Dear Listener

Dear Listener

Would you take money out of your savings account and invest in local infrastructure projects – roads, rail, trams, perhaps telecoms?

The Independent suggested this week that the Treasury was considering utilising the half a trillion pounds sitting in cash savings accounts to fund its National Infrastructure Programme – or a small part of it. The Treasury has denied the report. But I have established that it is being discussed at the highest levels of Government.

It would solve two problems. First, it could give better returns to the millions of savers who struggle to get even 3 per cent on their money. Second, it would fund projects that would create jobs without the Government borrowing it directly.

But there are problems. Who would guarantee the returns to investors? Would their money be safe as in cash? And if the Government guaranteed anything could it still be off the Government’s books as a loan?

I understand these problems are being struggled with as you read this. Only if they are solved will these so-called growth bonds become a reality.

More on my blog www.paullewismoney.blogspot.com

***IN MONEY BOX THIS WEEK***

Spain has its credit rating cut and some Spanish banks are in trouble. We will be updating you live on Saturday.

Bank of Cyprus acts to shelter its 50,000 UK customers under the umbrella of the UK financial compensation scheme. How can it do that? And until it does just how safe is your money in banks that trade in the UK but under a licence from another EU country.

New restrictions are introduced on tempting people out of good company schemes into personal pensions – no cash incentives will be allowed and there must be a free interview with a financial adviser.

Lloyds compensates the estate of a woman to whom it lent 18,000 pounds when she had dementia. The repayments took nearly half her monthly income and the money was found intact in her savings account when she died more than a year later. You can Have Your Say on how banks treat people with mental conditions through our website www.bbc.co.uk/moneybox.

HSBC is adding 6 pounds a month foreign transaction charge to thousands of small business and community group bank accounts. Why? And how can you get the money back?

Investors who put their money through the online Interactive Investor service because it promised no fees are told they must pay 20 pounds a quarter – and pay to transfer their investments out. After we intervened the transfer fees are scrapped. Interactive Investor will be on the programme live to explain.

Subject to the growing crisis in Europe, will we squeeze in all five of these items into our 24 minutes of prime time Radio 4. See what happens by listening live at midday on Saturday, tune in to the repeat on Sunday 9pm, or catch up anytime online at www.bbc.co.uk/podcasts/series/moneybox. Remember you can put in a regular order for our podcast. More than 200,000 listen that way each week. It is free.

There is more information on our website www.bbc.co.uk/moneybox where you can also download transcripts of past programmes and send us ideas or problems you want us to look into.

This newsletter is available at bbc.co.uk/moneybox/newsletter around the time it hits your inbox - tell your friends who do not subscribe. And you could join the 33,333 people who now follow me on Twitter to enjoy, or rant about, my random but timely thoughts on money and a few other things whenever I am awake at twitter.com/paullewismoney.

Money Box Live is on Wednesday at 3pm when Vincent Duggleby will take your questions on charitable giving.

There is no Money Box next Saturday because it is 16 June and Radio 4 has decided to run Bloomsday across the network. This celebration of James Joyce and Ulysses replaces many programmes – including ours. See http://www.bbc.co.uk/radio4/programmes/schedules/fm/2012/06/16 and  http://en.wikipedia.org/wiki/Bloomsday

But there will soon be exciting news about a special global Money Box on 21 June. More on that in ten days – apostrophe – time.

Best wishes,

Paul

PS I am on Breakfast on BBC One on Saturday probably around 0845 trailing one of the items from Money Box. But no Breakfast spot on Thursday morning this coming week.

e-mail Paul Lewis