Money saving round-up

WELCOME to the Money Saving news. There have been major developments to some of the issues I've covered over the past six months - so here are the headlines.

And this latest round-up means you can continue to save money.

BIG BANK CHARGES PAYOUT AROUND THE CORNER?

WITH more than a million people's reclaims - often for thousands of pounds - on hold, there's no surprise that the dominant subject in my mailbag is "what's happening to bank charges?" Well, finally we could be getting close.

In July 2007 a test case was launched to decide whether the £35 charges for going beyond overdraft limits were legally unfair. But the regulator slammed a hold on ALL reclaiming, except for those in financial hardship, until there's a final decision.

The banks then LOST in the High Court, as it ruled fairness rules do apply to charges, and they LOST AGAIN at the Court of Appeal. Now the new Supreme Court's expected to rule within a month - and that decision CAN'T be appealed.

Yet that's still not the end of it. Because the Office of Fair Trading must decide if charges actually are unfair, although it's provisionally said they are. Yet having dragged this out for two years, the banks may do it all over again by challenging this in court too.

After all this I believe that, as they took the money without asking, if it's ruled unlawful the banks should repay it without being asked.

Recently, I've written to all the party leaders arguing this and asking to hear their policies on it, as for far too long they've kept quiet.

All replied and mooted they want a quick solution. Lib Dem leader Nick Clegg said he'll introduce a motion in Parliament to support automatic payouts, Tory chief David Cameron wants to see rapid and possibly automatic payouts, and Prime Minister Gordon Brown said he wants a swiftly negotiated solution.

Right now everyone should add up their charges over the past EIGHT YEARS, and put in a claim as soon as possible to get in the queue, or have hardship cases heard now.

A full guide, free claiming letters, and copies of the leaders' responses are available at www.moneysavingexpert.com/bankcharges

CAR INSURANCE 96P A YEAR

YEP you've read it right. When I detailed my strategy for supercheap car insurance, I asked if anyone could beat the existing £14 record result. Well a Kent grandmother, Barbara Wakerell, has done just that.

First you combine comparison services in the right order, eg Money Supermarket, GoCompare and Confused.com to maximise quotes in the minimum time.

Then you see if you can get money back on the cheapest quotes by buying it through special cashback websites. See www.moneysavingexpert.com/carinsurance for a step-by-step guide.

Barbara was quoted £120.96 for a decent fully comprehensive policy. The insurer's own promotion gave £70 cashback, and then a further £50 came via a cashback site, leaving her annual cost at just 96p.

Do let me know if you come close to beating this car insurance cost. My hope is someone will actually be PAID to take out a policy - after all, the home insurance record stands at £67 PROFIT.

CASH ISA LIMIT UP TO £5,100

CASH ISAs are simply savings accounts you needn't pay tax on, making them the best place to start saving.

You can put up to £3,600 in each tax year, but from Tuesday anyone who will turn 50 before April 6 2010 will see their maximum allowance increased by £1,500 - to £5,100.

Over 50s already with cash ISAs for this year can top them up, or if you've not got one, just open a new one.

The top easy access payer is First Direct's cash e-ISA at 3% AER, more best-buys including higher paying fixed rate cash ISAs at www.moneysavingexpert.com/cashISAs

TAX CREDITS REVOLT

A MILLION homes are likely to be receiving letters saying "you've been overpaid tax credits and must give the cash back". To avoid this you're ALWAYS supposed to report any minor circumstance changes to the tax credit helpline.

Last month I wrote about how you needn't pay back the money if the mistake's theirs (see www.moneysavingexpert.com/taxcredits ).

I also mentioned to Treasury Minister Stephen Timms that reporting changes sometimes didn't work, and he asked for cases.

You sent them in thick and fast with stories of reports being ignored and struggles taking years to sort out.

One reader fumed: "You didn't mention trying to get anywhere with these people is impossible and chimps have more intelligence."

All will be passed on to the Treasury.

Yet while the system's dire, the thousands in extra income many get is worthwhile, so don't dismiss it too quickly.

TV Money Guru Martin Lewis is the creator of the Consumer Revenge website www.MoneySavingExpert.com which is packed with info on how to get more money in your pocket.

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