Resolve to Pile on the Pounds in 2013
CHESTER, England, December 11, 2012 /PRNewswire/ --
- Reviewing your finances for 2013 could mean an extra £2,260in your pocket
Britain's hard pressed households could give themselves a New Year financial boost in 2013 by resolving to pile on the pounds. Simply taking a short amount of time to review finances and switching to more competitive deals could save households in the UK thousands of pounds, analysis from MoneySupermarket has shown.
Kevin Mountford, head of banking at MoneySupermarket said: "As we head into 2013, the impact of further austerity measures and rising bills will be leaving many households on the financial precipice. Now, more than ever, every penny counts. Different households face different challenges; our research shows the biggest financial worry for a quarter of people is increasing energy bills as we enter the cold winter months. Four in ten are more concerned about falling savings rates and a further one in ten stated their biggest financial worry is the uncertain job market.
"No matter what your main financial concern is in the current economic climate, it is vital you put your house in order in the New Year to ensure your finances are on the right track for 2013. There are still savings to be made for the average household as many Brits are languishing on products which provide a low return or cost far more than they need to. Apathy is rarely rewarded, so taking a few minutes to search the market, comparing the deals you are currently on with what is being offered and switching to a better deal could be the best resolution you make this New Year."
Mortgages - Save £794
The area where often the biggest saving can be made is your mortgage, but remortgaging won't be possible for everyone. However, there are still ways to free up a sizeable amount of money. Homeowners should ensure they are getting the best deal possible - even a small difference in rate can greatly affect the overall monthly mortgage payment. Switching a £150,000 mortgage from the average standard variable rate (SVR) of 4.33 per cent to the current market leading two year tracker rate from ING Direct at 2.49 per cent would save £794 annually.
Savings - Save £104
Savers had a tough time in 2012 with interest rates falling and inflation remaining high resulting in savings pots being squeezed from all sides. Switching from an easy account paying the average rate of 0.27 per cent to a Marks & Spencer Everyday Savings Account offering 2.35 per cent could generate an extra £104 in interest based on a savings pot of £5,000. Don't be put off by lower rates - it's still worth moving your money into the highest paying accounts, especially if you have never shifted your savings.
Personal Loans - Save £205
Analysis from MoneySupermarket found the personal loan market saw average rates for loans between £7,500 and £15,000 hit their lowest level for over a decade November, so for consumers looking to borrow over £7,500 it pays to shop around. Swapping a £7,500 five year loan at an average rate of 10.53 per cent to the Derbyshire Building Society loan at 5.4 per cent would generate an annual saving of £205.
Current Accounts - Save £90
Switching your current account provider to one that pays a good rate of interest could earn you some additional cash. The 1st Account from First Direct currently offers £100 to switch to the account. This would earn you £90 over the year compared to an account with an average rate of 0.65 per cent. However, if you use an overdraft every month, you could save £46 by switching from an account with an average overdraft rate of 19.65 per cent again to First Direct's 1st Account. Its overdraft charges an AER of 15.9 per cent with the first £250 interest free.
Credit cards - Save £238
Recent research from MoneySupermarket revealed only nine per cent of credit card users plan to switch cards in the next six months. With many Brits planning to pay for Christmas on their credit or store card this year, it could prove costly if they are not on the best deal for their circumstances. For those carrying over debt from Christmas spending into the New Year, they should ensure they get the best deal with a balance transfer card. By switching £2,000 worth of debt on a card with an average APR of 17.32 per cent to the market leading Barclaycard Platinum credit card, there would be no interest to pay for 24 months. This would amount to an annual saving of £238 taking into account the balance transfer fee.
Car and home insurance - Save £525
Insurance is essential for financial security and a legal requirement for motorists, but people should look to find the best value cover to suit their needs. It doesn't have to break the bank, and following a few simple tips could help save pounds on essential cover that ensures peace of mind. For example, many people make the mistake of over-estimating the level of cover needed on their home and end up forking out extra as a result. Carefully think through the levels of cover you need. Similarly, paying annually for your home insurance will be cheaper than paying monthly if you can afford to do so, and adding a partner or, if you are a younger motorist, adding an older driver to your car insurance policy can also help cut costs.
There are great savings to be made by scouring the market to find the most competitive policies available to suit your needs. On average, consumers who use MoneySupermarket.com to switch their insurance provider can save £400 on car insurance and £125 on home insurance a combined saving of £525.
Utilities - Save £214
The winter nights have now set in and it will be an expensive Christmas for any household languishing on their provider's standard tariff following recent energy price increases. Saving money on your energy bills can be easily achieved by searching the market and ensuring you are on the right tariff for your consumption level and region. The easiest way to make savings is to move to a dual fuel online direct debit deal. By switching to the best online dual fuel tariff instead of staying on the average standard QCC tariff, customers could save on average £214 over 12 months with First Utility iSave v13.
There are also simple steps to take to reduce consumption and cut down energy bills, for example turning down the thermostat by 1°C can cut your annual bill by ten per cent. Similarly, almost 25 per cent of heat is lost via poorly insulated roofs, so it is worth investing in insulation as an insulated loft can knock £175 off your annual energy bill. Turning appliances off at the wall instead of leaving them on stand-by mode will also help to reduce costs.
TV, phone and internet - Save £91
Bundling your TV, phone and broadband together rather than taking out standalone products could save you £91 a year, and in addition to this you would also benefit from the ease of dealing with one provider rather than three. For example, Sky provides an Entertainment TV Pack which includes broadband, line rental and a TV, with unlimited evening and weekend calls.
Total Saving = £2,261
Notes to editors:
Annual savings sourced by MoneySupermarket
Mortgage - Based on Best Rate (2 Annual GBP150,000 Year Tracker) Average SVR Saving ING Direct 2.49% 4.33% GBP793.54 GBP18,077.08 Inc GBP1,945 fee GBP19,664.16 Loans - GBP7,500 over 5 Annual years Best Rate Average Rate Saving 5.4% Derbyshire BS 10.53% GBP205.20 GBP9,574 GBP8,548 over over the the term term Credit Card - GBP2,000 balance Annual transfer Best Rate Average Rate Saving 24 Months Barclaycard Platinum 17.32% GBP237.85 GBP0 interest GBP301.85 for 24 months, interest for GBP64 BT fee the year Savings - GBP5,000 (Easy Annual Access) Best Rate Average Rate Saving Marks & Spencer Everyday Savings 2.35% (including bonus of 1% for 12 months) 0.27% GBP104.00 GBP117.50 GBP13.50 interest for the interest for year the year Utilities - Best Online Tariff bs Average Average Standard Best Online Standard QCC Annual QCC Tariff Tariff Saving First Utility iSave v13 GBP1,301.79 GBP214.41 GBP1,087.38 Current Account Average Rate - Based on based on Annual GBP1,500 balance Best Rate High Street Saving First Direct - GBP100 cashback for new customers switching accounts 0.65% GBP90.25 GBP100 GBP9.75 Current Account Overdraft - Based on Average Rate GBP1,500 based on Annual overdraft Best Rate High Street Saving First Direct - 15.9% (first GBP250 interest free) 19.65% GBP46.28 GBP196 GBP242.28 Home Insurance - Based on ms.com Average Annual data Saving GBP125.19 Car Insurance - Based on ms.com Average Annual data Saving GBP400.52
Average Monthly Cost (1 Year) (Including Data Product line rental) Max Speed Allowance Phone Entertainment TV Pack Sky Broadband Base Sky Talk Freetime plus Unlimited evening Line Rental GBP32.25 2Mb 2GB and weekend calls GBP17.75 (line rental GBP14.60 per month, call Line Rental + plan GBP3.15 Unlimited evening phone per month) n/a n/a and weekend calls Broadband GBP16.30 8Mb 5GB n/a Basic TV Package GBP5.83 n/a n/a n/a Annual Saving GBP91.56
Home Insurance - Based on ms.com data Average Annual Saving GBP125.19 Car Insurance - Based on ms.com data Average Annual Saving GBP400.52
 Of the following, what is your biggest financial worry?
- Falling savings rates - 39.8%
- Rising energy bills - 24.5%
- The latest inflation rise - 3.9%
- The cost of petrol - 15.1%
- An uncertain job market - 10.1%
- Child benefit cuts - 2.7%
- Affording Christmas - 3.8%
Total votes: 2,106
 Opinium Research carried out an online survey of 2048 UK adults aged 18+ from 16th to 19th November 2012. Results have been weighted to nationally representative data.
MoneySupermarket.com compares (at 30th Oct 2012)
- 129 car insurance brands and 100 home insurance brands
- 10 broadband providers and 18 energy providers
- 30 unsecured loan and 5 secured loan providers
- 62 mortgage lenders and 29 credit card providers
- 66 savings providers and 37 current account providers
- Over 950,000 mobile phone deals
We help our customers to save money on all of their household bills by providing a free, easy to use online service so they can compare a wide range of products in one place and find the product most suited to their needs. Our size means we are able to offer our customers exclusive, market-leading deals, including some they can't even get direct from providers.
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