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Interest rate rise should act as catalyst for saving

The decision by the Monetary Policy Commitee to increase interest rates by a quarter per cent should act as a wake up call for the UK consumer so start saving and consult their adviser, says IFA Promotions.

New research from IFAP shows 72 per cent of UK consumers believe they aren’t saving enough, but out of the people who are in a position to increase the amount they currently save, almost 8 million (18 per cent) claim they enjoy spending their money too much to do so.

Following the recent decision to raise interest rates IFAP is urging consumers to take heed of the potential benefits of an interest rate rise and to start saving their money.

IFAP chief executive David Elms says: “Last week’s announcement should be treated less as blanket bad news for the heavily indebted UK consumer and more as a wake up call to save more and spend less. 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. 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.”


Promotions still failing

Promotions in the general insurance and sub-prime mortgage sectors are still not up to standard, says the FSA. A report evaluated nearly 1,000 financial promotions to gauge progress over the past two years. Investment promotions which fell below standard dropped to 32 per cent from 52 per cent in 2004. Equity-release and lifetime mortgage promotions […]

Widows won’t wage a pension price war

Scottish Widows chief executive Archie Kane says the firm will not get dragged into a “destructive” price war to protect its market share. Widows’ individual pension sales in the first half of this year were slightly down on last year and Kane blames the fall on rivals increasing their commission rates to unsustainable levels purely […]

July record for non-conform business

GMAC-RFC has reported a record month for non-conforming business in July, with completions up by 79 per cent on the same month last year. The firm attributes the growth to its online systems and support.

The MM Profile: Kevin Carr

Lifesearch head of protection strategy Kevin Carr fills a variety of roles for the company. He is the PR division, the company spokesman and he manages the media as well as sales relationships with product providers. He is also, according to some, “a rent a quote” and “overexposed”.


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