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Savings accounts are things than can be easily forgotten about.

Consumers pay their hard-earned cash into them in preparation for a later date when the money will be needed and tend not to think about those funds thereafter.

For the most part, this is the idea of savings accounts a safe, quiet place where money accumulates.

However, by not giving this money an active status, consumers could be missing out on securing the best rates of interest, which would allow their money pots to swell faster.

Moneyfacts.co.uk reports that high street banks are currently holding 400 billion of our savings.

Worryingly, the financial website also reports that many savers aren’t getting the most for their money as loyal consumers are afraid or too lazy to leave their accounts.

How to work out if you need to change accounts

Loyalty to a bank is a false economy. While a banker’s money sits in a ten-year old account, getting no reward for its faithfulness, the lender is using the profit they are making from these funds to offer new customers high interest rates.

Kevin Mountford, head of savings and current account, Moneysupermarket.com, says: “I think sometimes what people forget is with most tax payers that rate of interest is subject to tax at either a standard or higher rate so the net return they are getting often is even less than the retail prices index at the moment.

“The advice to those sorts of people is to look at some other alternatives.”

In other words, if the rate of interest you are earning on your savings is barely breaking even against the tax you are paying on it, then the time has come to move on.

However, it should not take such a drastic wake up call to make people become more discerning as to where they invest their money.

Being a new customer with a bank will often earn you rewards, with high rates of interest on offer for introductory periods offered by many banks.

In fact, consumers may want to consider the benefit of shifting their cash around once every few years, providing they are not charged a fee for doing so.

Where are the best deals on offer?

The best deals for saving accounts tend to be for those who can commit not only their money but their time.

Individual saving accounts (Isas) are often where the best rates of interest are on offer, but these accounts require consumers to tie their cash down for a specific period of time between one and five years.

Withdrawing funds ahead of the agreed date could lead to a financial penalty being levied on the consumer.

However, Mr Mountford even has a few words of caution again the government-backed Isas.

“If you take the Isa market for instance, those people who are shrewd enough to take their allowance on over the years, they will have a portfolio of savings products but I wonder how often they move their savings from previous providers so they can get current rates?,” he pondered.

In the wake of hurricanes Katrina and Rita the US oil industry is being urged to think carefully about how it restarts production.

Rob Laughlin, director of energy at the oil
brokers GNI-Man Financial, said that the US must learn not to “put all its eggs in one basket” and must spread its refining capacity more evenly by building new refineries in other areas.

The vast majority of the US’s refineries are in the Gulf region, which is the most vulnerable to hurricanes.

Katrina pushed crude prices to a record $70.85 a barrel but oil prices have since dropped particularly because the refineries appear to have emerged from Rita unscathed.

Speaking to BBC Radio Five Live’s ‘Wake Up To Money’ programme, Mr Laughlin stressed that it was problems with refineries, not supply, that were keeping prices high.

He said that current oil prices are hugely over-inflated, saying: “I would say oil prices should be nearer $50 a barrel.”

“There is no shortage of crude, I can’t emphasize that enough. What we actually need is more refining capacity.

“I think the Americans have learnt a lesson. They rely too heavily on small isolated areas, and when you have got nearly a quarter of your production of oil and gas coming out of the Gulf of Mexico, perhaps they should think they should be putting some of their new refineries if they decide to build them, well away from the Gulf.”

More people than ever before are choosing to invest their money in ISAs, according to new figures.

Half a million people took out an ISA during the first quarter of the financial year in 2005, a rise of 13 per cent on the same period in 2004. Some 7.6 million people also invested in an ISA between April 6th and July 5th.

ISAs allow savers to invest up to 3,000 a year and offer tax-free interest to give people the best return on their money.

An increasing number of people are also jumping on the mini-cash ISA bandwagon – many are attracted by their simplicity and transparency compared to maxi-ISAs.

But ISAs still remain more popular with older people than with their younger counterparts. Around a third of those aged between 45 and 54 and between 55 and 64 used their ISA accounts last year.

Intelligent Finance estimates that a lower tax payer who invested 3,000 in an ISA every year would get a tax break of 1,726.35 over 10 years, 7,782.67 over 20 years and 20,595.54 over 30 years.

Those on the higher rate would save a further 3,848.14 over 10 years, 17,663.10 over 20 years and 47, 712.95 over 30 years on the same basis.

Nick Robinson, Managing Director of Intelligent Finance said: “These figures suggest we could be on for a record year. We know that people across a range of ages and life stages opt for ISAs as they are a great way to save, you dont get taxed on your savings interest, they pay very competitive rates and many allow instant access to cash.

“We are constantly advising people to save more and if we want to encourage more of this then it’s important that they, not the taxman, should see the benefits of their savings.”

Nearly half of all Briton’s approaching retirement age intend to keep working in paid employment beyond the current state pension age, according to new research.

Figures from investment provider Prudential reveal some 2.6 million retirees will work beyond the age of 65 and 1.4 million say they do not know when, if ever, they will give up work.

A third of people aged 50-64 say they do not believe ‘traditional’ retirement is possible because of the cost involved.

“For those approaching retirement; ie people in their 50s and early 60s it isn’t quite so simple. Many are choosing to carry on working past the current state pension age either because they want to or because they need to,” said Ali Crossley from Prudential UK.

“When you consider that only 16 per cent of people approaching the current state pension age think working is key to happiness, this suggests that over a third of them are working longer because they feel they have to.”

Prudential says that people who reach pension age and want to stop work but feel they cannot afford do have other options, such as releasing money from their property.

Marks & Spencer Money has announced plans to extend its insurance sale.

The financial services arm of the popular department store is offering 50 off both car and home insurance policies.

While the original offer was supposed to end today, popular demand has prompted an extension for a further calendar month.

“The 50 discount has given thousands of customers the chance to enjoy the experience of having cover that includes all the additional extras as standard,” said Steve Price, head of insurance at M&S Money.

“We’re confident that once customers join us, they’ll stick with us.”

M&S Money is one of a number of relatively new entrants to the financial services market that have helped boost competition in the insurance sector.

Perhaps this is because changing current accounts is often seen as a process littered with potential minefields. After finding the best saving rate, consumers need to consider overdraft charges and customer service quality.

Then there is the matter of smoothly transferring direct debits and standing orders as well as making sure your employer doesn’t put your pay in the old account.

However, with First Direct kicking off 2008 by announcing 100 for every account switcher, there are clearly huge financial savings to be made.

Saving rates

Shop around and let your savings make you money. Alliance and Leicester is currently offering an AER (annual equivalent rate) of 8.5 per cent and only requires a minimum deposit of 1.

However, if you are lucky enough to be in a position to be thinking about saving rates, make sure you aren’t keeping too much of your hard earned cash in a current account. These funds would be much better placed in a high-interest savings account.

Overdrawn and over charged?

According to a study, conducted by BBC consumer programme Watchdog, 46.8 per cent of consumers do not think they should be charged for going over their overdraft limit without authorisation.

Some banks have wised-up to this. Abbey National now offers a zero per cent overdraft for current account customers for their first 12 months with the bank.

Things to look out for

Hidden charges – some banks are now charging consumers for their accounts. First Direct, for example, has a 10 monthly fee, even for bankers in credit.

Strings attached to introductory offers the high interest earning rates many banks offer only apply if you deposit a certain amount of cash when you join.

Online banking this can make life a lot easier, so it is worth checking if your bank has this facility before making the switch.

Comparison websites

Fortunately, help is at hand. Over recent years a number of websites have sprung up that amalgamate all the essential information for consumers, helping them discern between the good and the bad.

Sites such as uSwitch and Moneysupermarket.com do the hard work, forming handy tables with the different pros and cons accounts offer.

In order to make use of these facilities, however, you must first decide what it is you are looking for from a current account.

Kevin Mountford, head of savings and current accounts at Moneysupermarket.com, said: “Make sure that the product which you choose is right for your circumstances and you are not just being seduced by headline rates.”

He added: “The second thing is make sure that you deal with a bank who gives you the right promises in terms of the switching process.”

Some banks offer the services of a dedicated team that will handle that switching process, to make sure that joining their bank is painless. As it should be.

Consumers should take advantage of the recent rise in interest rates and budget to save for the future, according to independent financial advice.

Figures from IFA Promotion reveal that nearly three-quarters of UK consumers (72 per cent) believe they are not saving enough.

Around eight million people, who are in a position to put aside some cash each month, claim they enjoy spending their money too much to save.

Following the Monetary Policy Committee to increase interest rates by a quarter of a per cent, IFA Promotion suggests now is a good time for consumers to start budgeting to save.

“The interest rate rise is minimal, but has met a shock reaction, which I hope will trigger people to finally take their heads out of the sand and act logically when it comes to their future financial security,” said David Elms from IFA Promotion.

“At the very least, it should deter people from unnecessary spending and the temptation of taking on new debt, but what we really need is a long-term commitment to saving. With the prospect of increased rates of returns, now is an ideal time to start.”

Make the best of your savings! Search UK Net Guide for a selection of the best offers on saving accounts!

Fee-charging ATMs are set to outnumber free ones in the UK by next October, new figures show.

Charging machines are currently being installed at more than five times the rate of free-to-use ATMs, according to Sainsbury’s Bank.

Over the course of the year to June 2005, some 286 fee-charging cash points were added every month compared to just 53 of the free machines.

Currently, almost four per cent of cash points charge people to withdraw money, according to figures from the Link.

Tim Pile, Sainsburys Bank chief executive, said: “We are deeply concerned about the dramatic increase in the number of surcharging ATMs and the very real threat that they will soon outnumber the free-to-use machines.

“We believe that it is fundamentally unfair to make consumers pay for using an ATM to access their own money and we urge all consumers to make sure they know whether or not the ATM they plan to use charges for making withdrawals.”

The number of pay-to-use ATMs has more than tripled over the last four years compared to a steady growth of free machines.

But less than three per cent of new fee-charging machines have replaced free ATMs whilst 202 fee-charging ones were converted to being free-to-use.

From July 1st, all cash machines must inform customers that a charge will be made for withdrawing cash and offer them the option of cancelling their transaction. All machines must also advertise the fact they will levy a charge on their screens and casings.

Parents are starting to put more money into their children’s nest eggs, according to new research.

The Building Societies Association (BSA) says that 31,000 new child trust funds (CTFs) were set up in September under the cash or stakeholders options.

The cash option was the more popular with nearly three quarters of parents selecting it as their preferred choice.

Over 259,000 cash CFTs have now been opened in the UK which hold a total of 78 million. In September, net receipts into cash CFTs reached 10.9 million in September.

Brian Morris, head of savings policy at the BSA, said: “Parents are now beginning to top up their childs CTF, which is good news.”

“The CTF is great way for parents and grandparents to invest in their childs future. Putting aside a little each month to go into the CTF could be used to fund part of a future deposit on a house,” he added.

Child trust funds have been set up to safeguard money for use the future to buy homes, pay for study, cover wedding costs or any other expensive outlay.

The government and financial service sector encourage people to put aside money while they can to avoid poverty at a later stage in life.

Britons are being urged to avoid any nasty surprises when they get back from their summer holidays.

Many people would have been living on their credit cards while away on their annual holiday this summer.

But price comparison site moneysupermarket.com has warned that not paying off your balance could leave with a hefty interest payment.

“Keep your financial post holiday blues at bay,” advised Richard Mason of moneysupermarket.com. “With many countries now accepting most forms of plastic it is easy to spend money abroad, and with costs often cheaper overseas than in the UK, it is all too tempting to get carried away with holiday purchases.

“But be careful, people who do not pay off their credit card bills in full can end up paying a large amount of interest over a year ? enough to cover the cost of a weekend break or a whole year?s family travel insurance.”

A credit card offering a zero per cent introductory rate can help consumers manage their short-term debts.