Help to manage money

Bank accounts

Many people don’t like discussing their finances with a bank.  However, having a professional organisation looking after your money is useful.

• Different types of bank account
• Finding the right account
• Managing your bank account
• Accessbility

If you have a mental health problem, especially if you experience low self esteem or are feeling generally low, then talking about money with bank staff can feel particularly difficult. The benefits of having a bank account, however, are very high.

• Your money is in a safe place. If you keep your money at home you might feel anxious about having it stolen.
• You will be able to set up direct debits or standing orders so that your bills get paid on time. This is particularly helpful if your mental health fluctuates or if you have to go into hospital as your bills get paid without you having to think about them. This avoids the anxiety of having financial difficulties to deal with when you’re feeling better.
• Certain utility companies charge you less if you pay by direct debit.
• An overdraft can be agreed with your bank to give you a buffer zone if your expenditure is a little higher than expected every so often. However, if your mental health means that occasionally you go on unplanned shopping sprees, it may be helpful not to have the overdraft option as the temptation to spend might be too great. You may find that you do not want to use an overdraft regularly as they usually charge a high rate of interest.
• You will get regular statements which will help you see where your money is going and will assist you with budgeting.
• You will be able to pay for purchases with a debit card and withdraw money from cash machines. Make sure you choose cash machines that don’t charge you.

Banks are often much friendlier places than they used to be, and many staff are trained to understand disability issues including mental health. Even so, you might decide to take a support worker or trusted friend with you when you go to a bank to open an account, to help you feel more confident.

If you feel that one bank is unfriendly towards you, you can always choose another one as long as there are several in your area.

If you find going into bank branches particularly difficult it may be easier to use online or telephone banking. Your bank will be able to give you the correct phone numbers and internet address.

Different types of bank accounts

Bank accounts are somewhere safe to put your money, receive payments such as wages or benefits, manage your money, pay bills and make purchases in shops or online.

They come in a number of different forms. The most common are:

Basic accounts. These are designed to be easy to understand and use. With a basic account you can:

• pay money in and take money out
• pay your regular bills
• make purchases using a card

They make it easier to avoid spending money you don’t have as they do not offer chequebooks or an overdraft facility (though some offer a small 'buffer zone').

Sometimes bank staff are not aware of what a basic account is as their bank calls it something different but all high street banks do offer them.

Current accounts. These are the most common type of bank account. They are similar to basic accounts however they may have some additional features including a debit card, chequebook and the facility to arrange an overdraft. Current accounts are usually free, though some offer additional features for a monthly charge, such as travel insurance or a higher interest rate.

Savings accounts. These are designed to help save money for the future. They pay interest on the money in the account at a percentage rate and do not usually offer the services associated with a current account, for example you may not be able to withdraw money immediately without losing some of the interest. Most people with a savings account will also have a current account for day-to-day use. Read more about building up savings.

Post Office Card Accounts. These are designed to only receive benefit, state pension or tax credit payments. No other payments can be paid into it. Money in the account can only be withdrawn over the counter at a Post Office branch.

Finding the right account

There are a number of questions to ask to help you find the right type of account. By thinking about these questions you can make sure you are sure what kind of account you want.

• Is there a minimum amount needed to open this account, or is there a minimum monthly balance needed?
• What are the account fees or other charges? Remember that there are many accounts available that do not charge.
• Am I paid interest on my savings and what are the rates?
• What are my options if I am or have been bankrupt, or if I have a record of bad debts?
• What are my options if I may need someone else to manage my finances from time to time
• Do you offer internet banking and is it free?
• Do you offer telephone banking and is it free?
• Where are your branches located?  Make sure that you will be able to get to a branch easily.
• What are your opening hours?
• Am I able to flag this account to look for unusual spending patterns or to prevent it from going overdrawn? 

Managing your bank account

After you have opened your account, you are responsible for the money that goes into it and comes out of it. With debit/credit cards, direct debits etc. it can be easy to lose track of your money.  Your bank may give you a range of documents that will help you manage your account. It is important to read and keep these. Regular statements are useful to:

• keep track of how much money you are paying out and getting in
• the dates that transactions take place
• any interest earned or deducted
• any penalty charges that are applied

Most accounts also offer an online banking facility that means you can monitor your money whenever you wish. If you do this, make sure that you are accessing the correct website and keep security information such as passwords safe. Remember that your bank will never ask you for your password or security number and emails asking for this are likely to be from criminals. Contact your bank if you have any concerns.

You should contact the bank if you need help to understand any of the procedures or information associated with your bank account.

Sometimes anxiety and stress can affect your ability to manage your bank account. For example, you might not want to open letters from your bank or communicate with bank staff. It is important to seek help if you are finding yourself being overwhelmed because otherwise these small issues can spiral into larger ones.  A friend or relative may be able to go through letters with you or be there to support you while you do so.

Accessibility

Your bank will ensure that you are able to access your account. If you have any problems, contact them as soon as possible. For example, if you are unable to use a chip and PIN card, they will be able to arrange for your card to work with a signature.

Saving and borrowing

Savings

If you choose to set aside some money regularly and you haven't done this before, you may be surprised at how quickly you can build up savings.

The main types of saving product are:

• Bank accounts and building society savings accounts
• National Savings and Investments
• Credit union savings accounts

You may have also heard about ISAs (Individual Savings Accounts). These are a type of savings account available from banks, building societies or National Savings and Investments. For an explanation of ISAs see the Money Saving Expert website.

In addition to regular savings accounts, you can also save in special Christmas savings accounts offered by some building societies and most credit unions.

Savings accounts and ISAs are a good way to both keep your money safe and have it earn additional interest. The Money Advice Service provides information about different types of savings on its web pages.

For more information on different types of savings, see the Money Advice Service website.

Interest on your savings

The higher the interest rate on your savings account, the more money you'll earn on your savings.

Your money grows from interest being added either monthly or yearly. Be aware of the impact inflation can have on your savings – if prices are rising quickly your savings may not be able to buy so much. See the section on inflation below for more information.

Interest rates change all the time so it might be good to check regularly to make sure you're getting the most out of your savings.

You might decide to check once a year, or when interest rates change. If you find a better deal, you might decide to switch to a new account - if you do, check first for any penalties or loss of interest on closing the old account.

This doesn't apply to term accounts, where you can't usually take your money out before the end of the set term.

Your bank or building society must tell you if the interest rate on your account changes. They also have to give you the right to switch accounts for free if the interest rate changes significantly.

There are also other ways to save, for example, saving stamps or schemes. Using these can be helpful to save money for particular times such as Christmas but your money doesn't earn any interest, so you will only get back what you put in.

Top tips for interest on savings

1. Shop around - use the Money Advice Service’s Compare savings accounts tool to see what's on offer.
2. Check what notice period the account has to understand how easily you can get to you money
3. Watch out for penalty charges when you make withdrawals.

Investments

There are various types of investment - some will be right for you and others won't. It all depends on your attitude to risk and what you are trying to achieve with your investments.

Think about why you want to invest. Perhaps you are looking for an investment to provide money for a specific purpose in the future. Alternatively, you might want an investment to provide extra income.

Some common types of investments include shares, bonds and Individual Savings Accounts (ISAs). The investments section of the Money Advice service website will help you understand the key issues to consider when investing.

The Money Advice Service website also has useful tables to compare savings products as well as other financial products you may be interested in.

Inflation

Inflation happens when prices go up throughout an economy. The effect of inflation on your money means that the money you save will buy less each year.

To protect your savings against this, you could look for an after-tax interest rate that is more than the rate of inflation. Or if you want to put your money away for a longer period and are prepared to take the risk that your money could fall in value (as well as rise), you could put some into an investment linked to the stock market. For more information visit Investments on the Money Advice Service website.

Help with your money

If you are at all worried about savings and investments then you can contact an independent Financial Adviser (IFA) or similar service. You will most likely be charged a fee for receiving this advice. IFAs are paid to give you advice that fits your own circumstances rather than to sell any particular product.

A useful starting point for obtaining advice is the FSA website that includes a register of all regulated financial services firms, individuals and other bodies. If the firm you use is registered with the FSA and something goes wrong you will be able to access a complaints procedure and possibly compensation.

If you have a mental health problem you may be worried that

• any extended time off work due to your mental health will affect your pension, and
• you might be unable to work due to your mental health and are worried about what will happen when you reach retirement age.

There are a number of options available to people, depending on income and circumstances.

Pensions

If you are earning money you may want to save for when you retire. While most people are entitled to some form of state pension, there are a number of options to save money that will increase the amount you receive after retirement age.

Read about the different types of pensions on the Money Advice Service website.

More information on state pensions is available from DirectGov.

Borrowing money

• Bank overdrafts
• Personal loans
• Interest rates
• Other ways to borrow money
• Mortgages
• Things to look out for when borrowing money

It is important that you think carefully before borrowing money. If your circumstances change, for example if you have to take time off work because of your mental health problem or if you have to go into hospital, you might not be able to keep up repayments.

Top tips:
• Make sure you understand the costs and charges of any borrowing option that you choose.
• Don't borrow for longer than necessary. You’ll pay less each month, but you could pay more interest overall.

Try not to buy items on impulse. If this is a symptom of your mental health problem then talk purchases through with someone you trust before you make any major financial decisions such as a big purchase or taking out a loan or store card.

“Using credit is about understanding the system.  And then seeing if you can have the self discipline to decide not to spend more than you earn. Credit is there for emergencies.”

– Mind focus group participant 

The most common forms of borrowing for the short to medium term are bank overdrafts and personal loans.

Bank overdrafts

A bank overdraft is the most common way of borrowing money. You have an overdraft if you spend money that is not actually in your bank account. Most banks offer authorised overdrafts where you pay a set rate of interest on this money. If you spend more than you have without having an authorised overdraft, your bank is likely to apply extra charges and/or a higher rate of interest.You can find more information on the Money Advice Service website.

Personal loans

Personal loans are amounts of money leant to you by a bank, building society or other organisation. They be can be secured or unsecured:

• Secured loans
  If you own your own home, you can take out a loan secured on it. This usually means you can borrow more money at a lower rate of interest, but if you don’t keep up repayments you could lose your home.
• Unsecured loans
  These are are usually easier to take out and do not put anything you own at risk. They are usually smaller amounts at higher rates of interest than secured loans.

How do they work?
You borrow a fixed amount and usually have to repay it in fixed instalments over a set period (the term). The interest you pay is also usually fixed.

Applying to borrow money

When you apply to borrow money in any of the above ways, you’ll be asked to complete an application form. If you find this worrying or stressful, you could ask a friend or relative to help, or get assistance from your bank. Your answers help the lender to predict how much money you can afford to borrow. This is called a credit score.

Interest rates

You’ll be charged interest on what you borrow, usually monthly. The interest rate varies depending on the type of loan. You can use the APR (Annual Percentage Rate) to help you shop around for the best deal. APR tells you the cost of the loan taking into account the interest on the loan and other charges. All lenders have to tell you what their APR is. 

Other ways to borrow money

• social fund loan - for further information contact  Jobcentre Plus
• family and friends
• bond committees and similar community schemes (ask in your local community, for example, places of religious worship)
• credit unions  
• Community Development Finance Institutions (CDFIs)
• life insurance loan (with some types of life insurance, you may be able to borrow against the value of the policy)
• door-to-door lending

Mortgages

Buying property is an extremely complex process and so is choosing a mortgage. If you take out a mortgate, it is probably the biggest financial decision you will make. Mortgages usually commit you to making repayments for at least 20 years.

It is important that you are sure you will be able to keep up repayments. Worrying about a mortgage is extremely stressful as falling behind on payments can mean that you lose your home. This worry is likely to make mental health problems worse for many people.

I don’t have the heating on all the time, I’ve gone over to actual metres to monitor it because it’s just gone up so much.  You look at the food… my main priority is getting my mortgage paid. – Mind focus group participant 

Consider how your mental health problem affects you. If you have long periods where you can’t work or are in hospital, will you able to keep up repayments? If this is the case and you are taking out a mortgage it is important that you have a clear plan for what will happen to avoid falling behind on repayments.

Before you decide on a mortgage, it is important that you review your monthly outgoings alongside your income and work out whether you can afford the mortgage repayments. If you are currently living with parents then don’t forget to add the cost of utilities such as gas and electric, water and council tax to your budget.

The Money Advice Service's website also has a budget calculator which may help you work out how much money you have available each month. It takes about five minutes to complete. Your answers are completely confidential, and neither Mind nor the Money Advice Service will see your information or pass it on to anyone else.

A number of similar calculators are also available on the internet and as smartphone apps.

If you are experiencing the threat of repossession, it is vital that you get help immediately. If you can come to some arrangement with your mortgage company, it is possible that you will be able to keep your home. You can get help from Citizen’s Advice if you are in this position.

Things to look out for when borrowing money

“I could only get high interest loans which seems to be a problem for most people on low incomes… eventually I couldn’t pay for anything, the letters started arriving, threatening letters, collection agencies would come and visit your property and I didn’t like that.  Phone calls, constant phone calls.” – Mind focus group participant 

Sub-prime lenders
These are licensed lenders who are willing to make loans to people who are unable to get credit from mainstream lenders because of a poor credit record. They often charge a much higher rate of interest than banks and building societies.

Television adverts
Many licensed lenders advertise on television. They tend to be sub-prime lenders. While they may be able to give you credit, it is likely that they will be much more expensive to borrow from than a bank or building society.

Doorstep lenders (sometimes known as ‘home credit’)
Loans from doorstep lenders, such as salespeople who come and knock on your door, are usually very expensive. If you do consider taking out a loan from them, then as well as checking the APR, you should:

• ask to see their lender’s licence or other authorisation. If they don’t have one, they are operating illegally, so don’t use them.
• be clear about the amount you are borrowing, how much you must repay and for how long you will be making repayments.
• ask how much in total the loan is going to cost you.
• make sure you understand what will happen if you can’t keep up the repayments.

Loan sharks
Loan sharks are unlicensed lenders. They operate illegally. They will often lend money when no-one else will, but it is extremely risky to use them:

• Their rates will be very high and you may find it difficult to keep up the repayments.
• You may be forced to get a second loan to pay off the first, causing your debts to spiral out of control.
• They may use violence or intimidation to collect debts.

The government's Directgov website gives an explanation of loan sharks, how to find out if a lender is licensed, what to do if you have borrowed from a loan shark (you are under no legal obligation to repay the debt) and hotline numbers for illegal money lending teams throughout the country and what to do if you are being harassed.

Budgeting

How can I organise my budget?

Managing money can seem difficult and complex to anyone. Mental health problems can make this harder as you may have unexpected drops in income when you are unwell and can’t work. Sometimes it might also feel too difficult to sort out bills and loan repayments.

It is useful to plan in advance if you are likely to feel too ill to deal with money at any time. Making a clear plan means you are less likely to get into difficulties if you have an episode of illness. Simple things such as setting up direct debits so that your bills are automatically paid can make all the difference when you are unwell, especially for essentials such as paying rent or mortgage and utility bills.

Where to start

A good way to start is to keep all your papers relating to financial affairs in one place. Some papers you would want to keep safe are:

• Wage slips
• Bank statements
• P60 forms (showing your tax history)
• Social security benefits papers
• Pension details
• Mortgage payment details
• Rent details (including ground rent and maintenance charges)
• Savings accounts
• Buildings and contents insurance
• Life insurance
• Car insurance
• Car tax
• Gas bills
• Electricity bills
• Phone bills (mobile and landline)
• Water bills
• TV Licence bills
• Credit card bills
• Store card bills
• Catalogue payments
• Membership papers (e.g. for magazines, clubs, emergency road services)
• Loans taken out
• Any outstanding service bills/debts
• Any receipts/papers for money owed to you by services or people you know

Financial health checks

If you need help taking control of your finances and working out how to prioritise your spending, you could take the financial health check from the Money Advice Service. 

This takes only a few minutes; there's no need to dig out bank statements or other papers - there are just a few simple questions to answer and you will receive some suggestions based on the information you have entered.

This service is confidential - neither Mind or the Money Advice Service will see your information or pass it on to anyone else. The healthcheck is just a general guide to your situation. It does not provide financial or other professional advice. If you want advice specifically tailored to your personal circumstances you should consult a financial advisor or welfare benefits adviser.

Budgeting

A budget is a list of the money you have coming in and a list of the things you have to pay for over the same period. Budgeting is a good way to manage your money, and it is particularly useful if you are living on a low income. 

This budgeting table that can be useful to add up the money you have coming in and the money you spend.

	Per week or per month
Income
Wages	£
Pension	£
Social security benefits	£
Grants or funding received	£
Interest on savings accounts	£
Other sources of income	£
Total income received	£
Essential costs
Mortgage/rent	£
Council tax	£
Water rates	£
Gas	£
Electricity	£
Telephone (landline)	£
Mobile telephone	£
Home insurance (contents and building)	£
Hire and HP charges (TV, video, furniture etc.)	£
Home maintenance and repairs	£
Food and household shopping	£
Clothing	£
Public transport fares/taxis	£
Car insurance	£
Car tax	£
Car repairs	£
Petrol	£
Children's clothes, toys, school clothes etc.	£
Care costs	£
Total essential costs	£
Income	£
Less total essential costs	- £
Total available for secondary costs	£
Secondary costs
Savings plans	£
Treats, birthday presents, special occasions	£
Entertainment (meals, drinks, etc.)	£
Holiday	£
Subscriptions to associations, journals, etc.	£
Total secondary costs	£

This is just a guide to see what sort of costs you should be considering. Your circumstances may mean that you have to adapt this table to suit your own particular needs. If you have access to and feel confident using a computer, it may be useful to set up a spreadsheet, so that you can change the items or costs as your circumstances change.

If you require help in assessing your financial situation, you can contact your local Citizens Advice Bureau (CAB).

Budget calculator

A budget calculator helps to confirm how much money you have each month. If you check the amounts you have coming in and going out every month you can get a clear idea of how much you spend and how much money you have left over. Don't forget occasional items and treats, such as holidays, days out and presents.

The Money Advice Service website has a budget calculator is a useful tool. It takes about five minutes to complete. Your answers are completely confidential, and neither Mind nor the FSA will see your information or pass it on to anyone else.

Keeping up to date

Once you have worked out your budget, it is a good idea to review your situation regularly. It is particularly important to review your budget when your circumstances change, for example if you leave work or reduce your working hours and your income goes down.

Top 10 tips to stay within your budget

You may be able to avoid getting into debt problems by using the following tips:

1. Make a record of how much you owe so you can prioritise debt repayments.
2. Keep a close watch on bank balances to avoid bank overdraft charges.
3. Keep a record of all credit card purchases.
4. Always pay more than the minimum payment on credit card bills if you can.
5. Stick to one or two credit cards at a time.
6. Consider transferring balances to a lower rate card, making sure the low rate applies to balance transfers. But be careful of transfer fees.
7. When borrowing, use the lender that offers the lowest interest rate.
8. Check the small print of loans and other credit to find out about all fees and potential increases in repayments.
9. Check out other utility suppliers every year to ensure you are on the best deal.
10. Be wary of 'buy now, pay later', 'interest-free' financing and similar offers that postpone debt.

Credit unions

Credit unions

Many people find credit unions to be a friendlier and more relaxed alternative to using a bank. This option might appeal to you if you have mental health problems and find dealing with banks too daunting. You can pay into credit unions at convenient local shops or collection points or directly from your wages.

Credit unions are owned and controlled by their members. They offer savings and good value loans plus they are locally based and able to monitor their members needs closely. Many credit unions now offer a range of services including a current account (that benefits can also be paid into) and savings products.

Each credit union has a "common bond" which determines who can join it. The common bond may be for people living or working in the same area, people working for the same employer or people who belong to the same association, such as a church or trade union.

If you visit the Association of British Credit Unions Ltd's (ABCUL) credit union search page you can find out what services your local credit union can offer you.

Saving with a credit union

Like a bank savings account paying interest, credit unions usually add money to your account if you save with them. This is usually 2 or 3 per cent a year.

Life savings insurance is usually included, at no cost to the member, making it easy to build up a ’nest egg’ for you and your family. On a member's death, the amount of savings can be as much as doubled by the insurance and paid to whoever the member chooses (subject to conditions).

Investments in local credit unions, means that neighbours or colleagues are benefiting. Credit unions keep money within a community, because there are no outside shareholders to pay.

Borrowing from a credit union

Most credit unions loans will cost you no more than 1 per cent a month on the reducing balance of the loan (equivalent to an Annual Percentage Rate (APR) of 12.7 per cent). This is much cheaper than sub-prime or doorstep lenders.

Credit union loans come with no hidden charges and no penalties for repaying the loan early. Life insurance is built in, at no cost to the borrower, so if you were to die before you had repaid the loan, insurance would repay the loan for you.

When you borrow from a credit union, you may carry on saving, meaning that by the time you finish repaying the loan your savings have grown as well. You can work out how much a credit union loan could cost you by using ABCUL's Loan Calculator.

Most credit unions can lend for up to 5 years (unsecured) and up to 10 years (secured). Some credit unions can lend for up to 10 years (unsecured) and up to 25 years (secured).

More information on credit unions is available in the Money Advice Service's printed guide (pdf).

More information

You can find information about banking services local to you by using the telephone directory or the internet.

More information about bank accounts is available on the Money Advice Service's web pages.

Making a complaint

Complaining

It's never pleasant to have a negative experience with your bank or creditor, but unless people complain about what happened to them or suggest ways they could have been treated better, then it is hard for organisations to improve.

Why do people complain?

If more people make complaints about the poor service they have received then the regulators of these industries will know more about the problems faced by people with experience of mental distress. Also, in some cases, you may be able to get compensation if you have lost money or had a particularly bad experience.

Template letter

You may find this template useful if you are writing to complain to your bank. It can also be adapted for other companies such as credit cards, gas or electricity providers.

Financial Services Authority

The Financial Services Authority is the UK's financial watchdog set up by the government to regulate financial services and protect your rights. This means they set standards that financial services firms have to meet and they will take action if they don't.

Money Advice Service

The Money Advice Service was set up by the government and provides clear, impartial information on their website and in publications, about financial products and services to help make money matters clearer for you.

To get information about how to make a complaint about a financial product or service go to the Money Advice Service's web pages, which takes you step by step through the complaint process and gives you plenty of helpful hints along the way. The Money Advice Service information line is also available on 0300 500 5000.

The Financial Services Ombudsman

If you have already complained directly to the bank, insurance company or financial firm you have experienced a problem with and they have not resolved your complaint, you can contact the Financial Services Ombudsman. 

The ombudsman's job is to settle individual complaints between consumers and businesses providing financial services. Their service is free to consumers. They can look at complaints about a wide range of financial matters - from insurance and mortgages to investments and credit. They are completely independent and impartial - just as a judge would be if the consumer went to court instead. Their service is confidential - they do not publish the names of businesses or consumers whose complaints they handle.

• Call them on their consumer helpline on 0845 080 1800 (office hours) - they will be happy to phone you back, if you're worried about the cost of calling them.
• Email complaint.info@financial-ombudsman.org.uk (they will usually be able to deal with phone queries on the spot - so phoning might be quicker than emailing them).

Their website also provides useful hints on getting your complaint taken seriously.

Getting more information

• The Office of Fair Trading is campaigning to stamp out scams. See their Consumer Direct website for information on spotting and reporting scams.
• For tips on how to stay safe online see the UK banking industry's Bank Safe Online website.
• The Metropolitan Police has a special Fraud Alert website, set up to assist in combating specific types of fraud, and to prevent you becoming a victim of crime.
• Think Jessica, supported by the Police and Trading Standards Institute, gives useful information about scam mail and similar types of fraud.

Avoiding scams and swindles

Scams and swindles are schemes designed to cheat you out of your cash.

They come in many forms and are getting more sophisticated all the time. It is sensible to remain sceptical about any offers of money or free products. If something seems too good to be true it is usually a scam.

If you experience mental health problems, you may have periods where you are more vulnerable to such schemes. Remember to be careful and to ask someone else (a friend or other support person) if you are unsure.

If you experience paranoia, you may feel that people are trying to steal your money. While this may be a symptom of a mental health problem, it still may be the case that you are being targeted by a scam. If possible, it is useful to talk to a friend or relative that you trust when you are feeling you so you can make a plan for how you want them to help if you become worried about your money if you become unwell.

If you have been the victim of one of these scams or have been tempted by one of the offers then don't feel guilty as this sort of thing happens to lots of people. If you feel very shaken or upset by them, do seek support, talk to a trusted friend, contact your local Mind association or ring the Mind Infoline on 0300 123 3393. You can report a scam on the Consumer Direct website from the Office of Fair Trading. Directgov also provides infromation on what to do if you are told that bailiffs may be sent to get money from you.

Common scams

• Identity fraud -  someone impersonates you without your knowledge, often by stealing discarded or lost documents.
• Advance fee schemes - letters or emails that offer you vast sums if you make payments up front.

Investment scams

• Share scams (also known as boiler rooms) - a stranger rings you out of the blue and tries to offer you shares in a company you have never heard of.
• Affinity fraud - investment scams that target members of a group, such as a community or a religious, ethnic, elderly or professional group.
• Chain letters - letters or emails that contain a list of names and guarantee you a huge return for your small initial investment.

Online scams

• Fund transfer scams - require you to use your bank account to transfer money in exchange for a commission or payoff. If you don't get ripped off, there is a danger of being prosecuted for money laundering.
• Online fraud (phishing) - fake websites (often fake banking websites) that crooks use to try and get your login details. A good rule to avoid these is to never click a link in an email that seems to be from your bank - always go and type the bank's website address directly in your browser.

Examples of how people can be affected by scams, provided by the Police and the Trading Standards Institute are available at Think Jessica.

Financial abuse

Financial abuse is when someone is taking advantage of your vulnerability while ill to steal or defraud you of money or other property.

You can limit the risk of this by only sharing financial information with people you definitely trust. If you are concerned that you are being financially abused by a carer or relative, it is important to speak to someone else you trust about what is happening.

If you are worried that you are at risk  then seek help before making any financial decisions. You could ask a friend, your local Mind, or Citizens Advice Bureau.

Mind's Another Assault report also describes how people with mental health problems can be affected by crime, including financial abuse.

Friends and family

If you are a friend or family member of someone who is experiencing mental health problems you may be particularly concerned about that person’s vulnerability to financial scams. If the person does not always have the capacity to make financial it is possible to get a Lasting Power of Attorney (LPA) to enable you to take some control over their spending.

Some mental health problems result in people experiencing paranoia. This can result in them believing that friends or family are attempting to steal their money or other property. This can be very distressing. It also tends to be fluctuating, with someone’s mental health changing dramatically from time to time. People experiencing mania may also make impulsive financial decisions or feel that others are trying to stop them from acting how they wish.

If possible, it is useful to discuss what a person would like you to do if they become ill when they are well enough to consider what actions they would like you to take. This can often involve agreeing something someone that if they begin to behave in a certain way, you will take appropriate actions. If you do make such a plan and someone does become ill, you can then review it with them when they become well again.