A Worry For Scottish Fund Managers
I had lunch with an intelligent lady yesterday and the subject of Scottish devolution came up.
She said that she had money invested with Scottish Funds and would be moving the money to London before the devolution referendum.
So how much sensible money will be removed from North of the Border?
I certainly wouldn’t allow any of my money to be managed outside of the country in which I live. I moved my pension away from a company controlled by the Bank of Santander for just that reason.
Several of my friends have lost savings and their pension over the last few years. I wouldn’t put all or any part of my money in an overseas basket!
My Pension Could Get A Boost in 2029
I have a good pension, although if I have a problem with it, it’s that I can’t find enough ways to spend it.
But the announcement yesterday that Crossrail 2 might open in 2029 can only be good for me.
I live in a quiet plesant tree-lined road about five minutes walk from Dalston Junction station, which could be one of the stops on the line. Even if it is not and Hackney Central and Angel are the two nearest stops, it all must be beneficial for the value of my house.
I would suspect that if Dalston Junction is not on Crossrail 2, then the Eastern Curve at the station might be reopened, so that East London Line trains can terminate somewhere in North East London.
After being ignored by transport planners for years it now seems that the North Eastern areas of London are finally getting the public transport, they desperately need.
Judging by the welcome the Overground has received in this area, I suspect that the good burghers of Hackney will welcome Crossrail 2 with open arms.
Crossrail 2 is having a consultation locally in July. I shall be going.
Where Did It All Go Wronga
This is the title of an article in the Sunday Times about Wonga, which describes how the company is not doing as well as it was and isn’t heading for world domination any more.
The article blames the usual reasons for the decline; bad publicity, hostile politicians and regulators, which is probably partly true.
But I’ll throw in another reason.
Wonga undoubtedly has world class technology as Robert Peston said here.
But as in my time, I’ve been a programmer at the top of my profession, I know that it is difficult to stop competitors imitating what you have done.
So I do wonder if other lenders with a higher moral stance, have got their technical act together, so that they have reduced the size of Wonga’s territory.
It may be now, that if you ask a reputable financial institution, by using similar and possibly better technology than Wonga, the result of your loan application is given earlier. And of course in some of those decisions, lenders will get their loans.
All the fuss about Wonga, may have persuaded people that there are better ways to organise your finances.
So it looks like Wonga’s bubble has been pricked!
Visa And Amex In Germany
When I arrived in Berlin, I needed to buy a ticket and as I’m a Nationwide customer, I have one of their Visa cards that converts local currencies immediately without charges to my statement.
But in many places in Germany the only card you can use in Mastercard. As I travel usually with just Amex and Visa, I would have been scuppered, if I didn’t have quite a few Euros.
Surely, if we are a united Europe economically, then all machines and web sites that accept credit and charge cards, should be m,mandated in EU law to accept all types.
A consequence of the German policy was at Berlin, the machine on the platform to buy tickets for the S-Bahn was blocked with Americans and Australians trying to buy tickets without a Visa card and no euros.
Obviously, because of the way things are going when in perhaps five years, many cities will allow contactless cards as tickets, as London buses now do, this is going to be an area, where the Germans will have to allow cards other than Mastercard.
Rats And Sinking Ships Come To Mind
This story on the BBC today, that the Labour party is cutting its links with the Co-op Bank made me think of the headline of this post.
On the other hand, perhaps the owners of the other 70% of the bank, that the Co-operative Group doesn’t own, aren’t those who wear red underwear?
On the other hsand moving to a bank controlled by the Trade Unions, might not bode well for those who want the Labour party to think pragmatically and outside the box.
Is The Banking Industry Stirring Or Dying?
A few days ago, I reported about a new approach to retail banking from TSB. Yesterday, The Times carried a big advert detailing everything.
If I was with a dinosaur bank, I’d certainly think about moving, as I meet their conditions for interest and because I could try before I moved everything.
Yesterday too, I heard a report at 05:30 in the morning from PwC, that a quarter of all bank branches will be closed. I actually think that is a low figure, if the amount of traffic you see in branches round here is anything to go by!
My friend, David, saw the writing on the wall decades ago.
Victoria Asks The Question
Victoria Derbyshire asked this morning how George Osborne’s pension changes will affect you.
They won’t effect me, but they will effect those companies that provide the dreaded annuities, as I won’t be buying one!
I will be putting money into a peer-to-peer lender like Zopa, to provide me with a flexible income.
Suppose you had £50,000 invested in Zopa and it was generally lent out at 5% for five years. This money would be safeguarded by Zopa.
Once it was fully lent out, you would get an interest payment of £2,500 each year and capital repayments of £10,000 a year.
So in other words, you could withdraw £12,500 a year with no trouble. But if you didn’t and left it to accumulate in Zopa you would be earning more money.
Obviously, you would have to pay tax on your earnings, but the idea of using Zopa or one of their ilk, as an annuity could turn out to be a good one.
There is a rumour doing the rounds, that peer-to-peer lenders will be starting to productise their offerings, by creating specialist ISAs and flexible on-demand deposit accounts.
Payments To Mobile Phone
They have just fully announced, that you’ll soon be able to send payments to a mobile phone number. The system is called Paym.
My bank, Nationwide, won’t be bringing it in until next year, but I’m not sure about if I would use the system.
For instance, will these points be covered.
1. At times, I use a simple mobile phone, like one of my Nokia 6310i.
Can you just send money using a simple text?
If you can it would enable those who don’t want a smart phone to use the system.
It would also mean that a stolen phone might lead secrets to fraudsters.
2. Can you send payments from an on-line account to a mobile number enabled account?
3. Could I send money to a charity and get Gift Aid added?
Knowing the two words banks and innovation rartely appear in the same senytence, I suspect the system will be designed like a colander.
Is This An Innovative Approach From TSB?
I picked up this article on Moneywise this morning. The headline is.
TSB launches current account paying 5% interest
The 5% is only available on your first £2,000. As a comparison, my year-to-date figure on Zopa for around £150,000 is 4.94% at the moment, after all bad debts and charges.
But it was this that caught my eye in the article.
TSB will also allow customers to ‘try before they buy’ in that it won’t insist customers transfer all direct debits and standing orders to the new Plus account immediately; indeed, there is currently no timeframe for when direct debits must be ported across.
One of the reasons, I’ve not moved to another bank, is that I’d like to test drive the on-line systems first. To me, ease-of-use and copious information are two of the most important things in any on-line account or system. So being able to check these without commitment is very important.
So as we seem to be seeing a features race in banking, you could say we live in interesting times.
A Must View Web Site For Savers And Investors
Out of curiosity, I wanted to find out, what was the rate you’d got on savings in 2008.
So I searched Google and found this page on a web site called Swanlowpark. This is the first statement on the home page.
This website centres on one theme: how well have your savings kept their value when compared to inflation.
Website is not-for-profit, there is no advertising.
Looking at the page for annual savings rates, there are some interesting figures. Draw your own conclusions or read the author’s comments here.
The Anonymous Widower 