* Solo debit card and optional cheque book
* 24 hour access to your money at home and abroad
* Use of virtually every cash machine in the UK with no Halifax charge
* Cash withdrawals by ATM of up to £300 a day. Withdrawals of over £300 can be made at any branch counter
* Access to your account through the internet, branches, cash machines, WAP phone, or for customers with a touch tone phone, our automated telephone banking service on 08457 20 30 40
* If you're aged 16 or 17, you only need £10 to open an account and we'll pay you a special rate of interest
* If you're over 18, you can open a Card cash account with just £50
HSBC current accounts - they offer better rates for a business customer. They offer a free business advisor to help you start your finances. They offer you a free CD-Rom on bookkeeping. They offer you a cheque book, paying book, regular statements, easy to set up direct debts and standing orders. They have 1,600 branches nationwide. Online banking over the phone (business line)
Credit Cards
NATWEST
There's no annual fee for having a Nat west Credit Card, and they will reward you with Air Miles - one air mile for every £20 you spend on your card. You can exchange them for everything from airline tickets to cinema seats, city breaks, theatre tickets and meals out. Up to 56 days of interest-free credit before choosing whether to pay off what you owe in full or just pay the minimum amount. Nat west offer the choice of either the Classic Card or, if you earn over £20,000, a Gold Card.
HSBC
HSBC credit card offers convenience and financial flexibility. It helps you make better use of your money. There are no hidden charges, Interest free credit for up to 56 days, and special interest rate for first six months and cash withdrawals of up to £300 a day at cash machines. They provide a Cardholder Repayment Protector scheme which is available to provide cover in the event of accident, unemployment, sickness or death. This valuable protection is available if you are aged 18 to 64, working at least 16 hours a week and resident in the UK.
DESCRIPTION OF THE WAYS IN WHICH ICT IS USED BY FINANCIAL SERVICES INSTITUTIONS IN THE PROVISION OF THEIR SERVICES
All banks are very flexible abut how you can use your account. There are may ways to have access to your account. E.g.
> Internet Banking
> Telephone Banking
> ATM (Automated Teller Machines)
> TV Banking
> The laser beam
> EFPOS (Electronic Financial Point of Sale)
> Financial Service Regulations
Internet Banking and WAP
Online Banking is available to most account holders. It offers 24-hour access to your account so you can check your account balance, Pay Bills, to transfer money instantly with your accounts. It is free - apart from the cost of the call to access the Internet. There is now what they call WAP You can now check your account details online on your mobile phone wherever you are whenever you want.
Telephone Banking
Telephone banking is available to you 24 hours a day and 365 days a year so you can have access to your account. You can choose between using automated services and speaking directly to a Customer Services Officer. Also when using telephone Banking you can get a balance on your account, hear details of your most recent transactions, transfer money between your accounts held with them, pay bill(e.g. your gas bills), make payments etc.
ATM (Automated Teller Machines)
Every bank has a large network of cash machines in the UK that allow you to withdraw cash, check and print your balance, transfer money between your linked accounts , change your PIN, print a mini-statement and/or order a statement to be sent by post.
You'll find that cash machines are not only just outside branches but at other convenient places such as supermarkets, stations, shopping malls and leisure centres.
TV Banking
Via digital satellite on Sky Active. TV Banking service is through Sky Active and fast, secure and easy-to-use banking from your own home. With your remote control you can check your account balances, pay bills, and you can get information on a wealth of products and services. All you need is a digital satellite system (i.e. a digit box, mini dish and remote control). Press the interactive or red button on the remote control, select sky Active and follow the instructions.
Specially printed characters on cheques to help with the reading and sorting analysis.
The laser beam
In retailing organisations, computerised tills are used to record information about the goods sold. In supermarkets, the laser beam scanning of bar codes is widely used. The scanners input data into the computer to process, improving speed of throughput of customers, stock control and reordering procedures.
EFPOS (Electronic Financial Point of Sale) in the last ten years communications with the suppliers have become both positive and constructive. Developing long-term relationships with suppliers is better than chasing the lowest cost by continually changing. EFPOS systems - scanning or bar code reading information on goods directly from suppliers as goods are sold. Major retailers now work directly form suppliers on issues such as quality standards and environmental policies.
Financial Service Regulations
Supply of Goods & Service Act 1982
This act would protect faulty services. This basically implies that the supplier of a financial service will carry it out with reasonable skill and care and within a reasonable time.
Consumer Credit Act 1974
This act protects credit purchases. For example Pre-contract information must not mislead, the format and content of the form of agreement are specified, debtors are entitled to a copy of the agreement, and a debtor may cancel the agreement within 5 days (subject to conditions).
Trades Description Act 1968 &1972
This act protects false or misleading descriptions. Financial services providers must nit knowingly or recklessly make any false or misleading statements concerning the supply of financial services. N.B Prosecution must prove that a statement was made intentionally.
Trades Description Act 1968 &1972
This act also protects display of prices. It protects against misleading indications regarding the price (interest rates, fees, charges etc) of services and facilities.
Fair Trading Act 1973
This act protects the business practices against the consumers interest, Examples of protection under the act would be protects against monopolies.
Restrictive Trade Practices Act 1978
This act also protects the business practices against the consumer's interest, it makes it unlawful for two or more independent financial service providers to fix prices in a way which restricts competition.
Competition Act 1980
This act also protects the business practices against the consumer's interest, and it protects against anti-competitive practices.
Financial Services Act 1986
This act protects financial services. It supervises all UK financial service providers, provides information to aid consumers to manage their financial affairs more effectively, they secure protection from consumers (E.G. ICS Investors Compensation Scheme) and it also contributes to reducing financial crime (e.g. money, laundering).
