Once again Northern Rock hits the headlines with proposed way forward for the struggling bank. Rather than a complete nationalisation by the government it looks like there will be a combination of that and privatisation.
The existing debt will be converted to government bond and sold of in smaller parts over a five year period which effectively splits the risk between private shareholders and the government.
'Free cash - if you play your cards right' is the catching headline of an article on FT.com this week exploring the benefits of cash back credit cards.
The article explains how while a cash back card can seem like an opportunity to pocket a few extra quid, a 0 per cent purchase card can offer higher financial rewards.
The idea is that by making your purchases on a 0% card and only making the minimum payment, the remaining payment can be invested in a high interest saving account which will, in turn, earn more than could be achieved with cachback deals.
While it's an interesting proposal, it would require a far greater degree of self discipline to save the money than it would to simply make use of the benefits offered by the cash back cards. A worthwhile read though if you have confidence in your financial management skills and want to make a buck or two out of the credit card companies!
The FT reports personal loan, mortgages and saving rates are now moving independently of the Bank of England base rate.
This means, despite the Bank of England holding the base rate at 5.75%, rates that are usually tied to this figure are still changing. Many lenders have increased interest repayment rates on personal loans and mortgages while decreasing rates paid on savings accounts.
Holding the base rate indicates the Bank of England have yet to see enough evidence of change to make adjustments but the lenders independent actions show their concern over the current state of the market. In the wake of the Northern Rock troubles it's hardly a surprising reaction.
While the changes certainly aren't in the customers favour, the held base rate is a good indication of the Bank of England's confidence in the economy.
