New research by Saga Personal Finance has revealed that almost half (41%) of over fifties with ISAs are planning to make the most of the recently increased ISA limits in the forthcoming tax year by using their maximum allowance, with four fifths (81%) of over 50s now having an ISA.

In October last year, limits were increased to a maximum of £5,100 for a cash ISA and £10,200 for an investment ISA for those aged 50 and over. Almost all (95%) of over 50s are aware of the increased ISA limits, and over a third (37%) have topped up their pot since the limits increased in October.

Those living in London are the keenest to avoid tax on their savings, with 46% planning to use their full allowance. Half of over 50s who haven’t topped up their ISAs since this tax year, said they didn’t have the extra money to invest, whilst others invested their money in other ways.

Andrew Goodsell, Executive Chairman, Saga, said:

“With low interest rates it is important that people make their money work hard for them. I am pleased to see that savvy over 50s are making the most of the increased ISA limits.”

According to figures released by debt charity Consumer Credit Counselling Service, men are more likely to become insolvent than women.

Last year, of those the charity recommended an Individual Voluntary Agreement (IVA) to, 55.4% were men, whilst 51.4% of those recommended bankruptcy were also men.

The existence of an insolvency gender divide is supported by figures that CCCS has obtained from the Insolvency Service, with statistics from 2000 to 2008 showing that men have always taken out more IVAs or gone bankrupt more than women. In 2008, the most recent available figures by gender, show that 23,173 women went bankrupt in 2008 compared to 37,972 men, an increase of over 50%, while 17,300 women took out an IVA, four thousand less than the 21,318 men who did.

The levels of debt for CCCS clients gives an indication why there are higher numbers of insolvency among men. While couples have more debt than single people, on average owing just over £30,000, single men owe on average £19,830, which is 17 percent more than the average of £16,937 for single women.

CCCS spokeswoman Frances Walker said:

“This may be the one equality which women may not want to aspire to. Whatever sex you are, I would urge anyone worried about their debt to seek help as soon as possible.”

Research by Santander has revealed that millions of people are missing out on savings by not switching their providers.

Santander’s research shows that only 24% of people have switched insurance providers in the last year, whilst only 12% have switched mobile phone provider. Meanwhile, one in five Brits (21%) have switched a gas, water or electricity supplier.

However, 70% of Brits (a total of more than 34 million people), have not switched their main current account since 2000 and three quarters (74%) say that they have no plans to review their current accounts in the immediate future.

The Santander research also illustrates how twice as many people in Northern Ireland have switched their insurance provider in the last 12 months compared to Londoners (35% v 16%), that 12% of people in the South East and 11% in London have switched savings account providers in the last 12 months (compared to just 5% in Scotland, Northern Ireland and the North East), and 17% of people in the North West have switched their broadband provider in the last year (compared to 8% in Scotland and the East Midlands).

Helen Bierton, Head of Current Accounts at Santander commented:

“In this day and age it is important to look around for the best deal, to make your money stretch as far as it can.

“One way of making your money stretch further, which many people either ignore or are not aware of, is to switch your current account. Whereas many people see how much they can save by switching their insurance for example, people don’t see the benefits of switching current account. However, by switching current accounts you can start earning a great rate of interest which can earn you up to up to £125 in the first year”.

A quarter (26%) of Debt Management Plans (DMPs) will last ten years or more, even though a DMP is meant to be a short-term repayment plan between an individual and their unsecured creditors, according to figures released by insolvency trade body R3.

R3’s survey also reveals that 22% of individuals in a DMP say that they were not asked for proof of their income or expenditure before their plan began. Their figures also show that 46% of DMPs fail because the monthly repayments were too high, and that 52% of people are ‘pushed’ into DMPs by creditors. Furthermore, 35% of individuals in a DMP say that other options for dealing with their debts, such as an Individual Voluntary Agreement (IVA) or bankruptcy were not discussed before starting a DMP.

R3 President, Peter Sargent commented: “DMPs can play an important role in offering a manageable solution to individuals who are able to pay back their debts. However, the sheer length of some plans indicates that the amount of debt these individuals have is too large for a DMP. By entering into these inappropriately lengthy plans people become slaves to their debts.”

“Moreover, our figures show that a third (30%) of individuals who are currently bankrupt or in an Individual Voluntary Agreement (IVA) used to be in a DMP. The volume of those who go from DMPs into a formal insolvency procedure suggests that, in some cases, DMPs prolong distress when another procedure would have been more appropriate to start with.”

Even insured families missing £14,500 of cover

These families face financial meltdown if their main breadwinner dies. Even those who have got some form of life insurance or critical illness cover in place would find themselves under-insured by an average of £14,500 a year, according to research from Friends Provident. Often they will have tried to ‘go it alone’ when they are looking for cover, and will have found it difficult to get the right policy, at the right level. This is where a broker is a valuable asset.

Families estimate too little to live on

A third of people think they could live on less than a third of their take-home pay. The average weekly income in the UK is £489, so that means an income of just £171 a week. This is actually £300 less than the £471 spent by households on average per week. So how would you survive?

Less than half of those who have policies have any idea about how much they would be able to claim from their policy if they needed to, suggesting that they should look again at their cover.

Check your cover when your life changes

Any changes to your lifestyle should prompt you to check your life cover again. A salary increase, getting married, having children, getting divorced – all of these will have an impact on the cover you need. So you should speak to a broker sooner rather than later if you have not looked at your cover for a while.

Speak to a broker to get the best deal

Life insurance has got cheaper too. But even if you have bought your cover recently, it is still worth speaking to a broker to check you are getting the best deal. The difference between the different providers is massive although the level of cover is exactly the same. For example, the cheapest deal for a female non-smoker aged 35 with £200,000 of life cover over 20 years costs £12.08 a month with Barclays Life - £2,899.20 over the 20-year term in all, according to figures from Moneyfacts.

Even getting the 10^th cheapest policy would cost you £14.40 a month for the same cover with Zurich – £3,456 over 20 years – and £556.80 more than the best deal.

For a man of 35 who is also a non-smoker, with the same cover, the cost would be £12.60 a month for the best deal on the market – with AA Insurance Services. This works out at £3,024 over the 20-year term. But getting the 10^th best deal with LV= would cost you £3,907.20 over the term – an extra £883.20.

Smokers stung for even more in premiums

Smokers will be paying even more, mainly because the insurance company expects you to die sooner. It is harsh, but fair, at least according to the statistics.

A female smoker of the same age and with the same cover would pay £4,224 with AA Insurance Services – the cheapest deal at the moment. But at the other end of the table, you would pay £5,112 with Marks & Spencer Money an extra £888.

For a male smoker, the deal is even worse. For the cheapest policy, with AA Insurance Services you would pay £5,289.60 over 20 years. Again, at the other end of the table, you would be paying £6,388.80 with Aviva – nearly an extra £1,100 over the 20 year term.

Save £90,000 by ditching the ciggies and getting the best deal

Of course, ditching the smokes and getting the cheapest – rather than one of the most expensive – policies would save you £3,364.80 as a man, and as a woman, £2,212.80 on your premiums over 20 years.

Add in the cost of a packet of 20 cigarettes at just over £6 on average, and a 40-a-day smoker is burning through £4,380 a year – that is £87,600 in 20 years literally going up in smoke.

Cutting the fags and getting the best deal will save you nearly £91,000 over 20 years as a man, and just under £90,000 as a woman. What are you waiting for? Ditch the smokes and get in touch with a broker now.

Why it makes a difference

So if you make your overpayment the day after the interest is calculated, you will not see any benefit from it for a whole year. No kidding. This is because they only calculate the interest on your mortgage once a year.

As an example, if you had a £150,000 mortgage at 5.49 per cent interest only, and wanted to pay off £30,000, you would pay £1,647 in interest more than you would need to if you paid it the day after your interest had been calculated, and you did not get the benefit for the rest of the year.

Meanwhile, the lender will be getting a nice interest payment from your money, adding insult to injury.

Out of the ordinary

Most lenders now calculate interest either daily or monthly, so you would wait at most 31 days for your overpayment to be taken off the outstanding amount of your mortgage, even if you made the payment at the wrong time of the month.

What you should be doing

So if you want to make overpayments on your mortgage, make sure that:

• Your lender calculates interest daily so it does not matter when you make the payment
• If it is calculated monthly or annually, then make a payment the day before the interest is calculated so you get an immediate benefit.

Check for a better deal

However, let’s be real – none of these 11 building societies are currently in the best buy tables, so why not see if you can get a better deal elsewhere? Speak to a mortgage broker to find out how much better you can do.

Most lenders will allow you to overpay at least 10 per cent of your initial mortgage borrowing each year, but you should check with your broker if your lender has any different rules.

If you want to make overpayments regularly, then look for a lender with flexible mortgage terms, such as First Direct’s at 2.39 per cent variable. This has no tie in either, so you can move to another deal any time you want.

So who are they?

The following 11 lenders all calculate their mortgage interest on loans annually, according to Moneyfacts:

Bath Building Society

Buckinghamshire Building Society

Chorley & Districts Building Society (all products bar one)

Dunfermline Building Societies

Earl Shilton Building Society (four out of six products)

First Trust Bank (Northern Ireland)

Holmesdale Building Society

Leeds Building Society

National Counties Building Society

Progressive Building Society

Vernon Building Society (five out of seven products)

Virgin Money’s Charity Credit Card IS a good idea – if you pay off your balance in full every month and don’t plan to transfer a balance to the card. If you’re not borrowing, the 1 per cent cashback on your spending, which includes a Gift Aid boost of 20p per pound donated, is a pretty good deal. For a non-borrower, even this can be beaten by a card giving more than 0.8% cashback, making your own donations and ensuring you’re taking advantage of Gift Aid.

If you borrow get a less expensive card and donate the money yourself

With a typical rate of 12.9 per cent APR (variable) and a lifetime balance transfer rate of 8.9 per cent, you can do a lot better by getting a different card if you ever plan to borrow on the card and giving the money you are saving to charity.

This card charges a 2 per cent balance transfer fee if the transfer is made within 60 days of the account opening, and a 2.98 per cent fee applies otherwise.

Providing you are within your credit limits, you would not pay interest on the balance you had on the Barclaycard Platinum card in the first 15 months from your balance transfer. But you would have to pay £87 to transfer a £3,000 balance.

You would also not pay any interest for the first three months on purchases, so you would be saving some serious money in interest. You and/or your charity would be better off if you gave the saving in interest rather than the cashback you’d send via the Virgin Charity Card.

Charity cards with better deals – if you must

If you really want to give this way, and plan to borrow on the card, there are some better charity credit card options, providing you are interested in giving to these charities: National Trust, Breakthrough Breast Cancer, British Heart Foundation, and the World Wildlife Fund.

The National Trust credit card has 0 per cent interest on balance transfers for 12 months – you pay a 3 per cent fee for the privilege – and 0 per cent on purchases for three months.

The World Wildlife Fund card, British Heart Foundation card and Breakthrough Breast Cancer card offer the same deal.

Lose the card as soon as you start paying interest

As soon as you start paying interest though, ditch these cards and get another 0 per cent deal, and give the money you would have paid in interest to your chosen charity.

Research by Saga Home Insurance shows that 32% of over 50s know their neighbours well and regularly socialise with them, with only 4% not knowing them at all.

However, the tradition of knocking and walking straight into the kitchen has long gone, with 74% of over 50s saying that this is far less common nowadays. Indeed, just 7% of people leave their doors unlocked to visitors, whilst 33% keep them locked at all times.

The research also shows that the Scots are the most trusting, with 14% leaving their doors open, followed by the North East on 10%. Londoners are the most careful, coming in at 2%.

Saga’s findings also flag up some worrying results however. 28% of over 50s feel the number of unexpected visitors to their home is on the rise. Worryingly, it is the over 75s – arguably one of the most vulnerable groups – that receives the highest number of unexpected visits from business people: 17% compared to just 11% of 50-54 year olds. While the majority ask for identification first (81%), one in six (17%) admits to simply opening the door and letting them into their home.

Saga Home Insurance recommends keeping valuables, such as rings, watches and personal money out of sight and in a safe and secure place at all times.

Andrew Goodsell, executive chairman, Saga Group, commented: “It is encouraging to see the bonds between neighbours remain strong, but the over 50s are wise to be cautious, especially when receiving unexpected visitors. Always ask to see identification before allowing a salesperson into your home. As a homeowner it is your right to refuse entry if you suspect they might be a bogus visitor.”

The official Bank Rate paid on commercial bank reserves has been maintained at 0.5% by The Bank of England’s Monetary Policy Committee. This means that the Bank Rate has now been at 0.5% for a whole year, having been lowered from 1.0% in March 2009.

The committee have also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. This follows a decision in November last year to increase the size of the programme by £25 billion.

Commenting on the news, Robert Sinclair, Director, Association of Mortgage Intermediaries, said:

“With the general election now imminent the MPC has, unsurprisingly, maintained its position. Economic recovery remains weak and we wait to see if further stimulus via quantitative easing is required. With inflation hopefully peaking and house prices reining back there is little evidence to support an increase to the interest rate. An extended period of low interest rates is now looking more and more likely, with an extension to quantitative easing a better bet than a withdrawal of the recent monetary stimulus.

“Funding for mortgages remains restricted and this will continue to limit what is available to consumers over the next few months.”

David Black, Banking Specialist at Defacto believes that the Bank Rate remaining at 0.50% leaves the nation’s savers between a rock and a hard place:

“With inflation at 3.50% and tax being levied on gross returns it’s getting really hard for savers. Once again those hardest hit will be those who rely on savings interest to supplement their day-to-day living which will be the case for many pensioners,” he said.

Information on the Asset Purchase Facility can be found on the the Bank of England website.