It’s not only ghosts and ghouls that people need to watch out for this Halloween.
For some people, perhaps it’s time to shine a torch onto their finances, to make sure there isn’t something lurking there that may come back to haunt them.
Here are some financial “frights” that it pays to avoid.
1. ‘Zombie’ savings
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, says: “Savers might be spooked about recent interest rate volatility, but it’s still a great time to bag a top return.
“Searching the plethora of accounts can seem daunting, but starting off with a clear idea on how accessible you need your cash is key. Leaving any cash in a zombie account is not wise and it could even be losing money in real terms due to inflation.”
Consumer Prices Index (CPI) inflation was 1.7% in September – so savings rates need to have been at least at this level just to keep up with rising living costs.
Springall says some major banks have accounts paying less than 2%, but some easy access deals have been paying as much as 5%.
2. Being too slow to ‘ghost’ your current account provider
Springall explains some accounts pay decent interest on balances or perhaps a “helpful upfront cash sum” when using the Current Account Switch Service (CASS).
She says: “Some current account providers also offer exclusive savings accounts, such as high-interest regular savings accounts, so that is worth keeping in mind before moving accounts.
“It is important customers choose a current account that offers the best overall value for them, its not worth wasting money in account fees if the benefits on offer are not used.”
3. Ignoring warnings from your bank
In an age when we’re bombarded with messages, it can be tempting to ignore some mobile notifications – although they could be vital.
Keeping an eye on any banking app notifications about payments leaving your account can be useful in case there’s an unexpected or even a fraudulent payment.
Banks also use a name-checking service called “confirmation of payee” when customers are setting up payments. If it says the account doesn’t match the name of the person you think you are paying, it could be a scam.
Banks may also send out messages about suspect activity on your account – but bear in mind fraudsters can “spoof” numbers to make them appear to be from your bank.
If you have any doubts, many banks have signed up to the 159 phone service, which enables people to get through to their account provider using a memorable phone number.
4. Ghoulish credit card charges
If you’ve got credit card debts, shifting to a 0% interest balance transfer card could potentially make them less expensive and easier to pay off.
Bear in mind any fees for making the balance transfer and the end date for the 0% deal, so you know when the balance needs to be cleared before interest kicks in.
Some people may be concerned that applying for a new card could affect their credit score. Online eligibility calculators can help people to work out in the first instance how likely it may be that they would be accepted for particular cards. This is a “soft” search and does not affect credit scores.
If you go on to apply for the credit, the company will make a “hard” search of your credit history, to see your suitability.
To avoid missing any monthly repayments, you could set up an automatic debit for the minimum amount and then make further payments as and when you are able.
5. ‘Vampire’ home appliances draining your budget
Unplugging items when they’re not in use and only filling the kettle with as much water as you need can help save money around the home.
Some home appliances, such as fridges and washing machines have an energy rating label, to help households choose energy-efficient models.
The Energy Saving Trust has more information about how they work at energysavingtrust.org.uk.
When buying a new appliance, the Trust’s website also suggests considering the size of the item you need for your household. For example, buying a smaller dishwasher could be more energy-efficient than buying a big dishwasher if it is only ever partially-filled.
Saving water also means saving energy, which helps lower your bills and your carbon footprint.
— Energy Saving Trust (@EnergySvgTrust) October 15, 2024
From shortening your shower to using a washing up bowl, here are some of the best water saving tips you’ve shared with us.
Want to know more? Find out here https://t.co/6VIKFuevWY pic.twitter.com/KglRqF1nKI
6. Sleepwalking into a workplace pensions shortfall
David Meliveo, chief commercial officer at People’s Partnership, provider of the People’s Pension, says it’s “impossible” to plan for your future if you don’t know how much you’ve saved in the first place.
“But there are relatively simple steps that people can take, including the very obvious first step of checking your current work pension online,” he adds.
“By signing up to either an online account or app with your workplace pension provider, you can check your pension fund value and what it is projected to be when you retire.
“You can also change the date when you intend to retire, ensure your address is up to date, and you can even change how your pension savings are invested or transfer any other pensions you might have if that works for you. You can also check how much you are being charged for your pensions.”
7. Black holes in your state pension record
People can check their state pension forecast at gov.uk.
It may be possible to fill gaps in your NI record by paying voluntary contributions.
Paying National Insurance means you’re contributing to your State Pension.
— HM Revenue & Customs (@HMRCgovuk) September 9, 2024
Use the HMRC app to:
✅ instantly check your NI record
💷 easily make voluntary contributionshttps://t.co/E6BdQlrpVv#PensionAwarenessWeek pic.twitter.com/tcUIvIIXe3
Usually, people can only pay voluntary contributions for the past six tax years. But currently, people can potentially fill gaps going back to April 2006.
The deadline to make up contributions going this far back runs out on April 5 2025 – so time is running out.
Some people may be entitled to NI credits rather than needing to pay contributions, so they will need to weigh up what’s best.
More information about making voluntary contributions is available at gov.uk.
