Cash in a flash

Endowment watchdogs rule on red-letter days

Mortgage borrowers with an endowment need to hurry if they want to seek compensation for a policy that looks unlikely to pay off the loan. Borrowers must lodge a claim within three years of discovering that there was a potential problem. This has now been defined by the regulators as the date they first got a 'red' letter from the endowment provider. Red letters denote that a shortfall is very likely. Since many people got a red letter in 2002, they must make the claim in or before 2005.

Under an extension negotiated by the Financial Ombudsman Service (FOS), some policyholders could have an extra six months from the time they got a second letter from their insurer about the endowment. People can also claim if they are within six years of starting the policy. Further information from the FOS on 0845 080 1800. Its free leaflet 'Endowment Mortgage Case Studies' is available on 0207 964 1234. The Financial Services Authority's free leaflet 'Endowment Mortgage Complaints' is available on 0845 456 1555.

Pay deals weigh in at 3.5 per cent

Most pay settlements agreed for January 2004
were in the 3 to 3.5 per cent range, according to
Incomes Data Services. Three out of five
agreements fell within that range, but there were
exceptions, ranging from a pay freeze to 9 per
cent.

You've got power to cut energy bills

If you are worried about rising gas and
electricity bills, there are plenty of companies that
will help you switch to a cheaper supplier.

Simply Energy expects more people to change
following the 1 March Scottish Power increases
and the 1 April rises at Npower. British Gas has
already raised prices this year. Simply Energy can
be contacted on 0800 781 1212.

Of great interest

Halifax is launching a savings account from 1 March that will pay a fixed rate of 6 per cent gross over a year. The rate will be one of the highest available in the market, although top-rate taxpayers could do better in one of the higher-paying cash Isas. The Halifax account is aimed at small savers and may be adapted into a children's version when child trust funds start operating in April 2005.

Account holders will have to meet strict rules, paying in between £25 and £250 per month by standing order for a year. They cannot pay in larger lump sums. Anyone who makes a withdrawal will lose the 6 per cent rate and, instead, get the best instant access rate available which, from 1 March, will be 4.3 per cent. The money can only be held in the account for a year, after which it is transferred into an instant access account. However, the account-holder could start a new account. Leaflets will be available soon, and accounts can be opened in branches.

Net pay

Egg is offering a savings rate of 4.75 per cent to people (including existing customers) who open a new internet savings account. The offer includes a six-month bonus of 0.75 per cent. The underlying rate of 4 per cent matches the Bank of England base rate. This is guaranteed to continue until the end of 2007. See www.egg.com.

Lender gap

Women 'are much keener than men to see the back of their debts', says independent financial adviser the MarketPlace. Its research also shows that 26 per cent of men and 17 per cent of women are 'worried about the amount of debt they hold'.

Analyse this

A free 'portfolio analyser' is being offered to all private investors on the Best Investment website. Go to www.bestinvest.co.uk and then click on the 'portfolio analyser' button on the homepage.