Staying Loyal to One Bank or Building Society Doesn't Always Pay
CHESTER, England, May 9, 2012 /PRNewswire/ --
- Shopping Around for the Best Deals Could Save £780* Over the Current Best 'Own Bank' Deals
Consumers who stay loyal to their bank or building society for all their financial products could be paying around £780 more over a year compared to those who shop around for the best deals, according to analysis by MoneySupermarket.
The analysis by Britain's number one comparison site found when comparing the current best products (mortgages, savings, loans and current accounts) based on the actual cost over 12 months from each of the main high street banks**, existing customers at Santander get the most value for money followed by Halifax and First Direct. However, by shopping around and electing for the best value deals on the market, consumers could save at least £784.06 in the first year compared to taking all your products with the same provider.
For example, anyone using the Lloyds TSB Classic Current Account with Vantage will get a reasonable, but not market leading deal on savings products, but will be offered a loan rate of 11.3 per cent, much higher than the 6.0 per cent offered by Derbyshire Building Society. Looking across all product areas it can be seen consumers should mix and match rather than stick to the same provider for everything.
Kevin Mountford, head of banking at MoneySupermarket, said: "For many people, keeping their finances simple and staying loyal to their bank may seem like a good option, however by doing this they are failing to make the most of their money. Our analysis shows loyalty doesn't always pay, and people who have a 'one stop shop' for all their financial needs will not necessarily be rewarded. Banks cannot be competitive in every product area, so although one may offer a market leading current account deal, their savings or mortgage products may not be as generous.
"At a time when finances are tight, consumers need to make every penny count and ensure they get as much bang for their buck as possible. This means regularly checking their rates to ensure their money is working as hard for them as possible and scouring the market to check their products stack up against other providers.
"Switching to the best deals in the market is a quick and easy way consumers can give themselves a welcome pay rise with minimum effort required. This can be used to help boost savings pots or help pay off outstanding debt. We urge consumers to get online, review their finances and make sure they are getting the best deal for their needs."
Provider Mortgage Cash ISA Easy Access Credit Card Loan Current Account Total 3.00% 0% for 17 0.00% 2.99% 3.30% eSaver months Everyday GBP995 fees Direct ISA Issue 5 3.00% fee 6.7% Current Account Santander GBP11,970.34 GBP186.12 GBP1,500 GBP60.00 GBP261.12 GBP0.00 -GBP10,605.34 GBP5.00 per 3.00% 2.80% 0% for 15 month 2.99% ISA Saver Online months Reward Current GBP995 fees Online Saver 3.00% fee 8.8% Account Halifax GBP11,970.34 GBP169.20 GBP1,400 GBP60.00 GBP346.81 GBP60.00 -GBP10,747.95 0.00% - GBP100 1.25% 0% for 20 switching 2.89% 0.50% Everyday months incentive GBP499 fees Cash e-ISA e-Saver 2.90% fee 6.1% 1st Account first GBP11,594.78 GBP28.20 GBP625 GBP58.00 GBP238.85 GBP100.00 -GBP11,138.43 direct 4.25% Flexclusive ISA (existing FlexAccount 3.17% 0% for 17 3.59% customers MySave months 0.00% GBP999 fees only) Online Plus 2.95% fee 6.3% FlexAccount NationwideGBP12,753.18 GBP239.70 GBP1,585 GBP59.00 GBP245.16 GBP0.00 -GBP11,232.64 0% for 20 2.99% 3.00% 1.00% months 0.00% GBP999 fees e-ISA e-savings2.90% fee 8.9% Select Account NatWest GBP11,972.34 GBP169.20 GBP500 GBP58.00 GBP349.08 GBP0.00 -GBP11,710.22 2.64% 0.75% 0% for 23 GBP1,999 1.75% Online months 0.00% fees Cash e-ISABonus Saver 3.3% fee 6.2% Bank Account HSBC GBP12,029.30 GBP98.70 GBP375 GBP66.00 GBP241.23 GBP0.00 -GBP11,862.83 3.09% 2.65% 0% for 15 2.00% 1.5% + GBP99 Cash ISA 2.50% months Classic Account fees Saver eSavings 3.00% fee 11.3% with Vantage Lloyds TSBGBP13,150.50 GBP149.46 GBP1,250 GBP60.00 GBP447.72 GBP20.04 -GBP12,238.36 3.05% 1.26% 0% for 22 3.49% Loyalty e-Savings months 0.00% GBP999 fees Reward ISA Reward 2.9% fee 9.9% Bank Account Barclays GBP12,621.18 GBP172.02 GBP630 GBP58.00 GBP406.44 GBP0.00 -GBP12,283.60 9.9% for 5 0.00% The 3.49% 0.50% 0.25% years Current Account Co-operativeGBP0 fees Cash ISA Smart Saver 0% fee 7.9% Plus Bank GBP12,121.68 GBP28.20 GBP12.50 GBP306.80 GBP308.88 GBP0.00 -GBP12,696.66 Nationwide BS 4.25% Flexclusive First Direct ISA Nationwide 1st Account (existing BS Barclaycard first directFlexAccount 3.17% 0% for 22 Derbyshire0% - GBP100 2.89% customers MySave months BS switching Best In GBP499 fees only) Online Plus 2.9% fee 6.0% incentive Market GBP11,594.78 GBP239.70 GBP1,585 GBP58.00 GBP233.20 GBP100 -GBP9,931.28 Sourced by http://www.moneysupermarket.com 26.04.2012
* Based on annual cost of:
£200,000 mortgage, two year fixed inc fees (based on best rate);
£5,640 in a cash ISA;
£50,000 in an easy access savings account;
£2,000 balance transfer on a credit card;
£7,500 on a loan over 5 years;
Current account with a £1,000 balance
Mortgage and Loan Interest calculated.
** Based on published customer deals currently available although some providers may offer alternative existing customer deals which are not openly advertised.
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