Confused.com’s way of explaining it is to imagine you’re a giant; you pick up a house, pull the roof off, and tip the house upside down. Anything that falls out is covered by contents insurance – typically, electronics, pictures, kitchenware, sofas, etc. Everything else – walls, roof, carpets, bath, and so on, is covered by buildings insurance.

So if, for example, you were to discover you had rising damp in your home and it was going to cost several thousand pounds to repair, you could claim against your buildings insurance policy. ‘Could’ being the important word here. If the insurance company were to discover that the damp had been there for several years and you had just never bothered to do anything about it until now, there is a very good chance they would not pay up. The same could happen if part of your roof was blown away in a storm and the insurance company found out that several tiles has been missing or damaged beforehand.

This is because part of the terms and conditions in many buildings insurance policies is you must keep the building in good repair. This means if your roof becomes damaged through age or wear and tear it should be repaired as soon as possible. The same if you discover damp, or anything else wrong. If you were paying to fix something wouldn’t you prefer to spend £200 on a small job rather than waiting for it to become a serious problem and spending £2000? It’s the same for an insurance company, only they make it part of a legal agreement.

The other main thing buildings insurance covers is the rebuild cost of your home – if your home was completely demolished and had to be rebuilt from scratch, what would it cost? This is NOT the same as how much you bought it for, it tends to be a lot less, and many people scratch their heads over this question on the insurance forms.

If you had a survey done of your home when you first bought it there should be a rebuild cost listed there. If your survey was done a few years ago you may need to factor in inflation for the rebuild cost. Your insurer may be able to help. Otherwise you could try a rebuild cost calculator, such as the one provided by the Building Cost Information Service and Association of British Insurers.

It is always worth checking the terms and conditions of an insurance policy carefully to see what is, and what isn’t, covered, especially if there are special conditions you think should be covered. For example, if you live by a river you may want to ensure you have cover for flood damage. An insurance company may be happy to quote you for flood cover but because of the increased risk you can be sure that they will charge you a higher premium, and they may even impose a limit on the pay-out and extra conditions upon you as part of the agreement (such as having sandbags available at all times and not covering damage to carpets). If in doubt, speak to someone from the insurance company.

This article was written by Rob Powell from Confused.com, the buildings insurance comparison website.

Business accounts are easy to open, most banks will offer them free for a period and they are essential in keeping accountable for the costs and the payments into a business. So, we have decided to advise you on what to look for when opening a business account.

Like with most financial decisions a good close look at your finances and what you need will determine what you should go for when it comes to a business account. There are more types of business accounts than there are banks out there with many not charging on services for 2 years and some not at all.

All the banks have different costs however when it comes to interest and some of the more abnormal transactions and knowing if you will use any of these and which ones you will use will mean that you can then choose which account is the cheapest in the long run. Opening an account for your transactions and also to save your tax in has the added bonus of allowing you to earn interest on the tax money you are saving for the end of the year. http://www.thisismoney.co.uk/money/article-1585158/Choosing-a-bank-account.html

Bank safety is also a necessity and many of the banks have really been pushing bank security in recent months, offering downloadable software and handing out key cards and other fraud prevention mechanisms. Check out comparison sites to see which bank offers the greatest fraud prevention and be sure you are banking safely.

Most banks offer Internet banking. This can be a speedy and time saving asset to have in a bank. Firstly check out whether your bank has Internet baking and secondly look into how much of your banking you can do online and save time on going to the bank itself.

If you do need to go to the bank, check the satisfaction ratings for banks online and see which banks offer you the best service if you are to visit. Short waiting times, personal service and a host of other things make the whole banking process easier should you need to go to the bank.

Banks often offer help for people opening businesses and will encourage you to give them a business plan before you open up the account. This business plan will allow both of you to see where the business is going and what needs it may have financially. A good bank with a good business advisor can help you and offer you options on what is best to help your business to grow.

Banking for business is an essential and you would be surprised at the different levels of service there are out there for a new business. Looking into the choice of banks and the choice of business banking types can mean a cheaper and more satisfying service for your business.

Online Banking

All major high street banks now allow customers to manage their accounts online. Some of the many online services offered include:

Bank wherever and whenever you want – Traditionally, banking transactions have been carried out in high street branches. But with online banking, there is no need to visit the branch, as you can manage your finances 24 hours a day, seven days a week from the comfort of your home or office.

Quick and easy movement of money – With just a few clicks of your mouse, you could transfer money between different accounts you hold, pay your bills or transfer money to family or friends. Rather than waiting several days for a cheque to clear, online banking payments can be completed in as little as two hours. So this could save you a great deal of worry, not to mention save you money, should you realise that a deadline for bill payment is imminent, or you are about to go overdrawn, or for any other reason you haven’t got the time to wait for a cheque to clear.

Instant access to your information – Supposing you see a great last minute deal, but you are unsure whether you have enough money. With online banking, you can check your balance straight away, and hopefully not miss out. For online customers there is no need to wait for your next statement in the post. Nor do you need to go to the nearest cash machine to check your balance – simply log on to your online banking service at any time of the day or night. There you can see in one place the balance on all your accounts with the bank, and view your transactions going back several years. So much easier than finding and reading scores of separate monthly statements!

Email alerts – Although online customers can view details of their account at any time, these customers often receive emails from their bank reminding them to view their statements.

Additional products and services – Some banks may offer online customers certain products that are not available to other customers, or offer beneficial rates to online customers.

Banking on your mobile phone

Your bank may well permit you to effect transactions via certain types of mobile phone handset. Available services may include:

-          Check balances

-          View recent transactions in a mini-statement

-          Transfer money between accounts

-          Find your nearest branch or cash machine

-          Receive text alerts of your account balance, which could be very useful should you be about to go overdrawn

-          Top up your pay-as-you-go phone using funds taken directly from your account

Apply for financial products online

Nowadays, almost any financial product can be bought via the internet, whether via the provider’s website or via a price comparison website. This includes current accounts, savings accounts, investment products, insurance, credit cards, loans and mortgages. Security in this area has improved massively in recent years and applying for financial products online is considered to be very safe.

Sometimes customers apply for a bank account online will receive a discount or a better interest rate than had they applied for the product at a branch or by post.

Use your computer to assist with money management

Some people use a spreadsheet package to keep track of their income and outgoings. However a search of the internet will reveal a number of sites where you can access a budget planning tool free of charge. In addition, these sites often contain a lot of very useful tips on managing your money.

Try to find ways to simply your life. The starting point for this should be your home. Take a look around. Do you have shelves and shelves of books and CDs? How about getting rid of them? If you are a book or a music lover you first reaction to this suggestion will probably be one of horror, but it may not be as crazy as you think.

First of all, it is perfectly possible for you to rip all of your CDs to MP3 on your computer. Do this and sell your collection and you still have your music to listen to. This will also discourage you from the expensive habit of collecting. You can get more music in future by either buying the individual tracks that you want as downloads, or even just listen to streaming services – there are plenty to choose from.

Books are also a medium that may have its day, and you can eliminate books from your shelves without having to compromise on your love of literature.  One way is by getting yourself a library card, and checking out whatever reading material you want. Libraries will often order a book in for you if you request it, and if you want to read something again, just borrow it once more.

Books have also gone digital. E-readers cost money, but they are getting cheaper. In the US some models are available subsidised by advertising. As well as sometimes being cheaper to buy than dead-tree books there are many digital books that are available for free. Copyright expires after 75 years, so this means that you can have access to more classics than you could read in a lifetime without charge.

Another thing that is dear to many people’s hearts is motoring. We love our cars, we see them as status symbols and even as extensions of ourselves. Unfortunately this habit is a costly one, and it may be time for an intervention.

Everything about car ownership costs money. Not only that but the amount that it costs goes ever upwards. Insurance premiums, fuel, tax, all of these things continue to become less affordable. Shine your car up nicely, flog to some other chump and pick yourself up a bike. Remember: driving a car makes you fat and burns money, riding a bike is free and burns fat – you can even ditch that costly gym membership.

Hitting the things that you love the most might be tough, but if you put just a small bit of what you are not spending in a savings account each month you will see the reward.

The traditional way of financing a real estate investment is usually through a bank, credit union, or a home mortgage company. You can acquire a mortgage for 5, 10, 15 or even 30 years if you have a good credit score. To apply for a mortgage, you will be asked for full documentation of all of your income and current debts, and you will usually require a 10% down payment.

This is usually the most traditional, safe and common method of financing a real estate investment. However, there are other ways that you might not have heard of before. Here are a few creative alternative ways of financing a rest estate investment:

Seller Carry Back

This method is a way of getting the seller of the property to carry the note for your purchase. It works when you find a home seller who owns their property completely, and they don’t want it anymore. They don’t mind not having the full sum paid and you can arrange to pay them via a monthly payment instead. After a time period, usually set by the seller, the property will be paid off in full.

Subject – To

This method of financing is when you can negotiate with the seller for you to buy the property with the existing financing still in place. Basically, the title of the property will be transferred but the loan will still stay in the home seller’s name while you are making the payments. This is a short term solution, because most people will not want to leave the loan in their name for a long period of time. However, it will allow you to buy without a down payment and you can refinance later to get the loan put in your name. This is a common situation when it comes to pre-foreclosure properties, because the seller is eager to get the property off their hands and the buyer wants to own the home without a down payment.

Trading Properties

Did you know that you can actually swap properties with another real estate investor to keep the taxman out of the deal? You can actually defer your capital gains or losses this way and not have to consider taxes until you eventually sell the property for cash. You can continue to swap properties like baseball cards until there is a favorable change in the tax law or you feel like you have gathered enough capital losses to offset your capital gain. Of course, it is important to remember that trading properties does not apply to a primary residence. Be sure to check out all of the rules and restrictions and do your research before proceeding with this option.

In addition to these methods, don’t be afraid to explore the different options for finance. Some banks offer special first time buyer mortgages, which can help you get your feet onto the property ladder.

There are many creative ways to buy the investment property of your dreams. Perhaps one of these alternative solutions may work for you.

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There is a huge selection of savings accounts for you to put your extra cash in. Though, how can you choose which is the best for you and what are the differences between the accounts? We look at the accounts and the particulars you need to save your money in each.

When saving in the UK a lot depends on a range of factors; are you a British tax payer, how much money you have, how long you’re are willing to put it away for without touching it for? All these factors will determine which the best savings account is for you.

Lets look at five types of saving account and the options that you should look at when making your decision.

Cash ISA’s

UK taxpayers can use ISA’s to make the most of their savings. ISA’s. You usually have to pay tax on your savings interest return at either the 20% or 40% rate; however with a tax ISA this can be a thing of the past.

ISA’s allow you to earn tax free interest, so you will not have to pay any tax whatsoever on the interest you make on an ISA. However ISA’s don’t offer the most attractive rates of interest return and so may not suit everyone’s needs. You should check the return after tax you will receive on a normal savings account and compare it to the return you will get on a tax ISA account. Ensure you take into account your tax rate when doing this, as you will be taxed at the higher end of it if you are in the 40% bracket.

If you are not a UK tax-payer you won’t have to pay tax on any savings, so it is best to go for a higher paying savings account.

The limit of the amount of money you can put in an ISA is £5,340, once you’ve saved this you will need to put money in a different type of savings account if you wish to keep saving.

Instant Access Savings Accounts

This is the most accessible type of bank account. Just put your money into these accounts for easy withdrawals. Some banks allow you to withdraw from these with a bank card, others over the counter.
You can also transfer money online across to your current account within days with an Instant access savings accounts. The downside of these accounts is that they offer only low interest rates. There may also be a bonus interest rate as an introduction which falls after a certain period. Some Instant access savings accounts allow users to transfer some money to their current account without penalising the interest rate.

Notice Savings Accounts

These bank accounts are called so as you need to give notice of when you want to take savings from your account. You can give your bank 30, 60, 90 days of notice before you take the money out. Otherwise you may be penalised.

These offer higher interest rates than many other accounts. They are generally in the format of variable interest, meaning you should shop around and examine the market before you save with one of these.

Normal Savings Accounts

Savers have to deposit money each month in these no matter what. They may also restrict you putting in more than a certain amount each month. As well as this savings accounts may limit the amount of withdrawals you can make.

Interest rates are also pay on the amount you build up gradually. So though they may look attractive your interest return may be more modest.

Fixed Rate Bonds

You get a fixed rate on your savings however you can’t touch your money in the period you’ve invested your money.

The longer you invest the better your return will be. This can be from 1-5 years, depending on your preference. You may be able to get the money out in an emergency but your interest rate return will suffer badly.

They are a good way to protect savings in a time of falling investments, but if bond rates increase after your investment in good times; you’ll only get the original lower rate meaning your bond is losing out.

In recent years the invention of credit cards, ATM’s, the internet and NFC (Near Field Communication) have made banking and account management much more accessible, and a great deal faster. However, apart from online systems, high speed transactions and mobile banking technologies are still focused primarily on consumers and the High Street.

In a new study commissioned for treasury management firms, Brad Strothkamp, an analyst for eBusiness, argued: “In 2011, bill payment and transfers via mobile devices will undoubtedly increase as availability and utilization of mobile services grow. Contactless payments will not have the same success; these types of mobile payments have major impediments to success, including technology, merchant, consumer, and issuer issues.”

It seems that despite a number of improvements, the majority of treasury management firms are reluctant to migrate towards mobile technologies, due to certain infrastructure and security impediments. However, in order to stay ahead of the curve, most financial institutes are now beginning to map out strategies, which will involve ways to facilitate mobile payments in the future.

So, will mobile financial systems break into Wall Street? For the immediate future it looks unlikely that mobile payment will break into the upper echelons of the financial system. As with most new technologies it will take some time for opinions to warm to the idea, but at present the infrastructure and rigorous security systems are simply not in place to make it a practical alternative to traditional financial and treasury systems.

As per usual, the guinea pig of the commercial world that is the high street, will lead the way for the near future, but mobile payments are definitely on their way, mark my words and prepare to upgrade your phone.

Savings & Financial Investments

Signs are that people are making the most of the first year of the increased Isa allowance for all investors. In the first nine months of this tax year Britons invested a total of £2.8 billion in stocks-and-shares Isas — the fourth-biggest figure since Isas were introduced in 1999. Billions more have been ploughed into cash Isas.

One of the reasons why they are doing this is that Isas continue to represent a good tax break. In 2010-11 everyone — not only the over 50s — is allowed to invest up to £10,200 in an Isa, a £3,000 increase on the previous annual limit.

There is also an underrated benefit: you don’t have to declare details of your Isa investments on your tax form.

Although the attractions of Isas may have been watered down over the years, they still carry significant tax privileges. Since these tax breaks cannot be carried over from one year to another, it’s a case of use them or lose them, by April 5.

Here is a run down on the essential point about ISAs.

What kinds of Isas are there?

There are two types: stocks-and-shares Isas and cash Isas.

You can put up to £10,200 each year into a stocks-and-shares Isa, while the annual limit for cash Isas is £5,100. Your total Isa investment each year cannot exceeed £10,200.

For cash Isas it’s simple — you can invest solely in savings accounts. With stocks-and-shares Isas you can invest in shares, bonds and commercial property, as well as holding some of your money in cash. Many people choose to invest through collective funds, such as unit and investment trusts, though they can buy individual shares if they wish.

Tax breaks

With cash Isas, the interest is tax-free and paid without deduction at source. Bond investors also suffer no income tax on their interest payments because they are able to claim back the 20 per cent tax that has been deducted at source and there is no higher-rate tax to pay.

The main benefit for investors in stocks-and-shares Isas is that all capital gains roll up tax-free. On the income tax front, investors can no longer claim back the 10 per cent tax credit on dividends. This means that non-taxpayers and basic-rate paxpayers are no better off from the dividend point of view than they would be outside an Isa. However, higher-rate taxpayers will benefit because there is no additional tax to pay. With the top rate of tax now at 50p in the pound, this concession is all the more valuable.

Cash Isas — the rules

First you must find an Isa manager, normally a bank or building society. You then open an account, which operates much like an ordinary deposit account, except that the interest is paid tax-free.

Isas were also originally intended to allow investors instant access to their money without penalty. While many still do, savers should check the terms and conditions of their account because some banks and building societies have introduced notice periods ranging from seven days to five years, with penalties for early withdrawal.

A number also impose a penalty on those transferring their cash Isas elsewhere. This can be anything from a fixed sum of £100 to as much as the loss of 365 days’ interest. There are normally no charges on a cash Isa.

Stocks-and-shares Isas — the rules

As a first step, each investor has to sign up with an Isa manager, such as a stockbroker, bank or fund group, that will administer the Isa plan.

Most investors choose to gain their exposure to the stock market through funds. Some employ a financial adviser, who would help to select the funds and either act as an Isa manager or select a suitable one.

At the other end of the scale, sophisticated investors might feel confident enough to go the DIY route, opening a self-select Isa. They could invest in a portfolio of shares, funds, exchange-traded funds (ETFs) or a mixture of all three. They would still require a plan manager, but they would make all the investment decisions themselves.

Charges can vary considerably. A single fund in an Isa wrapper might escape extra charges over and above the ones levied on the fund itself. However, someone with a self-select Isa containing a large portfolio of shares and funds could expect to pay more, including transaction costs.

For those undecided about investing in a stocks-and-shares Isa because of uncertainty over markets, it is worth pointing out that many Isa managers (though not all) will allow you to put money in an Isa and hold it in cash until you judge the moment right for investment. Another way to mitigate market risk is to drip-feed your money into the market through monthly investment.

There is one final, underrated benefit: you don’t have to declare details of your Isa investments on your tax form.

Some savers have been looking at putting their investments offshore. The kinds of deals that have been luring them typically offer a fixed rate of interest and pair this with a lengthy ‘lock in’ period, where money cannot be withdrawn. With the announcement of what the Bank of England has in store for interest rates these deals may not continue to represent the sort of value that they currently appear to.

The first upward shift for interests should occur within the next four months, according to the Bank of England governor Mervyn King. The increase will be just a quarter of percent, taking the base rate to 0.75%. This will become 1% by the end of the year. If things move as planned the base rate will be at 2% by the end of 2011, and up to 3% by the close of 2013.

What this will mean for savers is yet to make itself clear. Certainly the bank of England have warned against locked into any kind of fixed term deal. With the possibility of more generous terms just around the corner consumers may find it is best to stick with account options that give them flexibility and ‘help for what matters‘ style customer service.

With inflation apparently running rampant, it is entirely possible that the Bank of England could be forced to raise interest rates more sharply than according to the scheme they have announced. It could also be that the when rates find their equilibrium level that this could be much higher than the kind of numbers that are currently being talked about.

The culprit, it seems was a new computer system. In common with all its breed, it cost a small fortune (and a large one) and seems bent on thwarting humanity by whatever means can be concocted within its diabolical circuits. In this case being entrusted to bring together 12 disparate databases led to the mechanoid menace fleecing £3 billion pounds, direct from the wages of unsuspecting tax payers.

It is maybe foolish to ascribe the mistakes to malice, but the fact remains that this represents a massive cock-up. What is worse is that the blunder seems to have been covered up by HMRC. It was not just over payments either, but alos underpayments. This resulted in millions getting stung with surprise demands, often for huge sums of unpaid tax. For those used to PAYE meaning no worries this came as a massive shock.

The multiple mistakes that were made are not swift in being sorted out either. There may be up to a three year backlog before appeals for correction can be looked at. One thing is for certain, that is that if you have payed too much, or been told you have payed too little, no-one is going to point it out to you. Anyone who has payed any tax at all through the PAYE system in the last  5 or so years should check income tax rates and go over their old payslips very carefully indeed, before settling in for a long old wait before anything can be done about it.