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W/C 26th September is worst week for money worries

Monday 26th September 2011 to Sunday 2nd October 2011, is the worst week of the year for money worries, according to a new formula calculated by Professor Geoff Beattie of Manchester University (aka the Big Brother psychologist).

The research was commissioned by Capital One as part of its Credit Made Clearer initiative - a series of videos which offer tips and education on everything from a basic explanation of credit to shopping safely online and the most cost effective ways to use a credit card abroad.

The formula is based on research and analysis of when we feel the biggest pressures on our finances. The study reveals that the biggest factors that make this week the worst week for money are: the bills coming in for our summer fun, the cost of back to school and university, preparing for colder weather and, not least, the realisation that the great Christmas spending spree is nearly with us.

3R {5(PH) + 1(CE) + 2(CCC)} + 1(NSY) + 5 (NUT)} + 2P {2T + 1 (Con.TV) + 4 (H, F &P)
= w/c 26th September money meltdown week

Professor Beattie, says: “It was important to examine both ‘retrospective financial pressures’, such as summer bills hitting the doormat for child care and the family holiday as well as the cost of new uniforms and back to school equipment, alongside the ‘prospective financial pressures’, such as increased use of transport and rising fuel costs as winter approaches, to define when cash going out the door combined with psychological concerns about finance can create a money meltdown.”

Brian Cole, Managing Director of Capital One, says: “We know that it can be a worrying and stressful time when you’ve got lots of bills coming in and imminent payments like winter fuel bills and Christmas. We hope that our Credit Made Clearer initiative will help to show people how to manage their money most effectively when finances get tight, and help to reduce some of their worries about money”.

Notes to Editors

Money meltdown Formula:
3R {5(PH) + 1(CE) + 2(CCC)} + 1(NSY) + 5 (NUT)} + 2P {2T + 1 (Con.TV) + 4 (H, F &P) = w/c 26th September money meltdown week

R = Retrospective financial pressure
P = Prospective financial pressure
T= Transport (increased use of car and public transport, less walking)
(R & C) = Recreation and culture
Con.TV = Considering new home entertainment (including TV, long nights, weather changing, autumn is the start of the planning cycle for home entertainment with increased pressure).
PH = Package Holiday (still to be paid for)
(H, F & P) = Housing, fuel and power (colder nights, increased use of central heating etc., psychological focus on energy cost)
CE = Children's entertainment (debt from summer)
CCC = Children's Child Care (debt from summer)
NSY = New School Year (prospective cost)
NUT = New University Term (prospective cost)

About Credit Made Clearer:
Credit Made Clearer features a series of short animated films offering consumers practical tips and education about the world of credit and managing money. The films are available via:

• www.facebook.com/capitaloneuk
• www.youtube.com/creditmadeclearer
• www.capitalone.co.uk/creditmadeclearer

Using a simple animation style and humour to engage consumers, each film takes a look at the various aspects of financial well-being using characters such as Super Brummie, the Credit Aunties, a Russian billionaire and a few bean counters to bring the subject matter to life.  Consumers can click between the films while they're playing to get the financial tips that are right for them.

A Summer of Currency Confusion for British Travellers

We may think that preparing for a Summer holiday is all about packing a holiday novel, flip flops and sun screen, but new research from credit card company Capital One reveals that Summer 2011 has been a Summer of ‘currency confusion’, as more than 1 in 4 Brits have failed to prepare properly by not checking holiday exchange rates before they travel.

The research, commissioned to raise awareness of Capital One’s ‘Credit Made Clearer’ initiative - a series of videos which offer tips and education on everything from overdrafts to specific tips on the most cost effective ways to spend abroad, also reveals that more than half of Brits (57%) have chosen a payment method on holiday based on ‘convenience’ (i.e. the easiest way) this year, with only 1 in 10 choosing a payment method because they think it is the cheapest way to spend.

Russia comes out top as the country with the most confusion around currency this Summer; the average British traveller estimated that £100 is worth just over 1,000 RUB, when in fact you’d need to withdraw over 4,500 RUB to get one hundred pounds’ worth.

We’ve also got it drastically wrong in our favourite holiday destinations. Based on an average weekly holiday spend of £1,091, we’ve misjudged by £118 per week in Europe, £95 a week in America and over £500 in South Africa - because of our lack of currency knowledge.

Brian Cole, Managing Director of Capital One, says: “Would you pay for your weekly shop and not check the bill? The same applies here. It’s never advisable to withdraw hundreds of pounds for a holiday without checking that you are getting the best exchange rate.  In an age where information on foreign currency is readily available, it is surprising to see the amount of money that we are still wasting on holiday just because we haven’t taken the time to check the exchange rate or the best payment method.”

Cole continued, “We hope that our Credit Made Clearer programme, which features a series of short animated films that aim to help people improve their understanding of finances and money management abroad, will help Brits know what steps to take before travelling to ensure they are clued-up about currency.”

Notes to Editors
Credit Made Clearer features a series of short animated films offering consumers practical tips and education about the world of credit and managing money. The films are available via:

• www.facebook.com/capitaloneuk
• www.youtube.com/creditmadeclearer
• www.capitalone.co.uk/creditmadeclearer

Using a simple animation style and humour to engage consumers, each film takes a look at the various aspects of financial well-being using characters such as Super Brummie, the Credit Aunties, a Russian billionaire and a few bean counters to bring the subject matter to life.  Consumers can click between the films while they're playing to get the financial tips that are right for them.

ⁱ26% never check the exchange rate before they travel.
ⁱⁱCapital One commissioned IMC Research to survey 1,003 parents in July 2011.  Fieldwork was undertaken between 15th - 17th July 2011.  The survey was carried out via telephone.
ⁱⁱⁱ11% chose a payment method on holiday because they think it is the cheapest.
^ivCurrency was calculated using information from www.xe.com. A mean average was calculated based on currency rates over a 30 day period between 13th June - 12th July 2011.
^v£1,091 is the mean average one week holiday spend, including accommodation, food and drink, entertainment, leisure time, duty free, insurance etc, based on answers provided by 857 survey participants.
^viResearch participants were asked how much foreign currency they thought they would get for £100 in Russia, China, Australia, Africa, Europe and America. A mean average was taken from the answers they provided for each region and compared with actual exchange rates over a 30 day period. The discrepancies between people's estimations and the actual cost of currency demonstrated how those surveyed misjudged the value of currency. This figure was multiplied by 10.9 based on a £1,091 average weekly holiday spend. E.g. on average, survey participants think they would get €122 for £100. In fact, they would get €110 for £100 based on the average exchange rate taken over a 30 day period. Therefore, survey participants are overestimating the currency by €12 or £10.90 per £100 spent. Based on an average holiday spend of £1,091 participants are going wrong in Europe by £118.81 during a one week holiday.

Financial education tops 'birds and bees' as the hot summer discussion topic with kids - but parents don't know best

Released 16th July 2011

16 July 2011: Children may be desperate for the start of the summer holidays, but according to new research from credit card company Capital One, their lessons won't be ending as term comes to a close.

65 per cent of UK parents surveyed by Capital One say they plan to, or have already, sat down with their children to have a discussion about financial education - a figure that's now higher than the number of parents who plan to, or have done the same, for the big chat about the 'Birds and Bees' (i.e. sexual education)ⁱ.

The research, commissioned to raise awareness of Capital One's 'Credit Made Clearer' initiative, reveals that the vast majority of today's parents (over four in five, 81 per centⁱⁱ) think children should learn about finance directly from them. However, since 43 per cent of parents don't know what basic terms like 'APR' (Annual Percentage Rate) or 'PPI' (Payment Protection Insurance) stand for, they could be leaving the next generation short on financial understanding.

Brian Cole, Managing Director of Capital One, says: "It's encouraging to see that during difficult financial times, financial education is high on parents' agenda. However, it's clear that finance is a topic that some parents may need help on."

Cole continued, "We hope that our Credit Made Clearer programme, which features a series of short animated films that aim to help people improve their financial understanding, will arm parents with the knowledge they need."

In spite of lacking the basics when it comes to financial acronyms, more than half of parents (55 per cent) say they are not worried about how their children are going to manage their own finances when they are olderⁱⁱⁱ. However, nearly a quarter, 22 per cent, believe that children should learn about personal finance from TV programmes and soaps.
In addition:

• Around one in five^iv parents don't plan on sitting down and talking to their children about either sex education or money management at any point
• Nearly one in ten admits: "I don't feel I understand enough about my own finances, to be passing knowledge onto the next generation"

Help now available for parents
Credit Made Clearer features a series of short animated films offering consumers practical financial education. Available via www.facebook.com/capitaloneuk, members of the public can access quick myth-busting films, about the world of credit and managing money.

Using a simple animation style and humour to engage consumers, each film takes a look at the various aspects of financial well-being using characters such as Super Brummie, the Credit Aunties, a Russian billionaire and a few bean counters to bring the subject matter to life. Consumers can click between the films while they're playing to get the financial advice that's right for them.

Notes to Editors
ⁱ63 per cent of parents say they have, or are planning to, sit down with their children to teach them about sex education
ⁱⁱCapital One commissioned YouGov to survey 1, 276 parents in June 2011. Fieldwork was undertaken between 17th - 20th June 2011. The survey was carried out online
ⁱⁱⁱ44 per cent of parents said they were 'not very worried' and 11 per cent 'not at all worried' about their children's ability to manage their own finances when they are older
^iv22 per cent of parents say they don't plan to sit down with their children to teach them about financial education, and 23 per cent of parents said the same of sex education

Capital One launches new cashback card offering 5% on purchases everywhere

Released 13th July 2011

• No annual fee
• Free Capital One Identity Alert

Capital One has launched a new World^TM MasterCard® card offering 5% cashback on all purchases over the first three months up to £100 and up to 1.25% unlimited cashback thereafter.

As well as having one of the best cashback rates available and accepted almost everywhere¹ as opposed to a restricted number of retailers Capital One's new World MasterCard has no annual fee and offers free access to its Identity Alert service provided by Equifax. This provides customers with an early warning service against identity theft.

For purchases made after the first three months customers will receive the following tiered cashback rates:

• 0.5% on all purchases up to £5,999.99 each year
• 1% on all purchases from £6,000 to £9,999.99 each year
• 1.25% on all purchases from £10,000 each year

The launch of the new card follows research from Capital One that shows one in three credit cards applied for over the next three to 12 months is likely to be a cashback card, making it the most popular product amongst consumers.² Furthermore, the average credit card cashback customer uses their card for 52% of their monthly spending.

Reflecting the growing popularity of cashback cards, analysis of Moneyfacts data reveals that over the past two years the number of cashback cards has risen by 33%.³

Brian Cole, Managing Director, Capital One said: "The Capital One World MasterCard offers tremendous money saving opportunities through highly competitive cashback rates on purchases everywhere. Unlike some other cashback cards we offer our best rates on all purchases rather than those made at specific types of retailer.

It's no surprise that cashback credit cards have become increasingly popular as they offer potentially a better way of generating a return from spending than debit cards. We're expecting this card to generate a high level of interest amongst consumers who will recognise this as one of the best cashback deals available on the market."

The Capital One World MasterCard can be managed online and has a rate of 19.9% p.a. variable on purchases and balance transfers.

Note to Editors
¹ No comparable card is as widely accepted as World MasterCard, which can be used at more than 32m locations worldwide
² ICM research surveyed 2,013 British Adults via online omnibus from 6th-8th October 2010. The results have been weighted to nationally representative criteria. Calculations regarding cash back rewards have been made using the omnibus research and applying this to the latest ONS Family spending Index data.
³ Moneyfacts: comparison of number of cashback cards listed in May 2011 versus May 2009

Representative example: Assuming a credit limit of £1,200, an interest rate on purchases of 19.94% p.a. variable, you will receive a 19.9% APR representative variable.

Capital One launches Click Card for online bargain hunters

Released 3rd July 2011

Capital One has launched its first credit card targeted at online shoppers - the Click Card - which offers discounts of up to 50% at a range of retail groups¹ as well as a highly competitive standard rate of 9.9% p.a. variable on purchases, balance transfers and cash withdrawals plus protection against online fraud and identity theft.

For the first six months, Click credit card customers will be able to receive discounts as follows:

30% off Zavvi.com
25% off Travelpack.com
20% off and free delivery with Tedbaker.com
50% off viagogo.co.uk

Brian Cole, Managing Director, Capital One said: "The Click credit card is an ideal way for bargain hunters to access a great range of brands and new retail partners will be introduced every three months.

The card also offers a highly competitive flat rate of 9.9% p.a. variable for purchases, balance transfers and cash withdrawals. And with our enhanced fraud and identify theft protection, customers can feel reassured that they shop online securely."

Every three months, customers will receive new discounts offered by other retailers. Click Card customers can access these discounts through the eXtras plus website which safely links to Capital One's partner websites.

Notes to Editors
¹ Discounts at Zavvi.com, viagogo.co.uk, Travelpack.com and Tedbaker.com are available on an unlimited basis for 6 months from the date of registration at www.capitalone-extrasplus.co.uk.

• 30% discount at Zavvi.com excludes games consoles, laptops (including ipads), ipods and mobile phones
• 25% discount at Travelpack.com is valid on featured holidays when purchasing holiday packages for a minimum of two people
• 50% discount at viagogo.co.uk is valid when purchasing two tickets across a selection of events. Standard booking and postage fees apply
• 20% discount plus free delivery at Tedbaker.com is valid on full priced merchandise only

Access to additional discounts will be provided every three months and will each be valid for three months.

Representative Example: Assuming a credit limit of £1,200 and an interest rate on purchases of 9.94% p.a. variable, you will receive a 9.9% APR representative variable.

Capital One clicks with online bargain hunters

Released 28th June 2011

• Online shoppers expect discounts of up to 20% over High Street prices, research shows

Shoppers expect discounts of up to 20% over the High Street when they buy online - and spent an incredible £39 billion in the last year on holidays, music, live entertainment and clothes, new research from Capital One shows¹.

Capital One has launched its first credit card targeted at online shoppers - the Click Card - which offers discounts of up to 50% at a range of retail groups² as well as a highly competitive standard rate of 9.9% p.a. variable on purchases, balance transfers and cash withdrawals plus protection against online fraud and identity theft.

Research reveals a boom in online shopping with customers now booking 85% of sporting events, two thirds (66%) of holidays, and buying 62% of music on the web. The £39 billion spent online on holidays, clothes, music and live entertainment amounted to well over half the total amount spent online². Holidays booked online accounted for the largest portion with over £27 billion of business conducted via the web last year.

Capital One's study reveals how internet shopping has thrived in the tough economic climate as consumers expect to pay lower prices online than on the high street. For example, three quarters (75%) of consumers buying music, DVDs and books online said they would only do so if they received a 20% discount. When it comes to booking a holiday, we expect a price drop of 15%.

Apart from better prices, when asked what consumers like most about online shopping, the top three reasons were: being able to shop at any time; no wasted trips due to items being out of stock; and no queues.

According to Capital One's research, the web has also sharpened up our shopping skills. One in four consumers (27%) admitted that the internet had made them savvier shoppers while over a third (35%) said they wouldn't make a substantial purchase without first comparing prices or checking for discounts online. And one in five (20%) said they were more aware of the products and services available since starting to shop online.

Brian Cole, Managing Director, Capital One said: "The Click credit card is an ideal way for bargain hunters to access a great range of brands and new retail partners will be introduced every three months. The card also offers a highly competitive flat rate of 9.9% p.a. variable for purchases, balance transfers and cash withdrawals. And with our enhanced fraud and identify theft protection, customers can feel reassured that they shop online securely."

For the first six months, Click credit card customers will be able to receive discounts as follows:

30% off Zavvi.com
25% off Travelpack.com
20% off and free delivery with Tedbaker.com
50% off viagogo.co.uk

Every three months, customers will receive new discounts offered by other retailers. Click Card customers can access these discounts through the eXtras plus website which safely links to Capital One's partner websites.

Notes to Editors
¹Opinium research surveyed 2,023 British Adults via online omnibus from 10th-14th June 2011. The results have been weighted to nationally representative criteria.
²Discounts at Zavvi.com, viagogo.co.uk, Travelpack.com and Tedbaker.com are available on an unlimited basis for 6 months from the date of registration at www.capitalone-extrasplus.co.uk.

• 30% discount at Zavvi.com excludes games consoles, laptops (including ipads), ipods and mobile phones
• 25% discount at Travelpack.com is valid on featured holidays when purchasing holiday packages for a minimum of two people
• 50% discount at viagogo.co.uk is valid when purchasing two tickets across a selection of events. Standard booking and postage fees apply
• 20% discount plus free delivery at Tedbaker.com is valid on full priced merchandise only

Access to additional discounts will be provided every three months and will each be valid for three months.

Representative Example: Assuming a credit limit of £1,200 and an interest rate on purchases of 9.94% p.a. variable, you will receive a 9.9% APR representative variable.

Helping students tackle school to work transition

Released 27th June 2011

Capital One launches To Your Credit
Nottingham based Capital One and Education Business Futures have launched an innovative new financial education board game, To Your Credit, which will be available to all Nottinghamshire secondary schools.

To Your Credit is aimed at Key Stage 4 students (14-16 year olds), and supports the move from school into the workplace and the financial and lifestyle decisions that are made during this time. It links lifestyle aspirations with income and expenditure and income with qualifications and skills. In the game each player takes on the role of a different character, helping them to achieve a successful lifestyle. The winner is the first player to achieve their personal targets with their finances properly managed and on track.

The game will be launched at an event taking place at The National Ice Centre in Nottingham on Wednesday 29 June between 4pm to 6pm.¹ Attendees will receive a free training session and the opportunity to take away up to six free copies, normally available at £25 each.

To develop the game, Capital One worked closely with PFEG, Education Business Futures, Citizens Advice Bureau, Nottingham Credit Union and various local schools.
All Nottinghamshire secondary schools will receive copies accompanied by teacher training to get the most from this game. Capital One employees will also volunteer in schools to play the game with the students.

Brian Cole, Capital One UK Managing Director said: "We're excited to be launching To Your Credit, which enables youngsters to learn about financial responsibility and have fun at the same time. Following the initial launch in Nottinghamshire we're hopeful that To Your Credit will be rolled out nationally.

To Your Credit builds on our existing financial education programme for young people which currently focuses on working with local Nottinghamshire schools. The programme includes senior management and other employees holding personal economics sessions in schools and the development of educational materials."

To Your Credit complies with the Social Health and Economic Education National Curriculum regarding financial capability through personal finance education, which states that pupils should be able to manage their money, explain financial terms and products, understand financial risk and reward and identify how finance will play an important part in their lives and in achieving their aspirations.

To Your Credit has been awarded the pfeg quality mark and supports the KS3 and 4 curriculums in Maths, English and Social Health and Economic Education.

Notes to Editors
¹The event takes place during pfeg's 'My Money' week - see www.pgeg.org for further details of this initiative. To register, please email ebf.admin@futuresnn.co.uk.