Podcast Summary
Designing a unique engagement ring online and saving on mobile phone plans: Design an engagement ring online with Blue Nile using promo code 'listen', save on mobile phone plans with Mint Mobile's $15 unlimited data offer, and understand the impact of the UK Statistical Authority's decision on RPI vs CPI.
When it comes to making a significant purchase like buying an engagement ring or switching mobile phone plans, it's important to have confidence in your decision. For engagement rings, you can design a unique ring with ease and convenience online at Blue Nile using the promo code "listen" for a discount. Regarding mobile phone plans, Mint Mobile is cutting its price for unlimited data from $30 to $15 per month, making it an attractive option for those looking to save. On a different note, the UK Statistical Authorities' decision not to change the way the Retail Prices Index (RPI) is calculated is a topic of financial importance. The RPI measures how fast prices go up on average, and it's different from the Consumer Prices Index (CPI) in that it includes more housing costs. The significance of this news is that pensioners with RPI-linked pensions will be happy, but taxpayers and those paying off student loans may not be. Danny Cox from Hargreaves Lansdown came into the studio to explain the difference between CPI and RPI and why it matters. Stay tuned for more financial insights from The Feet Money Show.
New inflation measure RPIJ may impact pensioners and savings: Pensioners and those with index-linked savings could face lower payouts due to new inflation measure RPIJ, while taxpayers may benefit from cheaper debt servicing
The Office of National Statistics has introduced a new inflation measure, RPIJ, which may potentially impact pensioners and those with index-linked savings in the future. Although no changes have been made to pensions or index-linked certificates at the moment, pension schemes and sponsors may face pressure to adopt the new measure, which could result in lower payouts to pensioners. However, this may lead to cost savings for the taxpayer due to cheaper debt servicing. Those already using the Consumer Prices Index (CPI) measure will not be affected. Overall, the introduction of RPIJ brings uncertainty and potential implications for pensioners and pension schemes.
Online investment services for budget-conscious investors: Nutmeg.com offers personalized investment portfolios for budget-conscious individuals based on their risk tolerance, financial goals, and investment amount. With a minimum investment of £1,000, the site caters to a wider audience and manages the portfolio on behalf of the investor.
A new wave of online investment services, such as Nutmeg.com, is emerging to cater to investors who want professional guidance but cannot afford high hourly rates for financial advisers. These sites offer personalized investment portfolios based on an individual's risk tolerance, financial goals, and investment amount. Nutmeg, for instance, was founded by Nick Hungerford, a former wealth manager, and aims to provide a low-cost, online discretionary investment service for anyone, regardless of their investment size. The site uses an interactive questionnaire to determine an investor's risk level, financial goals, and time frame, and then constructs a portfolio accordingly. The investor can input their bank statements, initial investment amount, and monthly contributions, and the site will manage the portfolio on their behalf. Nutmeg is open to investors with as little as £1,000 to invest and also caters to those with larger sums, making wealth management services more accessible to a wider audience. The cost to use the website is not mentioned in the discussion.
Digital investment platforms offer cost-effective alternatives for investors overlooked by traditional advisors: Digital investment platforms like Nutmeg and Best Invest First provide affordable access to investment management for those rejected by private banks, using ETFs and user-friendly interfaces.
Digital investment platforms like Nutmeg, which charge a 1% annual management fee, offer lower costs due to their primary investment in exchange-traded funds (ETFs). However, some investors might prefer actively managed funds and may find the 1% fee high. These platforms are targeting investors who have been rejected by private banks due to insufficient assets under management. For instance, Best Invest First, a guidance-only service, aims to help novice investors understand their risk profile and save money by managing investments themselves. The platform is user-friendly, with a focus on savings and is particularly appealing to female investors. However, during testing, the analysis tool was unavailable, which could be a concern. Overall, these digital investment platforms offer a cost-effective alternative for investors who have been overlooked by traditional financial advisors.
Best Invest's focus on potential savings vs. PPI repayment process: Best Invest promotes savings through lower fees, while PPI repayments remain a lengthy issue for banks and customers
Best Invest emphasizes the potential financial savings one could make by switching to their services, making it seem like an advertising pitch. However, it's important to note that they don't make personalized recommendations or suitability assessments. Instead, they focus on the potential savings based on their fund charges and discounts. The ongoing discussion around PPI involves the Cooperative Bank being fined over £100,000 for holding on to complaints regarding missold PPI policies. Banks are now looking into these cases, but the repayment process is ongoing and has been an issue for years. PPI is a type of insurance sold with loans, mortgages, and other borrowed money, designed to help repay loans if the borrower lost their job or fell ill. However, millions of these policies have been discovered to not be suitable for the customers who purchased them. The ongoing process of banks reviewing and repaying these customers is a lengthy one.
Consumers turning to financial ombudsman for dispute resolution: Consumers face long waits for dispute resolution, but will be compensated from the date they receive payment, encouraging patience and opportunity for business improvement
Consumers are increasingly turning to the financial services ombudsman to resolve disputes with banks and financial institutions, as the number of complaints continues to rise. The ombudsman, set up by parliament to help ordinary people with problems against big institutions, has handled over half a million PPI complaints alone. While this is a sign of consumers' growing ability to assert their rights, the lengthy queues and wait times can be disappointing, with some consumers facing months or even years before resolution. However, it's important to note that consumers will be compensated from the date they receive their payment, rather than the date they file their complaint. This means that there's no incentive for banks to drag out the process, and consumers should be patient. The backlog presents an opportunity for better businesses to reconnect with their customers and improve their complaint handling processes. Despite the challenges, the ombudsman remains a vital resource for consumers seeking to resolve disputes with financial institutions.
Businesses Enhancing Customer Service with PPI Claims: Some financial businesses use PPI claims as a chance to boost customer service. Affordable ethical brands like Quince offer high-quality items, and 1800flowers.com provides thoughtful gifts for special occasions.
Some businesses in the financial sector are utilizing Payment Protection Insurance (PPI) claims as an opportunity to enhance customer service. This comes as many in the industry are calling for improved customer service experiences. For more information on PPI, check out the money section of this weekend's Financial Times or listen for our in-depth analysis on high street banks in the next episode. Additionally, there are ways to upgrade your style without breaking the bank. Quince, an ethical and responsible manufacturing brand, offers high-quality items at discounted prices. And for those looking to celebrate special occasions, 1800flowers.com provides a range of thoughtfully crafted gifts made with care and love. In summary, businesses are using PPI claims to improve customer service, and there are affordable options for those seeking luxury items or thoughtful gifts. Stay tuned for more financial insights and lifestyle tips in the upcoming episodes of the Feet Money Show and ft.com/podcasts.
