Resolve to Pile on the Pounds in 2013

CHESTER, England, December 11, 2012 /PRNewswire/ --

  • Reviewing your finances for 2013 could mean an extra £2,260[1]in 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.[2] 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.[1]

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[3] 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:

[1]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


[2] 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

[3] 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

Our customers

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.

Our providers

By having considerable volumes of informed customers actively looking for products and ready to purchase, we offer our providers an efficient and cost effective customer acquisition solution across all of our channels. This enables our providers to target their marketing spend in an effective and completely measurable way.

Our revenue comes predominantly from fees paid to us by product providers when a customer clicks through to their website and actually applies for or purchases a product. It is a success based marketing fee.

Our customer commitment

  • We make it easy to find the brands you expect to see
  • We strive to ensure a product cannot be found cheaper by going direct
  • We let you remain in control of your personal data
  • We are independent and impartial
  • We make it easy to switch and save
  • We strive to always show the most competitive product available

For further information, please contact:
Paul Lawler
PR Manager (Financial Services)
+44-(0)1244-370-317
paul.lawler@moneysupermarket.com

SOURCE moneysupermarket.com



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