The best checking account

Is it worth getting an additional amount from your bank each month, and if so, which is the best bank to pay?

There are a number of reasons to switch banks, and payroll is an increasingly common way banks are trying to trick you into paying with them.
From free cinema tickets to paying five times the monthly payment on your account, everything is definitely better than the usual accounts we use that return nothing.
However, they are not without their drawbacks, including the fees and terms you set monthly for direct debit or deposit.
And this year there have been some renovations to prevent those who only have bills for rewards, not their regular expenses and savings.
Whether you’re just looking for an account or looking to play multiple systems, it’s worth considering.

You can make money monthly or money for free

Some accounts offer cash, others offer free, others give you a choice between cash and free.
Pricing accounts are chargeable

These benefits are not actually free! All accounts have a monthly fee. You can avoid this by paying a certain amount of money each month. Another person to consider when figuring out how much you are going to make.
You may need to “ask” the price

While some will deposit prizes into your account, others (Natwest & Barclays) will place funds in a separate gift wallet which you will have to manually withdraw. It’s really a little useless.
And if you do claim a cash prize, you should vote for it, although you don’t have to do something different every month.
There will be additional requirements

Some pricing accounts require you to set a direct debit or pay a minimum amount each month.
This is typical. You may not be asked to do all of them, maybe just one or two.

Set direct debit
Banks often ask for one or two direct debits, sometimes for a minimum. While “active” usually means the money was due in the past year, the bank using it will only pay you in the months of direct debit payment.
It’s no big deal when you’re paying the bills. They all have direct debit you can use – although this may be more suitable for checking accounts with cashback.
In this case, direct debits can easily be arranged for other purposes, eg. B. for credit card accounts, memberships, subscriptions, and donations to charities.
You can change a different bank direct debit to whoever you are paying with or make partial changes with your bank.
Pay money every month
A minimum monthly deposit is often required for gift accounts. This is to encourage you to pay your salary there. You can easily do this if you want – just let your HR department know the new details.
But you don’t have to. Easy to transfer money from another checking account with fixed orders. You can do this as a lame person or break it down into smaller amounts at the end of the month if that’s better for you.
And he doesn’t have to live there. You can transfer it back immediately.
Issue your debit card
If you have multiple accounts, you will also need to issue a debit card. If you can do this as part of your regular expenses, then great, but of course be careful if you don’t.
Use internet banking or your application
You may also need to log into your banking app or online account once a month to qualify for rewards.
The presence of multiple accounts for the price

As I’ve said many times before, there’s no reason you only have one checking account – and that means you can have multiple reward accounts.
You only get one personal compensation account at each bank, although you may have additional accounts as joint accounts with multiple banks. This means you can potentially have three accounts with three times as much budget and prizes.

But the more you have, the more you have to do to be right. Some are easy to fix, others may make them less useful.
Recycle incoming payments

As explained above, most people should be able to cover it with checking account prices. And if you have more than one, it’s easy to repeat for the others.
In fact, I moved money from one bank to another to meet the eligibility threshold and it eventually returned completely to my original account.
Check out the app

It’s a little funky, but manageable. Make sure to keep this in mind if this is not your main account. I have recurring entries on my calendar to check all applications. It’s also a useful reminder to claim or transfer a prize.
The debit ran out immediately

If you have multiple award accounts, you can quickly run out of direct debit. Before, you could raise a few pounds for charity, but the bank did it anyway and made it useless.
For example, Natwest will reimburse you £ 2 for each direct debit, but DD must be at least £ 2. So if you set up a new payment to get the price, you won’t get any better off.
Of course, this can be seen as free money for charity – which is great – but it does take a bit of effort.
My best bank account with prices

Here are my thoughts on the different pricing accounts.
Club Lloyds account

What You Get: Six Free Movie Tickets, Monthly Movie Rentals, Magazine Subscriptions OR Dining Membership
Monthly fee: £ 3 although refundable if you pay £ 1500 per month
What You Get Each Year: £ 54 (equivalent to 12 films available for rent on Rakuten)
Requirements: None

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Look beyond overdrafts to improve business cash flow

This is always the case, but for businesses of all sizes, cash flow is one of the most important success factors.

In an unprecedented year, this has never been truer, and while many companies have traditionally relied on overdrafts to spend less time, COVID-19 has changed goals in many ways.

It is understandable that the pandemic has affected the yields and profitability of some businesses, and with tighter credit in some cases overdrafts have been reduced or withdrawn. This can be challenging and it is important to remember that lenders have the right to withdraw this credit line at any time without notice.

After 44 years in the banking industry, most recently as NatWest’s director of communications for West Norfolk, I understand how global solutions can impact small regional companies. I’ve been through four major recessions during my career, and my experience is that trading outside of a recession is more difficult than trading through a recession.

I mean, while businesses can tighten their belts during tough times, the impact of delays on reduced cash flow can impact a business’s ability to function as orders increase.

I recently worked with a production customer who experienced this exact scenario. Even though the company continued to operate during the downturn, it was forced to invest in cash reserves to pay employees and suppliers and to keep things cool. When restrictions are lifted, the company inevitably sees an influx of orders, but with a 60 day payment term, it is now struggling to make up the difference until the money is returned to the bank.

During my banking days, I could probably offer these customers an overdraft or one-stop loan. Now that we are working with Complete Commercial Finance, we have access to even more options including invoicing, refinancing and special financing. Creditors. In reality, the business world cannot stand still and must be open to exploring other ways to create working capital in the current situation.

The government’s Corona Virus Business Interruption Loan Program (CBILS) and Loan Program (BBLS) are providing support for many businesses this year. In late September, Chancellor Rishi Sunak’s Winter Economic Plan extended CBILS and BBLS loans from six to ten years and introduced a Pay As You Grow option to provide greater debt flexibility and an interest-only deferred option for six months. Repayment without affecting the creditworthiness of the company.

There are exciting steps out there, but it’s important to think long term. Last month we worked with a client who used BBL but used the funds to buy equipment during the summer. Due to late customer payments, the company suddenly had difficulty with cash flow and needed to borrow to cover monthly operating expenses. Although we were able to obtain business loans, these short-term borrowing costs were higher than the 2.5% late fee for BBL which would ultimately cost the company more.

We are in uncharted waters with COVID-19 and we are only beginning to understand how lenders consider CBILS and BBLS loans when assessing a company’s financial condition.

The examples above show how a short-term outlook can affect long-term outcomes. It has never been more important to seek professional advice and use the ear and deep understanding of trading finance experts like us to get the most out of it.

While unfortunately we live in uncertain times and know that you have taken all the measures to protect your company’s financial future, this is definitely the best way to tackle the challenges that many companies will face in the months to come.

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10 mortgage lenders have developed the market as a whole

The top 10 mortgage lenders remained unchanged in 2018 both in terms of gross loans and outstanding mortgages. This is based on data from UK Finance’s largest mortgage lender.
Among these, these banks controlled 82.4% and 82.2% of the market share, respectively; This is an increase from 80.4% and 82.1% in 2018.
At the top of the list for 2019 and 2018 is Lloyds Banking Group with a mortgage loan balance of £ 286.4 billion and a gross loan value of £ 46 billion in 2019.

Lloyds Banking Group alone holds a 17.2% market share in gross lending and 19.7% in mortgage lending.
The rest of the top 10 on both lists include: Nationwide Building Society (£ 189.8 billion and £ 33.7 billion, respectively); Santander (£ 165 billion and £ 30.9 billion); NatWest Group (£ 147.5 billion and £ 33.5 billion); Barclays (£ 142.7 billion and £ 24.9 billion); HSBC Bank (£ 96.7 billion and £ 20.1 billion); Virgin Money (£ 59.5 billion and £ 9.3 billion); Coventry Building Society (£ 42.1 billion and £ 8.6 billion); The Yorkshire Building Society (£ 36.7 billion and £ 7.8 billion); and TSB Bank (£ 28.9 billion and £ 5.9 billion).
Outside the top 10, it is mostly occupied by big, established names, however, there have been some notable changes in the rankings.

Skipton Building Society increased gross lending from £ 4.1 billion to £ 4.6 billion, up from 13th to 11th on the list.
Meanwhile, Topaz Finance increased its mortgage value from £ 11.2 billion in 2018 to £ 18.3 billion in 2019.
Legal & General Home Finance also saw significant increases in mortgage value from £ 3.1 billion to £ 4.2 billion and over £ 2.2 billion to £ 3 billion.
Metro Bank fell from £ 4.2 billion to £ 2.3 billion a year, down from 12 to 16 on the list.
Lloyds Banking Group also topped the list for the value of mortgage loans to buy and sell (BTL) – at £ 48.6 billion, although that’s down from £ 50.57 billion in 2018.
However, in terms of BTL’s gross loan value, BTL is ranked second by the Nationwide Building Society. Here Nationwide is up from £ 4.48 billion in 2018 to £ 6.6 billion in 2019, compared to a drop from £ 5.53 billion to £ 5.02 billion for Lloyds.
Although the key players in the top 10 BTL mortgages remain pretty much the same, there have been significant moves across the rankings.
The top 10 lenders who increased their gross loan value at BTL in 2019 include Barclays (£ 3.89 billion to £ 4.13 billion), Santander (£ 2.33 billion to £ 2.47 billion) and the NatWest Group (£ 1.36 billion to £ 2.08 billion). ).
Lenders to this group who cut their gross value on BTL loans include the Coventry Building Society (£ 3.82-2.8 billion) and Virgin Money (£ 2.26-1.88 billion). , Paragon (£ 1.58 to 1.47 billion) and Leeds Building Society (£ 1.32 to 1.16 billion).
In terms of BTL market share in 2019, the top 10 lenders on the list held 74.6% by gross loan and 73.2% by mortgage; This compares to 75.2% and 72.4% in 2018.
In 2019, gross borrowing was £ 268 billion, 0.3% lower than 2018; Gross borrowing for loan purchases was £ 42.2 billion, up 4.2% for 2018.
Loans allocated on the BTL market increased by £ 1.1 billion and in the overall market by £ 0.4 billion. Bank lending increased by £ 2.7 billion and £ 7.5 billion, respectively.

Overall, construction and intermediate lending declined in both markets – construction companies by £ 1.1 billion in BTL and £ 1.8 billion in the full market and intermediate lenders by £ 0.8 billion and British Pound 3.5 billion, respectively. .
Calum Bilbe, data and research analyst at UK Finance, said: “One possible explanation for this growth in the big banks is the decline in lending from direct competitors that coincides with the introduction of ring fencing in early 2019.”
He added: “In short, fencing means that by early 2019, the UK’s biggest banks will have to separate their main UK banking business from other banking activities (eg investing).
“With retail banking in the UK limited, there are a number of things banks can do with money from borrowers’ deposits.
“Because average savings are higher than loans, these large lenders have used excess retail savings in ring organizations to increase mortgage lending.
“This surge in mortgage supply has helped significantly lower the average cost of new mortgages as larger construction companies and mid-sized lenders compete with the largest banks to attract borrowers for their products.
“In addition, larger lenders can use the Internal Rating Based Rating (IRB) to weigh capital (as opposed to the standard small firm approach).
“This further lowers the costs for larger creditors by helping lower prices.
As a result, under the Standard Approach, smaller lenders make it more difficult to compete in mainstream markets where restrictions and IRBs allow the largest firms to dominate market share.
“This does not reduce the diversity of the mortgage market as specialist lenders continue to expand in market segments that require manual credit, such as self-employed customers or customers with more complex incomes.
“Large and sometimes medium-sized companies are less competitive in this segment because their largely automated systems cannot find the right approach to these loans.
“Overall, despite the largest bank market share with many different types of lenders, the mortgage market remains competitive and meets all borrowers’ needs.”

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