CHESTER, England, March 6, 2012 /PRNewswire/ --
Switching Household Bills can Save Over £1,000, but Switching Main Financial Products Such as Mortgage and Current Accounts Could Save Over £3,500*
Households are set to be over £1,000 worse off in 2012**, but analysis from MoneySupermarket shows consumers can fight back and pocket significant savings by switching from average deals to the market leading option on a range of financial products.
The analysis from the UK's number one comparison site shows that spending time reviewing all of your personal finances could save over £3,500 over twelve months.
Clare Francis, site editor at MoneySupermarket, said: "The combination of rising living costs, lack of pay increases, and taxation and benefit changes has really put pressure on household budgets. Now, more than ever, every penny counts. As well as watching everyday spending, households should make sure they get the best value from all their financial products, ensure they're not paying over the odds, whilst also maximising the benefits these products can bring. For example, the current average UK savings rate is just 0.31 per cent, while the market leading easy access deal pays ten times that amount.
"Sitting on average rates in the current climate doesn't make sense - those who take control of their finances and make their money work harder will see a real benefit from their actions.
"The area where often the biggest saving can be made is your mortgage, but remortgaging this won't be relevant for everyone. However, there are still ways to free up a sizeable amount of money. Switching to a cheaper credit card or personal loan and making sure you are getting the best deal on your home and car insurance can result in a significant saving over the course of a year."
Mortgages - Saving £1,974.98
A recent MoneySupermarket poll found one in four (26 per cent) consumers had benefited from lower mortgage repayments due to a record low base rate. Despite indications that base rate will remain low for the foreseeable future, many consumers can take advantage of record low mortgage rates now. For example, someone with a £150,000 mortgage on the market average standard variable rate (SVR) of 4.83 per cent could save themselves £1,974.98 a year switching to a two year tracker mortgage from First Direct (£1,499 fee) at 1.99 per cent.
Credit cards - Saving £269.46
Those unable to pay off their credit card debt quickly and looking to spread the repayment costs over a period of time should ensure they move their outstanding debt to a zero per cent balance transfer card, to save hundreds of pounds in interest. Moving the average credit card balance of £2,047*** from the current average rate of 18.4 per cent APR to the market leading 22 month Barclaycard Platinum card would save £269.46 (taking into account the balance transfer fee). MoneySupermarket has aSmartSearch credit profiling tool which matches applicants against the products they are most likely to be accepted for without leaving a mark on their credit file.
Personal loans - Saving £220.80
A personal loan allows consumers to make fixed repayments over a set period of time, ideal for anyone looking to budget. Many new loans are only available to existing current account customers but, consumers should take the time to shop around to make sure they are getting a good deal for their circumstances. If someone had a loan for £5,000 over five years with an average rate of 15.95 per cent APR***, and swapped to the market leading Derbyshire Building Society loan at 7.8 per cent APR, an annual saving of £220.80 could be made.
Current accounts - Earn £50.25 in interest, or save £212.50 on overdraft charges
There are also substantial savings to be made for current account holders. For example, someone holding £1,500 in an account with an average high street rate of 0.65 per cent could gain an extra £50.25 by switching to the Halifax Reward current account which pays a £5 bonus each month if you pay in £1,000. Consumers who rely on their overdraft will also find they can save £212.50 by switching to Santander's Everyday Account as it offers an overdraft rate of zero per cent for four months, after which you will be charged 50p per day to a maximum of £10 per month for an authorised overdraft of £1,500.
Car and home insurance - Save on average £501 on home and motor
While insurance is essential for financial security and peace of mind, and with car insurance being a legal requirement, it's important people only opt for cover that meets their needs. By following a few simple tips, you could see some significant savings on your home and car insurance. Shopping around for cover is essential, especially at the point of renewal to ensure you're getting the best value policy for your money. Additionally, paying annually for cover instead of monthly could cut the cost of your premium, and for car insurance, by adding a partner, or if you are a younger driver, adding an older driver to your policy could also help cut the cost.
There are some great savings to be made if people ensure their insurance is the most competitive available. On average, consumers who use MoneySupermarket.com to switch their providers can save £375 on car insurance and £126 on home insurance.
Utilities - Save £224
For those looking to save money on their energy bills, shopping around to ensure you are on the correct tariff for your usage and region is crucial. Moving online to a 'dual fuel' direct debit deal is the easiest way to make savings; by switching to the best online tariff as opposed to the average standard quarterly cash and cheque (QCC) tariff, customers could save on average £224 over twelve months.
TV, phone and internet - Save £125
Bundling your TV, phone and broadband together rather than taking out standalone products could save you £125 a year, and in addition to this you would also benefit from the ease of dealing with one provider rather than three.
Notes to editors:
[*]Total Annual Saving = £3621.10
Please find below saving comparison tables across a range of commonly used products with leading provider versus average:
Mortgage - Based on £150,000 mortgage
Best Rate (2 Year Tracker) Average SVR Annual Saving First Direct 1.99% 2 year tracker 4.83% GBP1974.98 GBP16,740.20 (inc GBP1,499 fee) GBP20690.16
Loans - £5,000 over 5 years
Best Rate BoE Average Rate Annual Saving Derbyshire BS - 7.8% 15.95% GBP220.80 GBP6,016 over the term GBP7,120 over the term
Credit Card - **market average £2,047 balance transfer
Annual Saving Best Rate Average Rate (minus BT fee) Barclaycard Platinum - 0% for 22 months 18.40% GBP269.46 GBP0 interest for the year, GBP328.82 interest for the GBP59.36 BT fee year
Savings - based on average savings balance £1,501
Best Rate BoE Average Rate Annual Saving Santander - eSaver Issue 4 3.10% 0.31% GBP41.88 GBP46.53 interest for the GBP4.65 interest for the year year
Current Account - Based on £1,500 overdraft
Average Rate based on High Best Rate Street Annual Saving 0% for 4 months Santander Everday Current Account 19.50% GBP212.50 50p per day max GBP10 per month = GBP80 GBP292.50
Current Account - Based on £1,500 balance
Average Rate based on High Best Rate Street Annual Saving Halifax Reward Current Account 0.65% GBP50.25 GBP60 GBP9.75
Utilities - Best Online Tariff vs Average Standard QCC Tariff
Best Online Tariff Average Standard QCC Tariff Annual Saving First Utility iSave v10 GBP1,251.41 GBP224.37 GBP1,027.04
Home Insurance - based on average savings through MoneySupermarket.com
Based on online independent research by Consumer Intelligence during 1 January 2012 Average Annual Saving to 31 January 2012 - This needs to be checked GBP126.37
Car Insurance - based on average savings through MoneySupermarket.com
Based on online independent research by Consumer Intelligence during 1 January 2012 Average Annual Saving to 31 January 2012 GBP375.09
TV, Phone & Broadband
Average Monthly Cost (1 Year) (Including Data Product line rental) Max Speed Allowance Phone TV Variety Pack Sky Broadband Base Unlimited Sky Talk evening and Freetime plus weekend Line Rental GBP32.25 2Mb 2GB calls Line Rental GBP13.90 n/a n/a Anytime Broadband GBP16.30 8Mb 5GB n/a Basic TV Package GBP12.50 n/a n/a n/a Annual Saving GBP125.40
Total Annual Saving GBP3,621.10
Source: MoneySupermarket 5.3.2012
***Bank of England average rate
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MoneySupermarket.com compares (at 31st January 2012)
- 93 car insurance providers and 78home insurance providers
- 11 broadband providers and 16 energy providers
- 30 unsecured loan and 5 secured loan providers
- 63 mortgage lenders and 27 credit card providers
- 68 savings providers and 36 current account providers.
- Over 1,000,000 mobile phone deals
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PR Manager Financial Services