From what I can see you need serious money to get involved in trackers. Vanguard is the one I looked into briefly and their minimum investment is £100K!
I know some CL posters are able to employ a fleet of domestic servants from previous threads but I'd wager that for most of us a minimum entry of £100K makes this a discussion of academic interest only.
You can invest in trackers from as little as £50pm or say a lump sum of £500.
Via a platform or IFA I assume?
Len, here's a link to L&G for example. I've invested in the FTSE All Share tracker before. (I'm not recommending it).
I'm not investing at the moment as I think the markets are inexplicably high and will invest when (if) they take a tumble. The trouble with that is you might be waiting years. I doubt it though as something will spook the markets soon, it always does.
Does anyone have an investment in Fundsmith? From what I've read it looks a pretty sensible long-term option in a low growth world.
I know it well - it's a concentrated fund investing in what they perceive to be fairly defensive global companies. These types of companies have been strongly in favour over the last couple of years as nervous investors seek what they hope will provide 'growth in a low growth world'. As a result Fundsmith's performance has been strong and they will appear in any league table of strong performers.
However if there is a rotation out of these types of companies (which seem pretty fully valued at this point) and into more cyclical companies then they will inevitably underperform.
I think they run their portfolios on sensible grounds and avoid some of the quasi-benchmark hugging tricks that some posters allude to above, but I'd be reluctant to chase performance.
I'm not investing at the moment as I think the markets are inexplicably high and will invest when (if) they take a tumble. The trouble with that is you might be waiting years. I doubt it though as something will spook the markets soon, it always does.
There is a saying that it is "time in the market" rather than "timing the market" It has been shown that by being out of the market by just a day or two when it moves means that you miss some big gains.
many people were sitting on the sidelines on June 23rd & 24th and were too late the following week.
no-one can tell you where the market will be tomorrow, 7000 has to be breached sometime and in reality it should be 7200-7500 based on past performance
So the country's chief economist who advises government, entitled to an index linked pension that will cost the tax payer well over £3m, says pensions are a waste of time and people should buy property.
He adds, without any apparent sense of irony, he could not make "the remotest sense of pensions".
He obviously could not make the remotest sense of Brexit either given the crap that came out of the B of E.
Does this sound about right, some guy who used to work in a welknown pension company said that if you started a pension at 25 years old, paid in it until you were 65 and retired paying 1% commission a year in pension charges that effectively you would end up losing 25% of the value of your pension fund in charges , he was pretty damning of the system saying it was all a bit of a con at the moment.
From what I can see you need serious money to get involved in trackers. Vanguard is the one I looked into briefly and their minimum investment is £100K!
I know some CL posters are able to employ a fleet of domestic servants from previous threads but I'd wager that for most of us a minimum entry of £100K makes this a discussion of academic interest only.
You can invest in trackers from as little as £50pm or say a lump sum of £500.
Via a platform or IFA I assume?
Len, here's a link to L&G for example. I've invested in the FTSE All Share tracker before. (I'm not recommending it).
I'm not investing at the moment as I think the markets are inexplicably high and will invest when (if) they take a tumble. The trouble with that is you might be waiting years. I doubt it though as something will spook the markets soon, it always does.
@LenGloverthese guys specialise in analysing the platforms. I thought it was really interesting, and posted it a few pages back. But @Addickted didn't approve (he didn't like the graphics) so the topic went dead.
But all in all, they didn't find too many reasons to criticise the choice of Hargreaves Lansdowne, which i use. It's an easy platform to use and you can certainly buy the Vanguard trusts there. I'm lining up to buy some that way, but like @Covered End, my hunch is that the markets will dip before the year end and am waiting for that.
Does this sound about right, some guy who used to work in a welknown pension company said that if you started a pension at 25 years old, paid in it until you were 65 and retired paying 1% commission a year in pension charges that effectively you would end up losing 25% of the value of your pension fund in charges , he was pretty damning of the system saying it was all a bit of a con at the moment.
A "pension" is nothing more than income from money you set aside when you were working. Where you put that money is your choice, but your house you live in is not a pension unless perhaps you can rent a room to a lodger at a a few thousand a month.
Like many people, our B of E chief economist thinks a pension is simply a pot of paper money.
Using all your income to set up your own business and becoming a millionaire is also likely to be better than setting up a pension plan, but you could do both and get the benefit of some tax relief and contributions from your employer.
The term "pension" has become synonymous with retail personal pension plans through an insurance company, often via an IFA. This is the least efficient and worse value for money, apart from a SIPP. Commission isn't permitted any more, advisers have to charge a fee.
Everyone today has access to a company scheme with maximum permitted charges of 0.75%. (Doesn't apply to SIPPS they can still charge punters what they can justify). This 0.75% charge equates to about £9p.a for every £1,200 p.a paid in contributions. Gross investment returns at 5% means the saver gets 4.25%. The "lost" 0.75% isn't from the saver's money, the 4.25% is net added value after costs, what is so extraordinary?
So the only logical measure of cost is the charge suffered on contributions, the charge applied to investment growth is not coming from a saver's money. A tin of beans will have similar charges, it's just that they can't be evaluated in terms of beans "lost" to cover costs of manufacture and sales. If you could, it would be scandalous, probably losing a ton of beans over a lifetime.
The figures mean nothing unless you are making a comparison against other investments taking account of costs. If it's property or a real asset, you need to include lack of tax relief on outgoings, tax on disposal, inheritance tax, mortgage interest, agents fees, council tax, water rates, utility service costs, insurance and maintenance over its lifetime. If it's a buy-to-let portfolio, it's a business whose assets can be used to generate retirement income, it's not exactly a pension, it's no more guaranteed than a pension, and you need to take account of the value of your time and all that goes with running a business, accounts and tax etc.
If property floats your boat, you can invest your pension in a property fund with the net return after all the costs of maintaining the property without losing the tax benefits.
So the country's chief economist who advises government, entitled to an index linked pension that will cost the tax payer well over £3m, says pensions are a waste of time and people should buy property.
He adds, without any apparent sense of irony, he could not make "the remotest sense of pensions".
He obviously could not make the remotest sense of Brexit either given the crap that came out of the B of E.
Haa! Just read that article. He said he didnt have a credit card! Why? There's stuff you just cannot do without one - like car rental on holiday. Not to mention the protection afforded by S75 CCA. Clearly not in the real world.
But there's no direct cost to the tax payer for his pension. The BoE makes a profit and paid £93mn to the Treasury last year "in lieu of dividend". It's pension fund (£3,711mn at the last count) is also 99% funded. (It must be one of the very few!)
So the country's chief economist who advises government, entitled to an index linked pension that will cost the tax payer well over £3m, says pensions are a waste of time and people should buy property.
He adds, without any apparent sense of irony, he could not make "the remotest sense of pensions".
He obviously could not make the remotest sense of Brexit either given the crap that came out of the B of E.
Haa! Just read that article. He said he didnt have a credit card! Why? There's stuff you just cannot do without one - like car rental on holiday. Not to mention the protection afforded by S75 CCA. Clearly not in the real world.
But there's no direct cost to the tax payer for his pension. The BoE makes a profit and paid £93mn to the Treasury last year "in lieu of dividend". It's pension fund (£3,711mn at the last count) is also 99% funded. (It must be one of the very few!)
To be fair to him, he said he has debit cards, which is a sound call, is it not? They allow you to do all that real world stuff. I haven't had a credit card for years, and even when I had the M&S one I tried to pay it off in full each month; but the bastards once gave me a hard time because my account was in credit. So I told them to do one. Not very M&S..
So the country's chief economist who advises government, entitled to an index linked pension that will cost the tax payer well over £3m, says pensions are a waste of time and people should buy property.
He adds, without any apparent sense of irony, he could not make "the remotest sense of pensions".
He obviously could not make the remotest sense of Brexit either given the crap that came out of the B of E.
Haa! Just read that article. He said he didnt have a credit card! Why? There's stuff you just cannot do without one - like car rental on holiday. Not to mention the protection afforded by S75 CCA. Clearly not in the real world.
But there's no direct cost to the tax payer for his pension. The BoE makes a profit and paid £93mn to the Treasury last year "in lieu of dividend". It's pension fund (£3,711mn at the last count) is also 99% funded. (It must be one of the very few!)
To be fair to him, he said he has debit cards, which is a sound call, is it not? They allow you to do all that real world stuff. I haven't had a credit card for years, and even when I had the M&S one I tried to pay it off in full each month; but the bastards once gave me a hard time because my account was in credit. So I told them to do one. Not very M&S..
Umm, I'm not so sure (although I stand to be corrected). Certainly car hire companies (particularly in the US) have been quite leery of debit cards rather than credit cards for their pre-authorisation process. And, certainly for any pre-authorisation of the insurance waiver excess (I always decline the insurance as it's a rip-off). But I did find this from one company, Thrifty, so things might be changing a bit.
"You’re thinking about renting a car, but you don’t have a credit card, things can get a little tricky. Not to say that it’s impossible, but it can be a major obstacle.
The problem: Renting a car to someone with no credit card is risky for rental car companies. Not having a credit card is a red flag that you may be a credit risk. Allowing you to drive off in a pricey vehicle is not something they’re comfortable with, especially since they may be the ones who lose out.
Of course, your credit may be excellent and you many just prefer not to use a credit card. Rental car companies are starting to understand that, so many are offering you the option of paying with a debit card instead. Here are some important things to keep in mind if you do plan on renting this way:
Logo requirements. While many rental car companies accept debit cards, many also require that the cards have a Visa or MasterCard logo. Expect a credit check. Some companies will perform a debit card check and credit inquiry to ensure that you have the proper funds. (Keep in mind, credit inquiries show up on your credit report, and too many inquiries can actually lower your credit score.) Be patient. The process of paying with a debit card will likely be a longer one. It takes time to check your credit and insurance, verify your ID, etc. Prepare to pay a deposit. Often times, rental car companies place a hold on the account linked to your card. It’s basically a deposit that they’ll hold until you return the vehicle. These deposits can be $200 or more. Limited choice. No credit card often means you lose the option of renting luxury cars, SUVs or other specialty vehicles. Outside of the U.S. - Debit cards may not be accepted at locations outside of the United States. Please check terms and conditions for the specific country or location of rental. While it’s certainly not impossible to rent a car without a credit card, it is obviously more of a hassle. Unless you have no other option, using a credit card can really save time, money, and, perhaps, your sanity.
* DEBIT CARDS ACCEPTED AT PARTICIPATING LOCATIONS ONLY"
So, I wouldn't take the risk of not having a credit card (but see below). Certainly not in an American A&E while they buggered about doing a credit check before treating you!
Then in the UK, I would never pay a deposit for any goods, like a sofa or whatever, on anything other than a credit card. Because in the event the company goes bust, the credit card issuer is jointly and severally liable and it's easier to get your money back. On a debit card, you'd be relying on your bank's goodwill and the vagaries of their chargeback scheme, which may or may not work.
I have a debit card I can link to foreign currency accounts. It is better for me to use it if paying in Euros or Dollars. But I've been met with a flat out refusal from car rental desks in places like the Canary Islands and Greek Islands. Anyway, I now have a new product from another bank which is a deferred debit card. It doesn't say it's a debit card on it and I'm hoping it will fool the car rental company in Cyprus next month. We will find out!
Well, I am not a frequent car hire renter, but the last time, in Portugal in 2014 it was no issue. Nothing else has ever been a problem with my bog standard no cost HSBC debit card, including a week in New York last autumn.
Credit cards are a racket, and I make the BoE guy right on this one.
It's always worth putting large purchases on a credit card as the lender is jointly liable if there are any issues. Debit cards are much more dangerous as a fraudster can empty your bank account- contactless has helped in this regard given PIN numbers are used so infrequently nowadays.
There are also other benefits such as loyalty points.
So long as it is paid off in full each month it is effectively 60-day interest free credit so seems silly not to take advantage.
You have to be disciplined enough, care enough, and have enough time spare, to play that game.
In the old days, it was possible with a bank credit card to set up a direct debit so that your credit card balance was automatically paid in full on the due date. But not on that M&S card, oh no. Because they don't want you to do that.
I'd rather spend my spare time usefully, like banging on on CL :-)
PS Andy, what do you mean by cash back in this Amex case?
You have to be disciplined enough, care enough, and have enough time spare, to play that game.
In the old days, it was possible with a bank credit card to set up a direct debit so that your credit card balance was automatically paid in full on the due date. But not on that M&S card, oh no. Because they don't want you to do that.
I'd rather spend my spare time usefully, like banging on on CL :-)
PS Andy, what do you mean by cash back in this Amex case?
It's always worth putting large purchases on a credit card as the lender is jointly liable if there are any issues. Debit cards are much more dangerous as a fraudster can empty your bank account- contactless has helped in this regard given PIN numbers are used so infrequently nowadays.
There are also other benefits such as loyalty points.
So long as it is paid off in full each month it is effectively 60-day interest free credit so seems silly not to take advantage.
The very disciplined Martyn Lewis explains here that debit cards also offer significant purchase protection. I had always understood that to be the case.
It's always worth putting large purchases on a credit card as the lender is jointly liable if there are any issues. Debit cards are much more dangerous as a fraudster can empty your bank account- contactless has helped in this regard given PIN numbers are used so infrequently nowadays.
There are also other benefits such as loyalty points.
So long as it is paid off in full each month it is effectively 60-day interest free credit so seems silly not to take advantage.
The very disciplined Martyn Lewis explains here that debit cards also offer significant purchase protection. I had always understood that to be the case.
I do see that there are similarities. But there are also differences; the 120 day limit for example on the chargeback schemes. (BTW if you want to while away some hours and amuse yourself ring up your bank's call centre and try to find someone who even knows the chargeback scheme exists.)
Some time ago, my car insurer, Independent, went bust. The policy was over 4 months old. But my credit card company paid out pronto under S75 CCA for the unused pro rata portion of the premium. I wouldn't have got that back under the chargeback scheme rules (not that it existed then) and would have had to wait for the FSCS to shell out. That time lag could have been crucial to someone on tight finances and needing to re-insure their car again with a different company. So, why take any risk when it doesn't cost you any money?
Hefty deposits on stuff like bathroom, kitchen and bedroom installers are another thing I'd always insist upon going on a credit card.
BTW there was a happy ending. Some six years later Michael Bright, the boss of Independent, went down for seven years.
It would be interesting to get a view from @Bournemouth Addick as I think he does this sort of stuff for a living.
You have to be disciplined enough, care enough, and have enough time spare, to play that game.
In the old days, it was possible with a bank credit card to set up a direct debit so that your credit card balance was automatically paid in full on the due date. But not on that M&S card, oh no. Because they don't want you to do that.
I'd rather spend my spare time usefully, like banging on on CL :-)
PS Andy, what do you mean by cash back in this Amex case?
I have an M&S credit card and pay off the full balance each month by direct debit. Not sure why you had a problem, Richard.
As others have said, not having a credit card can be problematic when hiring a car or when booking in to a hotel. I wouldn't dream, for example, of traveling to the US without a credit card.
So the country's chief economist who advises government, entitled to an index linked pension that will cost the tax payer well over £3m, says pensions are a waste of time and people should buy property.
He adds, without any apparent sense of irony, he could not make "the remotest sense of pensions".
He obviously could not make the remotest sense of Brexit either given the crap that came out of the B of E.
Haa! Just read that article. He said he didnt have a credit card! Why? There's stuff you just cannot do without one - like car rental on holiday. Not to mention the protection afforded by S75 CCA. Clearly not in the real world.
But there's no direct cost to the tax payer for his pension. The BoE makes a profit and paid £93mn to the Treasury last year "in lieu of dividend". It's pension fund (£3,711mn at the last count) is also 99% funded. (It must be one of the very few!)
Just looked at the accounts, Its got about 16,000 members so that's an average pension pot for each member of nearly £232K but with the likes of Mr Haldane getting the lions share. The average private sector personal pension pot is probably around £30k, admittedly the average saver has not been saving for as long as the average B of E employee has been in his scheme, but doubt they have an employer who prints money and can put an extra 50% of salary into the employee's pension..
To achieve 99% funding, the Bank pays a contribution of 51.8% of salary, or £89m a year. Employees contribute zero. On top of that all administration expenses are met by the B of E together with the fees paid to the army of actuaries, lawyers and consultants
As for the pension contributions being paid out of profits, with £93m left over, I was looking for a winky thing, or something that suggested you were not serious. The £89m pension contributions are paid from taxpayers money and the £93m is government money that's moving between departments and is entirely down to reserves created from quantitive easing.
Any advice welcome. If I've got £25k to invest for 10 years would advice be housing I.e buy-to-let property (part-mortgaged), stock market/fund or simple bank savings. Don't want to risk losing money.
You have to be disciplined enough, care enough, and have enough time spare, to play that game.
In the old days, it was possible with a bank credit card to set up a direct debit so that your credit card balance was automatically paid in full on the due date. But not on that M&S card, oh no. Because they don't want you to do that.
I'd rather spend my spare time usefully, like banging on on CL :-)
PS Andy, what do you mean by cash back in this Amex case?
I have an M&S credit card and pay off the full balance each month by direct debit. Not sure why you had a problem, Richard.
As others have said, not having a credit card can be problematic when hiring a car or when booking in to a hotel. I wouldn't dream, for example, of traveling to the US without a credit card.
Then I am perplexed. It seemed impossible to do that, and believe me I looked into it. They would take a small fixed amount per month (SO rather than DD I think) and then expect me to pay the difference. If I did not, interest was charged. Then when I overpaid, and didn't use up the overpayment the following month, they tried to send the surplus back to my bank account.
Your card is not perhaps quite new? Less than 2 years old?
I dunno, I dont rent cars but I do book a lot of hotels, and plane and train travel all around Europe, and never once was told that I must have a credit card to do so. Indeed, anyone thinking of spending any time in Germany and paying for everything with a credit card, I can tell you now, forget it.
Question for all the diligent savers on this thread.
Have you all paid up your mortgages?
Mine is up this year and as things stand I could potentially fix with HSBC for 0.99% which is a ridiculous rate meaning I can probably take a few years off the mortgage.
Surely at the moment its better to overpay the mortgage as much as possible rather than save (other than kids accounts which generally pay a higher rate and its for the kids future)
That mortgage debt is very cheap. If you can service that debt why pay it off. If you are near retirement pay it as an AVC into your pension. You could save 20 or 40 percent on your money. Or if your company does salary sacrifice this could be as high as 32 or 42 percent with the NI saving.
or 62% ......
mThat's my calculation as well. Increasing by Gross AVC by as much as I can and reducing my current tax bill significantly.
By my calculations just need to increase sacrifice payments down to basic tax levels, as long as I have enough to survive on with that salary. Employer gives me half their NI savings as well.
Pension has gone through the roof since Brexit - and I have no idea why. Took a hit with the Chinese devaluation earlier this year, so current returns are very satisfactory.
Does depend on your pension scheme. However, in my case there is a portion of salary that I pay 40 percent tax on and 12 percent NI , add to this my company giving me 5 percent of their NI saving I am 57 percent better off.
I already have taken my self to minimum wage and live off other savings whilst filling my pension. Obviously within the limits allowed and using roll back.
You have to be disciplined enough, care enough, and have enough time spare, to play that game.
In the old days, it was possible with a bank credit card to set up a direct debit so that your credit card balance was automatically paid in full on the due date. But not on that M&S card, oh no. Because they don't want you to do that.
I'd rather spend my spare time usefully, like banging on on CL :-)
PS Andy, what do you mean by cash back in this Amex case?
I have an M&S credit card and pay off the full balance each month by direct debit. Not sure why you had a problem, Richard.
As others have said, not having a credit card can be problematic when hiring a car or when booking in to a hotel. I wouldn't dream, for example, of traveling to the US without a credit card.
Then I am perplexed. It seemed impossible to do that, and believe me I looked into it. They would take a small fixed amount per month (SO rather than DD I think) and then expect me to pay the difference. If I did not, interest was charged. Then when I overpaid, and didn't use up the overpayment the following month, they tried to send the surplus back to my bank account.
Your card is not perhaps quite new? Less than 2 years old?
I dunno, I dont rent cars but I do book a lot of hotels, and plane and train travel all around Europe, and never once was told that I must have a credit card to do so. Indeed, anyone thinking of spending any time in Germany and paying for everything with a credit card, I can tell you now, forget it.
Had an M & S card for at least 10 years - maybe more.
In terms of hotels and cars, the problem with using a debit card is the 'hold'. For example when booking in to a hotel in the US they very often put a hold amount on the card. Not a problem with a credit card, as when you check out and actually pay, the hold is released immediately. With a debit card the hold can stay on your card for weeks (certainly in relation to the US). So for example let's say your hotel bill is $1,000 - the hotel may put a hold on your card for the full amount when you check in - you then pay your bill on departure but the original hold stays - not a problem if you don't need that $1,000 hold amount for a few weeks - so you would need the equivalent of $2,000 available in your current account to pay a bill of $1,000.
Where there is no hold involved (i.e. you are paying for the goods and services immediately) then I agree a debit card is fine and what I would normally use unless a large purchase is involved and I want S75 protection.
£25 pa from memory. Think you get 5% for first 3 months too. I use that and the Santander 123 to ensure I'm pretty much getting cashback On everything I spend
Every penny I spend I get a % back in cash (once a year) no fee to pay as long as you spend a certain amount (something like £3k). Can set up a DD to pay off full balance, all cards I've ever have allow that.
Think it's slightly lower now but mine is 1% up to £10k and there after 1.5%, yes I spend a lot on it!
Comments
I'm not investing at the moment as I think the markets are inexplicably high and will invest when (if) they take a tumble. The trouble with that is you might be waiting years. I doubt it though as something will spook the markets soon, it always does.
http://www.legalandgeneral.com/investments/isas/stocks-and-shares-isa/
No entry charges or exit charges and only 0.56% ongoing.
http://doc.morningstar.com/LatestDoc.aspx?clientid=legalandgeneral&key=dba0fefd10bf9af7&language=0L00000122&documenttype=74&isin=GB0001036531
However if there is a rotation out of these types of companies (which seem pretty fully valued at this point) and into more cyclical companies then they will inevitably underperform.
I think they run their portfolios on sensible grounds and avoid some of the quasi-benchmark hugging tricks that some posters allude to above, but I'd be reluctant to chase performance.
He adds, without any apparent sense of irony, he could not make "the remotest sense of pensions".
He obviously could not make the remotest sense of Brexit either given the crap that came out of the B of E.
But all in all, they didn't find too many reasons to criticise the choice of Hargreaves Lansdowne, which i use. It's an easy platform to use and you can certainly buy the Vanguard trusts there. I'm lining up to buy some that way, but like @Covered End, my hunch is that the markets will dip before the year end and am waiting for that.
Like many people, our B of E chief economist thinks a pension is simply a pot of paper money.
Using all your income to set up your own business and becoming a millionaire is also likely to be better than setting up a pension plan, but you could do both and get the benefit of some tax relief and contributions from your employer.
The term "pension" has become synonymous with retail personal pension plans through an insurance company, often via an IFA. This is the least efficient and worse value for money, apart from a SIPP. Commission isn't permitted any more, advisers have to charge a fee.
Everyone today has access to a company scheme with maximum permitted charges of 0.75%. (Doesn't apply to SIPPS they can still charge punters what they can justify). This 0.75% charge equates to about £9p.a for every £1,200 p.a paid in contributions. Gross investment returns at 5% means the saver gets 4.25%. The "lost" 0.75% isn't from the saver's money, the 4.25% is net added value after costs, what is so extraordinary?
So the only logical measure of cost is the charge suffered on contributions, the charge applied to investment growth is not coming from a saver's money. A tin of beans will have similar charges, it's just that they can't be evaluated in terms of beans "lost" to cover costs of manufacture and sales. If you could, it would be scandalous, probably losing a ton of beans over a lifetime.
The figures mean nothing unless you are making a comparison against other investments taking account of costs. If it's property or a real asset, you need to include lack of tax relief on outgoings, tax on disposal, inheritance tax, mortgage interest, agents fees, council tax, water rates, utility service costs, insurance and maintenance over its lifetime. If it's a buy-to-let portfolio, it's a business whose assets can be used to generate retirement income, it's not exactly a pension, it's no more guaranteed than a pension, and you need to take account of the value of your time and all that goes with running a business, accounts and tax etc.
If property floats your boat, you can invest your pension in a property fund with the net return after all the costs of maintaining the property without losing the tax benefits.
But there's no direct cost to the tax payer for his pension. The BoE makes a profit and paid £93mn to the Treasury last year "in lieu of dividend". It's pension fund (£3,711mn at the last count) is also 99% funded. (It must be one of the very few!)
"You’re thinking about renting a car, but you don’t have a credit card, things can get a little tricky. Not to say that it’s impossible, but it can be a major obstacle.
The problem: Renting a car to someone with no credit card is risky for rental car companies. Not having a credit card is a red flag that you may be a credit risk. Allowing you to drive off in a pricey vehicle is not something they’re comfortable with, especially since they may be the ones who lose out.
Of course, your credit may be excellent and you many just prefer not to use a credit card. Rental car companies are starting to understand that, so many are offering you the option of paying with a debit card instead. Here are some important things to keep in mind if you do plan on renting this way:
Logo requirements. While many rental car companies accept debit cards, many also require that the cards have a Visa or MasterCard logo.
Expect a credit check. Some companies will perform a debit card check and credit inquiry to ensure that you have the proper funds. (Keep in mind, credit inquiries show up on your credit report, and too many inquiries can actually lower your credit score.)
Be patient. The process of paying with a debit card will likely be a longer one. It takes time to check your credit and insurance, verify your ID, etc.
Prepare to pay a deposit. Often times, rental car companies place a hold on the account linked to your card. It’s basically a deposit that they’ll hold until you return the vehicle. These deposits can be $200 or more.
Limited choice. No credit card often means you lose the option of renting luxury cars, SUVs or other specialty vehicles.
Outside of the U.S. - Debit cards may not be accepted at locations outside of the United States. Please check terms and conditions for the specific country or location of rental.
While it’s certainly not impossible to rent a car without a credit card, it is obviously more of a hassle. Unless you have no other option, using a credit card can really save time, money, and, perhaps, your sanity.
* DEBIT CARDS ACCEPTED AT PARTICIPATING LOCATIONS ONLY"
So, I wouldn't take the risk of not having a credit card (but see below). Certainly not in an American A&E while they buggered about doing a credit check before treating you!
Then in the UK, I would never pay a deposit for any goods, like a sofa or whatever, on anything other than a credit card. Because in the event the company goes bust, the credit card issuer is jointly and severally liable and it's easier to get your money back. On a debit card, you'd be relying on your bank's goodwill and the vagaries of their chargeback scheme, which may or may not work.
I have a debit card I can link to foreign currency accounts. It is better for me to use it if paying in Euros or Dollars. But I've been met with a flat out refusal from car rental desks in places like the Canary Islands and Greek Islands. Anyway, I now have a new product from another bank which is a deferred debit card. It doesn't say it's a debit card on it and I'm hoping it will fool the car rental company in Cyprus next month. We will find out!
Well, I am not a frequent car hire renter, but the last time, in Portugal in 2014 it was no issue. Nothing else has ever been a problem with my bog standard no cost HSBC debit card, including a week in New York last autumn.
Credit cards are a racket, and I make the BoE guy right on this one.
I as much as I can use my American Express card (cash back) and pay the bill in full every month.
Therefore I get up to 6 weeks interest free credit and about £500 a year cash back....... whats not to like?
There are also other benefits such as loyalty points.
So long as it is paid off in full each month it is effectively 60-day interest free credit so seems silly not to take advantage.
In the old days, it was possible with a bank credit card to set up a direct debit so that your credit card balance was automatically paid in full on the due date. But not on that M&S card, oh no. Because they don't want you to do that.
I'd rather spend my spare time usefully, like banging on on CL :-)
PS Andy, what do you mean by cash back in this Amex case?
Some time ago, my car insurer, Independent, went bust. The policy was over 4 months old. But my credit card company paid out pronto under S75 CCA for the unused pro rata portion of the premium. I wouldn't have got that back under the chargeback scheme rules (not that it existed then) and would have had to wait for the FSCS to shell out. That time lag could have been crucial to someone on tight finances and needing to re-insure their car again with a different company. So, why take any risk when it doesn't cost you any money?
Hefty deposits on stuff like bathroom, kitchen and bedroom installers are another thing I'd always insist upon going on a credit card.
BTW there was a happy ending. Some six years later Michael Bright, the boss of Independent, went down for seven years.
It would be interesting to get a view from @Bournemouth Addick as I think he does this sort of stuff for a living.
As others have said, not having a credit card can be problematic when hiring a car or when booking in to a hotel. I wouldn't dream, for example, of traveling to the US without a credit card.
To achieve 99% funding, the Bank pays a contribution of 51.8% of salary, or £89m a year. Employees contribute zero. On top of that all administration expenses are met by the B of E together with the fees paid to the army of actuaries, lawyers and consultants
As for the pension contributions being paid out of profits, with £93m left over, I was looking for a winky thing, or something that suggested you were not serious. The £89m pension contributions are paid from taxpayers money and the £93m is government money that's moving between departments and is entirely down to reserves created from quantitive easing.
Your card is not perhaps quite new? Less than 2 years old?
I dunno, I dont rent cars but I do book a lot of hotels, and plane and train travel all around Europe, and never once was told that I must have a credit card to do so. Indeed, anyone thinking of spending any time in Germany and paying for everything with a credit card, I can tell you now, forget it.
I already have taken my self to minimum wage and live off other savings whilst filling my pension. Obviously within the limits allowed and using roll back.
http://bank.marksandspencer.com/banking/credit-card/landing/ways-to-pay/
In terms of hotels and cars, the problem with using a debit card is the 'hold'. For example when booking in to a hotel in the US they very often put a hold amount on the card. Not a problem with a credit card, as when you check out and actually pay, the hold is released immediately. With a debit card the hold can stay on your card for weeks (certainly in relation to the US). So for example let's say your hotel bill is $1,000 - the hotel may put a hold on your card for the full amount when you check in - you then pay your bill on departure but the original hold stays - not a problem if you don't need that $1,000 hold amount for a few weeks - so you would need the equivalent of $2,000 available in your current account to pay a bill of $1,000.
Where there is no hold involved (i.e. you are paying for the goods and services immediately) then I agree a debit card is fine and what I would normally use unless a large purchase is involved and I want S75 protection.
Think it's slightly lower now but mine is 1% up to £10k and there after 1.5%, yes I spend a lot on it!