No interest in saving pounds 1bn a year

Savers are throwing away pounds 1bn worth of interest a year - an average of pounds 36 a saver - by paying unnecessary tax on their bank and building society accounts, according to IFA Promotion, an organisation that promotes independent financial advisers. The waste comes from non-taxpayers failing to register to receive gross interest and taxpayers who haven't got tax- free Tessas.

More than 4 million non-taxpayers could either reclaim the 20 per cent tax deducted from their interest at source through their tax return, or they could receive interest gross by completing Inland Revenue form IR85 and returning it to their bank or building society.

Only 4 million savers own Tessas, but market researcher Mintel estimates that around 25 million people have savings that they would be content to tie up for five years to earn more interest. To get tax-free interest from a Tessa you cannot touch the money you put in for five years, although you can withdraw much of the interest without penalty.

IFAP offers a voucher for a free, no-obligation half-hour consultation with an IFA. Callers to IFAP on 0117 971 1177 will receive the details of three IFAs near their home or office, the voucher and entry into a monthly draw to win pounds 1,000.

Around a quarter of the 18 million private motor insurance policies in force come up for renewal this month, it is estimated. Despite predicted premium price rises, motorists benefit from premiums almost 13 per cent lower than a year ago, according to Portsmouth-based Touchline Insurance.

The EasiGuide to Direct Motor Insurance is aimed at helping the large number of motorists who ring direct insurers for quotes. Many of these companies claim they are the cheapest and/or best but, says the guide, insurers take advantage of motorists' ignorance of the nuances of their different policies. Updated from last year, it compares 24 insurers and claims to highlight a range of ways you can save money with each insurer. The guide is published by Insbook Ltd and is available from bookshops at pounds 5.99.

Barclays Bank, which claims to have the largest number of student accounts among the big banks, is improving its student banking package by offering an interest-free overdraft of up to pounds 1,500 plus up to pounds 50 cash.

Plaid Cymru, the Welsh national party, has launched its own credit card. The card carries the Plaid Cymru Triban symbol with its red dragon, has no annual fee, and earns the political party a donation from card issuer Beneficial Bank every time it is used.

Finding your way through the house-buying and mortgage maze is the aim of free consumer publications from the Council of Mortgage Lenders: How to Buy a Home, How to Buy a Home in Scotland, and Taxation and The Home Buyer. Send a large SAE to BSA/CML Bookshop, 3 Saville Row, London W1X 1AF, stating the required publications.

The Pensions Ombudsman, who arbitrates on disputes about occupational and personal pensions, saw a 66 per cent increase in the number of complaints received last year and a 198 per cent increase in cases calling for investigation, according to his annual report for 1995-96, published this week. Awards ranged from pounds 50 for an incorrect pension benefit quotation to an award totalling pounds 30m which involved an employer repaying a siphoned-off pension fund surplus.

ONE in four of the new P-registration cars bought this month will be damaged during its first year on the road, with the average claim costing nearly pounds 1,000, according to Cornhill Insurance.

A free inheritance tax planning guide, covering the pros and cons of the main tax reliefs and the different insurance-based products available, is on offer from financial adviser Towry Law. It's called The Death Tax - How To Avoid It. Telephone 0800 521196.

Fancy becoming an expatriate, or already on your way? Expatriate insurer Royal Life International has produced a guide looking at the financial issues, including taxation and savings and investments. Copies of How to be an Expat are available by phoning 01624 821116.

NatWest has produced a free question-and-answer guide to the new self- assessment tax system, which will affect tax returns from next year but which already requires taxpayers to keep records of their income. Phone 0800 200 400.

A free guide to the stock market's Crest computerised share settlement system, which got under way last month, is available from Barclays Stockbrokers. For a copy, call 0800 551177.