Next Monday  is predicted to be the busiest day of the year for balance transfer credit card applications, according to research by Compareandsave.com, the financial  comparison site.

Basing its estimates on figures from the past three years, the website reckons that more than twice as many people will search online for ‘Balance Transfers’ on Monday 5 January than at any other time of the year, making 6,257 ‘Balance Transfer’ searches in just one day, compared to a daily average of 2,922.

Income tax on savings could be scrapped under plans being considered by the Conservatives. The idea is one that is being studied by George Osborne, the Shadow Chancellor (pictured left), should the Conservatives win the next election, as part of a raft of measures to help savers hit by the lowest interest rates for half a century.

The Conservatives are also considering raising the income tax threshold for the over-65s, in order to reduce the amount of tax due from pensioners with savings and investments.

Norwich and Peterborough Building Society (N&P) has today announced the launch of a second issue of its E-Saver Account, available with immediate effect. The account, which can be opened with £1 by savers aged 16 and over,  pays 3.25% gross interest which is paid annually on 1 January.

Savers don't have much to celebrate at this festive time. A total of 47 providers have already decreased rates on 100 savings products by as much as 2.22%, according to research by comparison site uSwitch.

Among these changes, 34 providers decreased variable rate products by 1% or more, and the average is 1.13%. This is despite just a 1% base rate decrease. Some cuts were as high as 1.75%.

Variable rates took the biggest hit between 1 and 4 December.

One in seven people in the UK have failed to save a single penny this year. As a turbulent 2008 draws to a close, a survey by Alliance & Leicester has found that 13.5 million people have not managed to put any money aside as the recession deepens - and most of them say they regret it.

A more provident two-thirds of the population have managed to put at least some money away during 2008.

Skipton Building Society has joined the call for interest on savings accounts to be paid tax-free for UK pensioners.

As interest rates fall and pensioner inflation rises, the effects of the credit crunch are being felt hardest by the over 50s.

Leeds Building Society has launched new fixed-rate bonds (issues 10 and 11) that combine a return of up to 4.50% gross pa/AER, with access to 25% of the balance without notice or penalty at any time.

There are also monthly interest options for customers who require an income.

The Financial Services Authority is changing the rules to allow double protection for savers where a building society merges with another.

Under current compensation scheme rules, savings are guaranteed by the Financial Services Compensation Scheme up to a maximum of £50,000. Until now, when two societies merged and a saver had savings in each, if the total exceeded £50,000 the saver lost valuable compensatory protection. When deposits were held in term accounts, the saver was uable to move his money to a different insitution to regain the protection he has previously enjoyed.

Up to eight million people on benefits and tax credits are being targeted by the Government’s pledge, in the Pre-Budget Report, to add 50p to every £1 saved in Saving Gateway scheme, designed to encourage the poorest to save.

The Government will add a maximum of £300 after the account-holder has been saving for two years, and this contribution will only be paid for months when no withdrawal is made.

Alliance & Leicester Savings has launched two new fixed-rate bonds - a six-month fixed-rate and a three-year fixed-rate, with interest rates of 4.50% gross and 4.00% gross pa/AER, respectively.

These new bonds are available from all Alliance & Leicester branches, for sums of between £1,000 and £2,000,000.  The offer will be available while funds last, with the six-month bond maturing on 30 June 2009, and the 3-year bond maturing on 31 December 2011.

National Savings & Investments (NS&I) is to reduce the number and value of Premium Bond prizes, following the cut in the Bank rate to 3%.

The total Premium Bond prize payout will fall from £87.8 million this month to around £57 million in January 2009. The number of will go down from 1.54 to 1.1 million.

More than half (14) of them have cut their rates by between 1.5% - 2.55%, whilst 47 providers have withdrawn accounts, according to the comparison site uSwitch.com.

Kaupthing Edge, the Icelandic internet bank, continued to allow cash transfers by existing savers after it collapsed in early October, contrary to instructions from the regulator.

The Icelandic bank closed on 8 October and the next day all its savers' accounts were moved to ING Direct, with no loss of money.

Only a quarter of consumers think they currently save enough, but just over half (52%) think that they will be saving the right amount in six months’ time, according to Nationwide’s monthly savings report.

This compares with 47% in last month's report - an increase of five percentage points. In view of the continuing market turbulence, and the approach of one of the most expensive times of year, this small improvement in future sentiment may be seen as a positive sign.

Following last week's cut in interest rates down to a rock-bottom 3%, some lucky homeowners on a tracker rate or Standard Variable Rate mortgage deal will soon find themselves with extra cash available. In today’s economic climate it’s essential to make the most of these new-found savings, according to Stephen Noakes, marketing director at Lloyds TSB Mortgages. He said: "We would encourage homeowners to use this opportunity to reassess their financial situation and take action by addressing outstanding debts, protecting the equity in their home or growing a nest egg."

£17.5 million would be required today to enjoy the equivalent lifestyle of a person with £1 million half a century ago.

There has been a 17.5 fold increase in retail prices since 1958, according to new research from Halifax Financial Services.

The Government is to lend £800 million to the Financial Services Compensation Scheme (FSCS) to help cover the cost of compensating savers who lost their money when Icesave, internet savings arm of the failed Icelandic bank Landsbanki, closed last month.

Chancellor of the Exchequer Alistair Darling said the Government would make sure that no individual UK depositors would lose any money as a result of the bank's failure.

As many as one in 10 Britons are spending 90% of their salary on "essentials" such as rent and bills,  according to new research by Abbey Credit Cards, leaving on average just £382.21 per month of disposable income and very little for saving.

This represents a decrease of 29% in average disposable income levels compared with two years ago, when Britons had on average £541.44 left over each month after spending on essentials such as mortgages, bills and food.

Coventry Building Society is celebrating 90 years since the end of World War I with the launch of the Poppy Bond savings account.

The bond not only pays a competitive rate of interest, at 6.25% fixed until December 31, 2009, but also helps the Royal British Legion, the charity that supports former members of Britain's Armed Forces and their dependants.

Skipton Building Society is offering a new Christmas Savings account - a regular savings account maturing on 24 November next year, with a minimum investment of £10 per month (maximum £250 per month) paying 6.55% on maturity.

Payments can be amended each month within minimum and maximum amounts, although consecutive payments must be made.

Ruffler Bank has launched a new nine-month fixed deposit account for a minimum investment of £10,000 and a maximum of £500,000, paying 6.52% gross interest on maturity. Earlier access and further additions are not permitted. 

Saffron Building Society, the regional building society serving East Anglia, has launched  a tax-free cash ISA and a bond, both of which are guaranteed to beat inflation  by tracking the All Items Retail Price Index (RPI) annual change percentage plus 2%. 

Both products will run for a fixed term of two years, with no withdrawals or transfers permitted in the period. The current rate is a competitive 6.8% gross / 6.58% AER, and the rate will be reviewed on a quarterly basis to ensure it keeps in line with inflation.

The average saver needs to top up their savings by as much as £78.60 a year to keep pace with inflation, according to new research from Abbey Savings.

More than a third of regular savers have failed to 'up' the amount they put away in the past 12 months to take account for rising inflation - which is now running at 5.2% for the Consumer Price Index (CPI), which excludes housing, and 5% for the Retail Price Index (RPI).

Yorkshire Building Society is to merge with Barnsley Building Society, as Barnsley faces writing off £10 million invested in Icelandic banks.

Barnsley said its reserves were strong enough to withstand the loss, if it should occur.

With Christmas just 12 weeks away, ASDA Financial Services has launched a new Christmas Savings Scheme, which offers a £6 tax-free bonus paid on 17 November, so long as the balance of the account is at least £144. This is the equivalent to 4.2% interest. Customers saving £97 will receive a £3 bonus (3%) and customers saving £49 will receive a £1 bonus (2%).
 
Savings are held on a savings card, which is available and topped up at ASDA checkouts and customer service desks of ASDA's 356 UK stores. There is a maximum balance of £144 per card, though any number of cards can be held. All savings and bonuses on the savings card are only for use in ASDA stores.

ASDA's Head of Financial Services, Gev Lynott, said: "ASDA's Christmas Savings Scheme is the perfect way to give families a helping hand this Christmas and it couldn't be simpler to put away that spare change at the checkout. We're all feeling the pinch this year and this easy solution to saving is a great way to ensure your family can enjoy the great festive celebration they deserve."

Egg, the online bank, has a new rate on its internet Egg Savings Account paying 6.55% AER/gross (variable) for the first 12-months.

The rate includes a variable bonus rate of 1.80% gross and is available to new and existing customers for all new accounts opened with new money from a non-Egg bank account. The minimum deposit is just £1 up to a maximum deposit of £100,000.

British customers  of the Icelandic internet  bank Icesave have been warned that they may have to claim compensation  through the Financial Services Compensation Scheme  (FSCS), after Iceland's Government stepped in to rescue the UK bank's parent, Landsbanki, from being driven into bankruptcy, and the  bank froze all  deposits and withdrawals. The board of directors of Landsbanki has been dismissed and the bank put  into receivership; it may soon be declared insolvent.

Landsbanki is the second Icelandic bank to come under government control. Glitnir, Iceland's third-largest bank, was nationalised last week with the Government buying three-quarters of it for £478m.

National Savings, one of the two 100% Government-guaranteed safe havens for cash in the current market turmoil, along with Northern Rock, is slashing its interest rates.

A spokesman said that the move was in reponse to an increase in sales volumes.

The Financial Services Authority (FSA) has raised the limit to the amount of savings deposits that are guaranteed from £35,000 to £50,000  under the Financial Services Compensation Scheme. The new limit will come into effect on Tuesday 7 October and will apply per person, per bank - not per account. However, joint accounts will offer protection of £100,000. The FSA will now consult on whether the limit should be raised even higher.

Almost half the money in British bank accounts is not covered by the increased Government guarantee of £50,000 from 7 October.

That is the conclusion of a Credit Suisse investigation, which found that the 2% of customers not covered by the higher guarantee figure - according to the Government’s own estimate – account for some £500 billion, or almost half of all the money held in British bank accounts, which totals £1.17 trillion.

Northern Rock has withdrawn a number of savings offers from new customers, to avoid exceeding its agreed 1.5% market share of retail deposits. The deals withdrawn include Silver Savings, Silver Savings 30, Business Reserve and a number of fixed-rate bonds.

The bank’s deposits enjoy a 100% government guarantee, and there has been an influx of savers’ money over the past few days, as customers seek a safe place for their money.

The Prime Minister has pledged to raise the guarantee on bank and building societies deposits to £50,000 – stating that he will do "whatever it takes" to protect people's savings. Gordon Brown said in an interview with the BBC last night that  a  move to raise the level of savings guaranteed under the Financial Services Compensation Scheme from the current £35,000 would take place "shortly".

The UK Government is under new pressure to raise depositor protection from £35,000 per bank after Ireland  stepped in today to guarantee all Irish bank deposits for two years, with immediate effect. The move upstages the change to the Irish bank guarantee rules last week, which raised the guaranteed sum to €100,000 (just under £80,000).

From today all retail, commercial, institutional and interbank deposits, covered bonds, senior debt and dated subordinated debt (lower tier II), with the following Irish banks is fully guaranteed:

Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society, and such specific subsidiaries as may be approved by Government following consultation with the Central Bank and the Financial Regulator. 

The Irish Government has raised the deposit protection scheme limit from €20,000 to €100,000 (£79.000), CashQuestions has revealed today. This gives Irish savers twice as much security as UK depositors, whose savings are secure up to just £35,000 in any one institution. The Irish Finance Minister, Brian Lenihan,  said: "We have decided as a government that it is important to reassure consumers that their deposits are absolutely legally guaranteed by the state up to the sum of 100,000 euros."