In recent months, many people have had to tighten their belts due to a rise in the cost of living. According to figures published in the Guardian, households could be worse off by as much as £1,000 in the coming financial year due to soaring food and energy prices.
When you’re trying to save money, shopping around for the best deals on goods and services can be a great start. Read on to find out the top seven financial products people never switch, and why that’s costing you.
1. Bank accounts
How good is the service from your bank?
If you’re unlikely to recommend your bank, you’re not alone. The most recent study of satisfaction reveals that only around half of customers would be happy to recommend the likes of Virgin Money, TSB, Royal Bank of Scotland and HSBC.
Despite this, according to a recent report by a leading price comparison site, more than half of Brits have never switched their current account. However, by doing so you could find a provider who offers a superior level of service, as well as more competitive deals on interest rates or overdraft facilities.
While it may seem like a hassle, changing banks has actually never been so easy due to the Current Account Switch guarantee. Essentially, this means that your new bank will transfer your payments and your balance, while your previous one will close your old account.
2. Broadband provider
In the modern day, broadband is an important utility, especially if you choose to work from home some of the time. Despite this, many people do not change their provider once theirs has been set up.
Shopping around can be a great way to save money if you’re looking to reduce your monthly bills. You may even find a broadband provider who offers you higher download speeds and larger bandwidth than you already have.
3. Credit card
Credit cards are useful for making large purchases but can also be very expensive. If you use yours regularly, switching between providers can be an easy way to save money.
According to data from the Bank of England, published by consumer information site Which?, while the average interest rate for credit cards is 23%, some are as low as 9.9% APR. Furthermore, you may also want to move to a provider who charges lower annual fees.
Changing your credit card can also net you more useful perks and benefits, such as cashback or loyalty points.
4. Mobile phone provider
Another useful way to save money is by switching your mobile phone or landline service provider. By shopping around and comparing prices, you could shave a significant amount off your monthly bills.
Despite how easy it can be to switch, according to research from Which?, more than two-fifths of people surveyed stated that they had been with their provider for more than five years.
When comparing different networks, you may also want to see what types of contracts are available. For example, if you’re happy with your current phone and don’t feel the need to change, you could opt for a sim-only deal, which would be much cheaper.
5. Home insurance
Your home is one of your most valuable assets and contains a lifetime of precious family memories. This is why it’s so important to protect it against any unexpected issues.
If you want to reduce your outgoings, it can be important not to simply auto-renew your cover when it comes to an end. Instead, shopping around between insurers can save you a considerable amount of money.
Not only might different providers offer you cheaper protection, but you may find another type of cover that better suits your needs.
6. Energy supplier
The ongoing war in Ukraine has caused energy prices to spike, due to the international sanctions on Russian oil and gas. According to the Guardian, utility bills could rise by a further £600 to £1,000 a year due to the conflict, which could significantly eat into your income.
This is why it’s more important than ever to shop around and compare the prices offered by different suppliers. If you’re trying to save money, doing this can help to minimise the impact that the spike in energy prices will have on you.
7. Mortgage provider
Your mortgage is probably your largest financial commitment, which is why it can also be a useful area in which you can save money. If you’re trying to reduce your outgoings, you may benefit from remortgaging.
If your current mortgage term is coming to an end, it may be worth comparing the rates offered by other providers. Depending on the size of your existing mortgage, you could save a considerable amount of money by switching.
Of course, moving to a new mortgage can be a major financial decision, which is why it’s important to ensure that the one you switch to is right for you. This is where seeking professional advice can benefit you.
When you work with a financial planner, they can help you to make informed decisions about your wealth. This can give you greater confidence when managing your finances and peace of mind to know you’re doing so in the most effective way.
Get in touch
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Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
Buy-to-let (pure) and commercial mortgages are not regulated by the FCA.
Think carefully before securing other debts against your home.