Students facing a huge £60,000 debt black hole | Personal Finance | Finance

Students leave university with an average of £23,954 (Image: getty) Parents expect their children to leave university with £23,954 of student debt on average, new research shows.  However, last year the Institute for Fiscal Studies (IFS) put the actual figure at more than £50,000 and some could owe more than that.  Tuition fees in England are now up to £9,250 a year, which is covered by the tuition fee loan for full-time students, regardless of income.  Living expenses such as rent, food, books and travel come on top, and the…

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Annuities set for a comeback | Personal Finance | Finance

The average annuity pays almost 15 per cent more than two years ago and with the Bank of England hiking base rates earlier this month, they should rise higher. Annuity sales collapsed as rates plunged after the financial crisis and pension freedom reforms scrapped the obligation to buy one at retirement. Most over-55s now prefer to use their pensions as a cash machine, rather than locking into an inflexible lifetime annuity. However, experts say that some may now reconsider, with rates rising 14.6 per cent since hitting an all-time low…

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Pension scam warning: Fraudsters stealing £91k as new TPR campaign launched | Personal Finance | Finance

Fraudsters posing as pension advisers and providers stole an average £91,000 each from 253 known victims last year alone, new research reveals, though they are thought to be just the tip of the iceberg as only a minority of cases are reported. Nearly a third of 45 to 55-year-olds say they would not know how to check they were dealing with a genuine person, a YouGov survey of just over 1,000 people concluded. One in eight of the age group say they would trust someone who offered them a “free…

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Five-minute guide to earning an income from equities | Personal Finance | Finance

One week after the Bank of England increased the base rate to 0.75 per cent, the average easy access savings account still pays just 0.53 per cent, according to MoneyFacts.co.uk. By contrast, you can get a far more generous 3.84 per cent yield from investing in the FTSE 100 benchmark index of blue-chip stocks, with the prospect of capital growth on top if markets rise. Some top UK blue chips pay as much as 5 or 6 per cent, although buying individual stocks is too risky for most people. The…

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Your Money: Cash under mattress must be fully covered | Personal Finance | Finance

Confidence in online banking was hit by the catastrophic it failure at TSB in April, which left many unable to access their own money, while hardware failures also crashed the Visa electronic payment system in June. A quarter are so worried about a financial disaster that they are deliberately stockpiling a cash reserve to see them through. Eight out of 10 are hoarding a total of £7.7billion, according to research from GoCompare Home insurance, or £187 on average. Just 4 per cent of us stuff our cash under the mattress,…

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Your Money: Loyalty rarely pays off due to lack of interest | Personal Finance | Finance

So far only a handful of banks and building societies have announced savings rate increases following the Bank of England’s widely anticipated move to lift the base rate to 0.75 per cent last Thursday. This is the highest level in almost a decade, but the vast majority of loyal savers are yet to see any benefit. Banks also dragged their feet after last November’s base rate hike, with half of all savings accounts failing to rise at all and the average increase being just 0.09 per cent, a fraction of…

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