Latest news with #financialWellbeing
Finextra
4 days ago
- Business
- Finextra
LHV survey: Digital banks should pass savings from not operating physical branches to consumers
As the cost-of-living crisis continues, new research from LHV Bank reveals that 46% of UK adults are struggling to save regularly, despite reported income increases for nearly a third of the population. 0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The study, conducted by Opinium on behalf of LHV Bank, highlights growing frustration with both traditional and digital banks. With most consumers (two-thirds) agreeing that digital banks should pass on the savings from not operating physical branches, the pressure is rising on financial institutions to deliver better value and transparency. In fact, 41% of respondents would support government legislation to ban 0% interest current accounts altogether. One in five UK adults believe their bank offers fair value, and 53% say they would switch providers for better interest rates. Among younger consumers aged 18-34, that figure jumps to 65%. LHV Bank has launched the UK's first new current account in nearly five years, offering a 3.25% interest rate and zero fees, positioning itself as a challenger to traditional banking models. According to the LHV survey, the disconnect between income growth and financial wellbeing is stark. While 29% of respondents say they've earned more in 2024, 31% feel worse off financially. Women are especially affected, with 35% feeling financially worse off compared to 28% of men. This financial strain may be explained in part by a growing gender gap in saving habits. On average, men save £280 per month, which is £115 more than women (£165). Men are also more likely to earn interest on their current accounts and at higher rates. 47% of male account holders that earn interest receive more than 2.1% AER, compared to just 35% of women. Kris Brewster, director of Retail Banking, LHV Bank, says: "We launched our current account to raise the bar in banking – by rewarding customers with meaningful rates at a time they need it the most. We're paying a highly competitive 3.25% interest rate and are still able to grow responsibly and profitably – demonstrating that running a strong bank needn't come at the expense of rewarding customers. We choose to share value back with our customers. Most banks could do this - they just choose not to."
RNZ News
23-05-2025
- Business
- RNZ News
Best Start tax credit to be income-tested
children economy 22 minutes ago More than 60,000 families will be worse off as a result of a move to income-test the Best Start tax credit in the first year of a baby's life. Leading expert in parental leave and financial wellbeing in New Zealand Stephanie Pow spoke to Charlotte Cook.
