Latest Banking News

July 2, 2009

Santander rebrands commercial banking units

by David Masters
The commercial banking wings of Abbey and Alliance & Leicester were yesterday renamed under the Santander brand. Santander-owned Abbey UK Corporate Banking and Alliance & Leicester Commercial Bank were rebranded Santander Corporate Banking. A total of 20 regional corporate banking centres will undergo the name change this year, including centres in Birmingham, Cardiff, Glasgow, Hull, Liverpool, and Reading. Centres in Nottingham and Manchester will be ...

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July 1, 2009

Sainsbury’s announces 2.8% Internet Saver

by David Masters
Consumers opening a Sainsbury's Internet Saver account this month will receive 2.8% interest on their savings, provided they make no more than three withdrawals in the next year. This headline rate is 2.05% higher than the standard rate of 0.75% paid to Internet Saver account holders. However, savers who make more than three withdrawals in 12 months, or who allow their account balance to ...

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June 30, 2009

Check your bank balance via text message

by David Masters
Customers at Lloyds TSB are now able to request their bank account balance via text message. The "Balance on Demand" service was launched today by the high street bank. To check their bank balance, customers text BAL and the last four digits of their current account to a special short telephone number. In reply, they receive a text that shows their current balance ...

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Lloyds Banking Group to axe further 2,000 jobs

by Kay Murchie
Lloyds Banking Group has dealt yet another jobs blow to its staff with the news that it will axe another 2,100 jobs over the next three years. Lloyds Banking Group, which is 43% state-owned, has shed thousands of jobs following its merger with HBOS last autumn. Since January, the banking giant has announced more than 7,000 job losses. ...

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June 29, 2009

OECD calls on Government to control UK‘s soaring debt and restore lending

by Kay Murchie
The Organisation for Economic Co-Operation and Development (OECD) is calling on the UK Government to take control of the UK’s spiralling debt. The OECD also said that restoring the flow of lending to the economy is an urgent priority - even if it meant nationalising more banks. The warning from the organisation comes as the Bank of ...

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Savings hit record high despite shrinking economy

by David Masters
The amount of money Brits are putting aside for a rainy day has reached a record high, according to research by National Savings & Investments (NS&I). The average UK consumer deposited £92.41 per month into their savings account this spring, the highest amount since NS&I records began in 2004. Regular savers, meanwhile, put aside an average of £209.23 per month, a figure ...

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Egg unveils two new savings accounts

by David Masters
Internet bank Egg this week unveiled an instant access savings account and a fixed-rate bond. The Egg Bonus Savings Account pays 2.8% gross pa/AER, including a fixed-rate bonus of 1.55% for the first 12 months. The account can be opened with a minimum investment of £1, and offers the flexibility of unlimited penalty-free deposits and withdrawals. From next month, savers will be able to ...

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CBI survey suggests financial sector picking up

by Kay Murchie
A quarterly survey from the CBI suggests that the UK’s beleaguered financial services sector is on a "gradual" road to recovery. While the organisation warned of considerable job losses and cuts to investment, there are indications that the sector is emerging from the worst of the downturn. The CBI also cautioned that the situation remains challenging for banks with growing debt ...

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June 28, 2009

Which? names Co-operative Bank Best Financial Services Provider

by Kay Murchie
The Which? Awards, which names 'the best of the best' in products and services, has named the Co-operative Bank as the Best Financial Services Provider. The bank has been performing well amid the recession and its customer numbers have increased significantly in recent years because of its ethical investment policy. Since 1992, the bank’s commercial lending has grown from £571 million ...

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June 26, 2009

Nationwide launches exclusive members’ zone

by David Masters
Nationwide this week unveiled a new members' zone on its website, exclusively available to all customers of the Nationwide Group. Accessible from the Nationwide homepage, the portal provides a one-stop-shop for news updates, member events, and information about what it means to be part of the Nationwide Group. Podcasts and videos are available on the site, addressing issues that members have told Nationwide are ...

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Leeds pays 3.05% on easy access account

by David Masters
A new online easy access savings account launched this week by Leeds Building Society pays interest at 3.05%. For a minimum investment of £100, savers are offered unlimited penalty-free access to their cash, with no advance notice required. Kim Rebecchi, Leeds' director of sales and marketing, said: "A return of 3.05%, combined with the flexibility of online functionality and penalty free access, ...

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June 25, 2009

Yorkshire launches fixed-rate eBonds

by David Masters
Yorkshire Building Society (YBS) this week launched a new range of fixed-rate eBonds aimed at customers "looking to maximise the returns they receive on their savings." Available for two, three, or four years, the bonds pay a fixed rate of up to 4.5% gross/AER and require a minimum investment of £100. The two-year eBond pays interest at 3.5% per annum, whilst the four-year eBond pays ...

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June 24, 2009

Lloyds Banking Group and L&G announce job losses

by Kay Murchie
Yet again the financial services sector has been dealt a heavy blow with the news that Lloyds Banking Group is shedding 240 offshore banking jobs. Furthermore, Legal & General (L&G) has confirmed plans to axe 200 positions from its protection and annuities business in Hove, Cardiff and Kingswood in Surrey. Lloyds Banking Group, which is 43% state-owned, has shed thousands of ...

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June 23, 2009

Earn 6% interest with Abbey’s packaged account

by David Masters
Abbey is paying a 6% interest rate to its premium current account holders. The Santander-owned bank is offering the rate on balances up to £2,500 to customers opening the new Abbey Reward Account. To benefit from the headline rate, customers must deposit at least £1,000 per month into the account. Other benefits of the £10-per-month packaged current account include annual worldwide travel insurance ...

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June 22, 2009

RBS chief exec set for £9.6m pay package

by Kay Murchie
Royal Bank of Scotland (RBS), which is almost 70% owned by the taxpayer, is set to spark public outrage again with the news that chief executive, Stephen Hester, is in line for a £9.6 million pay deal. The bank, which is expected to approve the package this week, has also hit the headlines this weekend with The Mail on Sunday ...

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June 18, 2009

Ex RBS chief to give up half of pension

by Kay Murchie
Former Royal Bank of Scotland (RBS) chief executive, Sir Fred Goodwin, has given in to public pressure and agreed to hand over £4.7 million of his much-talked about £17 million pension. There has been much hostility towards Sir Fred with regard to his controversial pension entitlement, since he and former ex-chairman of RBS, Sir Tom McKillop, were both ...

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BoE Governor presses Chancellor for major financial regulatory reform

by Kay Murchie
Mervyn King, the Governor of the Bank of England, is calling for major regulatory reform, but Chancellor Alistair Darling said there are no plans to change the current financial regulatory system. The news comes as US President Barack Obama is proposing a major reform of banking regulation in order to prevent future meltdowns of the US banking system. Mr Obama ...

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Obama outlines regulatory overhaul for US financial system

by Kay Murchie
US President Barack Obama is proposing a major reform of banking regulation in order to prevent future meltdowns of the US banking system. Mr Obama described the reforms as biggest overhaul of the system since the 1930s, which will see major banks put more money aside against future losses to prevent excessive risk taking. The objective is to tackle the ...

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June 17, 2009

Nationwide guarantees returns on combination savings

by David Masters
Nationwide this week launched a new savings account for customers looking for both short-term and long-term returns. The Guaranteed Combination Plan combines a one-year 4% fixed-rate bond with a six-year equity bond linked to the stock market. The equity bond, provided by Legal & General, tracks the FTSE 100 Index, the DJ EuroSTOXX 50 Index, and the S&P 500 Index, with a guarantee ...

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June 15, 2009

Lloyds in £450m write-off on Admiral Taverns loan

by Kay Murchie
Banking giant, Lloyds Banking Group, is expected to take a hit of £450 million as a result of its investment in pub chain Admiral Taverns. In order to finance a series of acquisitions, the group's Bank of Scotland arm loaned more than £850 million to Admiral but the pub group, which owns more than 2000 pubs, has been hit by ...

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