Barclaycard is the first provider to launch a balance transfer card with an interest-free period of 27 months.

Hot on the heels of NatWest and RBS announcing a table-topping 0% 26-month deal, Barclaycard has responded with a new 0% 27-month balance transfer card.

The move takes Barclaycard to the top of the balance transfer tables once again.

As well as 0% interest on balance transfers for 27 months, the new Platinum card offers 0% interest on purchases for six months – but comes with a fee of 3.5%

More time to clear debt – but at a price

Sarah Robb, credit card expert at uSwitch.com, says: “Balance transfer cards can provide one of the cheapest escape routes for those looking to clear debt, and this latest offering is great news for consumers who need a little extra time to pay back what they owe without accruing extra interest.

“Yet, while Barclaycard may have fought back once again to retain its stranglehold, the 3.5% fee is steep and 0.85% more than NatWest and RBS. This means that people would pay £8.50 extra when transferring a £1,000 balance.”

Balance transfer revival

Ms Robb continues: “This launch suggests that a revival of competitive balance transfer deals is on the cards. But, while it is great to see more choice, a best-buy product is only beneficial to consumers if they can actually lay their hands on it. Market-leading deals are often only available to those with a squeaky clean credit rating, and those who are refused need to bear in mind that applying for a number of balance transfer cards in a short space of time may worsen their credit rating.

“Our advice is to think carefully about how long you really need to pay off your debts – you may actually only need a card with a 16 or 18 month interest-free period. If this is the case, not only could you have a better chance of being accepted, but you’ll save some money on the balance transfer fee too. There is a huge choice of cards available on the market and it is always worth shopping around to find the best deal to suit your needs.”

Over 10,000 current account customers were surveyed for the awards.

As current accounts fall under the spotlight of new regulator the Financial Conduct Authority, the uSwitch Current Account Awards show that banks will have to pull out all the stops to prevent customers voting with their feet.

The survey of over 10,000 current account customers reveals that the biggest banks on the high street are letting customers down with poor levels of service and below par online banking experiences.

While internet banks First Direct and Smile take the lion’s share of awards, Santander, the Royal Bank of Scotland (RBS), and Barclays have failed to impress their customers. The research also suggests that young people aged between 18 and 24 display the lowest levels of satisfaction for customer service and trust.

uSwitch Current Account Awards 2013 - Best Provider

Telephone and internet-based bank, First Direct, wins Best Current Account and comes top for Overall Satisfaction and Telephone Customer Service. Since its launch in 1989 by HSBC, the bank has been consistently praised for its excellent customer service.

First Direct is closely followed by Smile, winning categories including Most Trusted, Best Value for Money and Best Email Customer Service, with both banks having UK-based call centres operating
24 hours a day.

The Co-operative Bank was also given the thumbs up by customers, coming third in the awards overall. The Co-op also scooped the award for Best Branch Customer Service – potentially frustrating news to Lloyds TSB customers after the collapse of the bank branch sale last month.

Santander and RBS with work to do

Santander is voted the worst current account provider in the survey, let down by its customer service, be it online, over the phone, or in-branch.

Santander also came bottom for its online banking experience, though its flagship 123 current account helped it come third in the Benefits and Incentives category.

Of all the current account providers in the survey, RBS is the least likely to be recommended and also falls down on its scores for Trust and Overall Satisfaction. Barclays, like Santander, falls short on its customer service and online banking experience.

The research also shows that just 9% of 18 to 24-year-olds completely trust their current account provider, compared to 14% of 45 to 54-year-olds.

Young people are also the least impressed with the online and telephone customer services provided by their banks, which suggests that they may be the first to jump ship when the Payments Council launches its new seven day account switching service in September.

Banks need to earn customers’ respect

Michael Ossei, uSwitch personal finance expert at uSwitch.com, says: “Where you keep your hard-earned cash should be a place that you trust and are happy with, and many banks still have a long way to go to earn this respect.

“As people feel the squeeze of Government spending cuts and higher living costs, one thing they want to be sure of is that, if push comes to shove, they can lay their hands on their money quickly and easily.

Mr Ossei continues: “Low levels of consumer confidence and the new seven day switching process arriving in September mean that the current account market is all for the taking.

“The Post Office’s decision to launch a current account next Spring will give banks a real run for their money. Not only will it benefit from its far-reaching network of branches, but it’s also a trusted brand which the big banks should see as a serious threat.”

Halifax will pay stamp duty costs of up to £2,500.

Halifax bank has announced it will cover stamp duty costs for first-time buyers purchasing properties worth between £125,000 and £250,000.

The bank put forward a similar offer a year ago following the end of a stamp duty ‘holiday’ for first-time buyers.

Stamp duty currently stands at 1% for homes up to £250,000, 3% up to £500,000, and 4% up to £1m – properties above the million mark are levied at between 5% and 7%.

First-time buyers to benefit

In 2009, stamp duty was suspended for people buying a home worth up to £250,000 and who had never previously bought UK property. The scheme ran out last spring, with Ed Balls, Shadow Chancellor, calling for it to be reinstated.

Halifax will offer the stamp duty by form of cashback to first-time buyers on its full mortgage range – it currently offers a rate of 3.24% with no fee on a two-year fixed rate for those with a deposit of 20% or more, and 3.79% rate for people with 15%.

However, a fee of 1% of the property price will be paid to solicitor on completion, with the offer starting today.

Stamp duty costs an ‘additional burden’

Craig McKinlay, mortgage director at Halifax, said: “Stamp duty can often be a cost that is overlooked, particularly for buyers who are focused on saving an initial deposit for a house.

“We’re keen to do what we can to support those buying their first home, and eliminate the additional burden of a stamp duty bill at what’s already an expensive time.”

Analysis conducted by Halifax shows that first-time buyers accounted for 40% of all property purchases in 2012, while Lloyds Banking Group are set to lend £6.5 billion to help around 60,000 first-time buyers in 2013.

Spanish bank Santander has found the average bank account relationship lasts for over 16 years.

New research by Santander has found that people in the UK hold the same bank account for more time than the average length of longest relationship.

The survey found the average bank account relationship lasts just over 16 years, compared with 14 years for a romantic relationship with a partner. The findings also showed that 58% of people keep the same current account for over 10 years, with one in six staying with their bank for over 30 years.

Low levels of banking competition

The findings add to research from Mintel which found that nearly 90% of the current account market is dominated by the big five banking groups – Lloyds TSB, Barclays, HSBC, Santander, and RBS.

In September, industry body the Payments Council is to launch a new bank account switching service designed to help customers transfer account.

The new service is designed to help reinvigorate competition in the current account market and will cut the time it takes to switch from around 18 to seven working days, automatically switching incoming payments to the new account.

Bank branch sale falls through

The research comes on the same day that the planned sale of 632 UK bank branches by Lloyds Banking Group to the Co-op group collapsed, with Lloyds blaming the economic environment and increasing regulatory requirements.

It had been hoped that the Co-op’s proposed takeover of branches would increase competition towards the main high street banks.

Michael Ossei, uSwitch personal expert, says: “The purchase by the Co-op would have shaken up the high street and really given the big banks a run for their money.

As a well-liked and highly trusted brand the Co-op deal was set to kick start real competition in the sector. This news places a dent in the potential choice available to consumers when it comes to banking on the high street.”

The average price of petrol in the UK hit a year high of 140.03p a litre on 3 March.

The motoring association attributed the disparity to a lack of transparency over a series of recent price spikes, allowing retailers to choose whether or not to pass on savings.

Further research by The Telegraph found unleaded petrol in Newbury, Berkshire to be 136.9p a litre compared with 134.7p in neighbouring Reading. In Mansfield, Nottinghamshire, the price was 134.7p compared to 138.9p in nearby New Ollerton.

Drivers left ‘high and dry’

AA president Edmund King said: “Unlike the US, drivers in the UK and Europe have been left high and dry by the lack of fuel price transparency. This has denied them the ability to spot short-term pump price spikes and prepare their budgets and planning for the hit.

“It has also allowed retailers to decide when and where savings for this essential part of family spending are passed on.”

The AA said the fall in average petrol prices in the UK appeared to have stalled.

The average price hit a year high of 140.03p a litre on March 3, falling to 137.3p on April 1. Average diesel prices dropped from a high of 146.46p a litre on March 4 to 143.57p on Easter Monday.

Families struggling with rising living costs

Last month, uSwitch research revealed that petrol price hikes mean that a two-car family can now expect to spend £331 a month filling up their cars, up 33% from £250 a month in 2008.

Mr King added: “Fuel pricing in the UK, US, and Europe over the past 12 months has been characterised by a series of severe spikes, surging petrol prices up and down by the equivalent of 10p a litre. This has had a severe impact on consumer demand.

“Although previous price spikes since the 1970s have eventually been offset by improved wages, the extent and severity of price swings since 2008 are likely to have a lasting impact, such as more smaller cars, changed shopping patterns and car fuel budget sensitivity.”

New uSwitch research has found that 44% of Brits feel less confident about their finances after the Budget.

Hopes of an ‘aspirational’ Budget have been shattered with consumers fearing for both the economy and their own finances, according to new uSwitch data.

Over a third of people (35%) feel the UK is more likely to slip back into a triple-dip recession following Chancellor George Osborne’s fourth Budget announcement, with almost half (45%) claiming that it will leave them worse off.

Despite the Chancellor’s attempts to appeal to middle England, 37% believe that the ‘squeezed middle’ will benefit the least from his proposals, while three quarters (78%) say savers have been forgotten.

Consumer confidence plummeting

Far from easing the pressure on hard-pressed consumers, almost half of Brits (44%) feel less confident about their finances.

In fact, few of Mr Osborne’s ‘goodwill’ measures seem to have won over the nation. Three in ten (29%) are opposed to plans to knock a ‘penny off a pint’ and 31% feel indifferent, while the new childcare tax relief scheme has also failed to impress, with over half (54%) of parents claiming it’s ‘too little, too late’.

But despite a lukewarm response to some measures, others have had a better reception. The vast majority of consumers (88%) welcome the rise in the personal tax allowance to £10,000, while freezing fuel duty has also proved popular with more than nine in ten (91%) Brits.

Businesses and home-buyers the big winners

Overall, the Budget has been hailed a ‘triumph’ for business owners and home-buyers. Four in ten (43%) say the Budget will help businesses, while 52% believe first-time buyers will benefit the most.

Overall, 65% of consumers claim their financial situation has got worse since David Cameron and the Coalition came to power in 2010 – but very few believe their situation would improve under new leadership.

One in five (21%) think they will be worse off under a Labour Government and 37% don’t think it would make difference.

Not enough to help spiralling living costs

Michael Ossei, uSwitch personal finance expert, says: “Home-buyers and small businesses may be jumping for joy following this week’s Budget, but most of middle England has been left stuck in the mud.

“People did not expect much from the Budget but have received even less than they had hoped for – taking 1p off a pint is not going to cut it for the millions of homes struggling to pay their essential bills every month.

“For many, the Government simply hasn’t done enough to help households cope with spiralling cost of living. What is somewhat depressing is that most consumers don’t feel a change in Government would make any difference to their finances – leaving them feeling trapped in a financial cul-de-sac.

“But there are always things you can do to help improve your finances, no matter how small. The Budget is an opportunity to step back and review your finances, so that you pay no more than you have to on essential bills.”

Barclaycard’s new 0% deal is the longest balance transfer card in the market.

Barclaycard has launched a new market-leading 0% balance transfer credit card, just hours after Tesco Bank announced it’s own joint table-topping offer.

The Platinum card gives 0% on balance transfers for over two years and comes with 0% interest on purchases for six months and a transfer fee of 3.5%.

The deal sees the credit card provider regain the top of the balance transfer table.

Credit card competition

Michael Ossei, uSwitch personal finance expert, says: “The battle in the credit card market is heating up as Barclaycard launches a new 26 month 0% balance transfer card just hours after Tesco announced its own 25 month deal.

“While the 3.5% fee is hefty, Barclaycard’s market-leading deal signals that it means business in the credit card arena.

“Six years ago the longest 0% balance transfer offer lasted 12 months – today, it’s more than doubled, with Barclaycard becoming the ever first provider to launch a balance transfer card with an interest-free period of 26 months.

Tesco’s new card gives 0% on balance transfers for over 2 years.

Tesco Bank has introduced a new market-leading 0% balance transfer credit card.

The Clubcard Credit Card gives 0% on balance transfers for over two years and comes with a transfer fee of 2.9% and 0% interest on purchases for three months.

The deal sees the supermarket giant sit alongside Barclaycard and Halifax at the top of the balance transfer table, with both providers giving 0% on balance transfers and 0% on purchases for six and three months respectively.

Healthy competition in balance transfer market

Michael Ossei, uSwitch personal finance expert, commented: “Tesco shoppers stand to gain the most from the card as it offers generous loyalty points for every pound spent, yet the offer of 0% for over two years is strong in its own right.

“Today’s launch suggests that a revival of competitive balance transfer deals could be on the cards. Six years ago the longest 0% balance transfer offer lasted 12 months – today this has almost doubled, with Tesco becoming the third provider this year to launch a balance transfer card with an interest-free period of more than two years.

“Competition in the credit card arena is fierce and this move places Tesco Bank head-to-head with Barclaycard and Halifax already offering 25 month 0% periods. However, Tesco has a unique advantage over its rivals as it’s able to tap into a base of over 16 million loyal Clubcard customers.

“With clear insight into consumer shopping habits, Tesco is gearing all of its financial products and services around what the customer wants – with this in mind, I would expect to see Sainsbury’s Bank step up its credit card offering using its base of Nectar customers.”

Supermarket banks finding their feet

Mr Ossei continues: “While Barclaycard has always been seen as the frontrunner in the balance transfer space, supermarkets and high street brands are now finding their footing.

“Market-leading rates and products could soon become the norm for these new players as they start using data and customer insights to develop more appealing financial products for their customers.

“But for the moment, with Tesco now at top of the tables, we have to wait and see how long it will take for Barclaycard to fire back with a new deal of its own.”

The chancellor’s fourth Budget included changes to the personal tax allowance and fuel duty.

With recent uSwitch research finding a 25% rise in the cost of essential household bills since 2008, consumers were hoping for some respite in today’s Budget announcement.

However, with 85% of people feeling that the Chancellor doesn’t understand the financial fears of ordinary people, expectations were low.

Here we give a rundown of all the major announcements from the 2013 Budget.

Tax

• As announced last year, the 50p top rate of tax will be cut to 45p as of April.

• The personal income tax allowance – the amount people can earn before paying tax – will be increased to £10,000 by 2014, a year early.

• There will be 20% tax relief on childcare vouchers up to £6,000 per child from 2015.

Housing

• Shared equity schemes have been extended, with interest-free loans up to 20% of value of new build properties.

• Bank of England guarantees to provide £130bn of new mortgage lending for three years from 2014.

Fuel, tobacco and alcohol

• September’s planned 3p fuel duty rise has been scrapped.

• April’s 3p rise in beer duty has been scrapped – beer duty will instead be cut by 1p from Sunday, 24 March.

• The annual inflation +2% rise in beer duty will be ended, with the “duty escalator” remaining for wine, cider and spirits

Other announcements

• The single flat-rate pension of £144 a week will be brought forward a year to 2016.

• The 1% cap on public sector pay will be extended to 2015-16.

• Corporation tax is to be cut by 1% to 20% in 2015.

• In energy, there will be further tax incentives for ultra low-emission and tax allowances for investment in the shale gas industry.

Consumers are urging chancellor George Osborne to tackle rising household bills in next week’s Budget. (Image by Images of Money)

New data from uSwitch has revealed sharp increases in the cost of household bills over the last five years, with pay increases of just 6% over the same period.

The research also found that more people are worried about the rising cost of living than about their health, with chancellor George Osborne urged to tackle spiralling household bills in next week’s Budget announcement.

Drivers among hardest hit

A shopping basket of essential household bills compiled by uSwitch shows that drivers have been the hardest hit over the last five years – the cost of fully comprehensive car insurance has risen 67% since 2008, from an average of £684 a year to a staggering £1,140 a year.

Hikes in petrol prices mean that a two-car family can now expect to spend £331 a month filling up their cars, up 33% from £250 a month in 2008.

The situation is unlikely to improve any time soon, with the AA predicting record high petrol prices by Easter.

Energy and water bills escalating

Energy bills are also a major cause for concern, with the average household now shelling out £67 a month for gas and £45 a month for electricity – increases of 52% and 32% respectively since 2008.

Water bills have not escaped the hikes, with homes now seeing average bills of £32 a month, a jump of 13% since 2008.

When it comes to housing, first-time buyers are facing an increasingly hard time getting on the ladder, with the average house price predicted to climb to £219,000 this year.

Food bills up, broadband down

Food bills have climbed 17% since 2008 with the average monthly shopping bill rising from £220 to £256. Prices have risen 4.5% in the last year alone, with vegetables up 8.4% and fruit up 7.2%.

Of all household bills, broadband is the odd one out, with average bills seeing a huge decrease of 68% since 2008. The average cost of standalone broadband is now just £5 a month, compared to £17 a month five years ago.

Unfortunately, this drop is offset by the cost of having a landline, which is up from £12 to £15 a month.

The cost of essential household bills – 2008 to 2013

Rising livings costs the biggest worry

Against the backdrop of rising bills, average salaries have risen 6% from £24,900 a year in 2008 to £26,500 at the end of 2012. However, the real term value wages has actually fallen back to 2003 levels, with salaries down by 4.5% between 2007 and 2011.

Just one in two consumers (52%) have had a pay rise this year, with more than one in three (36%) having had their pay frozen for 12 months or more.

Over half of people (55%) feel the rising cost of living is their biggest cause for concern at the moment compared with health (29%). A further 39% are worried that they simply don’t have enough money and 18% are concerned about job security.

Expectations ahead of the Budget

Almost six in ten consumers (56%) fear that next week’s Budget will shatter their confidence even further.

Before tackling the UK economy as a whole, Brits say Mr Osborne’s priority should be addressing the price hikes – in particular spiralling energy and petrol prices – before stimulating economic growth and fixing the benefits system.

Two thirds of people (67%) would support the introduction of a ‘mansion tax’ on homes worth over £2 million, while 84% are calling for the personal tax allowance to be raised beyond £10,000.

Worryingly for the government, 85% believe that the chancellor doesn’t understand the financial fears of ordinary people, and 71% say that their financial situation has worsened since the Coalition came to power in 2010.

Chancellor needs to ‘ease strain on finances’

Michael Ossei, uSwitch personal finance expert, says: “Consumers are anticipating next week’s Budget with a mixture of dread and despair. Spiralling living costs are stretching household budgets to their absolute limit and people are running out of ways to fund their ever-increasing bills.

“With salaries failing to deliver, many are being forced into debt to stay afloat. Unfortunately, the most accessible forms of credit are often the most dangerous.

“People want the chancellor to show that he really does recognise the challenges they are facing and to help ease the strain on family finances. But consumers can also help themselves by looking at the options open to them.

“The first step is to take a long hard look at your household budget to see where you can cut costs – making sure you’re on the best possible deal for your home essentials will help you to ease the financial pain and to beat price rises.”