31/05/2014 Your Money


31/05/2014

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


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What is essential is travel insurance. We will talk to travel

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expert to see how you best plan your trip.

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your weekly guide to making the most of your cash, here every weekend on

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BBC News, available all week on the BBC iPlayer.

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Destination ` Brazil. If you're off there for the World Cup, we've got

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some tips on planning your journey and protecting your cash.

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Luck of the draw. From this weekend, we can invest more in premium bonds,

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if we want to. But what are the chances our number will come up in

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the big draw? And pennies from heaven ` the Church

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of England is to offer financial information to anyone who needs to

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borrow money. The head of Britain's credit unions tells us why that

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could be a big boost for them. If you're off to Brazil for the

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World Cup, and here's hoping it won't be a short trip. You've

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probably made most of your travel plans by now. But should you pack

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some insurance? The Foreign Office thinks you should. Its travel advice

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pages say all tourists should have comprehensive travel insurance. Lots

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of other helpful tips on the Foreign Office website. UK passport holders

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do not need a visa to go to Brazil. But your passport has to be valid

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for six months, and you may be asked to show your return ticket before

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Some other tips, tell your credit card company you are going before

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you settle. You will need your passport to change money at the

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bank, of course, and it warns that there is lots of cream, ridiculously

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in big cities. `` crime. We have with as the travel expert from

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Gocompare.com today. Let us talk about some of the travel issues. The

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point the foreign office was making at the top of the website is how big

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Brazil is. That is probably more important than we might think. Yes,

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it is 65 times the size of England, which is pretty big. Venues England

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are playing at our spread across the country. The recommendation is

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people fly between the venues that have distances between them. There

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are other transport routes, significant bus network. But the

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roads are not brilliant and accidents are regular occurrences.

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And there is a note that strikes can happen out of nowhere, which

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disrupts even the best of plans. Yes, there is a lot of advice about

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making plans in advance, and it will take longer than people expect. They

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always say to leave a lot of time and make sure you get the keeping

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yourself safe. If you are disrupted, does travel insurance

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cover that, does it cover the cost of replacement flight or a refund if

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there is a strike? It depends on your policy. Typically, travel

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insurance purchased in the UK will cover them to and from the UK, so

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the journey there and back. Anti`Dash internal flights are not

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always covered. `` internal flights are not always covered. It is worth

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phoning your provider to ask if you can add this to your policy. There

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are strict rules are some things in Brazil, for example you should have

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identification on new. Yes, keep your passport somewhere safe, but

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take a photocopy with you. Keep your passport in a safe or safety deposit

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box. Also keep for two identification on you at all times.

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`` photographic identification on you, such as a driving licence.

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Also, does being under the influence of alcohol affect your insurance if

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something goes wrong? It can do. The real thing is to be sensible. And

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not put yourself in a situation with it is risky. A lot of policies have

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wording on whether you are under the influence of alcohol, so read the

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documents and be aware of what your particular insurer says. There are

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different levels of wording, of tolerance of the policies, but they

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do not want to be a spoilsport and stop you enjoying your trip to the

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World Cup. But they will not pay out if people are irresponsible. Thank

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you very much for joining us. We know that many of you bought

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shares... One quarter of TSB is being put on the market. Small

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investors will be offered one free share for every 20 we buy. That is

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up to a value of ?2000. One catch is you have to keep the shares for one

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year. More people are getting into debt cause of government mistakes

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over tax credits. They are payments to parents or working people who are

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not well off, but if the government pays too much up front, it has to be

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paid back later. Citizens Advice say that some people have had to pay

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back ?7,000. The taxman says if your income or circumstances change, you

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must tell them to avoid future mistakes.

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Do you need help with your finances? How about some divine

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intervention? The Church of England is to offer financial information

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inside church buildings. It does not look like moneylenders are going to

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be let into the temple themselves. The people who need to borrow cash

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will be advised to use credit unions instead of payday lenders. Mark

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Lyonette is the chief executive of the trade body for credit unions. He

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also sits on the Archbishop of Canterbury's tax crew for

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responsible lending. This is a pilot programme. How was it going to work?

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Yellow macro I think it is going to do three things. I think it is going

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to help train local church people to help promote the local credit union.

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I think some of those church people are probably also going to volunteer

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their expertise. They will help support the local credit union in

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whatever way is needed. And of course, hopefully many of those

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people will help the credit union `` join the credit union.

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What we should not forget is when someone like the Archbishop of

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Canterbury, who has a financial services background, when he makes a

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statement about the damage that payday lending is doing, and he

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supports the credit union sector, then actually many people, whether

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they are members of the Church of England, whether they are practising

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Christians, the people of other faith or no faith, people do listen

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and they get some trust to what he is saying. So this is not dependent

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on the number of people who go to church every Sunday, this is a

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service for all comers? Many of those people who go to the Church of

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England or Scotland or the Methodist Church will themselves be helping

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here. But I think the message goes beyond that. When someone like the

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Archbishop of Canterbury comes out and makes the statement he has, I

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think there is a level of trust, and that reaches well beyond the people

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on Sundays. But as you know, some of the Church of England's investment

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money has gone into funds which lent money to the payday lenders, and as

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far as we know some of those arrangements exist. Wouldn't it be a

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better signal if the Church of England cut all its ties to money

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right there and then? As I understand it, and I am some way

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away from this, the Church of England is doing its best to get out

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of that investment as soon as it can without losing a huge amount of

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money. You expect this will lead to more business for you. How do people

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find there nearest credit union? The best way to find it is to go online,

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if you have access to the Internet, find your credit union .co.uk,

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taping your postcode `` type in your postcode. It will hopefully bring up

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several credit unions you could join. Thank you very much for

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joining us. Premium Bond is, you know what they

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are, saving money for the future. You do not earn interest, but you

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are put into a monthly prize draw. The limit to what you can invest is

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about to go up to ?40,000. What are the chances of your numbers coming

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up? It is nearly 60 years since Ella

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tonic random number indicators started picking the month's

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prize`winning Premium Bond 's. A third of us have Premium Bond 's and

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we seem to like the idea of gambling interests on our savings on a prize

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draw. Others look for a certain return. Once upon a time, you got a

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letter if you won the Premium Bond 's. Now, less excitingly, we check

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numbers online. Even less excitingly, the prize has been

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reduced from 1.5% to 1.3%. That means that if you put ?100 into

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premium Bonds, your annual return on average is ?1 30. So the big

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question is, should you buy more premium Bonds, just because you can?

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Some see them as another tax`free allowance, and others see it as a

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bit of a lottery. If you have got the money, and probably if you are

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higher rate taxpayer, and if you do not rely absolutely one income from

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your investments, it is worth taking advantage of the increase in the

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allowance. The chances of winning regulates the flow of deposits, so

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we do things stand now? `` where do things stand now? There are 46

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billion in circulation, which is a staggering number of them. Let us

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think about the odds of you own the minimum number, ?100 worth. The odds

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of you winning are under half a billion to one. That is similar to

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both of us picking one person at random in the US or Japan and both

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picking the same person. Are there better odds to win a better price?

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`` any prize? Yes, they gave out 1.8 million prizes in May, and your rod

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of winning one of those is about 25,000 to one. If you are still

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dreaming of becoming a millionaire, the odds don't matter, which is just

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as well. If you put your savings into cash Isa and buy a lottery

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ticket every month, have better odds of becoming a millionaire. You can

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visit the National savings website. There is the address.

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That is all for this week. Keep up to date with what ever we put on the

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website. The address on screen. You can follow us on Twitter also.

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More next week, hope to see you then.

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This is BBC News, the headlines: Britain's three main party leaders

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condemned the death sentence given to a woman in Sudan for marrying a

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Christian. The long`awaited tram service in Edinburgh opens to the

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public.

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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.


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