Money blog: The products you should never buy at full price (2024)

Every ThursdaySavings Champion founder Anna Bowesgives an insight into the savings market and how to make the most of your money...

With more than £253bn sitting in accounts earning nothing, savers are missing out on billions of pounds in interest. Although we are expecting to see a base rate cut in the next few weeks or months, as this keeps getting pushed back it's good to see that some of the best easy access accounts that you can open are still paying more than 5% AER (the Annual Equivalent Rate).

Some existing savers may have seen the rate on their accounts dropping however, as some providers have already started to cut rates in anticipation of a lower base rate this year. So, if you are one of these savers, it could pay to switch if you feel you are getting a rough deal.

That said, as easy access accounts are variable rate accounts, the rate of any could be cut at any time – so keep a close eye on what's happening.

Another thing to watch out for is bonus rates, which some of the top paying accounts include in the rate they are advertising. The most common type of bonus is one that will apply for the first 12 months of the account being opened, so you need to make sure you move your money at that stage, if the rate without the bonus is uncompetitive.

But sometimes the bonus applies until a specific date, which could be less than 12 months. For example, Chase Bank's Chase Saver is paying a headline rate of 5.10% but this includes a bonus of 1% which will be removed on 16 January 2025. Therefore, the rate that you will earn over 12 months (the AER) is lower than the headline rate. As of 16 June 2024, the AER on this account was nearer 4.68% - although as long as you make a note to review and move your cash when the bonus is removed, you can still earn 5.10% in the meantime.

Of course, as mentioned above, as with all variable rate accounts the interest rate you are earning can be cut at any time anyway, so you need to keep your eyes peeled.

It's important to read all the terms and conditions when opening a savings account so that you earn the interest you are expecting.

The chief executive of Lloyds Banking Group – the UK's biggest lender – has offered a bleak outlook for anyone hoping for a return of low interest rates.

Charlie Nunn told Sky News interest rate cuts from the Bank of England expected later this year would be "beneficial" – but warned homeowners not to expect a return to the ultra-low interest rates seen for most of the last 16 years.

He added: "Of course, the short-term impact of interest rates is going to impact, first of all, the government on the cost of government debt. That will be important. And secondly, it'll make the cost of borrowing for businesses short term more attractive… that'll be important.

"In terms of the impact on the broader consumer in the UK, it'll take longer to feed through. Around mortgages specifically, we've just come off a decade where mortgages have been in the 1.5-2.5% range.

"The expectations the market have is that interest rates probably won't get below 3.5%.

"And that means mortgages, or the new normal for mortgages, will be in that 3.5-4.5% range, not 1.5-2.5%.

"So there is going to be a higher cost of borrowing in the economy, probably based on what we can see happening at the moment."

Read Ian King's full interview with Charlie Nunn...

Drivers are being warned this week's heatwave brings risks of an unexpected £180 bill.

Car mechanics from Prestone said the hot weather could cause significant damage to windscreens - meaning you'll have to shell out for a replacement.

"Slightly counterintuitively, it isn't the heat directly that causes damage, it is the fluctuation in temperature that could cause damage," they said.

"When this happens to brittle materials such as glass, it can cause them to explode or crack; this is called thermal shock. To stop your windscreen from accumulating a lot of heat, avoid parking in direct sunlight. Consider parking under a tree, in a garage or other forms of shade."

Deliveroo shares have risen following reports US rival Doordash held takeover talks with the business.

Doordash flagged an interest in taking over the UK's Deliveroo last month, but talks ended as the two sides couldn't agree on the value of the deal, according to Reuters news agency.

The London-listed company's share price jumped by 6% to 136p this morning, although later eased to 3.7% higher.

Deliveroo has seen its value fall by more than 50% since debuting on the stock market in March 2021.

New details have been unveiled for Universal's first UK theme park - including plans for the attraction to be open 365 days a year.

Universal Destinations & Experiences - which is owned by Sky's parent company Comcast - has bought land near Bedford as itplans to buildEurope's largesttheme parkwith millions of visitors per year, as well as a 500-room hotel and dining area.

Read the full story here...

The building society is the latest to slash rates, after HSBC yesterday and Barclays on Monday.

It will be lowering two, three and five-year rates by up to 0.21% tomorrow.

It follows a reduction in swap rates - which dictate how much it costs lenders to lend.

So what does this mean for the market more broadly?

Here's what the experts told Newspage...

Emma Jones, managing director at Whenthebanksaysno.co.uk:

"They're falling like dominoes now. Things are suddenly looking considerably brighter for the property market as we enter the second half of the year. Enquiries are up sharply this week, which suggests the improved weather may also have lifted spirits and confidence."

David Stirling, independent financial advisor at Mint Mortgages and Protection:

"We've not exactly hit the bargain basem*nt for borrowers just yet but the competition for new business from the banks has definitely heated up this week. For some the Bank of England decision in August is very hotly anticipated and could hopefully lead to an incredibly busy autumn."

Dariusz Karpowicz, director at Albion Financial Advice:

"While these minor decreases are certainly a step in the right direction, the average rate for a two or five-year fix remains high. It's good to see rates moving down, but let's not get carried away. There are still too many unknowns on the horizon. The upcoming election, fluctuating house prices and geopolitical uncertainties all add layers of complexity to the market."

The supermarket has announced plans to open about 400 more of its Morrisons Daily convenience shops.

It is part of plans to take on discount retailers Aldi and Lidl, according to Retail Gazette.

Morrisons said it wanted to increase its total number of smaller shops to 2,000 in 2025, although it has not yet given a list of locations.

The supermarket has seen its like-for-like sales, excluding fuel and VAT, rise by 4.1% over the three months to 28 April.

Chief executive Rami Baitieh said he was "pleased with the overall performance" of the business in the second quarter.

No one could have failed to notice the rocketing price of olive oil over the last couple of years - and it's been just as bad in Spain, where it is an integral part of the Mediterranean diet.

The Spanish government has now said it will temporarily ditch the sales tax on olive oil to help consumers cope.

Spain is the world's leading producer and exporter of olive oil, and last year Spanish households consumed an average of six litres per person.

However, the country's agriculture ministry says prices have surged by 272% since September 2020.

The Money team wrote this piece in March about why that's happening...

The Spanish government had already cut the sales tax on olive oil from 10% to 5% as part of an anti-inflation package.

Now they've said no sales tax will be applied from July until September, when it will be taxed at 2% until the end of the year.

From then on, it will be taxed at 4%.

Spanish treasury minister Maria Jesus Montero said the decision reflects "the importance of olive oil in the Mediterranean diet and a healthy lifestyle".

The "Oscars of the aviation industry" has taken place and Qatar Airways has come out on top.

Qatar Airways was named the overall winner, as well as first in the business class, business class lounge and Middle East categories, at Skytrax's World Airline Awards last night.

It's the eighth time it has been awarded the best in class.

Last year's winner, Singapore Airlines, came second, followed by Emirates, ANA All Nippon Airways and Cathay Pacific.

British Airways was the highest-ranking UK airline in 13th place.

Europe's best airline was named as Turkish Airlines, while the continent's top low-cost airline was Spanish company Volotea.

The rankings are based on airline passenger satisfaction surveys across more than 100 countries between September 2023 and May 2024.

Other notable names to make the top 100 were: Ryanair (63), easyJet (66), Jet2.com (68) and Tui Airways (83).

These are the airlines that made the top 20:

1. Qatar Airways
2. Singapore Airlines
3. Emirates
4. ANA All Nippon Airways
5. Cathay Pacific Airways
6. Japan Airlines
7. Turkish Airlines
8. EVA Air
9. Air France
10. Swiss International Air Lines
11. Korean Air
12. Hainan Airlines
13. British Airways
14. Fiji Airways
15. Iberia
16. Vistara
17. Virgin Atlantic
18. Lufthansa
19. Etihad Airways
20. Saudi Arabian Airlines.

By James Sillars, business reporter

Two issues are dominating the behaviour of investors at the moment: US inflation and the snap parliamentary election in France.

Uncertainty over the two has been driving a topsy-turvy performance on stock markets as any scrap of evidence over the potential timing of a US interest rate cut is seized upon.

A sticky inflation picture across the pond – as we have witnessed here – has pushed back Federal Reserve and therefore market expectations for a reduction in borrowing costs.

The next big number awaited is the latest personal consumption expenditures price index, a closely watched inflation indicator at the US central bank.

A weaker than expected number could see a boost for shares globally after a volatile few weeks.

Following a 0.4% decline yesterday, the FTSE 100 opened 0.4% up at 8,285.

Among the wider shares doing well were those of AO World, up more than 3%.

The online electricals retailer raised growth targets for its current financial year after profits over the 12 months to the end of March beat market expectations.

The pound and dollar have benefitted amid struggles for the euro over the past couple of weeks.

Much of that has been down to election speculation in France where Marine Le Pen's National Rally (RN) is leading first-round polling.

The election was called by President Emmanuel Macron after RN's strong gains in the recent European elections, sparking a renewed market focus on the French economy and the potential knock-on effects for the euro area.

France has a debt to GDP ratio of 110%, meaning its debt is more than the value of its annual output.

There is a budget deficit of 5%. EU rules allow for just 3%.

The market's worry, according to analysts, is that if the far-right RN were to win big in the first round, then voters may take a tactical turn to the left in the second.

It is a concern for France and the wider euro, they said, because a left-wing alliance influence in government would seek even greater public spending commitments than RN has made.

French government borrowing costs have soared since the election announcement.

Earlier this month, the risk premium France pays for its debt on top of Germany's neared levels last seen in 2012.

Quorn has been known for decades as a producer of meat-free alternatives - but in a new venture, it will be blending actual pork sausages with fake meat.

The company has said it wants to reach consumers who are cutting down on their meat consumption but who are not going entirely vegetarian or vegan, according to a report in The Grocer.

The new products include burgers and sausages, and will contain Quorn's mycoprotein blended with meat.

They will be available by the end of the year within the NHS and from some food service operators.

Marco Bertacca, Quorn's chief executive, told the publication that appealing to meat eaters "represents the majority of people, and so it is a massive opportunity to decarbonise part of the food system and improve public health".

"Once upon a time we were effectively competing with the meat industry – only making products that were alternatives to theirs, and encouraging people to switch," he said.

"There have been attempts in the past to make products like burgers and sausages with a blend of meat and plant-based ingredients like soya and pea protein, but the products have not delivered for consumers."

It told Sky News that it is still in the development stages of its catering partnerships but it has had "fantastic" feedback on the quality of the products and impact on sustainability targets so far.

Livestock farming accounts for about 15% of global greenhouse emissions, according to FAO data.