26/07/2014 Your Money


26/07/2014

Weekly round-up of news about mortgages, savings, credit cards, bank accounts and pensions, plus helpful tips and advice. With Declan Curry.


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expected. That can be done things of the Government says, here is free

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guidance but how useful will it be? Hello and welcome to Your Money,

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your weekly guide to making the most of your cash,

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here on television every weekend and Free information for pensioners to

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help them manage their money ` the house sellers demanding more

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money after the sale's been agreed. We'll see if you can stop

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it happening to you. Maybe it's time to say goodbye to

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your old student bank account too. We've got advice on finding

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the right graduate account. After next April,

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anyone who is retiring will be able to do what they want with

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their pension savings. No limits on how much cash you take

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out, no rules There are all sorts of worries that

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people who've saved carefully and prudently all their lives will

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suddenly flip and blow the cash on sports cars, lemon`piped leather

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jackets and endless world cruises. So now the Government says

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the newly`retired will get free, independent guidance

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on money matters, paid for Padraig Floyd is a financial

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journalist who specialises Welcome. The Government when it was

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talking about this, did not use the word advice. It is saying guidance.

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There are questions about how useful this information might be. It is

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difficult to work out how useful it will be because we do not know who

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will be delivering it. It has spent the last few years overhauling the

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advisory element of the financial services market by making advisers

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to clear how much they are being paid by product providers. So until

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we find out who will be delivering it, it will be difficult. And there

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is a big difference between advice, which is personal to you, which is

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based on your details and circumstances, and just general

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information, broadbrush, superficial. Guidance will give you

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an indication what you may do with your money, whereas advice is

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specific to the individual and looks at the individual circumstances.

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Therefore, it is arguably worth the money that some of you may be asked

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to pay for it. This is the old argument that you get what you pay

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for. If you are paying for something that will effectively look at your

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spending for the rest of your life, you should really be investing

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something in it as well as a little bit of time. I heard you say we are

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not sure who is good for this free information. I have seen some names

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that the Government has suggested. Citizens' Advice, for example. The

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money advice services, which is currently up and running. Age

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concern? They have not pinned it down yet because we had yet to see

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some regulations. But there could be a number of organisations,

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independent of the financial services industry. They have also

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mentioned the pensions advisory service and the money advisory

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service. The pensions advisory service for those in the industry is

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generally look the front runner because it offers already very good

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independent guidance to individuals about what they might do or how they

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could finance and a pension they may have had in the past. But there is a

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disconnect, we are talking about people who have saved all their

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lives, they have been prudent and careful, getting information on what

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to do with that money now they have the freedom to make those decisions.

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We are talking about advice `` we are talking advice `` we're talking

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about information from organisations that are more used to dealing with

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retired people who do not have much money at all. Many of these reforms

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have been suggested by the Chancellor Hummer because he seems

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to be opposed about people buying annuity. The reality is that the

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vast majority of people will retire with less than ?40,000 and have very

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limited options. So, they may have been pushed the words something that

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will secure their income for life, with the freedom of being able to

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access all the money as cash, comes responsibility. That is by the

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Government is pushing this idea of guidance. `` that is why. Thanks for

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looking into this. One other note on pensions ` if you

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delay taking your state pension, That scheme is

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about to become less generous. At the moment, your pension rises

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by just over 10% for every year you You get the extra payment gradually,

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so you have to get ten years of pension payments

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before it becomes worth your while. Under new rules, the increase in

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your pension for delaying it will be That means you'd need to claim

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the pension for 19 years But have you packed

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the right travel insurance? The insurance companies say you do `

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they would say that, wouldn't they? But think about this ` each week,

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4,000 people claim on their travel insurance

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for medical treatment while abroad. Get a European Health Insurance Card

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` the EHIC. It's not a substitute for travel

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insurance, but it is free and allows you to receive emergency treatment

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from public hospitals across Europe. If you are buying insurance, they

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say, don't buy a policy based on price alone ` the cheapest policy

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may not cover all of your needs. If drinking sangria and dancing

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on the tables is your dream holiday, check the small print `

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some insurance policies don't cover There's more information

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and advice from the Foreign Office on its Know Before You Go website `

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www.gov.uk/knowbeforeyougo. Rising house prices at tempting were

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sellers to demand more money at the last minute, even after the sale has

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been agreed. We met one wire who has been left high and dry and we find

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out how you could stop it happening to you. I am in love with this flat,

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it is a beautiful building. Lucy is a primary school teacher from

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London. She and her partner are desperate to buy the first flat and

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had been living with his parents to help save for a deposit. Twice over

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the past year, they thought they cracked it. They had offers accepted

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and they cracked it. They had offers accepted

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and came within a few days of exchange, then both times, they had

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an unexpected shock. We found the first flat, which was perfect for

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us, we work pleased we found it, then coasted exchanging, the vendor

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has asked for more money, which we couldn't afford. So we continued

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looking, then found the second flat, which were really pleased to find,

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then the same thing happened. The vendor has asked for a lot more

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money which we couldn't afford. We were really upset. Just really

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shocked that it could happen a second time. Lucy has been a

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of ghost gazumping, a trend that has been on the rise in property

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hotspots that London and the south`east. The pattern is usually

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the same, a sale is agreed but there is a delay before exchange. The

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seller sees prices raising and decides they can get more money if

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they remarket the property. So the gift buyers and automating, pay

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more, or miss out. `` they give. This kind of gazumping is perfectly

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legal. The law in England and Wales says that sellers and buyers can do

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what they want until exchange but just because it is legal it does not

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mean it is fair. The problem with the property market is that it

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brings out the worst in people. Sellers will do to their buyers what

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they would not dream of doing to their friends or family. It is

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unfair, it is immoral, it is greedy for the very often, buyers have

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spent a considerable amount of money through that Purchase, only then to

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be left high and dry. So who's to blame? Estate agents say it not

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their fault. An agent does not want this but gazumping. They want the

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sale to go through quickly. I suppose it is partly media, people

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see headlines and they see the headlines for where they live. I

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have been in areas in the North East where properties have been on the

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market for three years and they read the media and they think their

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property will go up but it hasn't. There are things buyers can do to

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reduce the risk of this happening to them. Speed is of the essence. Have

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Jalawla and finance in place. And keep everyone posted with

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updates on what is happening. `` have your lawyer.

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This will come of `` as little comfort for Lucy. She has now given

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up on the idea of running her own home, for now. It is back to rented

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accommodation. An important date for the diary. If

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you fill out a self`assessment tax form and pay tax in advance on

:09:14.:09:18.

account, your second payment is due at the end of this month. It also is

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very important for most people who get working tax credit or child tax

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credits because most of them have to renew their claims before July the

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31st, otherwise your payments may be stopped. You have to tell the taxman

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if there has been a change in the number of hours your work or change

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in your wages. You need a renewal pack, for which you can call the

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helpline. If you do not have to renew, you will be given a different

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date. The financial ombudsman is getting

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up to 5000 new completes every week about Payment Protection Insurance.

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That is the insurance supposed to cover credit card payments if we

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lose jobs or fall sick. If you were solid and did not need it, you are

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entitled to a refund. To get it, contact your bank first. Only get in

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touch with the ombudsman if the bank does not sort it out properly.

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If you're on a fixed`rate energy bill, you might want to check when

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it runs out. New switches will find deals with its bland `` expire at

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the end of joy or August and customer deals will be transferred

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to a more expensive rollover tariff, which could mean an average rise in

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your energy bill of ?103. Speaking of energy, people whose

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power is cut off for long spells during bad weather will be entitled

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to higher compensation. If you go at least 24 hours without power, the

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regulator is raising the minimum payment per customer to ?70. The

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maximum amount that can be claimed by a customer is also going up to

:10:53.:11:00.

?700. That higher`level will come into effect from April, 2015.

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If you have just left university, congratulations, now you will

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discover what real work feels like! You probably have a lot of debt, so

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what bank account is best? You are from a charity which teaches young

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people how to manage the money better. If you have just graduated,

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you have so many things to worry about. A new job to find, CVs

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descender, you might be planning a last long holiday. Looking at the

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bank account is going to be pretty much at the bottom of your list. But

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it is so important. A student bank account is designed for student ``

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students. So, it is a good time to make that first financial decision,

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look at your priority and shop around. There is a big difference

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between the accounts, they are not all the same. They are not. A

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student bank account will usually have an overdraft attached. People

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think if they come out of university with an overdraft they cannot

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switch, but that is not the case. Months `` most student bank accounts

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will still be would a facility quite quickly but most overdraft accounts

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may carry it on. So you may need to switch if you want to carry on the

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interest`free overdraft. The other thing I would say is, don't get

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stuck into a cycle of living on the overdraft, it will end eventually.

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You have to start budgeting and living within your means. That means

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that he won't interest`free so it is a bit easier. You can use that money

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instead to pay back the debt. And you will be thinking about things

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like putting down a deposit on rented accommodation, but moving,

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buying things for your first job. When you look at overdraft, what are

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you looking for? That long interest`free period, but also don't

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forget, you may be in the lucky position of not needing one. If that

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is the case, you should be looking for other accounts, not necessarily

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graduate ones. Think about things like cashback, look at the interest

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rates on a current account and think about saving accounts as well. Is

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there such a thing as a student who does not have an overdraft

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nowadays? I have yet to meet one. Who can open a graduate account?

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Anyone who has graduated in the last three years. You haven't missed the

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boat, even if it has been two years. But Mac so the overdraft limit,

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don't go over it. Absolutely. And budgeting is a life skill. Work out

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your means, live within it and get off that overdraft as soon as you

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can. Easier said than done, but thank you.

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That's all from Your Money for this week.

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Don't forget the Your Money pages on the BBC's business website `

:14:14.:14:16.

On social media ` you can get updates by

:14:17.:14:48.

Israel and Hamas call a 12`hour humanitarian truce in Gaza ` 940

:14:49.:14:53.

Weekly round-up of news about mortgages, savings, credit cards, bank accounts and pensions. Helpful tips and advice on how to get the best deals, consumer rights and making your money work harder for you. With Declan Curry.


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